To the Members of STL GLOBAL LIMITED
Report on the Audit of the Financial Statements
Opinion
We have audited the accompanying Ind AS financial statements of STL Global Limited
("the Company"), comprise the balance sheet as at March 31, 2023, the statement
of Profit and Loss (including other comprehensive income), the statement of changes in
Equity, the statement of cash flows for the year then ended, and notes to the financial
statements including a summary of the significant accounting policies and other
explanatory information.
In our opinion and to the best of our information and according to the explanations
given to us, the aforesaid financial statements give the information required by the
Companies Act, 2013 as amended ( "the Act") in the manner so required and give a
true and fair view in conformity with the Indian Accounting Standards prescribed under
section 133 of the Act read with the Companies (Indian Accounting Standards ) Rules 2015,
as amended ( "Ind AS" ) and other accounting principles generally accepted in
India, of the state of affairs of the Company as at March 31, 2023, and its profit
(including other Comprehensive Income), changes in Equity and its cash flows for the year
ended on that date.
Basis for Opinion
We conducted our audit in accordance with the Standards on Auditing (SAs) specified
under section 143(10) of the Act. Our responsibilities under those Standards are further
described in the Auditors Responsibilities for the Audit of the Financial Statements
section of our report. We are independent of the Company in accordance with the ‘Code
of Ethics issued by the Institute of Chartered Accountants of India (ICAI) together with
the independence requirement that are relevant to our audit of the financial statements
under the provisions of the Act and the rules made thereunder, and we have fulfilled our
other ethical responsibilities in accordance with these requirements and the ICAIs Code
of Ethics. We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion on the financial statements.
Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most
significance in our audit of the financial statements of the current period. These matters
were addressed in the context of our audit of the financial statements as a whole, and in
forming our opinion thereon, and we do not provide a separate opinion on these matters. We
have determined that there are no key audit matters to be communicated in our report.
Information other than the Financial Statements and Auditors report thereon
The Companys board of directors is responsible for the preparation of the other
information. The other information comprises the information included in the Boards
Report including Annexures to Boards Report but does not include the financial statements
and our auditors report thereon.
Our opinion on the financial statements does not cover the other information and we do
not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read
the other information and, in doing so, consider whether the other information is
materially inconsistent with the financial statements or our knowledge obtained during the
course of our audit or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material
misstatement of this other information, we are required to report that fact. We have
nothing to report in this regard.
Responsibilities of Management for Financial Statements
The Companys 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, changes in equity and cash flows of the Company in accordance with
the accounting principles generally accepted in India, including the accounting Standards
specified under section 133 of the Act. This responsibility also includes maintenance of
adequate accounting records in accordance with the provisions of the Act for safeguarding
of 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.
In preparing the financial statements, management is responsible for assessing the
Companys ability to continue as a going concern, disclosing, as applicable, matters
related to going concern and using the going concern basis of accounting unless management
either intends to liquidate the Company or to cease operations, or has no realistic
alternative but to do so.
The Board of Directors are also responsible for overseeing the Companys financial
reporting process.
Auditors Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial
statements as a whole are free from material misstatement, whether due to fraud or error,
and to issue an auditors report that includes our opinion. Reasonable assurance is a high
level of assurance, but is not a guarantee that an audit conducted in accordance with SAs
will always detect a material misstatement when it exists. Misstatements can arise from
fraud or error and are considered material if, individually or in the aggregate, they
could reasonably be expected to influence the economic decisions of users taken on the
basis of these financial statements.
As part of an audit in accordance with SAs, we exercise professional judgment and
maintain professional skepticism throughout the audit. We also:
• Identify and assess the risks of material misstatement of the financial
statements, whether due to fraud or error, design and perform audit procedures responsive
to those risks, and obtain audit evidence that is sufficient and appropriate to provide a
basis for our opinion. The risk of not detecting a material misstatement resulting from
fraud is higher than for one resulting from error, as fraud may involve collusion,
forgery, intentional omissions, misrepresentations, or the override of internal control.
• . Obtain an understanding of internal control relevant to the audit in order to
design audit procedures that are appropriate in the circumstances. Under section 143(3)(i)
of the Companies Act, 2013, we are also responsible for expressing our opinion on whether
the company has adequate internal financial controls system in place and the operating
effectiveness of such controls.
• Evaluate the appropriateness of accounting policies used and the reasonableness
of accounting estimates and related disclosures made by management.
• Conclude on the appropriateness of managements use of the going concern basis
of accounting and, based on the audit evidence obtained, whether a material uncertainty
exists related to events or conditions that may cast significant doubt on the Companys
ability to continue as a going concern. If we conclude that a material uncertainty exists,
we are required to draw attention in our auditors report to the related disclosures in
the financial statements or, if such disclosures are inadequate, to modify our opinion.
Our conclusions are based on the audit evidence obtained up to the date of our auditors
report. However, future events or conditions may cause the Company to cease to continue as
a going concern.
• Evaluate the overall presentation, structure and content of the financial
statements, including the disclosures, and whether the financial statements represent the
underlying transactions and events in a manner that achieves fair presentation.
Materiality is the magnitude of misstatements in the financial statements that,
individually or in aggregate, makes it probable that the economic decisions of a
reasonably knowledgeable user of the financial statements may be influenced. We consider
quantitative materiality and qualitative factors in (i) planning the scope of our audit
work and in evaluating the results of our work; and (ii) to evaluate the effect of any
identified misstatements in the financial statements.
We communicate with those charged with governance regarding, among other matters, the
planned scope and timing of the audit and significant audit findings, including any
significant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied
with relevant ethical requirements regarding independence, and to communicate with them
all relationships and other matters that may reasonably be thought to bear on our
independence, and where applicable, related safeguards.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditors Report) Order, 2020 ("the Order"),
issued by the Central Government of India in terms of sub-section (11) of section 143 of
the
Companies Act, 2013, we give in the ‘Annexure A, a statement on the matters
specified in paragraphs 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 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 it appears from our examination of those books.
c) The Balance Sheet, the Statement of Profit and Loss including other comprehensive
income, the statement of changes in Equity and the Cash Flow Statement dealt with by this
Report are in agreement with the books of account.
d) In our opinion, the aforesaid financial statements comply with the Indian Accounting
Standards specified under Section 133 of the Act read with the relevant rules issued
thereunder, as applicable.
e) On the basis of the written representations received from the directors as on 31st
March, 2023 taken on record by the Board of Directors, none of the directors is
disqualified as on 31st March, 2023 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 our
separate Report in ‘Annexure B to this report.
g) With respect to the other matters to be included in the Auditors Report in
accordance with the requirements of section 197(16) of the Act, as amended. As per the
information and explanation given to us and on the basis of examination of the records,
managerial remuneration has been paid or provided as specified by the provisions of
Section 197 of the Act.
h) With respect to the other matters to be included in the Auditors Report in
accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion
and to the best of our information and according to the explanations given to us:
i. The Company has disclosed pending litigations and the impact on its financial
position in the Financial Statements.
ii. The Company did not have any long-term contracts including derivative contracts for
which there were any material foreseeable losses.
iii. There were no amounts which were required to be transferred to the Investor
Education and Protection Fund by the Company during the year. iv. (a) The management has
represented that, to the best of its knowledge and belief, no funds have been advanced or
loaned or invested (either from borrowed funds or share premium or any other sources or
kind of funds) by the company to or in any other person(s) or entities, including foreign
entities ("Intermediaries"), with the understanding, whether recorded in writing
or otherwise, that the Intermediary shall, whether, directly or indirectly lend or invest
in other persons or entities identified in any manner whatsoever by or on behalf of the
company ("Ultimate Beneficiaries") or provide any guarantee, security or the
like on behalf of the Ultimate Beneficiaries;
(b) The management has represented, that, to the best of its knowledge and belief, no
funds have been received by the company from any person(s) or entities, including foreign
entities ("Funding Parties"), with the understanding, whether recorded in
writing or otherwise, that the company shall, whether, directly or indirectly, lend or
invest in other persons or entities identified in any manner whatsoever by or on behalf of
the Funding Party ("Ultimate Beneficiaries") or provide any guarantee, security
or the like on behalf of the Ultimate Beneficiaries; and
(c) Based on such audit procedures performed, nothing has come to our notice that has
caused us to believe that the representations under sub-clause (i) and (ii) of Rule 11(e),
as provided under (a) and (b) above, contain any material mis- statement.
v. No dividend has been declared or paid during the year by the company.
For M. M. Goyal & Company
Chartered Accountants
Firm Registration No.: 007198N
Sd/-
(Manmohan Goyal)
Partner
Membership No. 086085
UDIN: 23086085BGREL74820 New Delhi
May 30th 2023
Annexure ‘A to the Independent Auditors Report to the members of STL Global
Limited
Referred to in paragraph 1 of Report on "Other Legal and Regulatory
Requirements" section of our report on the financial statement of even date, we
report that:
1) (a) The company has maintained proper records showing full particulars, including
quantitative details and situation of Property, Plant and Equipment.
(b) The Company has maintained proper records showing full particulars of e company has
maintained proper records showing full particulars of intangible assets.
(c) The Company has a regular programme of physical verification of its Property (PPE)
by which PPE are physically verified by the management in a phased periodical manner. In
accordance with the programme PPE were physically verified by the management during the
year and according to the information and explanations given to us, no material
discrepancies were noticed on such verification. In our opinion this periodicity of
physical verification is reasonable having regard to the size of the Company and nature of
its assets.
(d) In our opinion and according to the information and explanation given to us and on
the basis of the examination and records of the Company, All The title deeds of all the
immovable properties (other than properties where the company is the lessee and the lease
agreements are duly executed in favour of the lessee) disclosed in the financial
statement, are held in the name of the company.
(e) According to the information and explanations given to us, the company has not
revalued any of its Property, Plant and Equipment (including Right of Use assets) or
intangible assets or both during the year. Accordingly, paragraph 3 (i) (d) is not
applicable, hence not commented upon.
(f) As explained to us, there are currently no proceedings have been initiated and are
pending against the company for holding any benami property under the Benami Transactions
(Prohibition) Act, 1988 (45 of 1988) and rules made thereunder.
2) (a) As explained to us, the inventories have been physically verified by the
management at reasonable intervals and in our opinion, the coverage and procedure of such
verification by the management is appropriate. No discrepancy of 10% or more in the
aggregate for each class of inventory were noticed on physical verification of stocks by
the management as compared to book records.
(b) The company has not been sanctioned during any point of time of the year, working
capital limits in excess of five crore rupees, in aggregate, from banks or financial
institutions on the basis of security of current assets. Accordingly, paragraph 3(ii)(b)
of the order is not applicable.
3) In our opinion, During the year the company has not made investments in, provided
any guarantee or security or granted any loans or advances in the nature of loans, secured
or unsecured, to companies, firms, Limited Liability Partnerships or any other parties.
Accordingly, the provisions of clause 3(iii) of the order are not applicable to the
Company and hence not commented upon.
4) In our opinion and according to the information and explanation given to us, The
Company has not granted any loans, m a d e investments, or given guarantees in respect of
which provisions of sections 185 and 186 of the Companies Act are applicable. Accordingly
reporting under clause 3(iv) of the Order is not applicable.
5) In our opinion and according to the information and explanation given to us, the
company has not accepted any deposits from the public in accordance with the provisions of
sections 73 to 76 or any relevant provisions of the Companies Act, 2013 and rules framed
thereunder. Accordingly reporting under clause 3(v) of the Order is not applicable.
6) To the best of our knowledge and as per information & explanation given by the
management, maintenance of cost records has not been specified by the Central Government
under sub-section (1) of section 148 of the Companies Act for any product of the Company.
7) (a) According to the information and explanation given to us and on the basis of
examination of the records made available to us, the Company is regular in depositing
undisputed statutory dues including Goods and Services Tax, provident fund, employees
state insurance, income-tax, sales- tax, service tax, duty of customs, duty of excise,
value added tax, cess and any other statutory dues to the appropriate authorities.
(b) According to the information and explanation given to us there were no outstanding
statutory dues as on 31st of March, 2023 for a period of more than six months from the
date they became payable.
(c) According to the information and explanations given to us, there is no statutory
dues referred to in sub-clause (a) that have not been deposited on account of any dispute
except following:
| Name of the |
Financial Year |
Nature of Dues |
Amount |
Forum where Dispute |
| Statue |
|
|
|
Rupees is pending |
| HVAT Act |
2008-09 |
Sale Tax |
21,91,221 |
Jt. Excise & Taxation |
|
|
|
|
Commissioner, Faridabad |
| HVAT Act |
2011-2012 |
Sale Tax |
30,70,369 |
Jt. Excise & Taxation |
|
|
|
|
Commissioner, Faridabad |
8) According to the information and explanations given by the management, there are no
such transactions which previously not recorded in the books of accounts, now has been
surrendered or disclosed as income during the year in the tax assessments under the Income
Tax Act, 1961.
9) (a) In our opinion and according to the information and explanations given to us,
the Company has not taken loans or other borrowings from Bank during the year.
(b) In our opinion and according to the information and explanations given to us the
Company has not been declared wilful defaulter by any bank or financial institutions or
other lender.
(c) In our opinion and according to the information and explanations given by the
management, the Company has not obtained or utilized any term loans during the year.
Accordingly, paragraph 3(ix) (c) of the Order is not applicable.
(d) In our opinion and according to the information and explanations given by the
management, funds raised on short term basis have not been utilised for long term
purposes.
(e) In our opinion and according to the information and explanations given by the
management, the company has not taken any funds from any entity or person on account of or
to meet the obligations of its subsidiaries, associates or joint ventures,
(f) In our opinion and according to the information and explanations given by the
management, the company has not raised loans during the year on the pledge of securities
held in its subsidiaries, joint ventures or associate companies.
10) (a) The company has not raised any money by way of initial public offer or further
public offer (including debt instruments) during the year.
(b) The company has not made any preferential allotment or private placement of shares
or convertible debentures (fully, partially or optionally convertible) during the year.
11) (a) Based upon the audit procedures performed for the purpose of auditing and
according to the information and explanations given by the management, we report that no
fraud by the company or no material fraud on the company has been noticed or reported
during the year;
(b) In our opinion, to the best of our knowledge and according to the information and
explanations given to us, there is no report has been filed under sub-section (12) of
section 143 of the Companies Act by the auditors in Form ADT-4 as prescribed under rule 13
of Companies (Audit and Auditors) Rules, 2014 with the Central Government;
(c) According to the information and explanations given to us by the management, the
Company has not received any whistle-blower complaints during the year.
12) In our opinion, the company is not a Nidhi Company. Therefore, the provisions of
clause (xii) are not applicable to the company.
13) According to the information and explanations given to us, all transactions with
the related parties are in compliance with sections 177 and 188 of Companies Act, where
applicable and the details have been disclosed in the financial statements, etc., as
required by the applicable accounting standards;
14) (a) According to the information and explanations given by the management, the
company has an internal audit system commensurate with the size and nature of its
business;
(b) We have considered reports of the Internal Auditors for the period under audit;
15) On the basis of the information and explanations given to us, in our opinion during
the year the company has not entered into any non-cash transactions with directors or
persons connected with him.
16) (a) In our Opinion and based on our examination, the Company is not required to be
registered under section 45-IA of the Reserve Bank of India Act, 1934 (2 of 1934).
(b) In our Opinion and based on our examination, the Company has not conducted any
Non-Banking Financial or Housing Finance activities without a valid Certificate of
Registration (CoR) from the Reserve Bank of India as per the Reserve Bank of India Act,
1934,
(c) In our Opinion and based on our examination, the Company is not a Core Investment
Company (CIC) as defined in the regulations made by the Reserve Bank of India.
(d) According to the information and explanations given by the management, the Group
does not have any CIC as part of the Group.
17) Based on our examination, the company has not incurred cash losses in the financial
year and in the immediately preceding financial year.
18) There has been no resignation of the statutory auditors during the year..
19) On the information obtained from the management and audit procedures performed and
on the basis of the financial ratios, ageing and expected dates of realisation of
financial assets and payment of financial liabilities, other information accompanying the
financial statements, the auditors knowledge of the Board of Directors and management
plans, we are of the opinion that no material uncertainty exists as on the date of the
audit report that company is capable of meeting its liabilities existing at the date of
balance sheet as and when they fall due within a period of one year from the balance sheet
date;
20) Based on our examination, the provision of section 135 to the Companies Act, 2013
in relation to Corporate social responsibility is not applicable on the company. Hence
this clause is not applicable on the company.
21) According to the information and explanations given to us, the company is not
required to prepare Consolidate financial statement hence this clause is not applicable.
For M. M. Goyal & Company
Chartered Accountants
Firm Registration No.: 007198N
Sd/-
(Manmohan Goyal)
Partner
Membership No. 086085
UDIN: 23086085BGREL74820 New Delhi
May 30th 2023
Report on Internal Financial Controls Over Financial Reporting
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section
143 of the Companies Act, 2013 ("the Act")
We have audited the internal financial controls over financial reporting of STL GLOBAL
LIMITED ("the Company") as of March 31, 2023 in conjunction with our audit of
the financial statements of the Company for the year ended on that date.
Managements Responsibility for Internal Financial Controls
The Companys management is responsible for establishing and maintaining internal
financial controls based on the internal control over financial reporting criteria
established by the Company considering the essential components of internal control stated
in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting
issued by the Institute of Chartered Accountants of India. These responsibilities include
the design, implementation and maintenance of adequate internal financial controls that
were operating effectively for ensuring the orderly and efficient conduct of its business,
including adherence to companys policies, the safeguarding of its assets, the prevention
and detection of frauds and errors, the accuracy and completeness of the accounting
records, and the timely preparation of reliable financial information, as required under
the Companies Act, 2013. Auditors Responsibility
Our responsibility is to express an opinion on the Companys internal financial
controls over financial reporting based on our audit. We conducted our audit in accordance
with the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting
(the "Guidance Note") and the Standards on Auditing, issued by ICAI and deemed
to be prescribed under section 143(10) of the Companies Act, 2013, to the extent
applicable to an audit of internal financial controls, both applicable to an audit of
Internal Financial Controls and, both issued by the Institute of Chartered Accountants of
India. Those Standards and the Guidance Note require that we comply with ethical
requirements and plan and perform the audit to obtain reasonable assurance about whether
adequate internal financial controls over financial reporting was established and
maintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of
the internal financial controls system over financial reporting and their operating
effectiveness. Our audit of internal financial controls over financial reporting included
obtaining an understanding of internal financial controls over financial reporting,
assessing the risk that a material weakness exists, and testing and evaluating the design
and operating effectiveness of internal control based on the assessed risk. The procedures
selected depend on the auditors judgement, including the assessment of the risks of
material misstatement of the financial statements, whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to
provide a basis for our audit opinion on the Companys internal financial controls system
over financial reporting.
Meaning of Internal Financial Controls Over Financial Reporting
A companys internal financial control over financial reporting is a process designed
to provide reasonable assurance regarding the reliability of financial reporting and the
preparation of financial statements for external purposes in accordance with generally
accepted accounting principles. A companys internal financial control over financial
reporting includes those policies and procedures that
1. pertain to the maintenance of records that, in reasonable detail, accurately and
fairly reflect the transactions and dispositions of the assets of the company; 2. provide
reasonable assurance that transactions are recorded as necessary to permit preparation of
financial statements in accordance with generally accepted accounting principles, and that
receipts and expenditures of the company are being made only in accordance with
authorizations of management and directors of the company; and 3. provide reasonable
assurance regarding prevention or timely detection of unauthorized acquisition, use, or
disposition of the companys 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 financial
reporting, including the possibility of collusion or improper management override of
controls, material misstatements due to error or fraud may occur and not be detected.
Also, projections of any evaluation of the internal financial controls over financial
reporting to future periods are subject to the risk that the internal financial control
over financial reporting may become inadequate because of changes in conditions, or that
the degree of compliance with the policies or procedures may deteriorate. Opinion In our
opinion, the Company has, in all material respects, an adequate internal financial
controls system over financial reporting and such internal financial controls over
financial reporting were operating effectively as at March 31, 2023, based on the internal
control over financial reporting criteria established by the Company considering the
essential components of internal control stated in the Guidance Note on Audit of Internal
Financial Controls Over Financial Reporting issued by the Institute of Chartered
Accountants of India.
For M. M. Goyal & Company
Chartered Accountants
Firm Registration No.: 007198N
Sd/-
(Manmohan Goyal)
Partner
Membership No. 086085
UDIN: 23086085BGREL74820 New Delhi
May 30th 2023
+91-9892691696
