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STL Global Ltd.

BSE: 532730 Sector: Industrials
NSE: SGL ISIN Code: INE353H01010
BSE LIVE 19:40 | 19 Oct 15.00 0.17
(1.15%)
OPEN

15.00

HIGH

15.00

LOW

14.99

NSE 19:28 | 19 Oct 14.90 0.05
(0.34%)
OPEN

14.80

HIGH

14.90

LOW

14.80

OPEN 15.00
PREVIOUS CLOSE 14.83
VOLUME 200
52-Week high 19.60
52-Week low 11.30
P/E 2.46
Mkt Cap.(Rs cr) 41
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 15.00
CLOSE 14.83
VOLUME 200
52-Week high 19.60
52-Week low 11.30
P/E 2.46
Mkt Cap.(Rs cr) 41
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

STL Global Ltd. (SGL) - Auditors Report

Company auditors report

To the Members of STL GLOBAL LIMITED

Report on the Financial Statements

We have audited the accompanying financial statements of STL GLOBAL LIMITED ("theCompany") which comprise the Balance Sheet as at March 31 2016 the Statement ofProfit & Loss and the Cash Flow Statement for the year then ended and a summary ofsignificant accounting policies and other explanatory information.

Management’s Responsibility for the Financial Statements

The Company’s Board of Directors of the Company is responsible for the mattersstated in Section 134(5) of the Companies Act2013 ("the Act") with respect tothe preparation of these financial statements that give a true and fair view of thefinancial position financial performance and cash flows of the Company in accordance withthe accounting principles generally accepted in India including the Accounting Standardsspecified under section 133 of the Act as applicable.

This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding the assets of the Company andfor preventing and detecting frauds and other 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 and the Order under section 143(11) ofthe Act.

We conducted our audit of these financial statements in accordance with the Standardson Auditing specified under section 143(10) of the Act. Those Standards require that wecomply with ethical requirements and plan and perform the audit to obtain reasonableassurance about whether the financial statements are free from material misstatement. Anaudit involves performing procedures to obtain audit evidence about the amounts and thedisclosures in the financial statements. The procedures selected depend on theauditor’s judgment including the assessment of the risk of material misstatement ofthe financial statements whether due to fraud or error. In making those risk assessmentsthe auditor considers 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. An audit also includesevaluating the appropriateness of the accounting policies used and reasonableness of theaccounting estimates made by the Company’s Board of Directors as well as evaluatingthe 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.

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid financial statements give the information required by the Actin the manner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India of the state of affairs of the Company as at March312016 and its loss 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 ("theOrder") issued by the Central Government in terms of sub- section (11) of Section 143of the Act we give in the "Annexure-A" a statement on the matters specified inparagraph 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 obtained all the information and explanations which to the bestof our knowledge and belief were necessary for the purpose of our audit;

b) in our opinion proper books of account as required by law have been kept by theCompany so far as 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 financial statements comply with the applicableAccounting Standards specified under section 133 of the Act as applicable.

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; and.

STL Global

f) with respect to the adequacy of the internal finance control over financialreporting of the Company and the operating effectiveness of such controls refer to ourseparate report in "Annexure-B". our reports express an unmodified opinion onthe adequacy and operating effectiveness of the Company’s internal financial controlover financial reporting.

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 explanation given to us :

i. The company has disclosed the impact of pending litigation on its financial positionin its financial statements.

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

iii. There has not been any occasion in case of the Company during the year underreport to transfer any sums to the investor Education and protection Fund. The question ofdelay in transferring such sums does not arise.

For M M Goyal & Co.

Chartered Accountants

Firm Registration No. : 007198N

Sd/-

(M.M.Goyal)

Partner

Membership No. 86085

New Delhi

May 30th 2016

STL Global

Annexure –A to the Independent Auditor’s Report

The Annexure referred to in paragraph 1 under Report on other Legal and Regulatoryrequirements section of our independent Auditor’s report of even date we reportthat:

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

(b) The fixed assets were physically verified during the year by the management inaccordance with a regular programme of verification which in our opinion provides forphysical verification of all the fixed assets at reasonable intervals. According to theinformation and explanation given to us no material discrepancies were noticed on suchverification.

(c) According to the information and explanation given to us and on the basis of ourexamination of the records of the Company the title deeds of immovable properties areheld in the name of the Company.

(ii) (a) As explained to us the inventories were physically verified during the yearby the management at reasonable intervals and no material discrepancies were noticed onphysical verification of inventories by the management.

(iii) According to the information and explanation given to us and on the basis of ourexamination of the books of accounts the company has not granted any loans secured orunsecured to companies firms or other parties covered in the register maintained undersection 189 of the Companies Act 2013.

(iv) In our opinion and according to the information and explanations given to us theCompany has not granted any loans made investments or provided guarantee and hencereporting under clause (iv) of the Order is not applicable.

(v) According to the information and explanation given to us The Company has notaccepted any deposits from the public covered under section 73 to 76 of the Companies Act2013.

(vi) In our opinion and according to the information and explanation given to us theCentral Government has not prescribed the maintenance of cost records under section 148(1) of the Companies Act 2013 .

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

(a) The Company is regular in depositing undisputed statutory dues including Providentfund Employee’s State Insurance Income tax Sales tax Service tax Excise dutyCustom duty Value Added Tax cess and any other statutory dues as applicable to it withthe appropriate authorities.

(b) There were no undisputed amount payable in respect of statutory dues payable as at31st March 2016 for a period of more than six months from the date they become payable.

(c) According to the information and explanation given to us the following dues havenot been deposited with the concerned authorities on account of dispute -

Name of the Statue Nature of Dues Amount Forum where Dispute is pending
Rupees
Local Area Development Ordiance-2000 Local Area Development Tax 4799479 Jt. Excise & Taxation Commissioner Faridabad
HVAT Act Sale Tax 2191221 Jt. Excise & Taxation Commissioner Faridabad
HVAT Act Sale Tax 410939 Haryana Sale Tax Appellate Tribunal Chandigarh
HVAT Act Sale Tax 3070369 Jt. Excise & Taxation Commissioner Faridabad

(viii) In our opinion and according to the information and explanations given to usthe Company has defaulted in repayment of loans and interest to bank and financialinstitutions. During the Financial year 2013-2014 Punjab National Bank as consortiumleader issued Notice u/s 13(2) and further u/s 13(4) of the Securitisation &Reconstruction of Financial Assets and Enforcement of Security Interest Act2002. bydeclaring accounts as NPA. The Company disputes the validity of the aforesaid notices andhas a separate claim for losses due to action/inaction of various parties and filed anAppeal U/s 17 of the same Act before Hon’ble DRT-I Chandigarh and matters are underconsideration During the Financial Year Oriental Bank of Commerce UCO Bank and ICICI Bankhave assigned their debts to ARC ie Alchemist Assets Reconstruction Company Limited.Further The Company have entered One time settlement (OTS) with Punjab National Bank andAllahabad Bank.

(ix) In our opinion and according to the information and explanations given to us theCompany has not raised money by way of initial public offer (including debt instrument)and term loans during the year and hence reporting under clause (ix) of the order is notapplicable.

(x) To the best of our knowledge and according to the information and explanationsgiven to us no fraud by the Company and no fraud on the Company by its officers oremployees has been noticed or reported during the year.

(xi) In our opinion and according to the information and explanations given to us theCompany has paid/provided managerial remuneration in accordance with the requisiteapprovals mandated by the provisions of Section 197 read with schedule V to the Act.

(xii) The Company is not a Nidhi Company and hence reporting under clause (xii) of theOrder is not applicable.

(xiii) In our Opinion and according to the information and explanations given to us theCompany is compliance with Section 177 and 188 of the Act where applicable for alltransactions with the related parties and the details of related party transactions havebeen disclosed in the financial statement etc as required by the applicable accountingstandards.

(xiv) During the Year the company has not made any preferential allotment or privateplacement of shares or fully or partly convertible debentures hence reporting under clause(xiv) of the Order is not applicable to the Company.

(xv) In our Opinion and according to the information and explanations given to us theCompany has not entered into any non-cash transactions with its directors or personsconnected with them and hence reporting under clause (xv) of the Order are not applicableto the Company.

(xvi) In our opinion the company is not required to be registered under section 45 IAof the Reserve Bank of India Act 1934 and accordingly the provisions of clause (xvi) ofthe Order are not applicable to the Company.

For M M Goyal & Co.

Chartered Accountants

Firm Registration No. : 007198N

Sd/-

M.M.Goyal

Partner

Membership No. 86085

New Delhi

May 30th 2016

Annexure –B to the Independent Auditor’s Report

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 STL GlobalLimited ("the Company") as of March 31 2016 in conjunction with our audit ofthe 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’). Theseresponsibilities include the design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the orderly and efficientconduct of its business including adherence to company’s policies the safeguardingof its assets the prevention and detection of frauds and errors the accuracy andcompleteness of the accounting records and the timely preparation of reliable financialinformation as required 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 auditinvolves performing procedures to obtain audit evidence about the adequacy of the internalfinancial controls system over financial reporting and their operating effectiveness. Ouraudit of internal financial controls over financial reporting included obtaining anunderstanding of internal financial controls over financial reporting assessing the riskthat a material weakness exists and testing and evaluating the design and operatingeffectiveness of internal control based on the assessed risk. The procedures selecteddepend on the auditor’s judgement including the assessment of the risks of materialmisstatement of the financial statements whether due to fraud or error. We believe thatthe audit evidence we have obtained is sufficient and appropriate to provide a basis forour audit opinion on the Company’s internal financial controls system over financialreporting.

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 authorizations 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 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 our 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 Institute of CharteredAccountants of India.

For M M Goyal & Co.

Chartered Accountants

Firm Registration No. : 007198N

Sd/-

M.M.Goyal

Partner

Membership No. 86085

New Delhi

May 30th 2016