You are here » Home » Companies » Company Overview » Sterling Tools Ltd

Sterling Tools Ltd.

BSE: 530759 Sector: Engineering
NSE: STERTOOLS ISIN Code: INE334A01023
BSE LIVE 15:40 | 21 Sep 265.10 -7.40
(-2.72%)
OPEN

270.00

HIGH

270.00

LOW

262.50

NSE 15:31 | 21 Sep 269.65 -5.15
(-1.87%)
OPEN

275.00

HIGH

275.00

LOW

264.00

OPEN 270.00
PREVIOUS CLOSE 272.50
VOLUME 3201
52-Week high 290.00
52-Week low 141.41
P/E 25.84
Mkt Cap.(Rs cr) 954
Buy Price 265.10
Buy Qty 59.00
Sell Price 0.00
Sell Qty 0.00
OPEN 270.00
CLOSE 272.50
VOLUME 3201
52-Week high 290.00
52-Week low 141.41
P/E 25.84
Mkt Cap.(Rs cr) 954
Buy Price 265.10
Buy Qty 59.00
Sell Price 0.00
Sell Qty 0.00

Sterling Tools Ltd. (STERTOOLS) - Auditors Report

Company auditors report

TO ThE MEMbERS Of STERLING TOOLS LIMITED

Report on the Standalone financial Statements

We have audited the accompanying financial statements of Sterling Tools Limited("the Company") which comprise the Balance Sheet as at March 31 2016 theStatement of Profit and Loss and Cash Flow Statement for the year then ended and asummary of the 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) Rules2014. This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding of 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 financialcontrols thatwere of adequate internal operating effectively for ensuring the accuracy and completenessof the 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 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 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 internal financial control financial statements that give a true andfair view in order to design audit procedures that are appropriate in the circumstances.An audit also includes evaluating the appropriateness of the accounting policies used andthe reasonableness of the accounting estimates made by the Company’s directors aswell as 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 standalone financial statements.

Opinion

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 of the state of affairs of the Companyas at March 31 2016 its profit and 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 ("theOrder") issued by the Central Government of India in terms of sub-section (11) ofsection 143 of the Act we give in the Annexure A a statement on the mattersspecified in the paragraph 3 and 4 of the order.

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 financialstatements 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 March31 2016 taken on record by the Board of Directors none of the directors is disqualifiedas on March 31 2016 from being appointed as a director in terms of Section 164(2) of theAct. controls over financial reporting of the (f) With respect to the adequacy of theinternal financial Company and the operating effectiveness of such controls refer to ourseparate Report in "Annexure- b".

(g) 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. On the basis of written representations received from the management of the Companythe Company does not have any pending litigations which would impact its financialposition; except for the cases which are disclosed under sub-note "ContingentLiabilities & Commitments" under Note No. 8 of the financial statements.

ii. The Company did not have any long-term contracts including derivative contracts forwhich there were any material foreseeable losses. However the Company uses derivativefinancial instruments such as forward contracts to hedge its risks associated with certainforeign currency transactions; which are short term in nature and details of outstandingcontracts is disclosed in Note No. 29 of the financial statements.

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

for S.R. Dinodia & Co. LLP
Chartered Accountants
firm Registration Number 001478N/N500005
(Pradeep Dinodia)
Place of Signature: faridabad Partner
Date:20 May 2016 Membership No. 080617

Annexure ‘A’ To the Independent Auditors’ Report

The Annexure referred to in independent Auditors’ Report to the members of theCompany on the standalone financial statements for the year ended March 31 2016 wereport that: i) In respect of fixed assets:

a) The Company has maintained proper records showing full particulars includingquantitative . detailsandsituationoffixed assets

b) The Company has a regular programme of physical verification of its fixed assets bywhich fixed assets are verified at periodic intervals. In accordance with this programmefor the year no material discrepancies were noticed on such verification. In our opinionsuch periodicity of physical verification is reasonable having regard to the size of theCompany and the nature of its assets.

c) On the basis of written representation received from the management of the Companythe title deeds of immovable properties held in the name of the Company are mortgaged withthe Banks for securing the long term borrowings and credit limits raised by the Company.

ii) In respect of its inventory:

a) On the basis of information and explanation provided by the management inventorieshave been physically verified by the management during the year. In our opinion thefrequency of physical verification followed by the management is reasonable.

b) No material discrepancies were noticed on verification between the physical stocksand the book records.

iii) (a) to (c) According to the information and explanation given to us the Companyhad not granted loans secured or unsecured to any of the Companies firms or otherparties covered in the register maintained under section 189 of the Companies Act 2013.Therefore the provisions of paragraph 3(iii) (a) to (c) of the Companies (Auditor’sReport) Order 2016 are not applicable to the Company.

iv) According to the information and explanation given to us The Company has no loansinvestments guarantees and security covered under the provisions of section 185 and 186of the Companies Act 2013. Therefore the provisions of paragraph 3(iv) of the Companies(Auditor’s Report) Order 2016 are not applicable to the Company.

v) The Company has not accepted any deposits from the public.

vi) On the basis of available information and explanation provided to us the CentralGovernment has not prescribed maintenance of cost records under sub-section (1) of section148 of the Companies Act 2013 read with Companies (Cost Records and Audit) AmendmentRules 2014 dated December 31 2014 to the current operations carried out by the Company.Accordingly the provisions of paragraph 3(vi) of the Companies (Auditor’s Report)Order 2016 are not applicable to the Company.

vii) (a) The Company is generally regular in depositing undisputed statutory duesincluding provident fund employees’ state insurance income tax sales tax servicetax duty of customs duty of excise value added tax cess and any other statutory dueswith appropriate authorities.

Further there were no undisputed outstanding statutory dues as on the last day of thefinancial year concerned for a period of more than six months from the date they becamepayable.

(b) According to the records of the Company examined by us and the information andexplanations given to us there were no dues of income tax or sales tax or service tax orduty of customs or duty of excise or value added tax except the following which have notbeen deposited on account of any dispute:

S.No. Name of the Statute Nature of Dues Amount (Rs.) Period to which amount relates forum where dispute is pending
1. Central Excise Act 1944 (a) Excise Duty and Penalty 3990394 February 2010-March 2010 CESTAT New Delhi
(b) Excise Duty and Penalty 5326546 November 2010-January 2011 CESTAT New Delhi
(c) Excise Duty and Penalty 22226095 February 2011 - September 2015 Office of Commissioner of Central Excise Audit - II
2. Central Excise Act 1944 Interest on Excise Duty & penalty referred in point 1(a) & (b) above 3678036 February 2010-January 2011 Since excise duty and penalty referred in point 1(a) & (b) above are pending at CESTAT New Delhi therefore interest relating to said matters will be decided accordingly
3. Haryana Value Added Tax 2003 Vat on account of Sale of Capital Goods (Cars) 98594 A.Y. 2009-10 Hon’ble Haryana Tax Tribunal at Chandigarh
4. Haryana Value Added Tax 2003 Liability of Sales Tax due to pending C Forms 144169643 A.Y. 2013-14 to A.Y. 2015-16 Jurisdictional Assessing Officer. (Haryana Value Added Tax Department)
5. Income Tax Act 1961 Demand under the Income Tax Act 1961 62830 A.Y. 2013-14 Jurisdictional Assessing Officer (Income Tax Department)
6. Income Tax Act 1961 Demand under the Income Tax Act 1961 1185580 A.Y. 2014-15 Jurisdictional Assessing Officer (Income Tax Department)

viii) On the basis of information and explanation provided to us Company has notdefaulted in repayment of loans and borrowings to the bank. However there were no duesoutstanding towards debenture holders as at March 31 2016.

ix) The Company did not raise any money by the way of initial public or further publicoffer (including debt instruments) during the year. However the term loans taken duringthe year were applied for the purpose for which the same has been raised.

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

xi) The Company has paid or provided managerial remuneration to its directors duringthe year in accordance with provisions of section 197 read with Schedule V to theCompanies Act 2013 as applicable to the Company.

xii) The Company is not a nidhi company hence the provisions of paragraph 3(xii) of theOrder are not applicable to the Company.

xiii) During the course of our examination of the books and records of the Company alltransactions entered with the related parties are in compliance with section 177 and 188of Companies Act 2013 and the details have been disclosed in thefinancialstatements etcas required by the applicable accounting standards.

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 paragraph 3(xiv) of the Order are not applicable to the Company.

xv) The Company has not entered into any non-cash transactions with directors orpersons connected with him. Accordingly the provisions of paragraph 3(xv) of the Orderare not applicable to the Company.

xvi) The Company is not required to be registered under section 45-IA of the ReserveBank of India Act 1934. Accordingly the provisions of paragraph 3(xvi) of the Order arenot applicable to the Company.

for S.R. Dinodia & Co. LLP
Chartered Accountants
firm Registration Number 001478N/N500005
(Pradeep Dinodia)
Place of Signature: faridabad Partner
Date:20 May 2016 Membership No. 080617

Annexure ‘B’ to the Independent Auditors’ Report of even date on thestandalone financial statement of Sterling Tools Limited Report on the Internal financialControls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act 2013("the Act")

We have audited the internal financial controls over financial reporting of SterlingTools Limited ("the Company") as of March 31 2016 in conjunction with our auditof the standalone 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 based on the internal control over financial reporting the essential componentsof internal control stated in the Guidance Note on Audit of Internal Financial Controlsover Financial Reporting issued by the Institute of Chartered Accountants of India (ICAI).These responsibilities include the design implementation and maintenance of adequateinternal financial controls that were operating effectively for ensuring the orderly andefficient conduct of its business including adherence to company’s policies thesafeguarding of its assets the prevention and detection of frauds and errors theaccuracy and completeness of the accounting records and the timely preparation ofreliable financial information as required under the CompaniesAct 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 judgement including the assessment of the risks ofmaterial misstatement 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 controlssystem over financial reporting.

Meaning of Internal financial Controls Over financial Reporting

A Company’s internal financial control over financial reporting is a processdesigned to provide reasonable assurance regarding the reliability of financial reportingand the preparation of 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 themaintenance of records that in reasonable detail accurately and fairly reflect thetransactions and dispositions of the assets of the company; (2) provide reasonableassurance that transactions are recorded as necessary to permit preparation of financialstatements in accordance with generally accepted accounting principles and that receiptsand expenditures 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 possibility ofcollusion or improper management override of controls material misstatements due to erroror fraud may occur and not be detected. Also projections of any evaluation of theinternal financial controls over financial reporting to future periods are subject to therisk that the internal financial control over financialreporting may become inadequatebecause of changes in conditions or that the degree of compliance with the policies orprocedures 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 financialreporting were operating effectively as at March 31 2016 based on"the internal control over financial reporting criteria established by the Companyconsidering the essential components of internal control stated in the Guidance Note onAudit of Internal Financial Controls Over Financial Reporting issued by the Institute ofChartered Accountants of India.

for S.R. Dinodia & Co. LLP
Chartered Accountants
firm Registration Number 001478N/N500005
(Pradeep Dinodia)
Place of Signature: faridabad Partner
Date:20 May 2016 Membership No. 080617