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Sterling Powergensys Ltd.

BSE: 513575 Sector: Engineering
NSE: N.A. ISIN Code: INE067E01013
BSE 14:38 | 23 Feb 10.09 0.48
(4.99%)
OPEN

10.09

HIGH

10.09

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10.09

NSE 05:30 | 01 Jan Sterling Powergensys Ltd
OPEN 10.09
PREVIOUS CLOSE 9.61
VOLUME 1000
52-Week high 10.09
52-Week low 5.33
P/E
Mkt Cap.(Rs cr) 5
Buy Price 0.00
Buy Qty 0.00
Sell Price 10.09
Sell Qty 200.00
OPEN 10.09
CLOSE 9.61
VOLUME 1000
52-Week high 10.09
52-Week low 5.33
P/E
Mkt Cap.(Rs cr) 5
Buy Price 0.00
Buy Qty 0.00
Sell Price 10.09
Sell Qty 200.00

Sterling Powergensys Ltd. (STERLINGPOWERG) - Auditors Report

Company auditors report

Independent Auditor's Report

To

The Members of

Sterling Powergensys Limited.

Report on the Financial Statements

We have audited the accompanying financial statements of "Sterling PowergensysLimited" ("the Company") which comprise the Balance Sheet as at 31stMarch 2017 the Statement of Profit and Loss and the Cash Flow Statement for the yearthen ended and a summary of significant accounting policies and other explanatoryinformation.

Management's Responsibility for the 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 irregularities; selection and application ofappropriate accounting policies; making judgments and estimates that are reasonable andprudent; and design implementation and maintenance of adequate internal financialcontrols that were operating effectively for ensuring the accuracy and completeness ofthe accounting records relevant to the preparation and presentation of the financialstatements that give a true and fair view and are free from material misstatement whetherdue to fraud or error.

Auditor's Responsibility

Our responsibility is to express an opinion on these financial statements based on ouraudit. 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 thereunder.

We have conducted our audit in accordance with the Standards on Auditing specifiedunder Section 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 anddisclosures in the financial statements. The procedures selected depend on the auditor'sjudgment including the assessment of the risks of material misstatement of the financialstatements whether due to fraud or error.In making those risk assessments the auditorconsiders the 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 control systemover financial reporting and the operating effectiveness of such controls. An audit alsoincludes evaluating the appropriateness of accounting policies used and the reasonablenessof the 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 financial statements.

Basis for Qualified Opinion

1. Company is subject to interest liability on unpaid statutory dues and on other duesthe same has neither been paid nor provided or quantified.

2. Loans and advances to and from suppliers others sundry debtors and creditors areunconfirmed/unreconciled.

3. We are unable to quantify the effect of the above facts for want of relevantinformation and the effect thereof on the financials for the year ended 31st March 2017.

Qualified Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us except for the effects of the matter described in the ‘Basis forQualified Opinion' paragraph above the 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 of the state of affairs of the Companyas at 31st March 2017 and its profit and its cash flows for the year ended on that date.

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 Act we give in the "Annexure A" a statement on the matters specified inparagraphs 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 except for matters described in Basis for Qualified Opinionparagraph obtained all the information and explanations which to the best of ourknowledge and belief were necessary for the purpose of our audit;

b) Except for the effects of the matter described in the basis for qualified opinionparagraph above in our opinion proper books of account as required by law have beenkept by the Company 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) Except for the effects of the matter described in the basis for qualified opinionparagraph above in our opinion the aforesaid standalone financial statements complywith the applicable Accounting Standards specified under Section 133 of the Act read withRule 7 of the Companies (Accounts) Rules2014;

e) On the basis of the written representations received from the directors as on 31stMarch 2017 taken on record by the Board of Directors none of the directors isdisqualified as on 31stMarch 2017 from being appointed as a director in terms of Section164(2) of the Act.

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 ourseparate report in "Annexure B"; and

g) In our opinion and to the best of our information and according to the explanationsgiven to us we report as under with respect to other matters to be included in theAuditor's Report in accordance with Rule 11 of the Companies (Audit and Auditors)Rules2014:

i. The Company has disclosed the amount of pending litigation on its financial positionin note no. 29 to the Financial Statements.

ii. The Company did not have any long-term contracts including derivative contracts; assuch the question of commenting on any material foreseeable losses thereon does not arise.

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

iv. The Company has provided requisite disclosures in the financial statements (noteNo. 39) as to holdings as well as dealings in Specified Bank Notes during the period from8th November 2016 to 30th December 2016. Based on audit procedures and relying on themanagement representation we report that the disclosures are in accordance with books ofaccount maintained by the Company and as produced to us by the Management.

For GMJ & Co
Chartered Accountants
Firm's Reg. No. 103429W
SD/-
CA Atul Jain
Place: Mumbai. Partner
Date: 29th May 2017 M. No. 037097

"ANNEXURE A" TO INDEPENDENT AUDITORS' REPORT

(Referred to in paragraph 1 under ‘Report on Other Legal and RegulatoryRequirements' section of our report of even date)

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

b) The Company has a regular programme of physical verification of its fixed assets bywhich fixed assets are verified in a phased manner over a period of three years. Inaccordance with this programme certain fixed assets were verified during the year and nomaterial discrepancies were noticed on such verification. In our opinion this periodicityof physical verification is reasonable having regard to the size of the Company and thenature of its assets.

c) Out of Five immovable properties the title deed of one immovable property is in thename of the Company and other four are held in the earlier registered name of the CompanySterling Strips Ltd.

ii. According to the information and explanations given to us Physical verification ofinventory has been conducted at reasonable intervals by them management and no materialdiscrepancies were noticed on such physical verification during the year.

iii. The company has not granted any loans secured or unsecured to companies firmsLimited Liability Partnerships or other parties covered in the register maintained undersection 189 of the Companies Act 2013. Therefore the provisions of clause 3 (iii) (iii)(a) (iii) (b) and (iii) (c) of the said order are not applicable to the company.

iv. The company has not granted any loans or made any investments or provided anyguarantees or security to the parties covered under section 185 and 186. Therefore theprovisions of clause 3(iv) of the said order are not applicable to the company.

v. The company has not accepted any deposits from the public within the meaning ofsections 73 to 76 or any other relevant provisions of the Companies Act 2013 and theRules framed there under to the extent notified.

vi. The Central Government has not prescribed the maintenance of cost records undersection 148(1) of the Companies Act 2013 for any of the services rendered by the Company.

vii. a) The company has been regular in depositing undisputed statutory dues includingprovident fund employees' state insurance income- tax sales-tax service tax duty ofcustoms duty of excise value added tax cess and any other statutory dues to theappropriate authorities. There are few outstanding dues as on the last day of thefinancial year for a period of more than six months from the date they became payable.

Year Tax Deducted at Source Service Tax
2014-15 - 22739
2013-14 - 1128799
1997-98 99196 -
1996-97 172111 -
Total 271307 1151538

The above details do not include the amount due for payment quantum of which is notascertained under sales tax deferral scheme as shown under Other Long Term Liabilitiesamounting to Rs. 24446488/-.

b) According to the information and explanations given to us there have been fewdisputed dues which have not been deposited in respect of sales tax at 31st March 2017which are as under-

Name of the Statute Nature of the Dues Amount (Rs.) Period to which the amount relates Forum where dispute is pending
Bombay Sales Tax Act 1959 Interest and Penalty on BST 2179193 1995-2003 Deputy Commissioner of Sales Tax (Appeals)
Central Sales Tax Act 1956 Interest and Penalty on CST 2183693 1995-2003 Deputy Commissioner of Sales Tax (Appeals)

There are no disputed dues in respect of income tax sales tax service tax duty ofcustoms duty of excise and value added taxes at 31st March 2017.

viii. In our opinion and according to the information and explanations given to us theCompany has not defaulted in repayment of dues to bank during the year under audit. Thereare no dues to Financial Institution and the Company has not issued any debentures. Inrespect of Government dues of Sales Tax deferral scheme refer to our comment in Para(vii)(a) above.

ix. The Company did not raise any money by way of initial public offer or furtherpublic offer (including debt instruments) and term loans during the year. AccordinglyClause 3 (ix) of the Order is not applicable.

x. According to the information and explanations given to us no material fraud by theCompany or on the Company by its officers or employees has been noticed or reported duringthe course of our audit.

xi. The Company has paid / provided for managerial remuneration in accordance with therequisite approvals mandated by the provisions of Section 197 read with Schedule V of theAct.

xii. In our opinion and according to the information and explanations given to us theCompany is not a nidhi company. Accordingly Clause 3(xii) of the Order is not applicable.

xiii. According to the information and explanations given to us and based on ourexamination of the records of the Company the Company hasnot entered into anytransactions with the related parties which are covered under sections 177 and 188 of theAct.

xiv. The Company has not made any preferential allotment or private placement of sharesor fully or partly convertible debentures during the year under review. Accordingly theprovisions of clause 3(xiv) of the order are not applicable to the Company.

xv. The Company has not entered in to non-cash transactions with directors or personsconnected with him. Accordingly the provisions of Clause 3(xv) of the Order is notapplicable to the Company.

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

For GMJ & Co
Chartered Accountants
Firm's Reg. No. 103429W
SD/-
CA Atul Jain
Place: Mumbai. Partner
Date: 29th May 2017 M. No. 037097

ANNEXURE B" TO INDEPENDENT AUDITOR'S REPORT

(Referred to in paragraph 2(f) under ‘Report on Other Legal and RegulatoryRequirements' section of our report of even date on the standalone financial statements ofSterling Powergensys 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 SterlingPowergensys Limited ("the Company") as of March 31 2017 in conjunction with ouraudit 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 (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 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. Ur 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 dependon the auditors judgment including the assessment of the risks of materialmisstatement of the financial statements whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our 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 process designed toprovide reasonable assurance regarding the reliability of financial reportingand 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 details 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 andexpenditure 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 unauthorized acquisition use or disposition of thecompany's assets that could have a material effect on the financial statements.

Inherent Limitation 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.

Option

In our option the Company has in all material resects and adequate internalfinancial controls system over financial reporting and such internal financial controlsover financial reporting were operation 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 Fianncial Reporting issued by the Institute of CharteredAccountants of India.

For GMJ & Co
Chartered Accountants
Firm's Reg. No. 103429W
SD/-
CA Atul Jain
Place: Mumbai. Partner
Date: 29th May 2017 M. No. 037097