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Sterling Green Woods Ltd.

BSE: 526500 Sector: Services
NSE: N.A. ISIN Code: INE398F01019
BSE LIVE 15:14 | 15 Sep 12.05 -0.60
(-4.74%)
OPEN

12.05

HIGH

12.05

LOW

12.05

NSE 05:30 | 01 Jan Stock Is Not Traded.
OPEN 12.05
PREVIOUS CLOSE 12.65
VOLUME 50
52-Week high 17.43
52-Week low 9.68
P/E
Mkt Cap.(Rs cr) 5
Buy Price 12.02
Buy Qty 200.00
Sell Price 13.15
Sell Qty 200.00
OPEN 12.05
CLOSE 12.65
VOLUME 50
52-Week high 17.43
52-Week low 9.68
P/E
Mkt Cap.(Rs cr) 5
Buy Price 12.02
Buy Qty 200.00
Sell Price 13.15
Sell Qty 200.00

Sterling Green Woods Ltd. (STERLINGGREEN) - Auditors Report

Company auditors report

To

The Members of

Sterling Greenwoods Limited

REPORT ON THE STANDALONE FINANCIAL STATEMENTS

We have audited the accompanying standalone financial statements of SterlingGreenwoods Limited (‘the company") which comprise the Balance Sheet as at 31March 2016 the Statement of Profit and Loss and the Cash Flow statement for the year thenended and a summary of significant accounting policies and other explanatory information.

MANAGEMENT'S RESPONSIBILITY FOR THE STANDALONE FINANCIAL STATEMENTS

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.

UDITOR'S 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 of thefinancial statements whether due to fraud or error. In making those risk assessments theauditor considers internal financial control relevant to the Company's preparation of thefinancial statements that give a true and fair view in order to design audit proceduresthat are appropriate in the circumstances but not for the purpose of expressing anopinion on whether the Company has in place an adequate internal financial controls systemover financial reporting and the operating effectiveness of such controls. An audit alsoincludes evaluating the appropriateness of the accounting policies used and thereasonableness of the accounting estimates made by the Company's Directors as well asevaluating the overall 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.

PINION

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid standalone financial statements give the information requiredby the Act in the manner so required and give a true and fair view in conformity with theaccounting principles generally accepted in India

i. In the case of the Balance sheet of the state of affairs of the Company as at March312016;

ii. In the case of the Statement of Profit and Loss of the Loss for the year ended onthat date; and

iii. In the case of 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 2015 ("the Order")issued by the Central Government of India in terms of sub-section (11) of section 143 ofthe Act we give in the Annexure a statement on the matters specified in the paragraph 3and 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) On the basis of the written representations received from the directors as on 31March 2016 taken on record by the Board of Directors none of the directors isdisqualified as on 31 March 2016 from being appointed as a director in terms of Section164 (2) of the Act.

(f) 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 - Refer Note 31 to the financial statements.

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

iii. There were no amounts which were required to be transferred to the InvestorEducation and Protection Fund by the Company.

For M/S. ANIL S. SHAH & CO.
Chartered Accountants
Firm Reg. No. : 100474W
Place : Ahmedabad ANIL S. SHAH
Date : 30th May 2016 Partner
Member No. : 16613

ANNEXURE TO THE INDEPENDENT AUDITORS' REPORT

The Annexure referred to in our Independent Auditors' Report to the members of theCompany on the standalone financial statements for the year ended 31 March 2016 we reportthat:

(i) In respect of Fixed Assets

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

(b) As per information and explanation given to us the physical verification of itsfixed assets resorts (taken back possesion on 01-03-2016) have been carried out by themanagement on 01-03-2016 and other than resort assets at the end of the year which in ouropinion is reasonable having regard to the size of the company and the nature of itsassets. The reconciliation of assets of resorts assets physical verified with the FixedAsset Register is yet not completed and as informed the discrepancies if any on suchverification the same will be dealt in the books of accounts on completion ofreconciliation.

(c) According to the Information and explanation given to us and the records examinedby us as disclosed in Note No. 12 and based on the examination of the registered saledeed/purchase deed/allotment letters - Allotment Certificate share certificate etc.provided to us we report that the title deed comprising immovable properties of landsand acquired buildings which are freehold except land valuing Rs. 2242400/- and propertyvaluing Rs. 278344/- are held in the name of the company as at the balance sheet date.Immovable properties of land and buildings whose title deeds have been pledged as securityfor loans are held in the name of company based on the photo copy produced before ushowever no confirmation directly received by us from the lenders.

(ii) In respect of Inventories as per the information and explanation given to usthe inventories have been physical verified by the management at the end of the yearwhich in our opinion is reasonable having regard to the size of the company and the natureof its activity. As per the information and explanation given to us no materialdiscrepancies noticed on physical verification.

(iii) In respect of Loans and Advances Granted during the year.

(a) The Company has granted loans to its subsidiary company covered in the registermaintained under section 189 of the Companies Act 2013 (‘the Act').

(b) In the case of the loans granted to its subsidiary company listed in the registermaintained under section 189 of the Act is not prejudicial to the Company's interest theloans have been granted is interest free further there in no stipulation for repayment ofthe loans granted hence the question of regular in the payment of the interest is notrelevant. The terms of arrangements do not stipulate any repayment schedule and the loansare repayable on demand. Accordingly paragraph 3(iii) (b) of the Order is not applicableto the Company in respect of repayment of the principal amount.

(c) Since there is no stipulation in repayment of principal there are no overdueamounts of more than ninety days in respect of the loans granted to its subsidiary companylisted in the register maintained under section 189 of the Act.

(iv) In our opinion and according to the information and explanations given to usthe Company has complied with the provision of Section 186 of the companies Act 2013 inrespect of making investments. However the Company has not granted any loans or providedany guarantees and securities.

(v) In our opinion and according to the information and explanation given to usthe company has complied with the provisions of section 73 to section 76 and otherrelevant provisions of the Companies Act 2013 and Companies (Acceptance of Deposits)Rules 2014 with regard to the deposits accepted from the members and the public.

(vi) As per the information and explanation provided to us the company is notrequired to maintain the cost records as per the provisions of Companies (Cost Records andAudit) Rules 2014 hence Clause (vi) of the Companies (Auditor's Report) order2015 arenot applicable.

(vii) In respect of Statutory Dues

According to the information and explanation given to us in respect of statutory dues:

(a) The Company has generally been regular in depositing undisputed statutory duesincluding Provident Fund Investor education and protection fund Employees' stateInsurance income tax Sales Tax Wealth Tax Service Tax Custom Duty Excise duty Cessand any other material statutory dues applicable to it with the appropriate authorities.

According to information and explanation given to us no undisputed amounts payable inrespect of the aforesaid dues were outstanding as at March 312016 for a period of morethan six months from the date of becoming payable.

(b) Details of dues of Income Tax and Service Tax which have not been deposited as onMarch 31 2016 on account of disputes are given below:

Name of the statue Nature of the statue Year Amount Forum where dispute is pending
Service Tax Service Tax Penalty 2002-03 to 2007-08 3410080 Appellate Tribunal
Service Tax Service Tax Penalty 2004-05 to 2008-09 2303073 Appellate Tribunal
Service Tax Service Tax Demand 2004-05 to 2008-09 1128073 Audit Department
Service Tax Service Tax Demand 2008-09 182101 Appellate Tribunal
Service Tax Service Tax Penalty 2008-09 482101 Appellate Tribunal
Service Tax Service Tax Demand 2009-10 326572 Appellate Tribunal
Service Tax Service Tax Penalty 2009-10 776572 Appellate Tribunal
Service Tax Service Tax Demand 2010-11 221367 Appellate Tribunal
Service Tax Service Tax Penalty 2010-11 421367 Appellate Tribunal
Income Tax Income Tax Demand 1995-96 1997-98 19299225 CIT - (A)
Act. 1961 (including interest) 2001-02 2002-03

(c) During the year no amount is required to transfer to the Investor Education andProtection Fund and hence clause (c) of clause (vii) of the Companies (Auditor's Report)Order 2015 is not applicable to the Company.

(viii) In our opinion and according to the information and explanation given to us theCompany has not defaulted in the repayment of loans or borrowings to banks. The Companyhas not taken any loans or borrowings from financial institutions and government nor hasit issued any debentures.

(ix) In our opinion and according to the information and explanations given to us theterm loans have been applied by the Company during the year for the purpose for which theyare raised other than temporary deployment pending application. The Company has notraised moneys by way of initial public offer or further public offer (including debtinstruments).

(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 by its officersor employees has been noticed or reported during the year.

(xi) In our opinion and according to the information and explanations given to us theCompany has paid / provided managerial remuneration in accordance with the requisiteapprovals mandated by the provisions of section 197 read with Schedule V to the CompaniesAct 2013.

(xii) The Company is not a Nidhi Company and hence reporting under clause (xii) of theCARO 2016 Order is not applicable.

(xiii) In our opinion and according to the information and explanations given to us theCompany is in compliance with Section 177 and 188 of the Companies Act 2013 whereapplicable for all transactions with the related parties and the details of related partytransactions have been disclosed in the financial statements etc. as required by theapplicable accounting standards.

(xiv) During the year the Company has not made any preferential allotment or privateplacement of shares or fully or partly convertible debentures and reporting under clause(xiv) of CARO 2016 Order is not applicable to the Company.

(xv) In our opinion and according to the information and explanations given to us during the year the Company has not entered into any non cash transactions with itsdirectors or directors of the holding subsidiary or associate company as applicable orpersons connected with them and hence provisions of section 192 of the Companies Act 2013are not applicable.

(xvi) The Company is not required to be registered under section 45-IA of the ReserveBank of India Act 1934.

For M/S. ANIL S. SHAH & CO.
Chartered Accountants
Firm Reg. No. : 100474W
ANIL S. SHAH
Place : Ahmedabad Partner
Date : 30th May 2016 Member No. : 16613

ANNEXURE TO THE INDEPENDENT AUDITOR'S REPORT OF EVEN DATE ON THE FINANCIAL STATEMENTSOF STERLING GREENWOODS LIMITED

Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143 of the Companies Act 2013 ("the Act")

We have audited the internal financial controls over financial reporting of SterlingGreenwoods Limited ("the Company") as of March 312016 in conjunction withour audit of the financial statements 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. These responsibilities includethe design implementation and maintenance of adequate internal financial controls thatwere operating effectively for ensuring the orderly and efficient conduct of its businessincluding adherence to company's policies the safeguarding of its assets the preventionand detection of frauds and errors the accuracy and completeness of the accountingrecords and the timely preparation of reliable financial information as required underthe Companies Act 2013.

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 deemedto be prescribed under section 143(10) of the Companies Act 2013 to the extentapplicable to an audit of internal financial controls both applicable to an audit ofInternal Financial Controls and both issued by the Institute of Chartered Accountants ofIndia. Those Standards and the Guidance Note require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetheradequate internal financial controls over financial reporting was established andmaintained and if such controls operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls system over financial reporting and their operatingeffectiveness. Our audit of internal financial controls over financial reporting includedobtaining an understanding of internal financial controls over financial reportingassessing the risk that a material weakness exists and testing and evaluating the designand operating effectiveness of internal control based on the assessed risk. The proceduresselected depend on the auditor's judgment including the assessment of the risks ofmaterial misstatement of the financial statements whether due to fraud or error. Webelieve that the audit evidence we have obtained is sufficient and appropriate to providea basis for my /our audit opinion on the Company's internal financial controls system overfinancial reporting.

Meaning of Internal Financial Controls over Financial Reporting

A company's internal financial control over financial reporting is a process designedto provide reasonable assurance regarding the reliability of financial reporting and thepreparation of financial statements for external purposes in accordance with generallyaccepted accounting principles. A company's internal financial control over financialreporting includes those policies and procedures that (1) pertain to the maintenance ofrecords that in reasonable detail accurately and fairly reflect the transactions anddispositions of the assets of the company; (2) provide reasonable assurance thattransactions are recorded as necessary to permit preparation of financial statements inaccordance with generally accepted accounting principles and that receipts andexpenditures of the company are being made only in accordance with authorizations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorized acquisition use or disposition of thecompany's assets that could have a material effect on the financial statements.

Inherent Limitations of Internal Financial Controls over Financial Reporting

Because of the inherent limitations of internal financial controls over financialreporting including the possibility of collusion or improper management override ofcontrols material misstatements due to error or fraud may occur and not be detected.Also projections of any evaluation of the internal financial controls over financialreporting to future periods are subject to the risk that the internal financial controlover financial reporting may become inadequate because of changes in conditions or thatthe degree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion the Company has in all material respects an adequate internalfinancial controls system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at March 31 2016 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note on Audit ofInternal Financial Controls over Financial Reporting issued by the Institute of CharteredAccountants of India.

For M/S. ANIL S. SHAH & CO.
Chartered Accountants
Firm Reg. No. : 100474W
ANIL S. SHAH
Place : Ahmedabad Partner
Date : 30th May 2016 Member No. : 16613