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SBC Exports Ltd.

BSE: 542725 Sector: Others
NSE: N.A. ISIN Code: INE04AK01010
BSE 00:00 | 27 Nov 42.15 0.10
(0.24%)
OPEN

42.10

HIGH

42.15

LOW

42.10

NSE 05:30 | 01 Jan SBC Exports Ltd
OPEN 42.10
PREVIOUS CLOSE 42.05
VOLUME 6000
52-Week high 43.10
52-Week low 23.10
P/E 34.83
Mkt Cap.(Rs cr) 45
Buy Price 42.00
Buy Qty 3000.00
Sell Price 42.40
Sell Qty 3000.00
OPEN 42.10
CLOSE 42.05
VOLUME 6000
52-Week high 43.10
52-Week low 23.10
P/E 34.83
Mkt Cap.(Rs cr) 45
Buy Price 42.00
Buy Qty 3000.00
Sell Price 42.40
Sell Qty 3000.00

SBC Exports Ltd. (SBCEXPORTS) - Auditors Report

Company auditors report

TO THE MEMBERS OF SBC EXPORTS LIMITED

Report on the Financial Statements

We have audited the accompanying financial statements of SBC EXPORTS LIMITED whichcomprise the Balance Sheet as at 31/03/2019 the Statement of Profit and Loss Cash flowStatement for the year then ended and a summary of the significant accountingpolicies and other explanatory information.

Auditor's Opinion

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 at31/03/2019 and its Profit for the year ended on that date.

Basis for Opinion

We conducted our audit in accordance with the Standards on Auditing (SAs) specifiedunder section 143(10) of the Companies Act 2013. Our responsibilities under thoseStandards are further described in the 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 and the Rules thereunder and we have fulfilled our other ethical responsibilities in accordance with theserequirements and the Code of Ethics. We believe that the audit evidence we have obtainedis sufficient and appropriate to provide a basis for our opinion.

Responsibility of Management and Those Charged with Governance (TCWG)

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 position financial 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 of 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.

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 and using the going concern basis of accounting unless managementeither intends to liquidate the Company or to cease operations or has no realisticalternative but to do so.

The Board of Directors are also responsible for overseeing the Company's financialreporting process.

Auditor's Responsibility

Our objectives are to obtain reasonable assurance about whether the financialstatements as a whole are free from material misstatement whether due to fraud or errorand to issue an auditor's report that includes our opinion. Reasonable assurance is a highlevel of assurance but is not a guarantee that an audit conducted in accordance with SAswill always detect a material misstatement when it exists. Misstatements can arise fromfraud or error and are considered material if individually or in the aggregate theycould reasonably be expected to influence the economic decisions of users taken on thebasis of these financial statements.

As part of an audit in accordance with SAs we exercise professional judgment andmaintain professional skepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of the financialstatements whether due to fraud or error design and perform audit procedures responsiveto those risks and obtain audit evidence that is sufficient and appropriate to provide abasis for our opinion. The risk of not detecting a material misstatement resulting fromfraud is higher than for one resulting from error as fraud may involve collusionforgery intentional omissions misrepresentations or the override of internal control.

• Obtain an understanding of internal control relevant to the audit in order todesign audit procedures that are appropriate in the circumstances. Under section 143(3)(i)of the Companies Act 2013 we are also responsible for expressing our opinion on whetherthe company has adequate internal financial controls system in place and the operatingeffectiveness of such controls.

• Evaluate the appropriateness of accounting policies used and the reasonablenessof accounting estimates and related disclosures made by management.

• Conclude on the appropriateness of management's use of the going concern basisof accounting and based on the audit evidence obtained whether a material uncertaintyexists related to events or conditions that may cast significant doubt on the Company'sability to continue as a going concern. If we conclude that a material uncertainty existswe are required to draw attention in our auditor's report to the related disclosures inthe financial statements or if such disclosures are inadequate to modify our opinion.Our conclusions are based on the audit evidence obtained up to the date of our auditor'sreport. However future events or conditions may cause the Company to cease to continue asa going concern.

• Evaluate the overall presentation structure and content of the financialstatements including the disclosures and whether the financial statements represent theunderlying transactions and events in a manner that achieves fair presentation.

We communicate with those charged with governance regarding among other matters theplanned scope and timing of the audit and significant audit findings including anysignificant deficiencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have compliedwith relevant ethical requirements regarding independence and to communicate with themall relationships and other matters that may reasonably be thought to bear on ourindependence and where applicable related safeguards.

Report on Other Legal and Regulatory Requirements

As required by the Companies (Auditors' Report) Order2016("the Order")issued by the Central Government of India in terms of sub section (11) of section 143 ofthe Companies Act 2013. We give in the Annexure A statements on the matters specified inparagraphs 3 and 4 of the order to the extent applicable.

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 purposes 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 dealt with by this Reportare 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 the written representations received from the directors as on31/03/2019 taken on record by the Board of Directors none of the directors isdisqualified as 31/03/2019 from being appointed as a director in terms of Section 164 (2)of the Act.

(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".

(g) With respect to the other matters to be included in the Auditor's Report inaccordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 in our opinionand to the best of our information and according to the explanations given to us:

i. The Company has disclosed the impact of pending litigations on its financialposition in its financial statements.

ii. The Company has made provision as required under the applicable law or accountingstandards for material foreseeable losses if any on long-term contracts includingderivative contracts. iii. There has been no delay in transferring amounts required to betransferred to the Investor Education and Protection Fund by the Company.

FOR R N K A & CO.
(Chartered Accountants)
Reg No. :021745N
CA RAJESH KUMAR
Partner
M.No. : 506726
Date: 25/09/2019
Place: Delhi

ANNEXURE – A

Reports under the Companies (Auditor's Report) Order 2016 (CARO 2016) for the yearended on 31st March 2019

To

The Members of SBC EXPORTS LIMITED

We report that:-

Sl. No. Comment Required on Auditor's Opinion on Following Matter Auditor's Remark
(i) Fixed Assets a) Whether the company is maintaining proper records showing full particulars including quantitative details and situation of fixed assets? The company has maintained proper records showing full particulars including quantitative details and situation of fixed assets.
b) Whether these fixed assets have been physically verified by the management at reasonable intervels; whether any material discrepancies were noticed on such verification and if so whether the same have been properly dealt with in the books of accounts? Fixed assets have been physically verified by the management at reasonable intervals; No material discrepancies were noticed on such verification.
c) Whether the title deeds of immovable properties are held in the name of the company? lf not provide the details thereof. YES
(ii) Inventory Whether physical verification of inventory has been conducted at reasonable intervals by the management and whether any material discrepancies were noticed and if so whether they have been properly dealt with in the books of account? Physical verification of inventory has been conducted at reasonable intervals by the management.
(iii) Loans Secured or Unsecured Granted Whether the company has granted any loans secured or unsecured to companies firms Limited Liability partnerships or other parties covered in the register maintained under section 189 of The Companies Act 2013? if so The company has not granted any loans secured or unsecured to companies firms or other parties covered in the register maintained u/s 189 of the companies Act- 2013.
a) Whether the terms and conditions of the grant of such loans are not prejudicial to the company's interest?
b) Whether the schedule of repayment of principal and payment of interest has been stipulated and whether the repayments or receipts are regular?
c) If the amount is overdue state the total amount overdue for more than ninety days and whether reasonable steps have been taken by the company for recovery of the principal and interest?
(iv) Loan to director and investment by the company In respect of loans investments guarantees and security whether provisions of section 185 and 186 of the Companies Act 2013 have been complied with. If not provide the details thereof. While doing transaction for loans investments guarantees and security provisions of section 185 and 186 of the Companies Act 2013 have been complied with.
(v) Public Deposits In case the company has accepted deposits whether the directives lssued by the Reserve Bank of India and the provisions of sections 73 to 76 or any other relevant provisions of the Companies Act 2013 and the rules framed thereunder where applicable have been complied with? If not the nature of such contraventions be stated; lf an order has been passed by Company Law Board or National Company Law Tribunal or Reserve Bank of India or any court or any other tribunal whether the same has been complied with or not? The company has not accepted any Deposits.
(vi) Cost Accounting Records Whether maintenance of cost records has been specified by the Central Government under sub-section (1) of section 148 of the Companies Act 2013 and whether such accounts and records have been so made and maintained? The Company is not required to maintain cost records pursuant to the Rules made by the Central Govenment for the maintenance of cost records under sub-section (1) of section 148 of the Companies Act 2013.
(vii) Statutory Compliance a) Whether the company is regular in depositing undisputed statutory dues including provident fund employees' state insurance income tax sales-tax service tax duty of customs duty of excise value added tax cess and any other statutory dues to the appropriate authorities and if not the extent of the arrears of outstanding statutory dues as on the last day of the financial year concerned for a period of more than six months from the date they became payable shall be indicated? The company is regular in depositing the undisputed statutory dues including provident fund employees` state insurance income tax sales tax wealth tax service tax custom duty excise duty. Cess and other statutory dues applicable to the Company with the appropriate authorities. No undisputed amounts payable in respect of the aforesaid statutory dues were outstanding as at the last day of the financial year for a period of more than six months from the date they became payable.
b) Where dues of income tax or sales tax or service tax or duty of customs or duty of excise or value added tax have not been deposited on account of any dispute then the amounts involved and the forum where dispute is pending shall be mentioned. (A mere representation to the concerned Department shall not be treated as a dispute) There is no dispute with the revenue auhorities regarding any duty or tax payable.
(viii) Loan from Banks/ Financial Institution Whether the company has defaulted in repayment of loans or borrowing to a financial institution bank government or dues to debenture holders? If yes the period and the amount of default to be reported (in case of defaults to banks financial institutions and government lender wise details to be provided) The company has not defaulted in repayment of dues to financial institution or a bank.
(ix) Application of Money Received from Equity or Loan Whether moneys raised by way of initial public offer or further public offer {including debt instruments) and term loans were applied for the purposes for which those are raised. If not the details together with delays or default and subsequent rectification? if any as may be applicable be reported. The Company has not applied term loans for the purposes other than for which those are raised
(x) Fraud Reporting Whether any fraud by the company or any fraud on the Company by its officers or employees has been noticed or reported during the year? Based on our audit procedures and the information and explanation made available to us no such fraud noticed or reported during the year.
(xi) Managerial Remuneration If yes the nature and the amount involved is to be indicated; whether managerial remuneration has been paid or provided in accordance with the requisite approvals mandated by the provisions of section 197 read with Schedule V to the Companies Act? If not state the amount involved and steps taken by the company for securing refund of the same. Managerial remuneration has been paid or provided in accordance with the requisite approvals mandated by the provisions of section 197 read with Schedule V to the Companies Act.
(xii) Nidhi Company - Compliance with Deposits Whether the Nidhi Company has complied with the Net Owned Funds to Deposits in the ratio of 1:20 to meet out the liability and whether the Nidhi Company is maintaining ten per cent unencumbered term deposits as specified in the Nidhi Rules 2014 to meet out the liability? As per information and records available with us The company is not Nidhi Company.
(xiii) Related Party Transactions Whether all transactions with the related parties are in compliance with section 177 and 188 of Companies Act 2013 where applicable and the details have been disclosed in the Financial Statements etc. as required by the applicable accounting standards? Yes All transactions with the related parties are in compliance with section 177 and 188 of Companies Act 2013 where applicable and the details have been disclosed in the Financial Statements etc. as required by the applicable accounting standards.
(xiv) Issue of Share Capital and use of Amount Raised Whether the company has made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year under review and if so as to whether the requirement of section 42 of the Companies Act 2013 have been complied with and the amount raised have been used for the purposes for which the funds were raised. If not provide the details in respect of the amount involved and nature of non-compliance? No Company has not made any preferential allotment or private placement of Shares or fully or partly convertible debenture during Financial Year 2018- 19.
(xv) Transaction with Director Whether the company has entered into any non-cash transactions with directors or persons connected with him and if so whether the provisions of section 192 of Companies Act 2013 have been complied with? The company has entered into any non-cash transactions with directors or persons connected with him and the provisions of section 192 of Companies Act 2013 have been complied with.
(xvi) Registration from RBI Whether the company is required to be registered under section 45-IA of the Reserve Bank of lndia Act 1934 and if so whether the registration has been obtained? The company is not required to be registered under section 45-IA of the Reserve Bank of lndia Act.

 

FOR R N K A & CO.
(Chartered Accountants)
Reg No. :021745N
CA RAJESH KUMAR
Partner
M.No. : 506726
Date: 25/09/2019
Place: Delhi

"Annexure B"

To the Independent Auditor's Report of even date on the Standalone Financial Statementsof SBC EXPORTS LIMITED.

Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143 of the Companies Act 2013.

We have audited the internal financial controls over financial reporting of SBC EXPORTSLIMITED as of March 31 2019 in conjunction with our audit of the standalone financialstatements 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.

Auditors' Responsibility

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 auditinvolves performing procedures to obtain audit evidence amout the adequacy of the internalfinancial control system over financial reporting and their operating effectiveness. Ouraudit of internal financial controls over financial reporting assessing the risk that amaterial weakness exists and operating effectiveness of internal control based on theassessed risk. The procedures selected depend upon on the auditor's judgment includingthe assessment of the risks of material misstatement of the financial statements whetherdue to fraud or error. We believe that the audit evidence we have obtained is sufficientand appropriate to provide a basis for our audit opinion on the Company's internalfinancial controls system over 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 authorizations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorized 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.

Opinion

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 2019 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 issues by the Institute of CharteredAccountants of India.

FOR R N K A & CO.
(Chartered Accountants)
Reg No. :021745N
RAJESH KUMAR
Partner
M.No. : 506726
Date: 25/09/2019
Place: Delhi

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