| We have audited the attached Balance Sheet of S.B. & T INTERNATIONAL
LIMITED ("the Company") as at 31st March, 2014, the Statement of
Profit & Loss Account and the Cash Flow Statement of the company for
the year ended on that date annexed thereto.
Respective Responsibility Of The Management And The Auditor:
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.
Basis of Opinion:
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 misstatements. An audit includes
examining, on test basis, evidence supporting the amounts and
disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
Opinion:
We report as under:
I. As required by the Companies (Auditor's Report) Order, 2003, as
amended by the Companies (Auditoc's Report) (Amendment) Order, 2004,
issued by the Central Government of India in terms of Section 227 (4A)
of the Companies Act, 1956 (the "Act") and on the basis of such
checks of the books and records of the Company as we considered
appropriate and according to the information and explanation given to
us by the management, we enclose in the Annexure a statement on the
matters specified in paragraphs 4 and 5 of the said Order.
II. Further to our comments in the Annexure referred to in paragraph I
above:
a) We have obtained all the information and explanation, which to the
best of 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 the Company so far as appears from our examination of the
books.
c) The Balance Sheet, Statement of Profit & Loss Account and Cash Flow
Statement dealt with by this report are in agreement with the books of
account.
d) In our opinion, Statement of Profit & Loss Account, Balance Sheet
and Cash Flow Statement comply with Accounting Standards referred to in
sub-section (3C) of Section 211 of the Companies Act, 1956 with General
Circular 15/ 2013 dated 13th ,September 2013 of the Ministry of
Corporate Affairs in respect of Section 133 of the Companies Act 2013
to the extent they are applicable to the Company.
e) On the basis of written representations received from the Directors
of the Company as on 31st March, 2014, and taken on record by the Board
of Directors of the Company, we report that none of the Director is
disqualified as on at 31st March, 2014 from being appointed as a
Director in terms of clause (g) of sub-section (1) of section 274 of
the Act.
1) in case of the Balance Sheet, of the state of affairs of the company
as at 31st March, 2014,
2) in case of Statement of Profit & Loss Account, of the Loss of the
company for the year ended on that date; and
3) in case of the Cash Flow statement, of the cash flows of the Company
for the year ended on that date.
Fixed Assets:
1. We are informed that the company is maintaining proper records
showing full particulars, including quantitative details and situation
of fixed assets.
2. According to the representations provided to us, the company has a
regular programme of physical verification of its fixed assets over a
period of three years, which in our opinion is reasonable having regard
to the size of the company and the nature of its assets. In accordance
with this programme, certain fixed assets were physically verified by
the Management during the year.
3. During the year, the Company has not disposed off substantial part
of its fixed assets to affect going concern assumption.
Inventories:
4. We are informed that, physical verification of inventory has been
carried out by the management during the year. In our opinion, the
frequency of verification is reasonable.
5. According to the information and explanations given to us, the
procedure of physical verification of inventory followed by the
management is reasonable and adequate according to the size of the
company and the nature of the business.
6. On the basis of the representation of the company, we are of the
opinion that the Company is maintaining proper records of inventory.
Related party transactions:
7. According to the information and explanation given to us, the
company has granted interest free unsecured loans to two companies
covered in the register maintained under section 301 of the Act. The
maximum amount involved during the year is of Rs. 3,203.71 lacs.
8. In our opinion, the terms and condition (other than rate of
interest) on which loan have been granted by the company to the parties
listed in the register maintained under section 301 of the Act, are
prima facie not prejudicial to the interest of the company.
9. According to the information and explanations given to us, receipt
of the amount is regular.
10. In our opinion and according to the information and explanations
given to us, the company has taken reasonable steps, where overdue
amount is more than one lac for recovery of the amount.
11. According to the information and explanations given to us, the
company has taken interest free unsecured loans from two directors,
three relatives of director and one firm and loan from two companies
covered in the register maintained under section 301 of the Act. The
maximum amount involved during the year is aggregated to Rs. 793.44
lacs.
12. In our opinion and according to the information and explanation
given to us the terms and conditions including the rate of interest for
such loan is taken are not prima facie prejudicial to the interest of
the company.
13. According to the information and explanations given to us, the
payment of the amount is regular.
Contracts or Arrangements with 301 Parties
14. According to the information and explanations given to us, the
transactions in which directors were interested as contemplated under
Section 297 and sub section (6) of section 299 of the Act, and which
were required to be entered in the register maintained under section
301 of the said act, have been so entered.
15. According to the information and explanations given to us, each of
these transactions exceeding the value of rupees five lacs in respect
of any party during the year, are made at a price, which are reasonable
having regard to the prevailing market prices at the relevant time.
Internal Controls:
16. An internal control procedure for the purchase of inventory and
fixed assets and for the sale of goods has improved.
Internal Audit:
17. In our opinion, the company has an adequate internal audit system
commensurate with its size and nature of its business.
Deposits:
18. In our opinion and according to the information and explanations
given to us, the company has complied with the provision of Section 58A
and 58AA of the Act or any other relevant provisions of the Act, and
the NBFC (Reserve Bank) Directors, 1998 / Companies (Acceptance of
Deposits) Rules, 1975 with regard to the deposits accepted from public
during the earlier years. Further, as informed to us no order has been
passed by the Company Law Board, National Law Tribunal, Reserve Bank of
India or any other court or Tribunal.
Statutory Dues:
19. According to the information and explanations given to us, the
company is regular in depositing undisputed statutory dues including
Provident Fund, Investor Education and protection fund, employees state
insurance, income tax, sales tax, wealth tax, custom duty, cess and
other statutory dues, if any, applicable to it. As explained to us the,
provision regarding service tax and excise duty is presently not
applicable to the company. However undisputed amount in respect of the
following dues are outstanding for a period of more than six months:
Name of Statute Nature of the Dues Amount Pending from the
(Rs. in Lacs) financial year
Income Tax Act Corporate Dividend Tax 3.02 2009 - 10
Income Tax Act Corporate Dividend Tax 2.86 2010 - 11
Income Tax Act Income Tax 34.14 2009 - 10
Income Tax Act Income Tax 5.53 2010 - 11
MVAT Act Sales Tax 6.18 2011 - 12
Maharashtra
Profession Act Profession Tax 1.20 2011 - 12
Maharashtra
Profession Act Profession Tax 1.12 2012 - 13
Maharashtra
Profession Act Profession Tax 1.06 2013 - 14
20. According to the information and explanations given to us, there
are no dues of income tax, sales tax, wealth tax, service tax, custom
duty, excise duty and cess which have not been deposited on account of
any dispute except for the following:
Name of Statute Nature of the dues and Amount Forum where
period to which it (Rs. In lacs) dispute
relates is pending
Custom Act, 1962 2004-05 to 2008-09 64.24 Deputy
Commissioner
of Customs,
SEEPZ-SEZ
Accumulated / Cash losses:
21. The company does not have any accumulated losses at the year end,
but has incurred cash losses during the financial year Rs. 335.76 lacs.
Further during the previous year the company has not incurred any cash
losses.
Default in repayment of dues:
22. According to the information and explanations given to us, the
company is irregular in repayment of banks Loans.
Loans and Advances granted on the basis securities:
23. According to the records of the company and according to the
information and explanations provided to us, we are of the opinion that
the company has not granted loans and advances on the basis of security
by way of pledge of shares, debentures and other securities.
Guarantees Given:
24. According to the information and explanations provided the company
has not given any guarantee for loans taken by others from banks or
financial institutions.
Sources and Application of Funds:
25. Based on our examination of the balance sheet of the company as at
March 31,2014 on an overall basis and as per the information and
explanation given to us, we find that no funds raised on short term
basis were utilized for long term purpose.
Preferential Allotment:
26. According to the information and explanations given to us, the
company has not made preferential allotments of shares to parties
listed in the register maintained under section 301 of the Act.
Fraud:
27. Based upon the audit procedures performed and information and
explanation 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.
Miscellaneous:
28. The clauses (viii), (xiii), (xiv), (xvi), (xx) of the paragraph 4 &
5 of the order are not applicable to the company and hence not reported
upon.
For M.M DUBEY & Co.
Chartered Accountants
M.M.DUBEY & CO
PROPRIETOR
Membership No. 30453
Place: Mumbai
Date: 4th September, 2014
| 