S & T Corporation Ltd.
|BSE: 514197||Sector: Others|
|NSE: N.A.||ISIN Code: INE110Q01015|
|BSE 00:00 | 16 Jan||S & T Corporation Ltd|
|NSE 05:30 | 01 Jan||S & T Corporation Ltd|
|BSE: 514197||Sector: Others|
|NSE: N.A.||ISIN Code: INE110Q01015|
|BSE 00:00 | 16 Jan||S & T Corporation Ltd|
|NSE 05:30 | 01 Jan||S & T Corporation Ltd|
The Members of
S AND T CORPORATION LIMITED
Report on the Financial Statements
We have audited the accompanying financial statements of S AND T CORPORATION LIMITED("the Company") which comprise the Balance Sheet as at March 31 2017 theStatement of Profit and Loss Cash Flow Statement for the year then ended and a summary ofsignificant accounting policies and other explanatory information.
Management's Responsibility for the Financial Statements
The Company's Board of Directors is responsible for the matters stated in Section134(5) of the Companies Act 2013 ("the Act") with respect to the preparation ofthese financial statements that give a true and fair view of the financial positionfinancial performance and cash flows of the Company in accordance with the accountingprinciples generally accepted in India including the Accounting Standards specified underSection 133 of the Act read with Rule 7 of the Companies (Accounts) Rules 2014. Thisresponsibility also includes maintenance of adequate accounting records in accordance withthe provisions of the Act for safeguarding the assets of the Company and for preventingand detecting frauds and other irregularities; selection and application of appropriateaccounting policies; making judgments and estimates that are reasonable and prudent; anddesign implementation and maintenance of adequate internal financial controls that wereoperating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the financial statements thatgive a true and fair view and are free from material misstatement whether due to fraud orerror.
Our responsibility is to express an opinion on these financial statements based on ouraudit.
We have taken into account the provisions of the Act the accounting and auditingstandards and matters which are required to be included in the audit report under theprovisions of the Act and the Rules made there under.
We conducted our audit in accordance with the Standards on Auditing specified underSection 143(10) of the Act. Those Standards require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetherthe financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the financial statements. The procedures selected depend on theauditor's judgment including the assessment of the risks of material misstatement of thefinancial statements whether due to fraud or error. In making those risk assessments theauditor considers internal financial control relevant to the Company's preparation of thefinancial statements that give a true and fair view in order to design audit proceduresthose are appropriate in the circumstances. An audit also includes evaluating theappropriateness of the accounting policies used and the reasonableness of the accountingestimates made by the Company's Directors as well as evaluating the overall presentationof the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the financial statements
In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid financial statements give the information required by the Actin the manner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India of the state of affairs of the Company as at March312017 and its Profit/Loss and its Cash Flow for the year ended on that date.
Emphasis of Matters
We draw attention to the following matters in the Notes to the financial statements:
Note No. 3 to the financial statement which indicates that the managerial remunerationpaid as the provisions of section 197 read with Schedule V with the Companies Act;
Note No. 4 to the financial statements which indicate that the share of profit for theyear ended 31/03/2017 from the firms in which the company is partner is not accounted foras the books of accounts of the firms are not finalized & the effects on the financialstatements can not been determined.
Note No 9 to the financial statement which indicates that the company has beenaccounting for payments of gratuity & leave encashment as and when it is actuallypaid.
Our opinion is not modified in respect of this matter.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor's Report) Order 2017 ("the Order")as amended issued by the Central Government of India in terms of sub-section (11) ofsection 143 of the Act we give in the "Annexure A" a statement on thematters specified in paragraphs 3 and 4 of the Order.
2. As required by section 143 (3) of the Act we report that:
a. We have sought and obtained all the information and explanations which to the bestof our knowledge and belief were necessary for the purpose of our audit;
b. In our opinion proper books of account as required by law have been kept by theCompany so far as it appears from our examination of those books;
c. The Balance Sheet the Statement of Profit and Loss and the Cash Flow Statementdealt with by this Report are in agreement with the books of account
d. In our opinion the aforesaid financial statements comply with the AccountingStandards specified under section 133 of the Act read with Rule 7 of the Companies(Accounts) Rules 2014.
e. On the basis of written representations received from the directors as on March 312017 taken on record by the Board of Directors none of the directors is disqualified ason March 312017 from being appointed as a director in terms of Section 164 (2) of theAct.
f. With respect to the adequacy of the internal financial controls over financialreporting of the Company and the operating effectiveness of such controls refer to ourseparate Report in "Annexure B".
With respect to the other matters to be included in the Auditor's Report in accordancewith Rule 11 of the Companies (Audit and Auditors) Rules 2014 in our opinion and to thebest of our information and according to the explanations given to us:
The Company does not have any pending litigations which would impact itsfinancial position.
The Company did not have any long-term contracts including derivative contractsfor which there were any material foreseeable losses.
There were no amounts which were required to be transferred to the InvestorEducation and Protection Fund by the Company.
The Company has provided requisite disclosures in its financial statements as toholding as well as dealings in specified bank notes during the period from 8thNovember 2016 to 30th December 2016 & this are in accordance with the booksof accounts maintained by the company.
"ANNEXURE A" TO THE INDEPENDENT AUDITORS' REPORT
Referred to in paragraph 1 under the heading 'Report on Other Legal & RegulatoryRequirement' of our report of even date to the financial statements of the Company for theyear ended March 31 2017:
1. Fixed Assets
a. According to information & explanations given to us the company has maintainedproper records showing full particulars including quantitative details and situation offixed assets.
b. According to information & explanations given to us all the assets have notbeen physically verified by the management during the year but there is a regular programof verification which in our opinion is reasonable having regard to the size of thecompany and the nature of its assets. No material discrepancies were noticed on suchverification.
c. According to information & explanations given to us the title deeds of immovableproperties are held in the name of the company.
a. According to information & explanations given to us the inventory has beenphysically verified during the year by the management. In our opinion the frequency ofverification is reasonable.
b. According to information & explanations given to us the procedures of physicalverification of inventories followed by the management are reasonable and adequate inrelation to the size of the company and the nature of its business.
c. In our opinion according to information & explanations given to us the companyis maintaining proper records of inventory. The discrepancies noticed on verificationbetween the physical stocks and the book records were not material.
3. Loans granted by the Company
a. According to information & explanations given to us the following are theparticulars of loans granted by the company to companies firms and other parties coveredin the register maintained under section 189 of the Companies act 2013:
b. In our opinion the rate of interest and other terms and conditions on which loanshave been granted to companies firm or other parties listed in the registers maintainedunder Section 189 of the Companies Act 2013 are not prima facie prejudicial to theinterest of the company.
c. According to information & explanations given to us Payment/Receipt of principalamount and interest on loans granted are regular & there is no overdue principal orinterest on such loans.
4. Loans Investments Guarantees & Security
In our opinion and according to the information and explanations given to us thecompany has complied with the provisions of section 185 and I86 of the Companies Act 2013In respect of loans investments guarantees and security.
5. Deposits from the public
According to the information and explanation given to us company has not accepteddeposits from the public & in view of the same the provisions of section 73 to 76 ofthe Companies Act 2013 and the rules framed there under is not applicable to the company.
6. Cost Records
According to information & explanations given to us the Central Government has notprescribed the maintenance of cost records under section 148(1) of the Companies Act 2013in respect of the activities carried on by the company.
7. Statutory Dues
a. According to information and explanations given to us and on the basis of ourexamination of the books of account and records the Company has been generally regularin depositing undisputed statutory dues including Provident Fund Employees StateInsurance Income-Tax Sales tax Service Tax Duty of Customs Duty of Excise Valueadded Tax Cess and any other statutory dues with the appropriate authorities. Accordingto the information and explanations given to us no undisputed amounts payable in respectof the above were in arrears as at March 31 2017 for a period of more than six monthsfrom the date on when they become payable.
b. According to the information and explanation given to us there are no dues ofincome tax sales tax service tax duty of customs duty of excise value added taxoutstanding on account of any dispute
8. Default in Financial dues
In our opinion and according to the information and explanations given to us theCompany has not defaulted in the repayment of dues to banks. The Company has not taken anyloan either from financial institutions or from the government and has not issued anydebentures.
9. Moneys raised by way of initial public offer or further public offer:
Based upon the audit procedures performed and the information and explanations given bythe management the company has not raised moneys by way of initial public offer orfurther public offer including debt instruments and term Loans during the year.Accordingly the provisions of clause of the Order are not applicable to the Company andhence not commented upon.
Based upon the audit procedures performed and the information and explanations given bythe management we report that no fraud by the Company or on the company by its officersor employees has been noticed or reported during the year.
11. Managerial Remuneration
The Company has paid Managerial remuneration as under
As per the information & explanation given to us the managerial remuneration paidas above comply the provisions of section 197 read with Schedule V with the Companies Act;
12. Nidhi Company
In our opinion the Company is not a Nidhi Company. Therefore the provisions of clauseof the Order are not applicable to the Company.
13. Related Party Transactions
In our opinion all transactions with the related parties are in compliance withsection 177 and 188 of Companies Act 2013 and the details have been disclosed in theFinancial Statements as required by the applicable accounting standards.
14. Preferential Allotment or Private Placement
Based upon the audit procedures performed and the information and explanations given bythe management the company has not made any preferential allotment or private placementof shares or fully or partly convertible debentures during the year under review.Accordingly the provisions of clause of the Order are not applicable to the Company andhence not commented upon.
15. Non Cash Transaction
Based upon the audit procedures performed and the information and explanations given bythe management the company has not entered into any non-cash transactions with directorsor persons connected with him. Accordingly the provisions of clause of the Order are notapplicable to the Company and hence not commented upon.
16. Registration with RBI
In our opinion the company is not required to be registered under section 45 IA of theReserve Bank of India Act 1934 and accordingly the provisions of clause of the Order arenot applicable to the Company and hence not commented upon.
"ANNEXURE B" TO THE INDEPENDENT AUDITOR'S REPORT
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143 of the Companies Act 2013 ("the Act").
We have audited the internal financial controls over financial reporting of S AND TCORPORATION LIMITED ("the Company") as of March 31 2017 in conjunction withour audit of the financial statements of the Company for the year ended on that date.
Management's Responsibility for Internal Financial Controls
The Company's management is responsible for establishing and maintaining internalfinancial controls based on the internal control over financial reporting criteriaestablished by the Company considering the essential components of internal control statedin the Guidance Note on Audit of Internal Financial Controls Over Financial Reportingissued by the Institute of Chartered Accountants of India These responsibilities includethe design implementation and maintenance of adequate internal financial controls thatwere operating effectively for ensuring the orderly and efficient conduct of its businessincluding adherence to company's policies the safeguarding of its assets the preventionand detection of frauds and errors the accuracy and completeness of the accountingrecords and the timely preparation of reliable financial information as required underthe Companies Act 2013.
Our responsibility is to express an opinion on the Company's internal financialcontrols over financial reporting based on our audit. We conducted our audit in accordancewith the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting(the "Guidance Note") and the Standards on Auditing issued by ICAI and deemedto be prescribed under section 143(10) of the Companies Act 2013 to the extentapplicable to an audit of internal financial controls both applicable to an audit ofInternal Financial Controls and both issued by the Institute of Chartered Accountants ofIndia. Those Standards and the Guidance Note require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetheradequate internal financial controls over financial reporting was established andmaintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls system over financial reporting and their operatingeffectiveness. Our audit of internal financial controls over financial reporting includedobtaining an understanding of internal financial controls over financial reportingassessing the risk that a material weakness exists and testing and evaluating the designand operating effectiveness of internal control based on the assessed risk. The proceduresselected depend on the auditor's judgment including the assessment of the risks ofmaterial misstatement of the financial statements whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Company's internal financial controls systemover financial reporting.
Meaning of Internal Financial Controls over Financial Reporting
A company's internal financial control over financial reporting is a process designedto provide reasonable assurance regarding the reliability of financial reporting and thepreparation of financial statements for external purposes in accordance with generallyaccepted accounting principles. A company's internal financial control over financialreporting includes those policies and procedures that (1) pertain to the maintenance ofrecords that in reasonable detail accurately and fairly reflect the transactions anddispositions of the assets of the company; (2) provide reasonable assurance thattransactions are recorded as necessary to permit preparation of financial statements inaccordance with generally accepted accounting principles and that receipts andexpenditures of the company are being made only in accordance with authorisations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorised acquisition use or disposition of thecompany's assets that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls over Financial Reporting
Because of the inherent limitations of internal financial controls over financialreporting including the possibility of collusion or improper management override ofcontrols material misstatements due to error or fraud may occur and not be detected.Also projections of any evaluation of the internal financial controls over financialreporting to future periods are subject to the risk that the internal financial controlover financial reporting may become inadequate because of changes in conditions or thatthe degree of compliance with the policies or procedures may deteriorate.
In our opinion the Company has in all material respects an adequate internalfinancial controls system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at March 31 2017 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note on Audit ofInternal Financial Controls Over Financial Reporting issued by the Institute of CharteredAccountants of India.