You are here » Home » Companies » Company Overview » Sterling Guaranty & Finance Ltd

Sterling Guaranty & Finance Ltd.

BSE: 508963 Sector: Financials
NSE: N.A. ISIN Code: N.A.
BSE LIVE 05:30 | 01 Jan Stock Is Not Traded.
NSE 05:30 | 01 Jan Stock Is Not Traded.
OPEN
PREVIOUS CLOSE
VOLUME
52-Week high 0.00
52-Week low 0.00
P/E
Mkt Cap.(Rs cr) 0
Buy Price
Buy Qty
Sell Price
Sell Qty
OPEN
CLOSE
VOLUME
52-Week high 0.00
52-Week low 0.00
P/E
Mkt Cap.(Rs cr) 0
Buy Price
Buy Qty
Sell Price
Sell Qty

Sterling Guaranty & Finance Ltd. (STERGUARANTY) - Auditors Report

Company auditors report

INDEPENDENT AUDITORS

To the Members of

STERLING GUARANTY & FINANCE LIMITED

We have audited the accompanying financial statements of Sterling Guaranty &Finance Limited which comprise the Balance Sheet as at March 31 2014 and theStatement of Profit and Loss and Cash Flow Statement for the year then ended and asummary of significant accounting policies and other explanatory information.

Management’s Responsibility:

The Company’s Management is responsible for the preparation of these financialstatements that give a true and fair view of the financial position financial performanceand cash flows of the Company in accordance with the Accounting Standards notified underthe Companies Act 1956 (the Act) read with the General Circular 15/2013 dated 13thSeptember 2013 of the Ministry of Corporate Affairs in respect of Section 133of theCompanies Act 2013 ("the Act") and in accordance with accounting principlesgenerally accepted in India. This responsibility includes the design implementation andmaintenance of internal control relevant to the preparation and presentation of thefinancial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.

Auditor’s Responsibility:

Our responsibility is to express an opinion on these financial statements based on ouraudit. We conducted our audit in accordance with the Standards on Auditing issued by theInstitute of Chartered Accountants of India. Those Standards require that we comply withethical requirements and plan and perform the audit to obtain reasonable assurance aboutwhether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts anddisclosures 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 control relevant to the Company’s preparation and fairpresentation of the financial statements in order to design audit procedures that areappropriate in the circumstances but not for the purpose of expressing an opinion on theeffectiveness of the Company’s internal control. An audit also includes evaluatingthe appropriateness of accounting policies used and the reasonableness of the accountingestimates made by management as well as evaluating the overall presentation of thefinancial statements.

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

Opinion:

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid financial statements give the information required by the Actin the manner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India:

a) in the case of the Balance Sheet of the state of affairs of the Company as at March31 2014;

b) in the case of the Profit and Loss Account of the profit/ loss for the year endedon that date; and

c) in the case of the Cash Flow Statement of the cash flows for the year ended on thatdate.

REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS

1. As required by the Companies (Auditor’s Report) Order 2003 (the Order) issuedby the Central Government of India in terms of sub-section (4A) of section 227 (4A) of theAct we give in the Annexure a statement on the matters specified in paragraphs 4 and 5 ofthe Order.

2. As required by section 227(3) of the Act we report that:

a) We have obtained all the information and explanations which to the best of ourknowledge 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 theCompany so far as appears from our examination of those books.

c) The Balance Sheet Statement of Profit and Loss and Cash Flow Statement dealt withby this Report are in agreement with the books of account.

d) In our opinion the Balance Sheet Statement of Profit and Loss and Cash FlowStatement comply with the Accounting Standards notified under the Act read with theGeneral Circular 15/2013 dated 13th September 2013 of the Ministry ofCorporate Affairs in respect of Section 133 of the Companies Act 2013;

e) On the basis of written representations received from the directors as on March 312014 and taken on record by the Board of Directors none of the directors is disqualifiedas on March 31 2014 from being appointed as a director in terms of clause (g) ofsub-section (1) of section 274 of the Companies Act 1956.

For Vinod S. Mehta & Co.
Chartered Accountants
(Firm Reg. No. 111524W)
Place : Mumbai
Date : 30th May 2014
Girish L. Shethia
Partner
Membership No: 44607

Re: STERLING GUARANTY & FINANCE LIMITED

Year Ended 31st March 2014

Referred to in paragraph 3 of our report of even date

(i) (a)The company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets. All the fixed Assets are written off /fully provided for and hence eliminated from the Books of Accounts.

(b) All the assets have not been physically verified by the management during the yearbut there is a regular program of verification which in our opinion is reasonable havingregard to the size of the company and the nature of its assets. No material discrepancieswere noticed on such verification.

(c) During the year the company has not disposed off substantial part of the plant andmachinery.

(ii) (a) The company does not have any inventory at the year end. However inventoryhas been physically verified during the year by the management. In our opinion thefrequency of verification is reasonable.

(b) The procedures of physical verification of inventories followed by the managementare reasonable and adequate in relation to the size of the company and the nature of itsbusiness.

(c)The company is maintaining proper records of inventory. The discrepancies noticed onverification between the physical stocks and the book records were not material.

(iii) (a) The Company has neither granted or taken any loans to & from companiesfirms or other parties covered in the Register maintained under Section 301 of theCompanies Act 1956.

Therefore the provisions of clause 4 (iii) (b) to (g) of the Companies (Auditor’sReport) Order 2003 are not applicable to the Company.

(iv) In our opinion and according to the information and explanations given to usthere are adequate internal control procedures commensurate with the size of the companyand the nature of its business with regard to purchases of inventory fixed assets andwith regard to the sale of goods & services. During the course of our audit we havenot observed any continuing failure to correct major weaknesses in internal controls.

(v) (a) According to the information and explanations given to us we are of theopinion that the particulars of contracts or arrangements that need to be entered into theregister maintained under section 301 of the Companies Act 1956 have been so entered.

( b ) In our opinion and according to the information and explanations given to us thetransactions made in pursuance of contracts or arrangements entered in the registermaintained under section 301 of the Companies Act 1956 during the year have been made atprices which are reasonable having regard to prevailing market prices wherever possibleand made available for verification at the relevant time.

(vi) The Company has not accepted any deposits from the public. No order has beenpassed by the Company Law Board or National Company Law Tribunal or Reserve Bank of Indiaor any Court or any other Tribunal.

(vii) The Company has no formal Internal Audit System.

(viii) The Central Government has not prescribed maintenance of cost records underclause (d) of sub-section (1) of Section 209 of the Companies Act 1956 for any of theproducts of the Company.

(ix) (a) The company is regular in depositing with appropriate authorities undisputedstatutory dues including provident fund investor education protection fundemployees’ state insurance income tax sales tax wealth tax service tax customduty excise duty cess and other material statutory dues applicable to it.

(b) According to the information and explanations given to us no undisputed amountspayable in respect of income tax wealth tax service tax sales tax customs duty exciseduty and cess were in arrears as at 31st March 2014 for a period of more thansix months from the date they became payable.

(c) According to the information and explanation given to us there are no dues of saletax income tax customs duty wealth tax service tax excise duty and cess which havenot been deposited on account of any dispute except the following disputed amounts inrespect of income tax.

Statement of Disputed Dues

Name of the Statue Nature of Dues Amount Period to which the amount relates Forum where dispute is pending
Income Tax Act 1961 Income Tax 2781/- A.Y. 2000-01 Rectification pending with Assessing Officer

(x) In our opinion the accumulated losses of the company are more than fifty percentof its net worth. The company has incurred cash losses during the financial year coveredby our audit and in the immediately preceding financial year.

(xi) In our opinion and according to the information and explanations given to usduring the year under report the Company has not defaulted in repayment of dues to bank asper settlement arrived with the banks. The Company does not have borrowings by way ofDebentures.

(xii) According to the information and explanations given to us and records producedbefore us the Company has not granted loans and advances on the basis of security by wayof pledge of shares debentures and other securities.

(xiii) 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 (Auditor’sReport) Order 2003 are not applicable to the company.

(xiv) The Company has maintained proper records of transactions & contracts inrespect of trading in Shares Securities Debentures & other Investments and timelyentries have been made. All the shares securities debentures & other investmentshave been held by the Company in its own name except to the extent of the exemptionsgranted under section 49 of the Companies Act 1956.

(xv) According to the information and explanation given to us & records producedbefore us the company has not given any guarantees for loans taken by others from banksor financial institutions.

(xvi) During the year under review the Company has not taken any term loan.

(xvii) According to the information and explanations given to us and on an overallexamination of the balance sheet of the company and after placing reliance on theassumptions made by the company we are of the opinion that prima facie the funds raisedon short-term basis have not been used for long-term investment.

(xviii) According to the information and explanations given to us during the yearunder report the company has not made preferential allotment of shares to parties andcompanies covered in the register maintained under section 301 of the Act.

(xix) According to the information and explanations given to us during the periodcovered by our audit report the company had not issued any debentures and hence thequestion of creating securities or charge in respect thereof does not arise.

(xx) The Company has not raised any money by way of public issue during the year underreview.

(xxi) Based on the audit procedures performed and on the basis of the information andexplanations given to us no fraud on or by the company has been noticed or reportedduring the course of our audit.

Place : Mumbai For Vinod S. Mehta & Co.
Date : 30th May 2014 Chartered Accountants
(Firm Reg. No. 111524W)
Girish L. Shethia
Partner
Membership No: 44607