TO THE MEMBERS OF S & T CORPORATION LIMITED
We have audited the accompanying standalone financial statements of S &TCORPORATION LIMITED ("The Company") which comprise the balance sheet as at31st march 2019 the statement of profit & loss the cash flow statement& the statement of changes in equity for the year then ended & a summary of thesignificant accounting policies & other explanatory information.
In our opinion & to the best of our information & according to the explanationsgiven to us the aforesaid standalone financial statements give the information requiredby the companies act 2013 in the manner so required & give a true & fair view inconformity with theIndian accounting standards prescribed u/s. 133 of the act read withcompanies(Indian Accounting Standards) Rules 2015 as amended (Ind AS) & otheraccounting principles generally accepted in India of the state of affairs of the companyas at 31st march 2019 & profit/loss (changes in equity)& its cashflows for the year ended on that day.
Basis for Opinion
We conducted our audit in accordance with the standards on auditing (SAs) specifiedunder section 143(10) of the company's act 2013 our responsibilities under thosestandards are further described in auditor's responsibilities for the audit of thefinancial statements section of our report. We are independent of the company inaccordance with the code of ethics issued by the institute of chartered accountants ofIndia together with the ethical requirements that are relevant to our audit of thefinancial statements under the provisions of the companies act 2013 & the rules thereunder & we have fulfilled our other ethical responsibilities in accordance with thisrequirements & the code of ethics. We believe that the audit evidences we haveobtained are sufficient & appropriate to provide a basis of our opinion.
Key Audit Matter
Key audit matters are those matters that in our professional judgement were of mostsignificance in our audit of financial statements of the current period. These matterswere addressed in the context of our audit of the financial statement as a whole & informing our opinion thereon & we do not provide a separate opinion on these matters.We have determined the matter described below to be the key matter to be communicated inour report
|Sr. No ||Name of Party ||Relationship with ||Amount (in Rs.) ||Year End Balance (in Rs.) |
|1 ||RAJYOG ENTERPRISE-LOAN ACCOUNT ||PARTNER IN PARTNERSHIP FIRM ||42294568/- ||42294568/- |
|2 ||RAJYOG ENTERPRISE- PARTNERS CONTRIBUTION TOWARDS CAPITAL ||PARTNER IN PARTNERSHIP FIRM ||27000/- ||27000/- |
|3 ||RAJYOG CONSTRUCTION- LOAN ACCOUNT ||PARTNER IN PARTNERSHIP FIRM ||251867/- ||251867/- |
|4 ||RAJYOG CONSTRUCTION- PARTNERS CONTRIBUTION TOWARDS CAPITAL ||PARTNER IN PARTNERSHIP FIRM ||2200/- ||2200/- |
|5 ||RAJYOG REALTORS- LOAN ACCOUNT ||PARTNER IN PARTNERSHIP FIRM ||67955467/- ||67955467/- |
|6 ||RAJYOG REALTORS- CONTRIBUTION TOWARDS CAPITAL ||PARTNER IN PARTNERSHIP FIRM ||37500/- ||37500/- |
The Share of Profit 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 have not been determined.
Information other than the financial statements & auditors report thereon
The company's board of directors is responsible for the other information. The otherinformation comprises the information included in the board's report including annexuresthereto business responsibility statement & management discussion & analysiscollectively referred to as other information but does not include the financialstatements & our auditors report thereon.
Our opinion on the standalone financial statement does not cover the other information& we do not express any form of assurance conclusion thereon.
In connection with our audit of the standalone financial statements our responsibilityis to read other information & in doing so consider whether the other information ismaterially inconsistent with the standalone financial statements or our knowledge obtainedduring the course of our audit or otherwise appears to be materially misstated.
Based on the work we have performed we conclude that there is material misstatement ofthis information we are required to report that fact we have nothing to report in thisregard.
Responsibility of Management for standalone financial statements
The company's board of directors is responsible for the matters stated in section134(5) of the companies act with respect to the preparation of this standalone financialstatements that give a true & fair view of the financial position financialperformance changes in equity & cash flows of the company in accordance with theaccounting principles generally accepted in India including the accounting standardsspecified under section 133 of the act read with rules 7 of the companies accounts rules2014. The responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the act for safeguarding the assets of the company &for preventing & detecting frauds & other irregularities selection &application of appropriate accounting policies making judgments& estimates that arereasonable & prudent & design implementation & maintenance of adequateinternal financial controls that were operating effectively for ensuring the accuracy& completeness of the accounting records relevant to the preparation &presentation of the financial statements that give a true & fair view & are freefrom material misstatement whether due to fraud or error.
In preparing the financial statements management is responsible for assessing thecompany's ability to continue as a going concern disclosing as applicable mattersrelated to going concern & using the going concern basis of accounting unlessmanagement either intends to liquidate the company or to cease operations or has norealistic alternative but to do so.
Those board of directors is also responsible for overseeing the company's financialreporting process.
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about wither the financial statementsas a whole are free from material misstatement whether due to fraud or error & toissue an auditor's report that includes our opinion. Reasonable assurance is a high levelof assurance but is not guarantee that an audit conducted in accordance with SAs willalways detect a material misstatement when it exists. Misstatements can arise from fraudor error & are considered material if individually or in the aggregate they couldreasonably be expected to influence the economic decisions of users taken on the basis ofthis financial statements.
Report on other legal & regulatory requirements
As required by section 143(3) of the act we report that
1. We have sought & obtained all the information & explanations which to thebest of our knowledge & belief were necessary for the purpose of our audit.
2. In our opinion proper books of account as required by law have kept by the companyso far as it appears from our examination of these books.
3. The balance sheet the statement of profit & loss & the cash flow statement& statement of changes in equity dealt with by this report are in agreement with thebooks of account.
4. In our opinion the aforesaid standalone financial statements comply with theaccounting standards specified under section 133 of the act read with rule 7 of thecompany's accounts rules 2014.
5. On the basis of written representations received from the directors as on 31stmarch 2019 taken on record by the board of directors none of the directors isdisqualified as on 31st march 2019 from being appointed as a director in termsof section 164(2) of the act.
6. As required by the companies (auditors report order 2016 issued by the centralgovernment in terms of section 143(11) of the act we give in Annexure a statement on thematters specified in paragraph 3 & 4 of the order.
7. With respect to the adequacy of the internal financial controls over financialreporting of the company & the operating effectiveness of such controls refer to ourseparate report in annexure. Our report expresses an unmodified opinion on the adequacy& operating effectiveness of the company's internal financial controls over financialreporting.
8. With respect to other matters to be included in the auditor's report in accordancewith the rule 11 of the companies audit & auditors rules 2014 in our opinion & tothe best of our information & according to the explanations give 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 & protection fund by the company.
For Vridhi & Associates
CA. Vridhi Dalal
M. NO. 166936
Annexure A" to the Independent Auditors' Report
Referred to in paragraph 1 under the heading Report on Other Legal &Regulatory Requirement' of our report of even date to the standalone Ind AS financialstatements of the Company for the year ended March 31 2019:
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 if any are held in the name of the company.
a. According to information & explanations given to us the inventory if any hasbeen physically verified during the year by the management. In our opinion the frequencyof verification 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:
|S.N o ||Name of Party ||Relationship with Company ||Amount (in Rs.) ||Year End Balance (in Rs.) |
|1 ||RAJYOG ENTERPRISE- LOAN ACCOUNT ||PARTNER IN PARTNERSHIP FIRM ||42294568/- ||42294568/- |
|2 ||RAJYOG CONSTRUCTION- LOAN ACCOUNT ||PARTNER IN PARTNERSHIP FIRM ||251867/- ||251867/- |
|3 ||RAJYOG REALTORS-LOAN ACCOUNT ||PARTNER IN PARTNERSHIP FIRM ||67955467/- ||67955467/- |
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 GST and any other statutory dues with the appropriate authorities.According to the information and explanations given to us no undisputed amounts payablein respect of the above were in arrears as at March 31 2019 for a period of more than sixmonths from 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.
As per the information & explanation given to us& the records made availablefor our verifications no managerial remuneration was paid during the year.
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 thestandalone Inds AS Financial Statements as required by the applicable accountingstandards.
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 ofthe Reserve Bank of India Act 1934 and accordingly the provisions of clause of the Orderare not applicable to the Company and hence not commented upon.
For Vridhi & Associates
CA. VRIDHI DALAL
"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 2019 in conjunction withour audit of the standalone Inds AS financial statements of the Company for the year endedon 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 to the best of our information & according to the explanation givento us the Company has in all material respects an adequate internal financial controlssystem over financial reporting and such internal financial controls over financialreporting were operating effectively as at March 31 2019 based on the internal controlover financial reporting criteria established by the Company considering the essentialcomponents of internal control stated in the Guidance Note on Audit of Internal FinancialControls Over Financial Reporting issued by the Institute of Chartered Accountants ofIndia.
For Vridhi & Associates
CA. VRIDHI DALAL