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Sterling International Enterprises Ltd.

BSE: 508998 Sector: IT
NSE: N.A. ISIN Code: INE696C01021
BSE LIVE 15:20 | 19 Sep 1.37 -0.05
(-3.52%)
OPEN

1.43

HIGH

1.43

LOW

1.25

NSE 05:30 | 01 Jan Stock Is Not Traded.
OPEN 1.43
PREVIOUS CLOSE 1.42
VOLUME 71803
52-Week high 2.69
52-Week low 1.23
P/E 137.00
Mkt Cap.(Rs cr) 37
Buy Price 1.36
Buy Qty 1.00
Sell Price 1.37
Sell Qty 2489.00
OPEN 1.43
CLOSE 1.42
VOLUME 71803
52-Week high 2.69
52-Week low 1.23
P/E 137.00
Mkt Cap.(Rs cr) 37
Buy Price 1.36
Buy Qty 1.00
Sell Price 1.37
Sell Qty 2489.00

Sterling International Enterprises Ltd. (STERLINGINTL) - Auditors Report

Company auditors report

INDEPENDENT AUDITOR'S REPORT

TO THE MEMBERS OF

STERLING INTERNATIONAL ENTERPRISES LIMITED

Report on the Standalone Financial Statements

I have audited the accompanying standalone financial statements of STERLINGINTERNATIONAL ENTERPRISES LIMITED ("the Company") which comprise the BalanceSheet as at March 31 2016 the Statement of Profit and Loss the Cash Flow Statement forthe 9 months ended on that date and a summary of significant accounting policies andother explanatory information.

1. 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 the maintenance of adequate accountingrecords in accordance with the provisions of the Act for safeguarding of the assets of theCompany and 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 ofthese standalone financial statements that give a true and fair view and are free frommaterial misstatement whether due to fraud or error.

2. Auditor's Responsibility

My responsibility is to express an opinion on these standalone financial statementsbased on my audit.

I 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 thereunder.

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

An audit involves performing procedures to obtain audit evidence about the amounts anddisclosures in the standalone financial statements. The procedures selected depend on theauditor's judgment including the assessment of the risks of material misstatement of thestandalone financial statements whether due to fraud or error. In making those riskassessments the auditor considers internal financial control relevant to the Company'spreparation of the standalone financial statements that give true and fair view in orderto design audit procedures that are appropriate in the circumstances. An audit alsoincludes evaluating the appropriateness of accounting policies used and the reasonablenessof the accounting estimates made by Company's Directors as well as evaluating the overallpresentation of the financial statements.

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

3. Opinion

In my opinion and to the best of my information and according to the explanations givento me 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 March 31 2016 and its profit and its cash flows for the period ended on that date.

4. 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 I give in Annexure 'A' a statement on the matters specified inparagraphs 3 and 4 of the Order.

2. As required by section 143(3) of the Act I report that

a) I have sought and obtained all the information and explanations which to the best ofmy knowledge and belief were necessary for the purposes of my audit.

b) In my opinion proper books of account as required by law have been kept by theCompany so far as it appears from my examination of those books.

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

d) In my 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 written representations received from the directors as on March 312016 taken on record by the Board of Directors none of the directors is disqualified ason March 31 2016 from being appointed as a director in terms of Section 164(2) of theAct.

f) With respect to the adequacy of the internal financial controls over financialreporting of the Company and the operating effectiveness of such controls refer to myseparate Report in Annexure 'B'; and

g) With respect to the other matters to be included in the Independent Auditor's Reportin accordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 in myopinion and to the best of my information and according to the explanations given to me:

i. The Company does not have any pending litigations which would impact its financialposition;

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

iii. There were no amounts required to be transferred to the Investor Education andProtection Fund by the Company.

For H. S. Hathi & Co.
Firm Registration No.103596W
Mumbai : May 27 2016
Chartered Accountants
Hemant S. Hathi
Membership No. 037109
Proprietor

ANNEXURE 'A' TO THE INDEPENDENT AUDITOR'S REPORT

(Referred to in paragraph (1) under 'Report on Other Legal and Regulatory Requirements'of my report of even date)

Report on Companies (Auditor's Report) Order 2016 ('the Order') issued by the CentralGovernment in terms of Section 143(11) of the Companies Act 2013 ('the Act') of SterlingInternational Enterprises Limited ('the Company').

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

(b) The Company has regular programme of physical verification of its fixed assets bywhich fixed assets are verified in a phased manner over a period of three years. In myopinion this periodicity of physical verification is reasonable having regard to the sizeof the company and the nature of its assets. In accordance with this programme certainfixed assets were verified during the period and no material discrepancies were noticed onsuch verification.

(c) According to the information and explanations given to me and on the basis of myexamination of the records of the Company title deeds of immovable properties are held inthe name of the Company.

(ii) As explained to me the inventories were physically verified during the period bythe Management at reasonable intervals and no material discrepancies were noticed onphysical verification.

(iii) In my opinion and according to information and explanations given to me theCompany has not granted any loans secured or unsecured to companies firms LimitedLiability Partnerships or other parties covered in the register maintained under section189 of the Act. Therefore the provisions of Clause 3(iii) (a) (iii) (b) and (iii)(c) ofthe said Order are not applicable.

(iv) In my opinion and according to information and explanations given to me theCompany has complied with the provisions of Sections 185 and 186 of the Act in respect ofgrant of loans making investments and providing guarantees and securities as applicable.

(v) In my opinion and according to the information and explanations given to me theCompany has not accepted any deposits from the public in accordance with the provisions ofsections 73 to 76 of the Act and the rules framed there under to the extent notified.

(vi) The Central Government has not prescribed the maintenance of cost records underSection 148(1) of the Act for any of the products or services rendered by the Company.

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

(a) The Company has generally been regular in depositing undisputed statutory duesincluding Provident Fund Employees' State Insurance Income Tax Sales Tax Service TaxValue Added Tax duty of Customs duty of Excise Cess and other material statutory duesapplicable to it with the appropriate authorities.

There were no undisputed amounts payable in respect of Provident Fund Employees' StateInsurance Income Tax Sales Tax Service Tax Value Added Tax duty of Customs duty ofExcise Cess and other material statutory dues in arrears as at March 31 2016 for aperiod of more than six months from the date they became payable.

(b) There were no dues of Income Tax Sales Tax Service Tax Value Added Tax duty ofCustoms duty of Excise and Cess which have not been deposited as at March 31 2016 onaccount of dispute.

(viii) As the company does not have any loans or borrowings from any financialinstitution or bank or Government nor has it issued any debentures as at the balancesheet date the provisions of clause 3(viii) of the Order are not applicable to theCompany.

(ix) The Company has not raised any moneys by way of initial public offer or furtherpublic offer (including debt instruments) and term loans during the period. Accordinglythe provisions of clause 3(ix) of the Order are not applicable to the Company.

(x) According to the information and explanations given to me no fraud by the Companyor on the Company by its officers or employees has been noticed or reported during thecourse of my audit.

(xi) According to the information and explanations given to me and based on myexamination of the records the Company has not paid / provided for managerialremuneration during the period.

(xii) In my opinion and according to the information and explanations given to me theCompany is not a Nidhi Company and hence provisions of Clause 3(xii) of the Order are notapplicable to the Company.

(xiii) According to the information and explanations given by the management there areno transactions with the related parties during the period.

(xiv) According to the information and explanations given to me and based on myexaminations of the records the Company has not made any preferential allotment orprivate placement of share or fully or partly convertible debentures during the periodunder review and hence provisions of clause 3(xiv) of the Order are not applicable to theCompany.

(xv) According to the information and explanations given to me during the period theCompany has not entered into any non-cash transactions with its directors or personsconnected with him and hence provisions of clause 3(xv) of the Order are not applicable tothe Company.

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

For H. S. Hathi & Co.
Firm Registration No.103596W
Mumbai : May 27 2016
Chartered Accountants
Hemant S. Hathi
Membership No. 037109
Proprietor

ANNEXURE 'B' TO THE INDEPENDENT AUDITORS' REPORT

(Referred to in paragraph 2(f) under 'Report on Other Legal and RegulatoryRequirements' of my report of even date)

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

I have audited the internal financial controls over financial reporting of STERLINGINTERNATIONAL ENTERPRISES LIMITED ("the Company") as of March 31 2016 inconjunction with my audit of the standalone financial statements of the Company for the 9months 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'). These responsibilitiesinclude the design implementation and maintenance of adequate internal financial controlsthat were operating effectively for ensuring the orderly and efficient conduct of itsbusiness including adherence to company's policies the safeguarding of its assets theprevention and detection of frauds and errors the accuracy and completeness of theaccounting records and the timely preparation of reliable financial information asrequired under the Act.

Auditor's Responsibility

My responsibility is to express an opinion on the Company's internal financial controlsover financial reporting based on my audit. I conducted my audit in accordance with theGuidance Note on Audit of Internal Financial Controls over Financial Reporting (the"Guidance Note") and the Standards on Auditing deemed to be prescribed undersection 143(10) of the Act to the extent applicable to an audit of internal financialcontrols both applicable to an audit of Internal Financial Controls and both issued bythe ICAI. Those Standards and the Guidance Note require that I 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.

My audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls system over financial reporting and their operatingeffectiveness. My 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 standalone financial statements whether due to fraud orerror.

I believe that the audit evidence I have obtained is sufficient and appropriate toprovide a basis for my audit opinion on the Company's internal financial controls systemover financial 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 authorisations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorised 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 my 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 ICAI.

For H. S. Hathi & Co.
Firm Registration No.103596W
Mumbai : May 27 2016
Chartered Accountants
Hemant S. Hathi
Membership No. 037109
Proprietor