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Sterling Biotech Ltd.

BSE: 512299 | NSE: STERLINBIO | Series: NA | ISIN: INE324C01038 | SECTOR: Pharmaceuticals

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Sterling Biotech is not traded on BSE in the last 30 days

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Nov 05, 15:32
0.70 0.00 (0.00%)
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16,887
  • Prev. Close

    0.70

  • Open Price

    0.65

  • Bid Price (Qty.)

    0.00 (0)

  • Offer Price (Qty.)

    0.00 (0)

Sterling Biotech is not traded on NSE in the last 30 days

Annual Report

For Year :
2016 2014 2013 2012 2010 2009 2007 2006

Auditor's Report

Report on the Financial Statements

I have audited the accompanying financial statements of Sterling Biotech Limited (the Company), which comprise the Balance Sheet as at March 31, 2016, the Statement of Profit & Loss and the Cash Flow Statement for the fifteen months ended on that date and a summary of significant accounting policies and other explanatory information.

Management''s Responsibility for the Financial Statements

The Company''s Board of Directors is 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 Flow of the Company in accordance with the accounting principles generally accepted in India, including the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014. This responsibility also includes the maintenance of adequate accounting records in accordance with the provision of the Act for safeguarding of the assets of the Company and for preventing and detecting the 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 internal financial control, 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

My responsibility is to express an opinion on these financial statements based on my audit.

I 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.

I conducted my audit in accordance with the Standards on Auditing specified under section 143(10) of the Act. Those Standards require that I 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 of the financial statements that give true and fair view 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 Company''s Directors, as well as evaluating the overall presentation of the financial statements. I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my audit opinion on the financial statements.

Opinion

In my opinion and to the best of my information and according to the explanations given to me, the aforesaid financial statements give the information required by the Companies Act, 2013 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 31st March, 2016, and its loss and its Cash Flows for the period ended on that date.

Report on Other Legal and Regulatory Requirements

1. As required by the companies (Auditor''s Report) Order, 2016, (the order) issued by the Central Government of India in terms of sub Section (11) of section 143 of the Companies Act 2013, I give in the Annexure ''A'', a statement on the matters specified in paragraphs 3 and 4 of the Order.

2. As required by section 143(3) of the Act, I report that:

a) I have sought and obtained all the information and explanations, which to the best of my knowledge and belief, were necessary for the purposes of my Audit;

b) In my opinion, proper books of account, as required by law, have been kept by the company, so far as appears from my examination of those books;

c) The Balance Sheet, Statement of Profit & Loss and Cash Flow Statement dealt with by this report are in agreement with the books of account;

d) In my 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) On the basis of written representations received from the directors as on 31st March, 2016, taken on record by the Board of Directors, none of the directors is disqualified as on 31st March, 2016, from being appointed as a director in terms of Section 164(2) of the Act;

f) With respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to my separate Report in Annexure ''B''; and

g) With respect to the other matters to be included in the Auditor''s Report in accordance with Rule 11 of the companies (Audit & Auditors) Rules, 2014, in my opinion and to the best of my information and according to the explanations given to me:

i. The Company has disclosed the impact of pending litigations on its financial position in its financial statements.

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

iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company.

Report on Companies (Auditor''s Report) Order, 2016 (''the Order'') issued by the Central Government in terms of Section 143(11) of the Companies Act, 2013 (''the Act'') of Sterling Biotech Limited (''the Company'').

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

(b) The Company has regular programme of physical verification of its fixed assets by which fixed assets are verified in a phased manner over a period of three years. In my opinion, this periodicity of physical verification is reasonable having regard to the size of the company and the nature of its assets. In accordance with this programme, certain fixed assets were verified during the period and no material discrepancies were noticed on such verification.

(c) According to the information and explanations given to me and on the basis of my examination of the records of the Company, title deeds of immovable properties are held in the name of the Company.

(ii) As explained to me, the inventories were physically verified during the period by the Management at reasonable intervals and no material discrepancies were noticed on physical verification.

(iii) During the period Company has not granted unsecured loan to companies covered in the register maintained under section 189 of the companies Act, 2013.

(a) In my opinion, terms and conditions on which loans had been granted to companies listed in the register maintained under section 189 of the Act were not, primafacie, prejudicial to the interest of the company.

(b) The parties have repaid the principal amount as stipulated.

(c) There are no overdue amounts of Loans granted to companies listed in the register maintained under section 189 of the Act.

(iv) In my opinion and according to the information and explanations given to me, the Company has complied with the provisions of Sections 185 and 186 of the Act in respect of grant of loans, making investments and providing guarantees and securities, as applicable.

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

(vi) I have broadly reviewed the books of accounts maintained by the company pursuant to the rules made by the Central Government for the maintenance of cost records under section 148(1) of the companies Act, 2013 and am of the opinion that prima facie, the prescribed accounts and records have been made and maintained. I have not, however, made a detailed examination of the same.

(vii) According to the information and explanations given to me, in respect of statutory dues:

(a) The Company has generally been regular in depositing undisputed statutory dues, including Provident Fund, Employees'' State Insurance, Income Tax, Sales Tax, Service Tax, Value Added Tax, duty of Customs, duty of Excise, Cess and other material statutory dues applicable to it with the appropriate authorities.

There were no undisputed amounts payable in respect of Provident Fund, Employees'' State Insurance, Income Tax, Sales Tax, Service Tax, Value Added Tax, duty of Customs, duty of Excise, Cess and other material statutory dues in arrears as at March 31, 2016 for a period of more than six months from the date they became payable except '' 303,420/- processed demand raised by TDS CPC .

(b) According to the information and explanations given to me, the following dues of Income Tax, Sales Tax, Service Tax and Value Added Tax have not been deposited by the Company on account of disputes.

Name of the Statute

Nature of the dues

Amount

unpaid

Period to which the amount relates

Forum where dispute is pending

The Central Excise Act, 1994

Central Excise Duty/ Service Tax

4,47,269

2015-2016

Commissioner

Excise

The Central Excise Act, 1994

Central Excise Duty/ Service Tax

1,98,226

2014-2015

Commissioner

Excise

The Central Excise Act, 1994

Central Excise Duty/ Service Tax

11,036

2014-2015

Excise officer

The Central Excise Act, 1994

Central Excise Duty/ Service Tax

Not identified

2014-2015

Commissioner

Excise

State Sales Tax/VAT and CST

Sales tax

1,38,94,892

2001-2002

Supreme Court

State Sales Tax/VAT and CST

Sales tax

1,43,58,662

2002-2003

Supreme Court

State Sales Tax/VAT and CST

Sales tax

14,17,651

2003-2004

Supreme Court

The Central Excise Act, 1944

Excise duty

1,02,65,154

2003-2004

CESTAT

The Central Excise Act, 1944

Excise duty

1,03,90,753

2004-2005

CESTAT

The Central Excise Act, 1944

Excise duty and Penalty

1,03,00,000

2004-2005

CESTAT

The Central Excise Act, 1944

Excise duty

18,49,925

2004-2005

CESTAT

The Central Excise Act, 1944

Excise duty

1,59,18,617

2004-2005 to 2005-2006

CESTAT

The Central Excise Act, 1944

Excise duty

1,25,53,250

2006-2007 to 2007-2008

CESTAT

The Central Excise Act, 1944

Excise duty

1,24,45,900

2006-2007

CESTAT

The Central Excise Act, 1944

Excise duty

1,60,96,386

2006-2007 to 2007-2008

CESTAT

Name of the Statute

Nature of the dues

Amount

unpaid

Period to which the amount relates

Forum where dispute is pending

The Central Excise Act, 1944

Excise duty and Penalty

50,00,000

2006-2007 to 2007-2008

CESTAT

The Central Excise Act, 1944

Excise duty

2,76,20,043

2007-2008

CESTAT

The Central Excise Act, 1944

Excise duty and Penalty

25,00,000

2007-2008

CESTAT

The Central Excise Act, 1944

Excise duty

4,30,93,913

2008-2009

CESTAT

The Central Excise Act, 1944

Excise duty

1,53,62,946

2008-2009

CESTAT

The Central Excise Act, 1944

Excise duty

1,16,36,753

2009-2010

CESTAT

The Central Excise Act, 1944

Excise duty

2,17,73,984

2010-2011

CESTAT

The Central Excise Act, 1944

Excise duty

1,98,35,655

2011-2012

CESTAT

The Central Excise Act, 1944

Excise duty

1,42,93,983

2011-2012 to 2012-2013

CESTAT

The Central Excise Act, 1944

Excise duty

1,16,47,766

2012-2013 to 2013-2014

Commissioner of central excise

The Central Excise Act, 1944

Excise duty

1,98,22,934

2013-2014

Commissioner of central excise

The Central Excise Act, 1944

Excise duty

2,09,67,416

2014-2015

Commissioner of central excise

The Central Excise Act, 1944

Excise duty

2,01,54,465

2014-2015 to 2015-2016

CESTAT

The Finance Act, 1994- service tax

Service tax and penalty

5,83,644

2005-2006 to 2008-2009

Assistant Commissioner of central excise

The Finance Act, 1994- service tax

Service tax and penalty

1,68,422

2008-2009 to 2009-2010

Assistant Commissioner of central excise

Name of the Statute

Nature of the dues

Amount

unpaid

Period to which the amount relates

Forum where dispute is pending

The Finance Act, 1994- service tax

Service tax

79,104

2009-2010

Assistant Commissioner of central excise

The Finance Act, 1994- service tax

Service tax and penalty

1,65,720

2010-2011

Assistant Commissioner of central excise

The Finance Act, 1994- service tax

Service tax

26,074

2010-2011 to 2011-2012

Assistant Commissioner of central excise

The Finance Act, 1994- service tax

Service tax and penalty

3,93,311

2009-2010 to 2010-2011

Assistant Commissioner of central excise

The Finance Act, 1994- service tax

Service tax

3,33,182

2010-2011 to 2011-2012

Assistant Commissioner of central excise

The Finance Act, 1994- service tax

Service tax and penalty

2,18,304

2007-2008 to 2009-2010

Assistant Commissioner of central excise

The Finance Act, 1994- service tax

Service tax

3,92,926

2008-2009 to 2010-2011

Commissioner of central excise

The Finance Act, 1994- service tax

Service tax

1,03,522

2011-2012 to 2012-2013

Commissioner of central excise

The Finance Act, 1994- service tax

Service tax

1,01,030

2012-2013 to 2013-2014

Commissioner of central excise

The Finance Act, 1994- service tax

Service tax and penalty

2,88,966

2013-2014 to 2014-2015

Commissioner of central excise

The Finance Act, 1994- service tax

Service tax and penalty

2,21,124

2014-2015 to 2015-2016

Commissioner of central excise

The Finance Act, 1994- service tax

Service tax and penalty

98,297

2015-2016

Commissioner of central excise

The Finance Act, 1994- service tax

Service tax and penalty

20,75,866

2008-2009 to 2013-2014

Commissioner of central excise

The Finance Act, 1994- service tax

Service tax and penalty

14,017

2012-2013 to 2013-2014

Commissioner of central excise

The Finance Act, 1994- service tax

Service tax, penalty and Interest

38,556

2013-2014 to 2014-2015

Commissioner of central excise

Name of the Statute

Nature of the dues

Amount

unpaid

Period to which the amount relates

Forum where dispute is pending

The Finance Act, 1994 - service tax

Service tax, penalty and Interest

36,334

2014-2015 to 2015-2016

Commissioner of central excise

The Finance Act, 1994 - service tax

Service tax

8,112

2015-2016

Commissioner of central excise

The Finance Act, 1994 - service tax

Service tax and penalty

9,24,210

2010-2011

Commissioner of central excise

The Finance Act, 1994 - service tax

Service tax

54,70,079

2010-2011 to 2014-2015

Commissioner of central excise

The Finance Act, 1994 - service tax

Service tax

8,47,328

2015-2016

Commissioner of central excise

The Income Tax Act, 1961

Income Tax and interest

58,74,002

A.Y. 2011-12

CIT(A), Mumbai

The Income Tax Act, 1961

Income Tax and interest

60,78,40,880

A.Y. 2013-14

CIT (A), Mumbai

(viii) According to the information and explanations given to me by the management, and on the basis of records examined by me, the company has defaulted in the repayment of the dues to financial institutions or banks or debenture holders as under:

( Rs.in Crores)

Bank

Total Overdue 31.03.2016

Overdue for more than 90 days

Overdue for less than 90 days

Allahabad Bank

15.01

11.39

3.62

Andhra Bank

13.20

6.30

6.90

Bank of Baroda

32.77

25.70

7.07

Bank of India

25.05

18.76

6.29

Bank of Maharashtra

8.69

4.14

4.55

IDBI Bank Ltd

46.88

45.03

1.85

Indian Overseas Bank

30.73

18.68

12.05

JM Financial ARC co pvt Ltd

61.65

59.64

2.01

Laxmi Vilas Bank

4.22

2.78

1.43

LIC of India

555.68

536.62

19.06

Oriental Bank of Commerce

18.73

17.46

1.26

Punjab National Bank

25.21

17.56

7.65

State Bank of India

91.37

91.33

0.04

Syndicate Bank

162.16

152.84

9.32

UCO Bank

323.85

311.12

12.73

United Bank of India

1.48

-

1.48

Vijaya Bank

1.57

0.52

1.05

JP Morgan Chase

76.73

-

76.73

1,494.98

1,319.88

175.09

Note: All the above figures are subject to reconciliation and confirmation.

(ix) The Company did not raise any moneys by way of initial public offer or further public offer (including Debt Instruments) during the period. In my opinion and according to the information and explanations given to me, the term loans taken by the Company have been applied for the purposes for which they were raised.

(x) According to the information and explanations given to me, no fraud by the Company or on the Company by its officers or employees has been noticed or reported during the course of my audit.

(xi) According to the information and explanations given to me and based on my examination of the records, the Company has paid/provided for managerial remuneration in accordance with the requisite approvals mandated by the provisions of section 197 read with Schedule V to the Act.

(xii) In my opinion and according to the information and explanations given to me, the Company is not a Nidhi Company.

(xiii) According to the information and explanations given by the management, transactions with the related parties are in compliance with section 177 and 188 of Companies Act, 2013 where applicable and the details have been disclosed in the notes to the financial statements, as required by the applicable accounting standards.

(xiv) According to the information and explanations given to me, the Company has made private placement of Redeemable cumulative non participating non convertible preference shares during the period and complied with the requirements of section 42 of the Act and the amount raised have been used for the purposes for which the funds were raised.

(xv) According to the information and explanations given to me and based on my examination of the records, the Company has not entered into non-cash transactions with directors or persons connected with him.

(xvi) The Company is not required to be registered under Section 45-IA of the Reserve Bank of India Act, 1934.

For and on behalf of

For H. S. Hathi & Co.

Chartered Accountants

Firm Regn No. 103596W

Hemant S. Hathi

Proprietor

Mumbai : May 30, 2016 Membership No 037109