We have audited the attached Balance Sheet of STL GLOBAL LIMITED, as at
31st March 2012, and also the annexed Profit & Loss Account and the
cash flow Statement of the Company for the year ended on that date.
These financial statements are the responsibility of the Company''s
management. Our responsibility is to express an opinion on these
financial statements based on our audit.
We conducted our audit in accordance with the 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 of 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 the management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides a reasonable
basis for our opinion.
As required by the Companies (Auditor''s Report) Order, 2003 issued by
the Central Government of India in terms of sub-section (4A) of Section
227 of the Companies Act, 1956, we enclose in the Annexure a statement
on the matters specified in paragraph 4 and 5 of the said order to the
Further to our comments in the Annexure referred to above, we report
(a) We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purpose of our
(b) In our opinion, proper books of accounts as required by law have
been kept by the Company so far as appears from our examination of the
(c) The Balance Sheet, 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 written representations received from the
Directors, as on 31st March 2012, and taken on record by the Board of
Directors, We report that none of the Directors is disqualified as on
31st March 2012, from being appointed as a director in terms of clause
(g) of sub-section (1) of section 274 of the Companies Act,1956;
(f) In our opinion and to the best of our information and according to
the explanations given to us, the said accounts give the information
required by the Companies Act, 1956, in the manner so required and give
a true and fair view in conformity with the accounting principals
generally accepted in India:
(i) In the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2012.
(ii) In the case of the Profit & Loss Account, of the loss for the year
ended on that date; and
(iii) In the case of the cash flow statement, of the cash flows for the
year ended on that date.
(Referred to in the main Report of even date)
(I) (a) The Company has maintained proper record showing full
particulars including quantitative details and situation of its fixed
(b) The fixed assets covering significant value have been physically
verified by the management during the year, which in our opinion is
reasonable having regard to the size of the company and nature of its
assets. On the basis of the information and explanations given by the
management, no material discrepancies have been noticed on such
(c) The Company''s assets i.e Land & Building and Plant & machinery
situated at Plot no 4, Sector-6 Faridabad has been disposed off by term
lenders during the year, which is substantial part of Company''s fixed
(ii) (a) The Inventories have been physically verified by the
management at reasonable intervals during the year.
(b) To the best of our knowledge and according to information and
explanation given to us, the procedure of physical verification of
inventories followed by the management are reasonable and adequate in
relation to the size of the company and nature of its business.
(c) To the best of our knowledge and according to information and
explanation given to us, the company has maintained proper records of
inventory. The discrepancies, noticed on the aforesaid verification,
between the physical stocks and stocks as per books have been properly
dealt with in the books of account.
iii) (a) To the best of our knowledge and according to the information
and explanation given to us, the company has not granted any loans,
secured or unsecured to / from companies, firms or other parties
covered in the register maintained under section 301 of the Companies
(b) The company has taken unsecured loan from Two parties covered in
the register maintained under section 301 of the Companies Act, 1956,
on call basis. The maximum amount outstanding during the year was Rs.
539.95 Lakhs and the year end balance was Rs. 539.95 lakhs.
(c) The same loan is interest free. Other terms and conditions on which
the loan has been taken are prima facie, not prejudicial to the
interest of the company.
(d) In view of our comments in para iii (b) and (c) above, clause 4
(iii) (g) of the said order is not applicable.
(iv) In our opinion and according to the information and explanations
given to us, there is an adequate internal control procedure
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. During the course of our audit, no major weakness has been
noticed in the internal control systems.
(v) (a) To the best of our knowledge and belief and according to
explanations given to us, we are of the opinion that the particulars of
contracts or arrangements referred to in section 301 of the Companies
Act, 1956 have been entered in the register required to be maintained
under that section.
(b) Transaction made in pursuance of such contracts or arrangements
have been made at prices which are reasonable having regard to the
prevailing market prices at the relevant time.
(vi) In our opinion and according to the information and explanations
given to us, the company has not accepted any deposit from the public
covered by section 58 A and 58 AA of The Companies Act 1956.
(vii) To the best of our knowledge and according to information and
explanation given to us, the company has an adequate internal audit
system commensurate with its size and nature of its business.
(viii) To the best of our knowledge and according to the information
given to us, The Central Government has not been prescribed maintenance
of cost records under section 209 (1) (d) of the Companies Act,1956 in
respect of the company''s products.
(ix) (a) To the best of our knowledge and according to the books and
records as produced and examined by us, in accordance with the
generally accepted auditing practices in India, the Company is regular
in depositing undisputed statutory dues including provident
fund,employees state insurance, Income tax, sale tax, wealth tax,
service tax, excise duty, custom duty, and cess and other statutory
dues as applicable with the appropriate authorities.
(b) According to the information and explanations given to us, no
undisputed amounts payable in respect of income tax, sale tax, wealth
tax, service tax, excise duty, custom duty and cess were in arrears, as
at 31st March, 2012 for a period of more than six months from the date
they become payable.
(c) As at 31st March, 2012, according to the records of the Company and
the information & explanations given to us, the following are the
particulars of dues on account of Income Tax, Sale Tax, wealth tax,
service tax, custom duty, excise duty and cess matters that have not
been deposited on account of any dispute -
Sl. Name of the
Statue Nature of Dues Amount Forum where Dispute
No. Rupees is pending
1. Income Tax
Act, 1961 Income Tax 26,72,030 High Court ( Delhi)
2. Local Area
Development Local Area 47,99,479 Jt. Excise &
Ordiance-2000 Development Tax Commissioner,
3. HGST Act Sale Tax 23,12,722 Jt. Excise &
4. HVAT Act Sale Tax 4,10,939 Haryana Sale Tax
(x) The Company''s accumulated losses at the end of the financial year
are more than fifty percent of its net worth. Further the Company has
not incurred cash losses during the financial year covered by our audit
, however there was cash loss during the immediately preceding
(xi) According to the information and explanations given to us, the
company during the year has not defaulted in repayment of dues to
financial institutions and banks except in the case of DBS Bank, which
has filed recovery suit against the Company before the Hon''ble Debt
Recovery Tribunal (DRT), further the company has not provided interest
on such loans as the case is still to be decided by the Hon''ble DRT.
(xii) The Company during the year has not granted any loans and
advances on the basis of security by way of pledge of shares,
debentures and other securities.
(xiii) The provisions of any special statue as specified under
paragraph (xiii) of the order are not applicable to the company.
(xiv) In our opinion and according to the information and explanations
given to us, the company is not a dealer or trader in securities.
(xv) According to the information and explanations given to us, in our
opinion, the Company has not given any guarantee for loans taken by
others from Bank or financial institutions, the terms and conditions
where of are prejudicial to the interest of the company.
(xvi) To the best of our knowledge and according to the information and
explanation given to us. And on an over all examinations, we are of the
opinion that, terms loans availed by the company, have been, applied
for the purpose for which they were raised.
(xvii) According to the information and explanations given to us, and
on an overall examination of the Balance Sheet of the company, funds
raised on short term basis have not been used for long term investment.
(xviii) To the best of our knowledge and as per the information and
explanations given to us the Company has not made any preferential
allotment of shares to the parties and companies covered in the
Register maintained under Section 301 of the Act.
(xix) As there are no debentures outstanding at year-end, paragraph
(xix) of the order is not applicable.
(xx) According to The information provided to us, the company has not
raised any money by way of public issue during the year. Therefore
clause 4(xix) of order is not applicable to the company.
(xxi) According to the information and explanations given to us, during
the year no fraud on or by the company has been noticed or reported.
For M M GOYAL & CO.
Firm Regn. No 007198N
New Delhi Partner
May 26th 2012 Membership No. 86085