Sun Granite Export Ltd Directors Report.

AUDITORS REPORT

To

The Members,

Sun Granite Export Limited.

We have audited the attached Balance Sheet of Sun Granite Export Limited, as at 31st March, 2014 and also the Profit and Loss Account and Cash Flow Statement for the year ended on that date annexed thereto. We report as under:

A These financial statements are the responsibility of the Companys management. Our responsibility is to express an opinion on these financial statements based on our audit.

B. 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 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.

C. As required by the Companies (Auditors Report) order, 2003 issued by the Central Government of India in terms of sub-sec (4A) of sec 227 of the Companies Act. 2013, we enclose in the Annexure a statement the matters specified in paragraph 4 & 5 of the said order

D. Further to our comments as said above, we report that:

a) we have obtained all the information and explanations, which to the best of knowledge and belief were necessary for the purposes of our audit;

b) in our opinion, proper books of account as required bylaw, have been kept by the Company so far as appears from our examination of those books ;

c) the Balance Sheet, the Profit and Loss Account and Cash Flow statement dealt with by this report are in agreement with the books of account;

d) in our opinion, Balance Sheet, the 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, 2013;

e) on the basis of written informations received from the Directors, and taken on record by the Board of Directors, we report that none of the directors is disqualified as on 31st March, 2014 from being appointed as a director in terms of clause (g) of sub-section (1) of section 274 of the Companies Act, 2013;

f) 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, 2013, in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India:

i) In the case of the balance sheet, of the state of affairs of the company as at 31st March 2014, and

i) In the case of the profit and loss account of the loss for the year ended on that date.

Place: Bhubaneswar For Samantaray & Co.
Chartered Accountant
Date : 14.08.2014 CA C.S. Samantaray (FCA)
Chartered Accountant
Mem.No.-051265

ANNEXURE TO THE AUDITORS REPORT

(REFERRED TO IN PARAGRAPH 3 OF OUR REPORT OF EVEN DATE)

1) a) Company has maintained proper records showing full particulars including quantitative details and situations of fixed assets.

b) The Company has a regular program of physical verification of fixed assets, which in our opinion is reasonable having regard to size of the Company and the nature of its assets. No material discrepancies were noticed on such physical verification.

c) In our opinion and according to the information and explanations, the company has not disposed of substantial part of fixed assets during the year and the going concern status of the Company is not affected.

2) a) As explained to us all stocks of finished goods, stores, spare parts and raw materials have been physically verified by the management at reasonable intervals during the year.

b) In our opinion and according to the information and explanations given to us, the procedures of the physical verification of stocks 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 inventories. As explained to us the discrepancies between the physical stock and book stock were not material and dealt with properly in the books of account.

3) The Company has not granted or taken any loans, secured or unsecured to / from companies, firms or other parties covered in the register maintained under section 301 of the Companies Act, 2013, except unsecured loan from directors taken for settlement of IFCI dues which was been repaid regularly with interest. As observed the directors have taken loan from Axis bank and lent the same to the company for purpose of repayment to IFCI. The repayment along with interest payable to Axis bank/ India Bull Financial Services Limited was being made by the company on behalf of Director.

4) In our opinion and according to the information given to us there is adequate internal control procedure commensurate with the size of the company and the nature of its business, for purchase of stores, raw material components, plant and machinery, equipment and other similar assets and for the sale of goods.

5) The company has not accepted any deposits from the public.

6) The Company is not required to maintain cost records under section 209(1 )(d) of the Companies Act 2013.

a) According to the records of the company, undisputed statutory dues including Provident Fund, Investor Education & Protection Fund, Employees State Insurance, Income Tax and Sales Tax applicable to it have not generally been regularly deposited with the appropriate authorities.

b) According to the information and explanations given to us the undisputed amounts payable as at 31st march 2014 for a period of more than six months from the date they became payable are given below.

Name of Status / Nature of Dues Amount (in Rs.) Period to which amount related Date of Payment
Investor Education and Protection Fund 10230.00 2002-03
8534.00 2003-04
Income Tax 241173.00 A.Y. 2004-05
386645.00 A.Y 2005-06
93045.00 A.Y. 2007-08
TDS 47556.00 2004-05
232421.00 2005-06
345357.80 2006-07
Luxury Tax 13916.00 2005-06 4

c) According to the information and explanations given to us the disputed amounts payable as at 31st march 2014 for a period of more than six months from the date they became payable are given below.

Name of the Status Forum where Is dispute the pending

Period to which amount relates

Amt.(Rs.)

Amount paidonprotest

Income Tax Income Tax Tribunal 1995-96 7,44,945.00 201722.00
Entry Tax Commissioner of Sales Tax 2000-01 6,34,307.00 175000.00

7) The company has not granted any loans and advances on the basis of security by way of pledge of shares, debentures and other securities.

8) In our opinion and according to the information and explanations given to us, the company is not a chit fund or a nidhi/ mutual benefit fund/ society. Therefore clause 4 (xiii) of the Companies (Auditors Report) order 2003 is not applicable to the company.

9) The company is not dealing or trading in shares, securities, debentures and other investments.

a) According to the records of the company, undisputed statutory dues including Provident Fund, Investor Education & Protection Fund, Employees State Insurance, Income Tax and Sales Tax applicable to it have not generally been regularly deposited with the appropriate authorities.

b) According to the information and explanations given to us the undisputed amounts payable as at 31st march 2014 for a period of more than six months from the date they became payable are given below.

Name of Status / Nature of Dues Amount (in Rs.) Period to which amount related Date of Payment
Investor Education and Protection Fund 10230.00 2002-03
8534.00 2003-04
Income Tax 241173.00 A.Y. 2004-05
386645.00 A.Y 2005-06
93045.00 A.Y. 2007-08
T D S 47556.00 2004-05
232421.00 2005-06
345357.80 2006-07
Luxury Tax 13916.00 2005-06

c) According to the information and explanations given to us the disputed amounts payable as at 31st march 2014 for a period of more than six months from the date they became payable are given below.

Name of the Status Forum where Is dispute the pending Period to which amount relates Amt.(Rs.) Amount paidonprotest
Income Tax Income Tax Tribunal 1995-96 7,44,945.00 201722.00
Entry Tax Commissioner of Sales Tax 2000-01 6,34,307.00 175000.00

7) The company has not granted any loans and advances on the basis of security by way of pledge of shares, debentures and other securities.

8) In our opinion and according to the information and explanations given to us, the company is not a chit fund or a nidhi/ mutual benefit fund/ society. Therefore clause 4 (xiii) of the Companies (Auditors Report) order 2003 is not applicable to the company.

9) The company is not dealing or trading in shares, securities, debentures and other investments.