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Starlog Enterprises Ltd.

BSE: 520155 Sector: Others
NSE: ABGHEAVY ISIN Code: INE580C01019
BSE LIVE 14:47 | 17 Oct 69.00 -4.30
(-5.87%)
OPEN

72.50

HIGH

72.50

LOW

65.85

NSE 05:30 | 01 Jan Stock Is Not Traded.
OPEN 72.50
PREVIOUS CLOSE 73.30
VOLUME 274
52-Week high 122.00
52-Week low 48.25
P/E
Mkt Cap.(Rs cr) 83
Buy Price 69.00
Buy Qty 59.00
Sell Price 71.00
Sell Qty 13.00
OPEN 72.50
CLOSE 73.30
VOLUME 274
52-Week high 122.00
52-Week low 48.25
P/E
Mkt Cap.(Rs cr) 83
Buy Price 69.00
Buy Qty 59.00
Sell Price 71.00
Sell Qty 13.00

Starlog Enterprises Ltd. (ABGHEAVY) - Auditors Report

Company auditors report

To the Members of

Starlog Enterprises Limited

(earlier known as ABG Infralogistics Limited)

Report on the Standalone Financial Statements

We have audited the accompanying standalone financial statements of StarlogEnterprises Limited (earlier known as ABG Infralogistics Limited) ("theCompany") which comprise the Balance Sheet as at 31st March 2016 the Statement ofProfit and Loss and the Cash Flow Statement for the year then ended and a summary of thesignificant accounting policies and other explanatory information.

Management’s Responsibility for the Financial Statement

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 standalone financial statements that give a true and fair view of the financialposition financial performance and cash flows of the Company in accordance with theaccounting principles generally accepted in India including the Accounting Standardsspecified under Section 133 of the Act read with Rule 7 of the Companies (Accounts)Rules 2014. This responsibility also includes maintenance of adequate accounting recordsin accordance with the provisions of the Act for safeguarding the assets of the Companyand for preventing and detecting frauds and other irregularities; selection andapplication of appropriate accounting policies; making judgments and estimates that arereasonable and prudent; and design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the accuracy andcompleteness of the accounting records relevant to the preparation and presentation ofthe financial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.

Auditors’ Responsibility

Our responsibility is to express an opinion on these standalone financial statementsbased on our audit.

We have taken into account the provisions of the Act the accounting and auditingstandards and matters which are required to be included in the audit report under theprovisions of the Act and the Rules made there under.

We conducted our audit in accordance with the Standards on Auditing specified underSection 143(10) of the Act. Those Standards require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetherthe financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the financial statements. The procedures selected depend on theauditor’s judgment including the assessment of the risks of material misstatement ofthe financial statements whether due to fraud or error. In making those risk assessmentsthe auditor considers internal financial control relevant to the Company’spreparation of the financial statements that give a true and fair view in order to designaudit procedures that are appropriate in the circumstances. An audit also includesevaluating the appropriateness of the accounting polices used and the reasonableness ofthe accounting estimates made by the Company’s Directors as well as evaluating theoverall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the standalone financial statements.

Opinion

In our opinion and to the best our information and according to the explanations givento us the aforesaid standalone financial statements give the information required by theAct in the manner so required and give a true and fair view in conformity with theaccounting principles generally accepted in India of the state of affairs of the Companyas at 31st March 2016 and its loss and its cash flows for the year ended on that date.

Emphasis of Matters

We draw attention to Note No.26 to the Financial Statements regarding Company’scurrent liabilities exceeding its current assets by Rs. 538771492 as at 31st March2016. The Company believes that for the reasons stated in the said Note it will haveadequate liquidity to meet its liabilities as and when they fall due. Our opinion is notqualified in respect of the above matters.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor’s Report) Order 2016 ("theOrder") issued by the Central Government of India in terms of sub-section (11) ofSection 143 of the Act we give in the annexure A a statement on the matters specified inthe paragraph 3 and 4 of the Order to the extent applicable.

2. 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 the Cash Flow Statementdealt with by this Report are in agreement with the books of account.

d) In our opinion the aforesaid standalone financial statements comply with theAccounting Standards specified under Section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014.

e) the matters described in the Basis for disclaimer of opinion paragraph as per ourseparate Report in "Annexure B" and in Emphasis of Matter paragraph above inour 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 31stMarch 2016 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2016 from being appointed as a director in terms of Section164(2) of the Act.

g) 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".

h) 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 vide Note 25.

ii. The Company did not have any long-term contracts including derivative contracts forwhich there were any material foreseeable losses.

iii. There are minor delays in transferring amounts required to be transferred to theInvestor Education and Protection Fund by the Company.

For M.M. CHATURVEDI & CO.

Chartered Accountants

(Firm Reg. No. 112941W)

Madan Mohan Chaturvedi

Partner

Membership No.: 31118

Mumbai

May 31 2016

ANNEXURE-A to the Independent Auditors’ Report-31st March 2016

(Referred to in our Report of even date)

i) In respect of its fixed assets:

(a) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.

(b) The fixed assets were physically verified during the year by the Management inaccordance with a regular programme of verification which in our opinion provides forphysical verification of all fixed assets at reasonable intervals. According to theinformation and explanation given to us no material discrepancies were noticed on suchverification.

(c) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company the title deeds of immovable properties aregenerally held in the name of the Company.

(ii) According to the information and explanations given to us the Company’snature of operations does not require it to hold inventories and accordingly clause 3(ii)of the Order is not applicable.

(iii) In our opinion and according to the information and explanations given to us theCompany has not granted any loans secure or unsecured to companies firms LimitedLiability Partnerships or other parties covered in the register maintained under section189 of the Act. Accordingly paragraph 3(iii) of the Order is not applicable to theCompany.

(iv) In our opinion and according to the information and explanations given to us theCompany has complied with the provisions of Section 185 and 186 of the Act in respect ofinvestments guarantees and securities.

(v) In our opinion and according to the information and explanations given to us theCompany has not accepted any deposit from the public during the year in terms of theprovisions of Secttion 73 to 76 or any other relevant provisions of the Act and the rulesframed there under. Accordingly paragraph 3(v) of the Order is not applicable to theCompany.

(vi) According to the information and explanations given to us the Central Governmenthas not prescribed the maintenance of cost records under Section 148 of the Act in respectof services rendered by the Company.

(vii) According to the information and explanations given to us in respect ofstatutory dues:

a. According to the information and explanations given to us undisputed statutory duesincluding Provident Fund Employees’ State Insurance Income Tax Sales Tax Duty ofCustoms Duty of Excise Value Added Tax Cess wherever applicable and any other materialstatutory dues applicable to it have generally not been regularly deposited with theappropriate authorities though the delays in deposit have not been serious except dues inrespect of service tax which are deposited with significant delays. According to theinformation and explanations given to us no undisputed amounts payable by the Company inrespect of aforesaid statutory dues were in arrears as at 31st March 2016 for a period ofmore than six months from the date they became payable except service tax of Rs. 579358.

b. According to the information and explanations given to us the disputed statutorydues in respect of Income Tax Sales Tax Service Tax Duty of Custom Duty of ExciseValue Added Tax as applicable have not been deposited on account of matters pendingbefore appropriate authorities as under: -

Nature of dues Amount Rs. Period to which the amount relates Forum where dispute is pending
Sales Tax 1799088 1996-97
5133109 1997-98
5458212 1998-99
15371120 1999-2000
17117882 2000-01
7301689 2001-02
9302847 2002-03
MVAT 145798687 2005-06
247533119 2006-07
458619011 2007-08
491433812 2008-09 Deputy Commissioner of Sales Tax (Appeal-VI) Mumbai
454262844 2009-10
582269130 2010-11
444568970 2011-12
Income Tax 13302972 2004-05 Commissioner of Income Tax (Appeal)-47
9374728 2005-06
TOTAL 2908647220

(viii) According to the information and explanations given to us the Company has nottaken any loans from Government or raised borrowings in the form of debentures. TheCompany has defaulted in repayment of dues to financial institutions and banks during theyear. Details of the dues to bank and financial instituions which have not been paid ondue dates and which are outstanding as on 31.3.2016 are given below :

Name of Lenders Nature of Dues Amount due on Balance Sheet date Period to which it relates Date of Payments
J & K Bank Ltd. (Rs. 18.26 Cr.) Principal 5706000 Jan-16 6-May-16
Interest 2027849 Jan'16 to Mar'16 6-May-16 (partly)
Axis Bank Ld. (Rs. 3.50 Cr.) Principal
Interest 321927 Mar'16 Not paid
Axis Bank Ld. (Rs. 20.00 Cr.) Principal 15000000 Mar-16 Not paid
Interest 1083733 Mar'16 Not paid
Axis Bank Ld. (Rs. 08.00 Cr.) Principal -
Interest 860009 Mar'16 Not paid
Srei Infra Finance (Rs. 7.14 Cr.) Principal 23810963 Apr'15 to Aug'15 Not paid
Interest 14097426 Aug'13 to Mar'16 Not paid
Bank of India (Rs. 21.80 Cr.) Principal 38418000 Dec'15 & Mar'16 Not paid
Interest 11703180 Nov'15 to Mar'16 Not paid
Landesbank (Euro 6.31 MIO.) Principal -
Interest 1504514 Apr'15 to Mar'16 4-Apr-16
L & T Fincorp (Rs. 75 Cr.) Principal 4500000 Feb' 16 & Mar'16 Not paid
Interest 10495610 Feb' 16 & Mar'16 Not paid
GE Money (Rs. 45 Cr.) Principal 119813967 Mar'15 to Mar'16 Not paid
Interest 41693258 Jan'14 to Mar'16 Not paid
IDFC (Rs. 75 Cr.) Principal 954365 Mar'16 Not paid
Interest 5808884 Jan'16 to Mar'16 Not paid
IDFC (Rs. 3.5 Cr.) Principal 350000 Mar'16 Not paid
Interest 1067501 Jan'16 to Mar'16 Not paid
ICICI (Rs. 23 Cr.) Principal 16428572 Dec'15 & Mar'16 Not paid
Interest 4300241 Dec'15 to Mar'16 Not paid
ICICI (Rs. 16 Cr.) Principal 10000000 Mar'16 Not paid
Interest 6364714 Dec'15 to Mar'16 Not paid
336310713

(ix) The Company did not raise any money by way of initial public offer or furtherpublic offer (including debt instruments) during the year. To the best of our knowledgeand belief and according to the information and explanations given to us in our opinionterm loans availed by the Company were prima facie applied by the company during theyear for the purposes for which loans were obtained other than temporary deploymentpending application.

(x) To the best of our knowledge and according to the information and explanationsgiven to us no fraud by the Company and no material fraud on the Company has been noticedor reported during the year nor have we been informed of such case by the management.

(xi) According to the information and explanations given to us managerial remunerationhas been paid or provided in accordance with the requisite approvals mandated by the theprovisions of Section 197 read with Schedule V to the Act.

(xii) According to the information and explanations given to us the Company is not aNidhi Company as prescribed under section 406 of the Act. Accordingly paragraph 3(xii) ofthe Order is not applicable to the Company.

(xiii) According to the information and explanations given to us and based on ourexamination of the records of the Company transactions with the related parties are incompliance with Sections 177 and 188 of the Act where applicable and details of suchtransactions have been disclosed in the financial statements as required by the applicableaccounting standards.

(xiv) According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has not made any preferentialallotment or private placement of shares or fully or partly convertible debentures duringthe year. Accordingly paragraph 3(xiv) of the Order is not applicable to the Company.

(xv) According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has not entered into non-cashtransactions with directors or persons connected with him.

(xvi) According to information and explanations given to us the Company is notrequired to be registered under Section 45 IA of the Reserve Bank of India Act 1934.Accordingly paragraph 3(xvi) of the Order is not applicable to the Company.

For M.M. CHATURVEDI & CO.

Chartered Accountants

(Firm Reg. No. 112941W)

Madan Mohan Chaturvedi

Partner

Membership No.: 31118

Mumbai

May 31 2016

Annexure - B to the Independent Auditor’s Report – 31 March 2016

(Referred to in our report of even date)

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

We have audited the internal financial controls over financial reporting of StarlogEnterprises Limited (earlier known as ABG Infralogistics Limited) ("theCompany") as at 31 March 2016 in conjunction with our audit of the 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 ("ICAI"). Theseresponsibilities include the design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the orderly and efficientconduct of its business including adherence to company’s policies the safeguardingof its assets the prevention and detection of frauds and errors the accuracy andcompleteness of the accounting records and the timely preparation of reliable financialinformation as required under the Act.

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 deemed tobe prescribed under section 143(10) of the Act to the extent applicable to an audit ofinternal financial controls both applicable to an audit of Internal Financial Controlsand both issued by the ICAI.

Because of the matter described in Disclaimer of Opinion paragraph below we were notable to obtain sufficient appropriate audit evidence to provide a basis for an auditopinion on internal financial controls system over financial reporting of the Company.

Meaning of Internal Financial Controls Over Financial Reporting

A Company’s internal financial control over financial reporting is a processdesigned to provide reasonable assurance regarding the reliability of financial reportingand the preparation of financial statements for external purposes in accordance withgenerally accepted accounting principles. A Company’s internal financial control overfinancial reporting includes those policies and procedures that:

(a) pertain to the maintenance of records that in reasonable detail accurately andfairly reflect the transactions and dispositions of the assets of the company;

(b) provide reasonable assurance that transactions are recorded as necessary to permitpreparation of financial statements in accordance with generally accepted accountingprinciples and that receipts and expenditures of the Company are being made only inaccordance with authorisations of management and directors of the company; and

(c) provide reasonable assurance regarding prevention or timely detection ofunauthorised acquisition use or disposition of the company’s assets that could havea material effect on the financial statements.

Basis for disclaimer of opinion

According to the information and explanation given to us the Company has notestablished its internal financial control over financial reporting on criteria based onor considering the essential components of internal control stated in the Guidance Note onAudit of Internal Financial Controls Over Financial Reporting issued by the Institute ofChartered Accountants of India ("ICAI").

Disclaimer of Opinion

As described in the Basis for disclaimer of opinion paragraph above we are unable toobtain sufficient appropriate audit evidence to provide a basis for our opinion whetherthe Company had adequate internal financial controls over financial reporting and whethersuch internal financial controls were operating effectively as at 31 March 2016.

We have considered the disclaimer reported above in determining the nature timing andextent of audit tests applied in our audit of the financial statements of the Company andthe disclaimer does not affect our opinion on the financial statements of the Company.

For M.M. CHATURVEDI & CO.

Chartered Accountants

(Firm Reg. No. 112941W)

Madan Mohan Chaturvedi

Partner

Membership No.: 31118

Mumbai

May 31 2016