Mar 31, 2015
We have audited the accompanying financial statements of STERLING
POWERGENSYS LIMITED ("the Company"), which comprise the Balance Sheet
as at March 31st, 2015, and the Statement of Profit and Loss and Cash
Flow Statement for the year then ended, and a summary of significant
accounting policies and other explanatory information.
Management's Responsibility for the Financial Statements
The Company's Board of Directors are responsible for the matters stated
in Section 134(5) of the Companies Act 2013 (the 'Act') with respect to
the preparation of these financial statements that give a true and fair
view of the financial position, financial performance and cash flows of
the Company in accordance with the Accounting Standards referred to in
section 133 of the Act read with Rule 7 of the Companies (Accounts)
Rules, 2014. This responsibility also includes maintenance of adequate
accounting records in accordance with the provisions of the Act for
safeguarding the assets of the Company and for preventing and detecting
frauds and other irregularities; selection and application of
appropriate accounting policies; making judgments and estimates that
are reasonable and prudent; and design, implementation and maintenance
of adequate internal financial controls, that were operating
effectively for ensuring the accuracy and completeness of the
accounting records, relevant to the preparation and presentation of the
financial statements that give a true and fair view and are free from
material misstatement, whether due to fraud or error.
Auditor's Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We have taken into account the
provisions of the Act, the accounting and auditing standards and
matters which are required to be included in the audit report under the
provisions of the Act and the Rules made there under.
We have conducted our audit in accordance with the Standards on
Auditing specified under section 143(10) of the Act. Those Standards
require that we comply with ethical requirements and plan and perform
the audit to obtain reasonable assurance about whether the financial
statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditor's judgment, including the assessment of
the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditor
considers internal financial control relevant to the Company's
preparation and fair presentation of the financial statements in order
to design audit procedures that are appropriate in the circumstances,
but not for the purpose of expressing an opinion on the effectiveness
of the entity's internal financial control. An audit also includes
evaluating the appropriateness of accounting policies used and the
reasonableness of the accounting estimates made by Company's Directors,
as well as evaluating the overall presentation of the financial
statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion. Basis for
Qualified Opinion
1) Company is subject to interest liability on unpaid statutory dues
and on other dues, the same has neither been paid or provided or
quantified.
2) In respect of accounting of Gratuity for the employees, no provision
has been made in Accounts for the same which is in contradiction to AS
15 - Employee Benefits issued by The Institute of Chartered Accountants
of India.
3) In respect of deduction and contribution to Provident Fund for the
employees, Company has not complied with the requirement of The
Employees' Provident Funds and Miscellaneous Provisions Act, 1952.
4) Loans and advances to and from suppliers, others, sundry debtors and
creditors are unconfirmed/unreconciled.
5) We are unable to quantify the effect of the above facts for want of
relevant information and the effect thereof on the financials for the
year ended 31st March, 2015.
Qualified Opinion
In our opinion and to the best of our information and according to the
explanations given to us except for the effects of the matter described
in the 'Basis for Qualified Opinion' paragraph above, the financial
statements give the information required by the Act in the manner so
required and give a true and fair view in conformity with the
accounting principles generally accepted in India, of the state of
affairs of the Company as at 31 March 2015 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, 2015 ("the
Order") issued by the Central Government of India in terms of
sub-section (11) of section143 of the Act, we give in the Annexure a
statement on the matters specified in paragraphs 3 and 4 of the Order,
to the extent applicable.
2. As required by section143(3) of the Act, we report that:
a) We have sought and except for matters described in Basis for
Qualified Opinion paragraph, obtained all the information and
explanations which to the best of our knowledge and belief were
necessary for the purpose of our audit;
b) Except for the effects of the matter described in the basis for
qualified opinion paragraph above, in
our opinion, proper books of account as required by law have been kept
by the Company so far as it appears from our examination of those books
c) The Balance Sheet, Statement of Profit and Loss, and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account.
d) Except for the effects of the matter described in the Basis for
Qualified Opinion paragraph above, in our opinion, the aforesaid
financial statements comply with the accounting standards specified
under section 133 of the Act, read with Rule 7 of the Companies
(Accounts) Rules, 2014.
e) The matter described in the Basis for Qualified Opinion paragraph
above, in our opinion, may have an adverse effect on the functioning of
the Company.
f) On the basis of written representations received from the directors
as on March 31, 2015 and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31, 2015, from being
appointed as a director in terms of section 164 (2) of the Act.
g) The qualification relating to non-provision of interest liability on
statutory dues and non-confirmation of loans and advances, sundry
debtors, creditors etc., non-compliance of AS-15 on Employee benefits
and The Employees' Provident Funds and Miscellaneous Provisions Act,
1952 are stated in the Basis for Qualified Opinion paragraph above.
3. In our opinion and to the best of our information and according to
the explanations given to us, we report as under with respect to other
matters to be included in the Auditor's Report in accordance with Rule
11 of the Companies (Audit and Auditors) Rules, 2014:
i) The Company has disclosed the amount of pending litigations on its
financial position in Note-26 to the Financial Statements which is in
the nature of contingent liability being not required to be provided in
the accounts.
ii) The Company does not anticipate any material foreseeable losses, on
long- term contracts.
iii) There were no amounts which were required to be transferred to the
Investor Education and Protection Fund.
ANNEXURE TO THE INDEPENDENT AUDITOR'S REPORT
(i) (a) The Company has maintained proper records showing full
particulars including quantitative details and situation of its fixed
assets.
(b) All the fixed assets, have been physically verified by the
management during the year and no discrepancies were noticed on such
verification
(ii) (a) In our opinion, physical verification of inventory lying with
the company has been conducted at reasonable intervals by the
management.
(b) In our opinion, the procedures of physical verification of
inventory followed by the management are reasonable and adequate in
relation to the size of the Company and the nature of its business.
(c) In our opinion, the Company has maintained proper records of
inventory. As explained to us, no discrepancies were noticed on
physical verification as compared to the book records.
(iii) The Company has not granted any loan, secured or unsecured, to
companies, firms or other parties covered in the register maintained
under Section 189 of the Companies Act, 2013 and hence, the provisions
of clauses iii (a) and (b) of paragraph 3 of the Companies (Auditor's
Report) Order, 2015 are not applicable to the Company.
(iv) In our opinion and according to the information and explanations
given to us, there is an adequate internal control system commensurate
with the size of the company and the nature of its business with regard
to purchase of inventory, fixed assets and sale of goods and services.
During the course of our audit, we have not observed any continuing
failure to correct major weaknesses in the internal control systems in
respect of the aforesaid areas.
(v) The Company has not accepted any deposits from the public within
the meaning of Sections 73 to 76 of the Act and the rules framed
thereunder to the extent notified.
(vi) The Central Government of India has not prescribed the maintenance
of cost records under subsection (1) of Section 148 of the Act for any
of the activities of the Company.
(vii) According to the records of the Company, examined by us and
information and explanations given to us:
(a) The company is generally irregular in payment of undisputed
statutory dues including provident fund, income tax, sales tax, wealth
tax, service tax, duty of customs, duty of excise, value added tax,
cess and others as applicable with the appropriate authorities. The
undisputed amounts payable in respect of aforesaid dues outstanding as
at 31 March 2015 for a period of more than six months from the date
they became payable are as follows:
Year Lease CST Gujarat VAT Tax Deducted
Tax at Source
2014-15 - 7 7 1,71,543
2013-14 - - - -
2012-13 - - - -
2011-12 - - 27,06,353 -
2004-05 - 1,45,486 - -
1998-99 19,812 - - -
1997-98 39,624 - - 99,196
1996-97 - - - 1,72,111
Total 59,436 1,45,486 27,06,353 4,42,850
Year
Service Tax Professon Provident Works
Tax Fund Contract
Tax
2014-15 37,294 12,225 2 12
2013-14 11,28,799 - - -
2012-13 - - 28,089 -
2011-12 - - - -
2004-05 - - - -
1998-99 - - - -
1997-98 - - - -
1996-97 - - - -
Total 11,66,093 12,225 28,089 12
The above details do not include the amount due for payment, quantum of
which is not ascertained, under sales tax deferral scheme as shown
under Other Long Term Liabilities amounting to Rs. 2,44,46,488/-
(b) According to the records of the Company, the dues of Sales tax
which are not deposited on account of any dispute are as under:
Name of the Nature of the Dues Amount (Rs.)
Statute
Bombay Sales Interest and Penalty
Tax Act, 1959 on BST 21,79,193
Central Sales Tax Interest and Penalty
Act, 1956 on CST 21,83,693
Name of the Period to which Forum where
Statute the amount dispute is
pending
Bombay Sales Deputy Commissioner of
Tax Act, 1959 1995-2003 Sales Tax (Appeals)
Central Sales Tax Deputy Commissioner of
Act, 1956 1995-2003 Sales Tax (Appeals)
(c) According to the information and explanations given to us, there
were no amounts which were required to be transferred to the investor
education and protection fund in accordance with the relevant provision
of the Act and rules there under.
(viii) The company has accumulated losses as on 31st March 2015, which
is more than 50% of its net- worth. Further, it has incurred cash loss
during the financial year but not in the immediately preceding financial
year.
(ix) The Company has not defaulted in repayment of dues to banks during
the year under audit.
(x) The company has not given guarantee in respect of loans taken by
others. Accordingly the provisions of clause iii (x) of paragraph 3 of
the Companies (Auditor's Report) Order, 2015 are not applicable.
(xi) In our opinion, the term loans have been used for the purpose for
which the same were obtained.
(xii) Based on the audit procedures performed and according to the
information and explanations given to us, we report that no fraud on or
by the Company has been noticed or reported during the year.
For GMJ & Co.
Chartered Accountants
Firm's Reg. No. 103429W
CA Atul Jain
Partner
M. No. 037097
Place: Mumbai
Date: 9th May, 2015
Mar 31, 2014
We have audited the attached financial statement o Sf TERLING STRIPS
LIMITED ("the Company"), which comprise the Balance Sheet as at March
31, 2014, and the Statement of Profit and Loss Account and the Cash
flow statement for the year ended March 31, 2014 and a summary of
significant accounting policies and other explanatory information.
MANAGEMENT''S RESPONSIBILITY FOR THE FINANCIAL STATEMENTS
Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position,
financial performance and cash flows of the Company in accordance with
the Accounting Standards referred to in sub-section (3C) of section 211
of the Companies Act, 1956 ". This responsibility includes the design,
implementation and maintenance of internal control relevant to the
preparation and presentation of the financial statements that give a
true and fair view and are free from material misstatement, whether due
to fraud or error.
AUDITOR''S RESPONSIBILITY
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement. An audit involves performing procedures to
obtain audit evidence about the amounts and disclosures in the
financial statements. The procedures selected depend on the auditor''s
judgment, including the assessment of the risks of material
misstatement of the financial statements, whether due to fraud or
error. In making those risk assessments, the auditor considers internal
control relevant to the Company''s preparation and fair presentation of
the financial statements in order to design audit procedures that are
appropriate in the circumstances. An audit also includes evaluating the
appropriateness of accounting policies used and the reasonableness of
the accounting estimates made by management, as well as evaluating the
overall presentation of the financial statements. We believe that the
audit evidence we have obtained is sufficient and appropriate to
provide a basis for our audit opinion.
OPINION
In our opinion and to the best of our information and according to the
explanations given to us, the financial statements give the information
required by the Act in the manner so required and give a true and fair
view in conformity with the accounting principles generally accepted in
India:
(a) in the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2014;
(b) in the case of the Profit and Loss Account, of the loss for the
year ended on that date; and
(c) in the case of the Cash Flow Statement, of the 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, 2003 as
amended by the Companies (Auditor''s report) (Amendment) Order,
2004 (together the "Order") issued by the Central Government of India
in terms of section 227 (4A) of the Companies Act, 1956 of India (the
Act), and we give in the Annexure a statement on the matters specified
in paragraphs 4 and 5 of the said Order.
2. i. The job card maintained by the company for manufacturing work
carried out do not provide the full details of materials
received, consumed and direct overheads incurred on the respective
jobs. ii.Payments received and made in the parties accounts consisting
debtors, creditors, loans, advances, deposits are generally not
supported with the corresponding receipts of such payments received or
made to or from the respective party and authenticity of the same
couldn''t be verified for want of appropriate evidence. iii. Company is
subject to interest liability on unpaid statutory dues and on other
dues same has neither been paid nor provided or quantified. Iv. Loans
& Advances to and from suppliers, others, sundry debtors, sundry
creditors for goods & expenses are unconfirmed and in our opinion
substantially unrealizable / payable. v. The Company has not made
provision for Doubtful Debts.
vi. We are unable to quantify the effect of above facts in sub para (i)
to (v) for want of relevant information and the effect thereof on the
profit for the year ended or on the state of affairs of the company as
at 31st March, 2014.
3. Subject to what is stated above:
As required by section 227(3) of the Act, we report that:
a) We have obtained all the information and explanations, which to the
best of 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 the Company so for as appears from our examination of the
books;
c) The Balance Sheet and the Profit & Loss Account and Cash Flow
Statement dealt with by this report are in agreement with the books
of account;
d) In our opinion the Balance Sheet, Profit & Loss Account and Cash
flow statement dealt with by this report comply with the Accounting
Standards referred to in sub section (3C) of Section 211 of the
Companies Act, 1956.;
e) On the basis of representation received from the Directors, as on
31st March 2014 and taken on record by the Board of Directors, we
report that none of the Directors is disqualified as on 31st March,
2014 from being appointed as Directors under Section 274(1)(g) of
Companies Act, 1956.;
ANNEXURE TO THE AUDITOR''S REPORTOF EVEN DATE REFFERED IN PARA NO.3
On the basis of information & explanation given to us, we report that:
-
1 a The Company has maintained records showing particulars including
quantitative details and situation of fixed assets.
B. Management has informed that they have verified fixed assets and no
material discrepancy were noticed by them, which requires any
adjustment in accounts.
c. Substantial part of fixed assets have not been disposed off during
the year, therefore there is no effect of this on concept of going
concern.
2 a. As informed to us, the stocks of finished goods, stores, spare
parts and raw materials have been physically verified by the management
at reasonable intervals.
b. On the basis of information and explanations furnished to us, in
our opinion the procedures of physical verification of stocks
followed by the management, wherever it is carried out, are reasonable
in relation to the size of the Company and the nature of its business,
however, the same is required to be further strengthened.
c As informed to us, no major discrepancies have been noticed by the
management on their physical verification of stock as compared to the
book records and the same is properly accounted.
3 a The Company has not granted any loans, secured or unsecured to
companies, firms or other parties listed in the Register maintained
under Section 301 of the Companies Act, 1956.
b i) The Company has taken loans, secured or unsecured from companies,
firms or other parties, free of interest, listed in the Register
maintained under Section 301 of the Companies Act, 1956.
No. of Parties Loan taken during the year Maximum amount
outstanding
During the year
2 Rs.31,71,200/- 2,57,84,538/-
ii) The terms & conditions of such loan taken have not been laid down
in writing, however as informed to us, the same are not prejudicial to
the interest of the company.
iii) The terms of repayments of principal have not been laid down in
writing hence, we cannot comment on regularity or otherwise of the
same.
4. There exists internal control system commensurate with the size of
the company & the nature of its business, for the purchase
of inventory and fixed assets and for sale of Goods & Servicesw hich in
our opinion needs to be further strengthened. However, as informed to
us, the purchase of stores, raw material including components, plant
and machinery, equipment and other assets are being personally
supervised by the management, therefore much documentation for
subsequent verification are not available.
5. As have been informed to us Company has maintained the register in
pursuance of section 301 of the Companies Act,1956,
particulars of contracts or arrangements referred to in S-301 of the
Act have been entered.
6. The Company has not accepted any deposits during the year from the
public under Section 58-A or 58AA of the Companies Act, 1956, in
contravention of rules made thereunder.
7. The Company has a formal internal audit system commensurate with
the size and nature of its business.
8. Maintenance of cost records for the manufacturing activities of the
Company has not been prescribed by the Central Government under Section
209 (1) (d) Companies Act, 1956.
The above amount of Sales Tax arrears do not include the amount due for
payment, quantum not ascertained, under defer scheme where the total
outstanding amount of Rs. 2,44,46,488/- have been shown as loan against
Sales Tax Collection. b. Following dues are disputed by the company
and the dispute are pending as under :-
SL
No. Nature of Amount Period
to which Forum where dispute pending
Dispute Rs. amount relate
1 BST 2,58,423/- 1994 Â 95 Maharashtra Sales Tax Tribunal
2. CST 3,13,811/- 1994 Â 95 Maharashtra Sales Tax Tribunal
3 BST 12,78,212/- 1995 Â 96 Deputy Commissioner. Sales
Tax (Appeal)
4. CST 3,99,738/- 1995 Â 96 Deputy Commissioner. Sales
Tax (Appeal)
5. BST 24,93,119/- 1996 Â 97 Deputy Commissioner. Sales
Tax (Appeal)
6. CST 1,94,375/- 1996 Â 97 Deputy Commissioner. Sales
Tax (Appeal)
7. BST 10,10,488/- 1997 Â 98 Deputy Commissioner. Sales
Tax (Appeal)
8. CST 13,43,443/- 1997 Â 98 Deputy Commissioner. Sales
Tax (Appeal)
9. CST 10,40,000/- 1998 Â 99 Deputy Commissioner. Sales
Tax (Appeal)
10. BST 5,18,235/- 1998 Â 99 Deputy Commissioner. Sales
Tax (Appeal)
11. BST 25,456/- 1999 Â 00 Deputy Commissioner. Sales
Tax (Appeal)
12. CST 2,94,689/- 1999 Â 00 Deputy Commissioner. Sales
Tax (Appeal)
13. CST 2,34,529/- 2000 - 01 Deputy Commissioner. Sales
Tax (Appeal)
14. BST 1,59,096/- 2001 - 02 Deputy Commissioner. Sales
Tax (Appeal)
15. CST 1,77,712/- 2001 - 02 Deputy Commissioner. Sales
Tax (Appeal)
16. BST 74,168/- 2002 - 03 Deputy Commissioner. Sales
Tax (Appeal)
17. CST 60,500/- 2002 - 03 Deputy Commissioner. Sales
Tax (Appeal)
Regarding Sl no. 3 to 17 stay for recovery has been granted in view of
decision in P.V. Textiles case read with section 33(4)(c) of the BST
Act, 1959 pending decision of the Bombay High Court.
c. The GVAT Payable of earlier years amounts to Rs. 27,06,353/- 10.
The accumulated losses at the end of the financial year is Rs.
6,42,85,307/- (P.Y. Rs 6,64,22,072/-) The company has not incurred any
cash losses during the year though there were cash losses in the
immediately preceding financial year.
11. There are no dues to any financial institutions.
12. Company has not granted any loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
13. In our opinion, the Company is not a chit fund or a nidhi/mutual
benefit fund/society. Therefore the provisions of clause 4 (xiii) of
the Companies (Auditor''s Report) Order, 2003 are not applicable to the
Company.
14. In our opinion, the Company is not dealing in or trading in
shares, securities, debentures and other investments. Therefore the
provisions of clause 4 (xiv) of the Companies (Auditor''s Report) Order,
2003 are not applicable to the Company.
15. Company has not given guarantees for loans taken by others from
bank or financial institutions.
16. The Company has not raised any term loan during the year.
17. According to the information and explanations given to us and on
an overall examination of the Balance Sheet of the Company, we report
that no funds raised during the year on short term basis have been used
for long term investment.
18. The Company has not any made preferential allotment of shares to
parties and companies covered in the register maintained under Section
301of the act during the year.
19. According to the information and explanations given to us, the
Company has not issued any debentures.
20. The Company has not raised money by public issues during the year.
21. According to the information and explanations given to us, no
fraud on or by the Company has been notice or reported during the
course of our audit.
For D.C.BOTHRA & CO;
CHARTERED ACCOUNTANTS,
FIRM REGN. NO. 112257W
(SEEMA RAISONI, M.No.107730)
PARTNER
PLACE : MUMBAI
DATED : 26.05.2014
Mar 31, 2013
REPORT ON THE FINANCIAL STATEMENTS
We have audited the attached financial statement of STERLING STRIPS
LIMITED ("the Company"), which comprise the Balance Sheet as at March
31, 2013, and the Statement of Profit and Loss Account and the Cash
flow statement for the year ended March 31, 2013 and a summary of
significant accounting policies and other explanatory information.
MANAGEMENT''S RESPONSIBILITY FOR THE FINANCIAL STATEMENTS
Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position,
financial performance and cash flows of the Company in accordance with
the Accounting Standards referred to in sub-section (3C) of section 211
of the Companies Act, 1956 "the Act"). This responsibility includes the
design, implementation and maintenance of internal control relevant to
the preparation and presentation of the financial statements that give
a true and fair view and are free from material misstatement, whether
due to fraud or error.
AUDITOR''S RESPONSIBILITY
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement. An audit involves performing procedures to
obtain audit evidence about the amounts and disclosures in the
financial statements. The procedures selected depend on the auditor''s
judgment, including the assessment of the risks of material
misstatement of the financial statements, whether due to fraud or
error. In making those risk assessments, the auditor considers internal
control relevant to the Company''s preparation and fair presentation of
the financial statements in order to design audit procedures that are
appropriate in the circumstances. An audit also includes evaluating the
appropriateness of accounting policies used and the reasonableness of
the accounting estimates made by management, as well as evaluating the
overall presentation of the financial statements. We believe that the
audit evidence we have obtained is sufficient and appropriate to
provide a basis for our audit opinion.
OPINION
In our opinion and to the best of our information and according to the
explanations given to us, the financial statements give the information
required by the Act in the manner so required and give a true and fair
view in conformity with the accounting principles generally accepted in
India:
(a) in the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2013;
(b) in the case of the Profit and Loss Account, of the loss for the
year ended on that date; and
(c) in the case of the Cash Flow Statement, of the 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, 2003 as
amended by the Companies (Auditor''s report) (Amendment) Order, 2004
(together the "Order") issued by the Central Government of India in
terms of section 227 (4A) of the Companies Act, 1956 of India (the
Act), and we give in the Annexure a statement on the matters specified
in paragraphs 4 and 5 of the said Order.
2 i. The job card maintained by the company for manufacturing work
carried out do not provide the full details of materials received,
consumed and direct overheads incurred on the respective jobs.
ii. Payments received, made and adjusted in the parties accounts
consisting debtors, creditors, loans, advances, deposits are generally
not supported with the corresponding receipts of such payments received
or made to or from the respective party and authenticity of the same
couldn''t be verified for want of appropriate evidence.
iii. Company is subject to interest liability on unpaid statutory dues
and on other dues same has neither been paid nor provided or
quantified.
iv. Loans & Advances to and from suppliers, others, sundry debtors,
sundry creditors for goods & expenses are unconfirmed and in our
opinion substantially unrealizable / payable.
v . The company has not received information from vendors regarding
their status under the Micro, Small and Medium Enterprises Development
Act, 2006 and hence disclosure relating to amount unpaid as at the year
and together with interest paid / payable under this Act have not been
given.
vi. The Company has not made provision for Doubtful Debts.
3. Subject to what is stated above:
As required by section 227(3) of the Act, we report that:
a) We have obtained all the information and explanations, which to the
best of 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 the Company so for as appears from our examination of the
books;
c) The Balance Sheet and the Profit & Loss Account and Cash Flow
Statement dealt with by this report are in agreement with the books of
account;
d) In our opinion the Balance Sheet, Profit & Loss Account and Cash
flow statement dealt with by this report comply with the Accounting
Standards referred to in sub section (3C) of Section 211 of the
Companies Act, 1956.;
e) On the basis of representation received from the Directors, as on
31st March 2013 and taken on record by the Board of Directors, we
report that none of the Directors is disqualified as on 31st March,
2013 from being appointed as Directors under Section 274(1)(g) of
Companies Act, 1956.;
f) Since the Central Government has not issued any notification as to
the rate at which the cess is to be paid under section 441A of the
Companies Act, 1956 nor has it issued any Rules under the said section,
prescribing the manner in which such cess is to be paid, no cess is due
and payable by the Company.
ANNEXURE TO THE AUDITOR''S REPORT OF EVEN DATE REFFERED IN PARA NO.3
On the basis of information & explanation given to us, we report that:
-
1 a The Company has maintained records showing particulars including
quantitative details and situation of fixed assets.
b. Management has informed that they have verified fixed assets and no
material discrepancy was noticed by them, which requires any adjustment
in accounts.
c. Substantial part of fixed assets have not been disposed off during
the year, therefore there is no effect of this on concept of going
concern.
2 a. As informed to us, the stocks of finished goods, stores, spare
parts and raw materials have been physically verified by the management
at reasonable intervals.
b. On the basis of information and explanations furnished to us, in
our opinion the procedures of physical verification of stocks followed
by the management, wherever it is carried out, are reasonable in
relation to the size of the Company and the nature of its business,
however, the same is required to be further strengthened.
c As informed to us, no major discrepancies have been noticed by the
management on their physical verification of stock as compared to the
book records and the same is properly accounted.
3 a The Company has not granted any loans, secured or unsecured to
companies, firms or other parties listed in the Register maintained
under Section 301 of the Companies Act, 1956.
b i) The Company has taken loans, secured or unsecured from companies,
firms or other parties, free of interest, listed in the Register
maintained under Section 301 of the Companies Act, 1956.
ii) The terms & conditions of such loan taken have not been laid down
in writing, however, as informed to us, the same are not prejudicial to
the interest of the company.
iii) The terms of repayments of principal have not been laid down in
writing hence, we cannot comment on regularity or otherwise of the
same.
4. There is exists internal control system commensurate with the size
of the company & the nature of its business, for the purchase of
inventory and fixed assets and for sale of Goods & Services which in
our opinion needs to be further strengthened. However, as informed to
us, the purchase of stores, raw material including components, plant
and machinery, equipment and other assets are being personally
supervised by the management, therefore much documentation for
subsequent verification are not available.
5 As have been informed to us Company has maintained the register in
pursuance of section 301 of the Companies Act , 1956, particulars of
contracts or arrangements referred to in S-301 of the Act have been
entered.
6. The Company has not accepted any deposits during the year from the
public under Section 58-A or 58AA of the Companies Act, 1956, in
contravention of rules made thereunder.
7 The Company has a formal internal audit system commensurate with the
size and nature of its business.
8 Maintenance of cost records for the manufacturing activities of the
Company has not been prescribed by the Central Government under Section
209 (1) (d) Companies Act, 1956.
9 a. Most of the undisputed statutory dues, Investor Education and
Protection Fund, Income Tax, Sales Tax etc. have not been deposited
during the year the details of such arrears excluding interest payable
thereon, which is not ascertainable, as at the last day of the
financial year for a period of more than six months are as under.
The above amount of Sales Tax arrears do not include the amount due for
payment, quantum not ascertained, under deferral scheme where the total
outstanding amount of Rs. 2,44,46,488/- have been shown as loan against
Sales Tax Collection.
Regarding Sl no. 3 to 17 stay for recovery has been granted in view of
decision in P.V.Textiles case read with section 33(4)(c) of the BST
Act, 1959 pending decision of the Bombay High Court.
10 The accumulated losses at the end of the financial year is Rs.
6,64,22,072/- (P.Y. Rs 5,83,01,523/-) The company
has not incurred any cash losses during the year and in the immediately
preceding financial year.
11. There are no dues to any financial institutions.
12 Company has not granted any loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
13 In our opinion, the Company is not a chit fund or a nidhi/mutual
benefit fund/society. Therefore the provisions of clause 4 (xiii) of
the Companies (Auditor''s Report) Order, 2003 are not applicable to the
Company.
14 In our opinion, the Company is not dealing in or trading in shares,
securities, debentures and other investments. Therefore the provisions
of clause 4 (xiv) of the Companies (Auditor''s Report) Order, 2003 are
not applicable to the Company.
15 Company has not given guarantees for loans taken by others from bank
or financial institutions.
16. The Company has not raised any term loan during the year.
17. According to the information and explanations given to us and on
an overall examination of the Balance Sheet of the Company, we report
that no funds raised during the year on short term basis have been used
for long term investment.
18. The Company has not any made preferential allotment of shares to
parties and companies covered in the register maintained under Section
301of the act during the year.
19 According to the information and explanations given to us, the
Company has not issued any debentures.
20 The Company has not raised money by public issues during the year.
21 According to the information and explanations given to us, no fraud
on or by the Company has been notice or reported during the course of
our audit.
For D.C.BOTHRA & CO.,
CHARTERED ACCOUNTANTS,
FIRM REGN. NO. 112257W
(SEEMA RAISONI, M.No.107730)
PARTNER
PLACE : MUMBAI
DATED : 30.05.2013
Mar 31, 2010
1. We have audited the attached Balance Sheet of STERLING STRIPS
LIMITED, as at 31st March, 2010. and the Profit and Loss Account and
also the Cash Flow statement for the year ended on that date annexed
thereto. These financial statements are the responsibility of the
Companys management. Our responsibility is to express an opinion on
these financial statements based on our audit.
2. We conducted our audit in accordance with auditing standards
generally accepted in India. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free from any material misstatement. An audit
includes examining on a test basis, evidence supporting the amounts and
disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
3. As required by the Companies (Auditors Report) Order, 2003 issued
by the Company Law Board in terms of section 227 (4A) of the Companies
Act, 1956, and on the basis of such checks of books and records as we
considered appropriate and in terms of explanations given to us we
enclose in the Annexure a statement on the matters specified in
paragraphs 4 and 5 of the said Order to the extent applicable.
4. On the basis of representation received from the Directors, as on
31st March 2010 and taken on record by the Board of Directors, we
report that none of the Directors is disqualified as on 31st March,
2010 from being appointed as Directors under Section 274(1 )(g) of
Companies Act, 1956.
5. i. The job card maintained by the company for manufacturing work
carried out do not provide the full details of materials received,
consumed and direct overheads incurred on the respective jobs.
ii. Total debts shown by the company at Rs.413.31 lacs ( P.Y. 343.80
lacs) consists of debts outstanding for more than 3 years at Rs.227.58
lacs ( P.Y. Rs. 195.46 Lacs), which in our opinion is bad & doubtful of
recovery. Debts which are outstanding within 3 years are also
substantially stagnant irrecoverable & unconfirmed. No provision is
made by the company in this regard.
iii. Payments received, made and adjusted in the parties accounts
consisting debtors, creditors, loans, advances, deposits, allotment
money and calls in arrear are generally not supported with the
corresponding receipts of such payments received or made to or from the
respective party and authenticity of the same couldnt be verified for
want of appropriate evidence..
iv Company is subject to interest liability on unpaid statutory dues
and on other dues same has neither been paid nor provided or
quantified.
v. Loans & Advances to and from suppliers, others, sundry debtors,
sundry creditors for goods & expenses are. unconfirmed and in our
opinion substantially unrealisable/payable. , æ . "
vi. Neither provision have been made towards unexpired period of
guarantee & warranty extended to the customers or for uncompleted jobs
for orders executed during the year, nor the cost required to be
incurred in this regard have been ascertained.
vii. The company has not received information from vendors regarding
their status under the Micro, Small and Medium Enterprises Development
Act, 2006 and hence disclosure relating to amount unpaid as at the year
and together with interest paid / payable under this Act have not been
given.
vii. We are unable to quantity the effect of above facts in sub para
(i) to (vii) for want of relevant information and the effect thereof on
the profit for the year ended or on the state of affairs of the company
as at 31st March, 2010.
Subject to what is stated above:
a) We have obtained all the information and explanations, which to the
best of 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 the Company so far as appears from our examination of the
books;
c) The Balance Sheet and the Profit & Loss Account and Cash Flow
Statement dealt with by this report are in agreement with the books of
account;
d) In our opinion the Balance Sheet, Profit & Loss Account and Cash
flow statement dealt with by this report comply with the Accounting
Standards referred to in sub section (3C) of Section 211 of the
Companies Act, 1956.;
e) In our opinion and to the best of our information and according to
the explanations given to us the said accounts subject to our
observations above and else where in this report and annexure to it,
the accounts, read together with notes thereon, give the information
required by the Companies Act, 1956 in the manner, so required and give
a true and fair view :
i. in the case of the Balance Sheet, of the state of the affairs of
the company as at 31st March, 2010 and,
ii. in the case of the Profit and Loss Account, of the profit for the
year ended on that date.
iii. in the case of the Cash Flow statement, of the Cash Flow for the
year ended on that date.
ANNEXURE TO THE AUDITORS REPORT OF EVEN DATE REFFERED IN PARA NO.3 On
the basis of information & explanation given to us, we report that: -
1 a The Company has maintained records showing particulars including
quantitative details and situation of fixed assets which is required to
be updated.
b. Management has informed that they verified fixed assets and no
material discrepancy was noticed by them, which requires any adjustment
in accounts.
c. Substantial part of fixed assets have not been disposed off during
the year, therefore there is no effect of this on concept of going
concern.
2 a. As informed to us, the stocks of finished goods, stores, spare
parts and raw materials have been physically verified by the management
at reasonable intervals.
b. On the basis of information and explanations furnished to us, in
our opinion the procedures of physical verification of stocks followed
by the management, wherever it is carried out, are reasonable in
relation to the size of the Company and the nature of its business,
however, the same is required to be further strengthened.
c. As informed to us, no major discrepancies have been noticed by the
management on their physical verification of stock as compared to the
book records and the same is properly accounted.
3 a. The Company has not granted any loans, secured or unsecured to
companies, firms or other parties listed in the Register maintained
under Section 301 of the Companies Act, 1956. b The Company has not
taken any loans, secured or unsecured from companies, firms or other
parties listed in the Register maintained under Section 301 of the
Companies Act, 1956.
4. There is adequate internal control system commensurate with the
size of the company & the nature of its business, for the purchase of
inventory and fixed assets and for sale of Goods & Services. However,
the purchase of stores, raw material including components, plant and
machinery, equipment and other assets are being personally supervised
by the management, therefore much documentation for subsequent
verification are not available.
5 As have been informed to us Company has maintained the register in
pursuance of section 301 of the Companies Act, 1956, however during the
year there are no such transactions .
6. The Company has not accepted any deposits during the year from the
public under Section 58-A or 58AA of the Companies Act,1956.
7 The Company was not having any formal internal audit system during
the year under audit.
8 Maintenance of cost records for the manufacturing activities of the
Company has not been prescribed by the Central Government under Section
209 (1) (d) Companies Act, 1956.
9 a. Most of the undisputed statutory dues including Provident Fund,
Investor Education and Protection Fund, Income Tax, Sales Tax etc. have
not been deposited during the year the details of such arrears
excluding interest payable thereon, which is not ascertainable, as at
the last day of the financial year for a periodW morethansix months are
as under.
Year Lease Tax
Payable Provident
Fund Investor Education
& Protection Fund Income Tax CST
2007-08 128,175
2006-07
2005-06 - 1,37,468
2004-05 - 6,29,523
2003-04 - 21,369 5,827
2002-03 - 35,622 -
2001-02 - 14,698 Amount not ascertainable -
2000-01 - 13,424 -
1999-00 - 54,205 -
1998-99 19,812 52,823 7,79,715 87,431
1997-98 39,624 -
1996-97 - -
TOTAL 39,436 1,92,141 7,79,715 9,88,424
Year BST VAT TDS Payable Service Tax
2007-08
2008-07 2,70,911 37,200
2005-06 26,064
2004-03 - -
2003-04 - -
2002-03 - -
2001-02 - -
2000-01 - -
1999-00 - -
1998-99 6,666 -
1997-98 - - 99,196
1996-97 1,72,111
TOTAL 6.666 2.96,975 2,71,307 37.200
The above amount of Sales Tax arrears do not include the amount due for
payment, quantum not ascertained, under deferral scheme where the total
outstanding amount of Rs. 2,44,46,488/- have been shown as loan against
Sales Tax Collection.
b. Following dues are disputed by the company and the disputes are
pending as under :-
SL No. Nature of Amount Period to which
Dispute Rs. amount relate
1 BST 2,58,423/- 1994-95
2. CST 3,13,811/- 1994-95
3 BST 12,78,212/- 1995-96
4. CST 3,99,738/- 1995-96
5. BST 24,93,119/- 1996-97
6. CST 1,94,375/- 1996-97
7. BST 10,10,488/- 1997-98
8. CST 13,43,443/- 1997-98
9. CST 10,40,000/- 1998-99
10. BST 5,18,235/- 1998-99
11. BST 25,456/- 1999-00
12. CST 2,94,689/- 1999-00
13. CST 2,34,529/- 2000-01
14. BST 1,59,096/- 2001-02
15. CST 1,77,712/- 2001-02
16. BST 74,168/- 2002-03
17. CST 60,500/- 2002-03
Nature of Forum where dispute pending
Dispute
BST Maharashtra Sales Tax Tribunal
CST Maharashtra Sales Tax Tribunal
BST Deputy Commissioner. Sales Tax (Appeal)
CST Deputy Commissioner. Sales Tax (Appeal)
BST Deputy Commissioner. Sales Tax (Appeal)
CST Deputy Commissioner. Sales Tax (Appeal)
BST Deputy Commissioner. Sales Tax (Appeal)
CST Deputy Commissioner. Sales Tax (Appeal)
CST Deputy Commissioner. Sales Tax (Appeal)
BST Deputy Commissioner. Sales Tax (Appeal)
BST Deputy Commissioner. Sales Tax (Appeal)
CST Deputy Commissioner. Sales Tax (Appeal)
CST Deputy Commissioner. Sales Tax (Appeal)
BST Deputy Commissioner. Sales Tax (Appeal)
CST Deputy Commissioner. Sales Tax (Appeal)
BST Deputy Commissioner. Sales Tax (Appeal)
CST Deputy Commissioner. Sales Tax (Appeal)
Regarding Sl no. 3 to 17 stay for recovery has been granted in view of
decision in P.V.Textiles case read with section 33(4)î of the BST Act,
1959 pending decision of the Bombay High Court.
10 The accumulated losses at the end of the financial year is Rs.
4,87,01,774 (previous year Rs 5,58,94,764/-) .The company has not
incurred any cash losses during the year and in the immediately
preceding financial year. 11. In our opinion and according to the
information and explanations given to us, the Company has arrived at a
settlement of its dues with Kotak Mahindra Bank and after payment of
settlement amount obtained No Dues Certificate from them.( State Bank
of Travancore, the Lead Bank, having assigned their rights in the
companys account to Kotak Mahindra Bank Ltd.) and State Bank of Wore.
The Company has paid settlement amount to State Bank of Indole and
obtained No Dues Certificate from them. In respect of seëlementw* Kotak
Mahindra Bank Ud, all due pay amount has been made during the year.
12 Company has not granted any loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
13 In our opinion, the Company is not a chit fund or a nidhi/mutual
benefit fund/society. Therefore the provisions of clause 4 (xiii) of
the Companies (Auditors Report) Order, 2003 are not applicable to the
Company.
14 In our opinion, the Company is not dealing in or trading in shares,
securities, debentures and other investments. Therefore the provisions
of clause 4 (xiv) of the Companies (Auditors Report) Order, 2003 are
not applicable to the Company.
15 Company has not given guarantees for loans taken by others from bank
or financial institutions.
16. The Company has not raised any term loan during the year.
17. According to the information and explanations given to us and on
an overall examination of the Balance Sheet of the Company, we report
that no funds raised during the year on short term basis have been used
for long term investment. No long term funds have been raised during
the year.
18. According to the information and explanations given to us, the
Company has not made any preferential allotment of shares.
19 According to the information and explanations given to us, the
Company has not issued any debentures.
20 The Company has not raised money by public issues during the year.
21 According to the information and explanations given to us, no fraud
on or by the Company has been noticed or reported during the course of
our audit.
FOR D.C.BOTHRA&CO.,
CHARTERED ACCOUNTANTS
(PAWAN BOTHRA M. NO. 31215)
PARTNER
PLACE : MUMBAI
DATE: 27.05.10