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Sterling International Enterprises Ltd.

BSE: 508998 Sector: IT
NSE: N.A. ISIN Code: INE696C01021
BSE LIVE 15:55 | 15 Dec 1.78 0.13
(7.88%)
OPEN

1.81

HIGH

1.81

LOW

1.51

NSE 05:30 | 01 Jan Stock Is Not Traded.
OPEN 1.81
PREVIOUS CLOSE 1.65
VOLUME 721487
52-Week high 2.69
52-Week low 1.05
P/E 178.00
Mkt Cap.(Rs cr) 48
Buy Price 1.78
Buy Qty 79.00
Sell Price 0.00
Sell Qty 0.00
OPEN 1.81
CLOSE 1.65
VOLUME 721487
52-Week high 2.69
52-Week low 1.05
P/E 178.00
Mkt Cap.(Rs cr) 48
Buy Price 1.78
Buy Qty 79.00
Sell Price 0.00
Sell Qty 0.00

Sterling International Enterprises Ltd. (STERLINGINTL) - Auditors Report

Company auditors report

To

The Member(s) of

STERLING INTERNATIONAL ENTERPRISES LIMITED

Report on the Standalone Indian Accounting Standards (Ind AS) Financial Statements

I have audited the accompanying standalone Ind AS Financial Statements of SterlingInternational Enterprises Limited (the "Company") which comprise theBalance Sheet as at March 31 2017 the Statement of Profit & Loss (including OtherComprehensive Income) the Cash Flow Statement and the Statement of Changes in Equity forthe year ended on that date and a summary of significant accounting policies and otherexplanatory information.

Management's Responsibility for the Standalone Ind AS 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 Ind AS Financial Statements that give a true and fair view of the stateof affairs (financial position) profit or loss (financial performance including othercomprehensive income) cash flows and changes in equity of the Company in accordance withthe accounting principles generally accepted in India including the Indian AccountingStandards (Ind AS) prescribed under section 133 of the Act. This responsibility alsoincludes maintenance of adequate accounting records in accordance with the provisions ofthe Act for safeguarding the assets of the Company and for preventing and detecting fraudsand other irregularities; selection and application of appropriate accounting policies;making judgments and estimates that are reasonable and prudent; and design implementationand maintenance of adequate internal financial controls that were operating effectivelyfor ensuring the accuracy and completeness of the accounting records relevant to thepreparation and presentation of the standalone Ind AS financial statements that give atrue and fair view and are free from material misstatement whether due to fraud or error.

Auditor's Responsibility

My responsibility is to express an opinion on these standalone Ind AS FinancialStatements based 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 there under.

I conducted my audit of the standalone Ind AS Financial Statements in accordance withthe Standards on Auditing specified under section 143(10) of the Act. Those Standardsrequire that I comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether the standalone Ind AS Financial Statements are freefrom material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts anddisclosures in the standalone Ind AS Financial Statements. The procedures selected dependon the auditor's judgment including the assessment of the risks of material misstatementof the standalone Ind AS Financial Statements whether due to fraud or error. In makingthose risk assessments the auditor considers internal financial control relevant to theCompany's preparation of the standalone Ind AS Financial Statements that give true andfair view in order to design audit procedures that are appropriate in the circumstances.An audit also includes evaluating the appropriateness of accounting policies used and thereasonableness of the accounting estimates made by Company's Directors as well asevaluating the overall presentation of the standalone Ind AS 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 Ind AS Financial Statements.

Opinion

In my opinion and to the best of my information and according to the explanations givento me the aforesaid standalone Ind AS Financial Statements give the information requiredby the Companies Act 2013 in the manner so required and give a true and fair view inconformity with the accounting principles generally accepted in India of the state ofaffairs of the company as at March 31 2017 and its loss (financial performance includingother comprehensive income) its cash flows and the changes in equity for the year endedon that date.

Other Matter

The comparative financial information of the Company for the period ended March 312016 and the transition date opening balance sheet as at July 1 2015 included in thesestandalone Ind AS financial statements are based on the previously issued statutoryfinancial statements prepared in accordance with the accounting principles generallyaccepted in India including the Accounting standards specified under Section 133 of theAct read with rule 7 of Companies (Accounts) Rules 2014 which were audited by me onwhich I expressed an unmodified opinion dated May 27 2016 and August 28 2015respectively. The adjustments to those financial statements for the differences inaccounting principles adopted by the Company on transition to the Ind AS have been auditedby me.

My opinion is not qualified in respect of the above matter.

Report on Other Legal and Regulatory Requirements

1. As required by the companies (Auditor's Report) Order 2016 ("the order")issued by the Central Government of India in terms of sub Section (11) of section 143 ofthe Companies Act 2013 I give in the Annexure 'A' a statement on the matters specifiedin paragraphs 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 bestof my 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 Statement of Profit & Loss (including other comprehensiveincome) Cash Flow Statement and Statement of Changes in Equity dealt with by this reportare in agreement with the books of account;

d) In my opinion the aforesaid standalone Ind AS Financial Statements comply with theIndian Accounting Standards specified under Section 133 of the Act read with relevantRules issued there under.

e) On the basis of written representations received from the directors as on March 312017 and taken on record by the Board of Directors none of the directors is disqualifiedas on March 31 2017 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 Auditor's Report inaccordance with Rule 11 of the companies (Audit & Auditors) Rules 2014 in my opinionand 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 material foreseeable losses on long term contractsincluding derivative contracts.

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

iv. The Company has provided requisite disclosures in its standalone Ind AS financialstatements as to holdings as well as dealings in Specified Bank Notes during the periodfrom 8 November 2016 to 30 December 2016 and these are in accordance with the books ofaccount maintained by the Company. Refer note no. 25 to the standalone Ind AS financialstatements.

For H. S. HATHI & CO.
Chartered Accountants
(Firm Registration No. 103596W)
Hemant S. Hathi
Proprietor
Place : Mumbai (Membership No. 037109)
Date : May 29 2017

Annexure 'A' to the Independent Auditor's Report

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) According to the information and explanations given to me the Company has notgranted loans secured or unsecured to companies firms Limited Liability Partnership orother parties covered in the register maintained under section 189 of the companies Act2013Therefore the provisions of Clause3(iii)(a)(iii)(b) and (iii)c of the said Orderare not applicable.

(iv) In my opinion and according to the 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) According to the information and explanations given to me the Company has notaccepted any deposit from the public.

(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 2017 for aperiod of more than six months from the date they became payable.

(b) According to the information and explanations given to me the following dues ofincome tax have not been deposited by the company on account of disputes.

Name of the Statute Nature of the Dues Amount Unpaid Period to which the Amount relates Forum where Dispute is Pending
The Income Tax Act 1961 Income Tax and interest 6549 A.Y. 2006-07 Assessing Officer
The Income Tax Act 1961 Income Tax and interest 102340 A.Y. 2010-11 Assessing Officer
The Income Tax Act 1961 Income Tax and interest 30930 A.Y. 2012-13 Assessing Officer
The Income Tax Act 1961 Income Tax and interest 4400 A.Y. 2014-15 Assessing Officer

(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.

(ix) The Company has not raised any moneys by way of initial public offer or furtherpublic offer (including Debt Instruments) during the year.

(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 managerial remunerationduring the year.

(xii) In my opinion and according to the information and explanations given to me theCompany is not a Nidhi Company.

(xiii) According to the information and explanations given by the management there isno transaction with the related parties during the year.

(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.
Chartered Accountants
(Firm Registration No. 103596W)
Hemant S. Hathi
Place : Mumbai Proprietor
Date : May 29 2017 (Membership No. 037109)

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 Limited ("the Company") as of March 31 2017 in conjunctionwith my audit of the standalone Ind AS Financial Statements of the Company for the yearended 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 Ind AS Financial Statements whether due to fraudor error.

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 Ind AS 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

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

(2) Provide reasonable assurance that transactions are recorded as necessary to permitpreparation of Ind AS Financial Statements in accordance with generally acceptedaccounting principles and that receipts and expenditures of the company are being madeonly in accordance with authorisations of management and directors of the company; and

(3) Provide reasonable assurance regarding prevention or timely detection ofunauthorised acquisition use or disposition of the company's assets that could have amaterial effect on the Ind AS 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 2017 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.
Chartered Accountants
(Firm Registration No. 103596W)
Hemant S. Hathi
Proprietor
Place : Mumbai (Membership No. 037109)
Date : May 29 2017