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STI PRODUCTS INDIA LIMITED
ANNUAL REPORT 2010-2011
AUDITORS' REPORT
TO,
THE MEMBERS OF,
STI PRODUCTS INDIA LIMITED,
BANGALORE
We have audited the attached Balance Sheet of STI Products India Limited,
Bangalore, as at 31st March 2011, the Profit and Loss Account and the Cash
Flow statement for the year ended on that dale, annexed thereto. These
financial statements are the responsibility of the Company's management.
Our responsibility is to express an opinion on these financial statements
based on our audit.
1. We conducted our audit in accordance with auditing standards generally
accepted in India. Those standards require that we plan and perform the
audit to obtain reasonable assurance about whether the financial statements
are free of material misstatement. An audit includes examining, on a test
basis, evidence supporting the amounts and disclosures in the financial
statements. An audit also includes assessing tie accounting principles used
and significant estimates made by the management, as well as evaluating the
overall financial statement presentation. We believe that our audit
provides a reasonable basis for our opinion.
2. As required by the Companies (Auditor's Report) Order 2003, issued by
the Central Government of India in terms of sub-section (4A) of Section 227
of the Companies Act, 1956, we enclose in the Annexure a statement on the
matters specified in paragraphs 4 and 5 of the said order.
3. Further to our comments in the Annexure referred to above, we report
that:
i. We have obtained all the information and explanations which to the best
of our knowledge and belief were necessary for the purpose of our audit;
ii. In our opinion proper books of account as required by law have been
kept the Company so far as appears from our examination of those books;
iii. The Balance Sheet, Profit and Loss Account and Cash Flow Statement
dealt with by this report are in agreement with the books of accounts;
iv. In our opinion, the Balance Sheet, Profit and Loss Account and Cash
Flow Statement dealt with by this report comply with the Accounting
Standards referred to in sub-section (3C) of section 211 of the Companies
Act, 1956 subject to non provision of interest of Rs.30,099,071/- to banks
and on unsecured loans. The loss for the year would have been higher at
Rs.30,92,275/- (Refer Note No.2 of Schedule 9).
v. On the basis or written representations received from the directors, as
on 31st March 2011 and taken on record by the Board of Directors, we report
that none of the directors is disqualified as on 31st March 2011 from being
appointed as a director in terms of Section 274(1)(g) of the Companies Act,
1956.
vi. In our opinion and to the best of our information and according to the
explanations given to us The said accounts give the information required by
the Companies Act, 1956, in the manner so required and give a true and fair
view in conformity with the accounting principles generally accepted in
India:
a) In the case of the Balance Sheet, of the state of affairs of the Company
as at 31st March, 2011.
b) In the case of the Profit and Loss Account, of the loss for the year
ended on that date; and
c) In the case of the Cash How Statement, of the Cash Flows for the year
ended on that date.
For G R S R A & CO.,
CHARTERED ACCOUNTANTS
Firm Regn. No.012240S
S. GOVINDA RAO
Place: Bangalore Partner
Date : 30.06.2011. Membership No.20546
ANNEXURE TO THE AUDITORS' REPORT
(Referred in Paragraph 3 of our report of even date to the members of STI
Products India Limited)
1. There are no Fixed Assets in the company as at 31st March, 2011.
2. As there is no inventory no physical verification has been conducted by
the management during the year.
3. The company has neither granted nor taken any loans, secured or
unsecured during the year to/from companies, firms or other parties in
which directors of the company are interested.
4. The Company has not purchased any inventory nor sold any goods during
the year.
5. As per the information for and records, there are no transaction that
need to he entered in the register in pursuance of section 301 of the
Companies Act, 1956.
6. The Company has not accepted any deposit from the public during the
year.
7. There is no internal audit system during the year.
8. As informed to us, the Central Government has proscribed the maintenance
of case records under section 209(1)(d) of the Companies Act, 1956, in
respect of the activities of the company. Their have been no production
activities during the year.
9. The company has no employees and as such not deducted Provident fund and
Employees State Insurance which are to he deposited.
10. As per records and explanations given to us there are no dues of sales
Tax, Income Tax, Customs duty. The which have not been deposited on account
of any dispute.
11. According to the records the accumulated losses at the end of the
financial year is more than fifty percent of its net-worth. The Company has
incurred cash losses in the financial year and also in the immediately
preceding financial year.
12. The Company has defaulted on repayment of dues to financial
institutions and banks. The amount not repaid is Rs. 5,07,39,927/-.
13. The Company has not granted any loans and advances to any parties on
the basis of security by way of pledge of shares, debentures and other
securities.
14. In our opinion, the company is not a chit fund or a nidhi/mutual
benefit fund/society Therefore, the provisions of clause 4(xiii) of the
companies (Auditors Report) order 2003 are not applicable to the company.
15. The company is not dealing or trading in shares, securities, debentures
and other investments.
16. As per the records and explanations given to us, the company has not
given any guarantee for loans taken by others from any financial
institutions or banks.
17. As per the records and explanations given to us, the company has not
taken any term loans during the year.
18. The funds raised on short term basis have not been used for long term
investment and vice versa during the year.
19. As per the records the company has not made any preferential allotment
of shares during the year.
20. As per the records the company has not issued debentures during the
year.
21. The company has not raised any money from public issues during the
year.
22. Based upon the audit procedures performed and information and
explanations given by the management. We report that no fraud on or by the
company has been noticed or reported during the course of our audit.
For G R S R A & CO.,
CHARTERED ACCOUNTANTS
Firm Regn. No.012240S
S. GOVINDA RAO
Place: Bangalore Partner
Date : 30.06.2011. Membership No.20546
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