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Stone India Ltd.

BSE: 522085 | NSE: | Series: NA | ISIN: INE290C01015 | SECTOR: Electric Equipment

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Sep 10, 15:40
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Stone India is not traded on BSE in the last 30 days

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Stone India is not listed on NSE

Annual Report

For Year :
2016 2015 2014 2013 2012 2011 2010 2009 2008

Auditor's Report

We have audited the accompanying standalone financial statements of Stone India Limited (the Company), which comprise the Balance Sheet as at March 31, 2015 and the Statement of Profit and Loss, and Cash Flow Statement for the year then ended, and a summary of the significant accounting policies and other explanatory information. Management''s Responsibility for the Standalone Financial Statements The Company''s Board ofDirectors is responsible for the matters stated in section 134(5) ofthe Companies Act2013 ( theAct) with respect to the preparation of these standalone 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 accounting principles generally accepted in India, including the Accounting Standards specified under section 133 of the Act read with Rule 7 of Companies (Accounts) Rules, 2014. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error. Auditors'' Responsibility Our responsibility is to express an opinion on these financial statements based on our audit. We have taken into account the provisions of the Act, the Accounting and Auditing Standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made thereunder. We conducted our audit in accordance with the Standards on Auditing specified under section 143(10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the financial statements. The procedures selected depend on the auditors'' judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the Company''s preparation of the financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on whether the Company has in place an adequate internal financial control system over financial reporting and the operating effectiveness of such controls. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Company''s Directors, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our qualified audit opinion. Basis for Qualified Opinion i). Attention is drawn to the following notes to the financial statement: (a) In respect of Rental demands from Kolkata Port Trust on the Company pending decision of the Court exact status of the liability and amount payable has not been ascertained; (Note 6(b)) (b) Managerial remuneration amounting to Rs. 250.86 lacs (including Rs.64.11 lacs for the year) is subject to approval of the Central Government; (Note25(a) (c) Revenue recognition shortfall against company''s exposure of Rs.1216.13 towards a project undertaken by a subsidiary including advances of Rs.1006.99 lacs and investment of Rs.1 lac to the subsidiary, pending implementation thereof, has presently not been ascertained; (Note 15(b)&(c)); (d) Stocks lying with third parties (Note 16(c)) and certain debit/credit balances including capital advance as per NoteNo.15(a)&(b) and certain overdue balance of debtors as given in the Note 17(b) and certain bank balances are subject to confirmation/ reconciliation and the consequential adjustments thereof has not been determined; (Note 29) (e) Details regarding Micro, Small and Medium Enterprise are not available and as such required disclosure in this respect could not be given; (Note9(a)) (f) Advances include Rs.104.36 lacs under investigation, impact whereof as such could not be commented upon pending completion of proceedings. (Note 19(b)) (g) Non classification of fixed assets and ascertainment of depreciation thereagainst as per Schedule II of the Companies Act, 2013. (Note 12(8)) ii). Impact with respect to above cannot be ascertained and commented upon by us. Qualified Opinion In our opinion and to the best of our information and according to the explanations given to us, except for the possible effects of the matter described in the Basis for Qualified Opinion paragraph, the aforesaid standalone financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Company as at31st March, 2015, and its Profit/Loss and its Cash Flows for the year ended on that date. Report on Other Legal and Regulatory Requirements As required by the Companies (Auditor''s Report) Order, 2015 (the Order) issued by the Central Government ofIndia in terms of sub-section (11) of Section 143 of the Act, we, according to information and explanations given to us, give in the Annexure a statement on the matters specified in paragraphs 3 and 4 of the Order, to the extent applicable. As requiredbySection 143(3) oftheAct, we report that: a) We have sought and except for matters mentioned in para (d), (e) and (g) under Basis For Qualified Opinion paragraph have obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit; b) In our opinion proper books of accounts as required by law have been kept by the Company so far as appears from our examination of those books; c) The Balance Sheet, the Statement of Profit and Loss, and the Cash Flow Statement dealt with by this Report are in agreement with the books of account; d) Except for the matters described in para (c) and (g) in the Basis For Qualified Opinion paragraph, in our opinion, the Balance Sheet, Statement of Profit and loss and Cash Flow Statement comply with the Accounting Standards specified under section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014; e) The matters described in the Basis for Qualified opinion paragraph above especially those given in Para (a), (c) and (d) therein, in our opinion, may have an adverse effect on the functioning of the Company. f) On the basis of the written representations received from the directors as on March 31, 2015, taken on record by the Board ofDirectors, none of the directors is disqualified as on March 31, 2015, from being appointed as a director in terms of section 164(2) of the Act g) The qualifications relating to the maintenance of accounts and other matters connected therewith are as stated in the Basis for Qualified Opinion paragraph. h) With respect to the other matters to be included in the Auditor''s Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us: i. Pending litigations (other than those already recognized in the accounts) having material impact on the financial position of the Companyhave been disclosed in the financial statement as required in terms of the accounting standards and provisions of the Companies Act, 2013:(Note 28 & 6(b) of the financial statements) ii. The Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses; iii. There was no amount due which is required to be transferred to the Investors Education Protection Fund by the Company. Annexure to the Auditor''s Report our Report of even date: i) a. The Company has maintained proper records to show full particulars including quantitative details and situation of its fixed assets. b. The fixed assets of the Company are physically verified by the management over a phased manner, which we consider reasonable considering the size of the Company and nature of its assets. However, during the year, fixed assets have not been physically verified by the management. However, the necessary reconciliation with the book records with respect to physical verification done in earlier years was yet to be completed and discrepancies if any in this respect as such was not yet ascertainable. ii) a. The inventory except those lying with third parties (Note 16(c) of the financial statements) and in transit has been physically verified by the management during the year. In our opinion and according to the information and explanations given to us, the frequency of verification, wherever carried out, is reasonable. b. In our opinion, excepting as given herein above, the procedures of physical verification of inventory followed by the management are reasonable and adequate in relation to the size of the Company and the nature of its business. c. The Company has maintained proper records of its inventory except for stocks lying with third parties (note 16(c) ofthe financial statements). Pursuant to an exercise for verification and reconciliation thereof initiated in the previous year, even though carried out to a substantial extent, the reconciliation and required adjustment with respect to stock: lying with third parties and those at certain location were in progress at year end. Pending completion of the entire exercise, a provision of Rs. 467 lacs as given in the Note 16(d) of the financial statements has been made. Consequential adjustment against respective inventory items, as explained, will be given effect to on determination thereof. iii) Except for the advances on account of various costs incurred for undertaking Rail Runner and Bio-toilet project by two subsidiaries, as per the records of the company, it has not granted any loans, secured or unsecured, to any companies, firms or other parties covered in the Register maintained under Section 189 of the Companies Act. Advances given to subsidiaries for undertaking the said projects are in the nature of contribution towards the project and is therefore long term and strategic in nature and there are no terms of repayment etc. in this respect and as such we are unable to comment in this respect. iv) Having regard to the explanation given that comparative quotations are not available in respect of items of branded/special nature purchased during the year, in our opinion and according to the information and explanations given to us, there are adequate internal control procedures commensurate with the size of the Company and the nature of its business with regard to the purchase of inventory and fixed assets and for the sale of goods and services. Further during the course of our audit we have neither come across nor have we been informed of any instances of major weaknesses in the aforesaid internal control procedures and continuing failure on the part of the management to take corrective course of action in this regard. v) The Company has not accepted any deposits from public covered under Sections 73 to 76 or any other relevant provisions of the Act and rules framed there under. vi) On the basis of the records produced, we are of the opinion that prima facie the cost records and accounts prescribed by the Central Government under section 148(1) of the Companies Act, 2013 have been maintained for Rail Products. As explained by the management, the same is not required to be maintained for Biotoilets. However, we have not carried out any detailed examination of such records with a view to determine whether they are accurate or complete. vii) a. According to the information and explanations given to us and as per the records of the Company, the Company except for Employees'' State Insurance as mentioned in the Note 10(b) of the financial statements, Income tax, Sales tax, Service Tax, Excise Duty, Cess where there were delays in depositing the dues to appropriate authorities is generally regular in depositing with appropriate authorities undisputed statutory dues including Wealth Tax, Customs, Excise Duty, Provident Fund, Professional Tax, and other material statutory dues applicable to it. However, according to the information and explanation given to us, except those given below, there is no undisputed amounts payable in respect of these which were in arrears, as at 31st March 2015 for a period of more than six months from the date they became payable. Name of Statute Type Amount (Rs. In Lacs) Central Excise Act, 1985 Excise Duty 125.40 The Employees'' Provident Accumulated shortfall 31.10 Fund&MPAct,1952 (Note 33(i)(a) of financial statements) The Central ExciseAct, 1944 Service Tax 0.74 Jharkhand VAT Act, 2005 Value Added Tax 2.38 b) According to the information and explanations given to us, there are no dues of Sales tax, Income tax, Customs Duty, Wealth Tax, Excise Duty, Service Tax and Cess, which have not been deposited on account of any dispute except as given below: Name of Nature Forum where Period to Amount in Statute of Tax dispute is which Rs.Lacs pending related West Bengal Sales Tax Revisional 2004-05 14.30 Sales Tax Act, Board 1995 West Bengal Sales Tax Additional 2012-13 20.58 ValueAdded Commissioner Tax, 2003 Central Sales Sales Tax Revisional 2003-04, 31.68 TaxAct,1954 Board 2004-05and 2005-06 Central Sales Sales Tax Additional 2006-07 23.72 Tax Act, 1954 Commissioner Central Sales Sales Tax Additional 2012-13 16.59 Tax Act, 1954 Commissioner Central Excise Service Tax Appeal filed 2005 to 54.70 Act, 1944 in CESTAT, 2010 Kolkata c. There is no amount due which were required to be transferred to the Investor Education and Protection Fund in accordance with the provisions of Companies Act, 1956 and rules made thereunder and hence, provisions of Clause vii (c) are not applicable to the Company. viii) Without considering the matter described in the Basis for Qualified Opinion paragraph effect whereof cannot be ascertained and commented upon, the Company does not have any accumulated losses at the end of the financial year. The Company has incurred cash losses in the current and immediately preceding financial year. ix) According to the information and explanation given to us, the Company has not defaulted in repayment of dues to bank or financial institutions. x) The company has not given any guarantee for loan taken by others from bank or financial institutions. xi) According to the information and explanations given to us, no term loan has been raised during the year and thereby provision of clause (xi) shall not be applicable. xii) Attention is invited to the Note19(b)of the financial statements regarding defalcation of company''s fund which is under investigation. Necessary steps including suspension of an employee, so far identified, have been taken and as explained further administrative and other course of action including recovery of the amount involved are in the process. Except this, during the course of our examination ofbooks of accounts carried out in accordance with generally accepted auditing practices in India, we have neither come across any incidence of fraud on or by the company nor have we been informed of any such case by the management. For Lodha & Co. Chartered Accountants Firm''s Registration R. P. Singh Place: Kolkata Partner Date: 28th May, 2015 Membership No: 52438