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Sterling Powergensys Ltd.

BSE: 513575 Sector: Engineering
NSE: N.A. ISIN Code: INE067E01013
BSE LIVE 14:49 | 05 Sep Stock Is Not Traded.
NSE 05:30 | 01 Jan Stock Is Not Traded.
OPEN 7.50
PREVIOUS CLOSE 7.59
VOLUME 700
52-Week high 8.50
52-Week low 5.33
P/E
Mkt Cap.(Rs cr) 4
Buy Price 7.55
Buy Qty 100.00
Sell Price 0.00
Sell Qty 0.00
OPEN 7.50
CLOSE 7.59
VOLUME 700
52-Week high 8.50
52-Week low 5.33
P/E
Mkt Cap.(Rs cr) 4
Buy Price 7.55
Buy Qty 100.00
Sell Price 0.00
Sell Qty 0.00

Sterling Powergensys Ltd. (STERLINGPOWERG) - Auditors Report

Company auditors report

To

The Members of

Sterling Powergensys Limited.

Report on theFinancial Statements

We have audited the accompanying financial statements of "Sterling PowergensysLimited" ("the Company") which comprise the Balance Sheet as at 31stMarch 2016 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 theFinancial 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 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 the internal financial control relevant to the Company’spreparation of the financial statements that give a true and fair view in order to designaudit procedures that are appropriate in the circumstances but not for the purpose ofexpressing an opinion on whether the company has in place an adequate internal financialcontrol system over financial reporting and the operating effectiveness of such controls.An audit also includes evaluating the appropriateness of accounting policies used and thereasonableness of the accounting estimates made by the Company’s Directors as wellas evaluating 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 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 or 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 2016.

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 informationrequired by the Act in the manner so required and give a true and fair view in conformitywith the accounting principles generally accepted in India of the state of affairs of theCompany as at 31March 2016 and its loss and its 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 2016 ("theOrder") issued by the Central Government of India in terms of subsection (11) ofSection 143 of the Act we give in the "Annexure A" a statement on the mattersspecified in paragraphs 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 qualifiedopinion paragraph above in our opinion proper books of account as required by lawhave been kept 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 qualifiedopinion paragraph above in our opinion the aforesaid standalone financial statementscomply with the applicable Accounting Standards specified under Section 133 of the Actread with Rule 7 of the Companies (Accounts) Rules2014;

(e) On the basis of the written representations received from the directors as on 31stMarch 2016 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2016 from being appointed as a director interms of Section 164(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. 28 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.

For GMJ & Co
Chartered Accountants
Firm’sReg. No. 103429W
CA Atul Jain
Place: Mumbai. Partner
Date: 28th May 2016 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 fixedassets 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 inthe name of the Company and other four are held in the earlier registered name of theCompany Sterling 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 dutyof customs 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 Lease Tax CST Tax Deducted at Source Service Tax Profession Tax
2014-15 - - - 22739 46325
2013-14 - - - 1128799 -
2012-13 - - - - -
2011-12 - - - - -
2004-05 - 145486 - - -
1998-99 19812 - - - -
1997-98 39624 - 99196 - -
1996-97 - - 172111 - -
Total 59436 145486 271307 1151538 46325

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 31stMarch 2016 which 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 2016.

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 further publicoffer (including debt instruments) and term loans during the year. Accordingly Clause 3(ix) of the Order is not applicable.

X According to the information and explanations given to us no materialfraud 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 has not 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.