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Auditor Report of Ind Swift Ltd.

Mar 31, 2015

We have audited the accompanying financial statements of Ind- Swift Limited, which comprise the Balance Sheet as at March 31, 2015, and the Statement of Profit and Loss and Cash Flow Statement for the year ended on March 31, 2015 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 section 133 of the Companies Act, 2013. 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 and notes of accounts 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 read with and subject to notes on accounts:

a) in the case of the Balance Sheet, of the state of affairs of the Company as at March 31, 2015;

b) in the case of the Statement of Profit and Loss, 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.

Emphasis of matters

1. No provision has been made in accounts with respect to sundry debtors amounting to Rs. 63.39 cr outstanding for more than three years which are doubtful of recovery (refer note no. 30 of notes to accounts) and are not recoverable in normal course of business.

Had the provision for the same been made, the loss for the year and accumulated losses would have been higher by Rs. 63.39 cr.

Our opinion is qualified in respect of above.

2. The company has not provided interest on cash credit, term loans, working capital term loans and funded interest term loans with some banks since these banks have not charged interest on these accounts post such accounts becoming NPAs. The unaccounted interest liability in respect of the same for the financial year is Rs. 85.48 cr. (Refer note no. 37 of notes to accounts)

Had the provision for the same been made, the loss for the year and accumulated losses would have been higher by Rs. 85.48 cr.

Our opinion is qualified in respect of above.

3. The management is in process of getting an impairment study done in respect of units where the activities have been suspended (refer note no. 39 of notes to accounts). In view of this impairment loss in respect of these units have not been provided in accounts, being not ascertainable.

Our opinion is qualified in respect of above.

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 section 143 of the Companies Act 2013, 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 section 143(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 purpose 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 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) in our opinion, the Balance Sheet, Statement of Profit and Loss, and Cash Flow Statement comply with the Accounting Standards referred to in Section 133 of the Companies Act, 2013;

e) 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 sub-section (2) of section 164 of the Companies Act, 2013.

The Annexure referred to in paragraph 1 of the Our Report of even date to the members of Ind- Swift Limited on the accounts of the company for the year ending on March 31, 2015.

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

(b) According to information and explanations given to us, the Company has a system of physical verification of all its fixed assets once in a year, which in our opinion is reasonable having regard to the size of the Company and the nature of its assets. No serious discrepancies were noticed on such verification.

(ii) (a) As explained to us, the stocks of stores, spare parts, raw materials and finished goods have been physically verified by the management at regular intervals during the year.

(b) In our opinion and according to information & explanations given to us, the Procedure of physical verification of stocks 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 & according to the information & explanations given to us and on the basis of our examination of the records of inventory, the company is maintaining proper records of its inventory. The discrepancies noticed on physical verification of stocks of stores, spare parts, raw material and finished goods were not significant in relation to the operations of the Company and the same have been properly dealt with in the books of accounts.

(iii) According to the information and explanation given to us, the Company has granted loans, secured or unsecured to Companies, firms or other parties covered in the register maintained u/s 189 of the Companies Act, 2013.

(a) The repayment of principle and interest are regular except in case of loan to Swift Fundamental Research & Education Society where no interest has been provided during the year.

(b) According to the information & explanations given to us, the company has taken reasonable steps to recover the amount from Swift Fundamental Research & Education Society

(iv) In our opinion and according to the information and explanations given to us, there are adequate internal control procedures commensurate with the size of the Company and the nature of its business with regard to purchase of stores, raw materials including components, plant and machinery, equipment and other assets and for the sale of goods and services.

(v) In our opinion and according to the information and explanations given to us, the company has not complied with the provisions of Section 73 TO 76 of the Companies Act 2013 and the Companies (Acceptance of Deposits ) Rules, 2014 with regard to the repayment of the deposits accepted from the public and maintenance of liquid assets. The Hon'ble Company Law Board restructured Fixed Deposit Scheme of the company vide its order dated 30.09.2013. The Restructured Repayment schedule is being adhered to by the company. Company has filed an application to Central Government (Ministry of Corporate Affairs) for relaxation of provision to maintain liquid assets (15% of Deposits maturing in the next Financial Year). The Application is still pending.

(vi) The Company is required to maintain cost records under sub-section (1) of section 148 the Companies Act, 2013 for the products of the company and according to the information & explanations given to us , the company has maintained proper records as prescribed by the Central Government but we have not carried out the examination of these records.

(vii) (a) According to the information and explanations given to us and the records of the company examined by us, the company has been generally regular in depositing undisputed statutory dues including Provident Fund, Investor Education Protection Fund, Employees State Insurance, Income Tax, Sales Tax, Service Tax, Wealth Tax, Custom Duty, Excise Duty, Cess and other material statutory dues applicable to it, with appropriate authorities. We are informed that there are no undisputed statutory dues as at the year end outstanding for a period of more than six months from the date they became payable, except Tax Deducted at Source under Income Tax Act for Rs. 30.48 lacs, Provident fund Rs 9.47 lacs, Employees State Insurance for Rs.23.08 lacs , Entry Tax for Rs. 97.83 lacs.

(b) According to the information and explanations given to us and the records of the company examined by us, there are no disputed dues as referred of Income Tax, Sales Tax, Service Tax, Wealth Tax, Custom Duty and Excise Duty and Cess matters, except the dispute referred in Note No. 28(c) &28(d) of Notes on Financial Statements.

(c) According to the information and explanations given to us, the company has transferred its unpaid dividend to Investors Education and Protection Fund as required by the provisions of Companies Act 1956.

(viii) The company's accumulated losses at the end of the financial year are in excess of 50% of its net worth. The company has incurred cash losses during the financial year and in the immediately preceding financial year.

(ix) According to the records of the company examined by us and the information and explanations given to us, the company during the year has defaulted in repayment of dues to Banks/ financial institutions amounting to Rs, 78.52 Crores as principal and Rs. 77.98 Crores as interest.

(x) In our opinion and according to the information & explanations given to us, the terms and conditions on which the company has given guarantees during the year for loans taken by others from banks or financial institutions are prima facie not prejudicial to the interest of the company.

(xi) In our opinion and according to the explanations given to us, the term loans taken during the year have been applied for the purpose for which they were obtained.

(xii) Based upon the audit procedures performed and information and explanations given by the management, we report that no fraud on or by the company has been noticed or reported during the course of our audit for the year ended March 31, 2015.

for J.K. JAIN & ASSOCIATES CHARTERED ACCOUNTANTS

Place: Chandigarh J. K. JAIN Date : 04.05.2015 (Partner) M. No.083140






Mar 31, 2014

We have audited the accompanying financial statements of Ind- Swift Limited, which comprise the Balance Sheet as at March 31, 2014, and the Statement of Profit and Loss and Cash Flow State- ment for the year ended on 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 accord- ance with the Accounting Standards referred to in sub-section (3C) of section 211 of the Companies Act, 1956. This responsi- bility 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 ac- cordance 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 evi- dence about the amounts and disclosures in the financial state- ments. The procedures selected depend on the auditor''s judg- ment, including the assessment of the risks of material misstate- ment 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 presenta- tion of the financial statements in order to design audit proce- dures 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 accord- ing to the explanations given to us, the financial statements and notes of accounts 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 read with and subject to notes on accounts:

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 Statement of Profit and Loss, 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 ("the Order") issued by the Central Government of India in terms of sub-section (4A) of section 227 of the Act, we give in the Annexure a statement on the matters specified in para- graphs 4 and 5 of the Order.

2. 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 nec- essary for the purpose 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 those books

c) the Balance Sheet, Statement of Profit and Loss, and Cash Flow Statement dealt with by this Report are in agree- ment with the books of account.

d) in our opinion, the Balance Sheet, Statement of Profit and Loss, and Cash Flow Statement comply with the Account- ing Standards referred to in subsection (3C) of section 211 of the Companies Act, 1956;

e) on the basis of written representations received from the directors as on March 31, 2014, and taken on record by the Board of Directors, none of the directors is disquali- fied as on March 31, 2014 from being appointed as a di- rector in terms of clause (g) of sub-section (1) of section 274 of the Companies Act, 1956.

The Annexure referred to in paragraph 1 of the Our Report of even date to the members of Ind- Swift Limited on the accounts of the company for the year ending on March 31, 2014.

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

(b) According to information and explanations given to us, the Company has a system of physical verification of all its fixed assets once in a year, which in our opinion is reasonable having regard to the size of the Com- pany and the nature of its assets. No serious discrepan- cies were noticed on such verification.

(c) During the year, company has not disposed off any sub- stantial / major part of fixed assets.

(ii) (a) As explained to us, the stocks of stores, spare parts, raw materials and finished goods have been physically verified by the management at regular intervals during the year.

(b) In our opinion and according to information & explana- tions given to us, the Procedure of physical verification of stocks 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 & according to the information & expla- nations given to us and on the basis of our examination of the records of inventory, the company is maintaining proper records of its inventory. The discrepancies noticed on physical verification of stocks of stores, spare parts, raw material and finished goods were not significant in relation to the operations of the Company and the same have been properly dealt with in the books of accounts.

(iii) (a) According to the information and explanation given to us, the Company has granted loans, secured or unse- cured to Companies, firms or other parties covered in the register maintained u/s 301 of the Companies Act, 1956. As regards the loan given, Company has granted loan to four parties and the balance outstanding as on March 31, 2014 of Balance Sheet is Rs.6213.46 lacs.

(b) According to the information & explanations given to us, the loans granted are unsecured and in our opinion, the terms & conditions of loans granted, are not prima facie prejudicial to the interests of the company.

(c) According to the information & explanations given to us, the company as well as the parties to whom loan have been given are regular in repayment of principal amount and payment of interest as stipulated.

(iv) In our opinion and according to the information and ex- planations given to us, there are adequate internal con- trol procedures commensurate with the size of the Com- pany and the nature of its business with regard to purchase of stores, raw materials including components, plant and machinery, equipment and other assets and for the sale of goods.

(v) In respect of transactions entered in the register maintained in pursuance of section 301 of the Companies Act, 1956.

(a) To the best of our knowledge and belief and according to the information and explanations given to us, the trans- actions that needed to be entered into the register have been so entered.

(b) According to the information and explanations given to us, the transactions exceeding Rs.5,00,000/-(Rupees five lacs only) have been made at prices, which are prima facie, reasonable having regard to the prevailing market prices at the relevant time.

(vi) In our opinion and according to the information and ex- planations given to us, the company has not complied with the provisions of Section 58A and 58 AA of the Compa- nies Act 1956 and the Companies (Acceptance of Deposits) Rules, 1975 with regard to the repayment of the deposits accepted from the public and maintenance of liquid assets. The Hon''ble Company Law Board restructured Fixed Deposit Scheme of the company vide its order dated 30.09.2013. The Restructured Repayment schedule is being adhered to by the company. Company has filed an application to Central Gov- ernment (Ministry of Corporate Affairs) for relaxation of pro- vision to maintain liquid assets (15% of Deposits maturing in the next Financial Year). The Application is still pending.

(vii) In our opinion, Internal Audit System followed by the man- agement is commensurate with the size of the company and nature of its business.

(viii) The Company is required to maintain cost records under section 209 (1)(d) of the Companies Act, 1956 for the prod- ucts of the company and according to the information & explanations given to us , the company has maintained proper records as prescribed by the Central Government but we have not carried out the examination of these re- cords.

(ix) (a) According to the information and explanations given to us and the records of the company examined by us, the com- pany has been generally regular in depositing undisputed statutory dues including Provident Fund, Investor Educa- tion Protection Fund, Employees State Insurance, Income Tax, Sales Tax, Service Tax, Wealth Tax, Custom Duty, Excise Duty, Cess and other material statutory dues applicable to it, with appropriate authorities. We are informed that there are no undisputed statutory dues as at the year end out- standing for a period of more than six months from the date they became payable, except Tax Deducted at Source under Income Tax Act.

(b) According to the information and explanations given to us and the records of the company examined by us, there are no disputed dues as referred of Income Tax, Sales Tax, Service Tax, Wealth Tax, Custom Duty and Excise Duty and Cess matters, except the dispute referred in Note No. 28(c) &28(d) of Notes on Financial Statements.

The company has accumulated losses as at the end of the financial year ending as on March 31, 2014 .The company has also incurred cash losses of Rs. 85.68 crores during the year ending on March 31, 2014 (Previous Year Rs. 92.11 Crores)

(xi) According to the records of the company examined by us and the information and explanations given to us, the company during the year has defaulted in repayment of dues to Banks/ financial institutions amounting to Rs, 25.54 Crores as principal and Rs. 40.10 Crores as interest.

(xii) According to the information & explanations given to us, the company has not granted any loans or advances on the basis of security by way of pledge of shares, deben- tures and other securities.

(xiii) The provisions of any special statute as specified under paragraph 4 (xiii) of the Order in respect of nidhi/ mutual benefit fund/ societies are not applicable to the Company.

(xiv) In our opinion and according to the information & expla- nations given to us, the company has maintained proper records of the transactions relating to dealing in shares, securities & other investments & also entries have been made therein timely. Also all the shares, securities etc. have been held by the company in its own name.

(xv) In our opinion and according to the information & expla- nations given to us, the terms and conditions on which the company has given guarantees during the year for loans taken by others from banks or financial institutions are prima facie not prejudicial to the interest of the company.

(xvi) In our opinion and according to the explanations given to us, the term loans taken during the year have been applied for the purpose for which they were obtained.

(xvii) According to the information & explanations given to us and on overall examination of the balance sheet of the company, we report that short term funds have not been used to finance long term investments and vice versa.

(xviii) The company has made preferential allotment of shares of Rs. 83.37 Lacs at a premium of Rs. 646.13 Lacs to parties and companies covered in the register maintained under section 301 of the Companies Act, 1956 during the year.

(xix) During the year, since the company has not issued any de- bentures, paragraph 4 (xix) of the Order is not applicable.

(xx) During the year, since the company has not raised any money by way of public issue, paragraph 4 (xx) of the Or- der is not applicable.

(xxi) Based upon the audit procedures performed and informa- tion and explanations given by the management, we re- port that no fraud on or by the company has been noticed or reported during the course of our audit for the year ended March 31, 2014.

for J.K. JAIN & ASSOCIATES CHARTERED ACCOUNTANTS

Place: Chandigarh J. K. JAIN Date : 04.06.2014 (Partner) M. No.083140


Mar 31, 2013

We have audited the accompanying financial statements of Ind-Swift Limited, which comprise the Balance Sheet as at 31st March, 2013, and the Statement of Profit and Loss and Cash Flow Statement for the nine months Period ended on 31st March, 2013, and a summary of significant accounting policies and other explanatory information.

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.

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.

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 31st March, 2013;

b) in the case of the Profit and Loss Account, of the loss for the period ended on that date; and

c) in the case of the Cash Flow Statement, of the cash flows for the period ended on that date.

1. As required by the Companies (Auditor's Report) Order, 2003 ("the Order") issued by the Central Government of India in terms of sub-section (4A) of section 227 of the Act, we give in the Annexure a statement on the matters specified in paragraphs 4 and 5 of the Order.

2. 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 purpose 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 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) in our opinion, the Balance Sheet, Statement of Profit and Loss, and Cash Flow Statement comply with the Accounting Standards referred to in subsection (3C) of section 211 of the Companies Act, 1956;

e) on the basis of written representations received from the directors as on 31st March, 2013, and taken on record by the Board of Directors, none of the directors is disqualified as on 31st March, 2013, from being appointed as a director in terms of clause (g) of sub-section (1) of section 274 of the 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.

The Annexure referred to in paragraph 1 of the Our Report of even date to the members of Ind Swift Limited on the accounts of the company for the nine months Period ending on 31st March, 2013.

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

(b) According to information and explanations given to us, the Company has a system of physical verification of all its fixed assets once in a year, which in our opinion is reasonable having regard to the size of the Company and the nature of its assets . No serious discrepancies were noticed on such verification.

(c) During the period, company has not disposed off any substantial / major part of fixed assets.

(ii) (a) As explained to us, the stocks of stores, spare parts, raw materials and finished goods have been physically verified by the management at regular intervals during the period.

(b) In our opinion and according to information & explanations given to us, the Procedure of physical verification of tocks 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 & according to the information & explanations given to us and on the basis of our examination of the records of inventory, the company is maintaining proper records of its inventory. The discrepancies noticed on physical verification of stocks of stores, spare parts, raw material and finished goods were not significant in relation to the operations of the Company and the same have been properly dealt with in the books of accounts.

(iii) (a) According to the information and explanation given to us, the Company has granted loans, secured or unsecured to Companies, firms or other parties covered in the register maintained u/s 301 of the Companies Act, 1956. As regards the loan given, Company has granted loan to parties and the balance outstanding as on 31st March, 2013 of Balance Sheet is Rs 5623.65 Lacs.

(b) According to the information & explanations given to us, the loans granted are unsecured and in our opinion, the terms & conditions of loans granted, are not prima facie prejudicial to the interests of the company.

(c) According to the information & explanations given to us, the company as well as the parties to whom loan have been given are regular in repayment of principal amount and payment of interest as stipulated.

(iv) In our opinion and according to the information and explanations given to us, there are adequate internal control procedures commensurate with the size of the Company and the nature of its business with regard to purchase of stores, raw materials including components, plant and machinery, equipment and other assets and for the sale of goods.

(v) In respect of transactions entered in the register maintained in pursuance of section 301 of the Companies Act, 1956.

(a) To the best of our knowledge and belief and according to the information and explanations given to us, the transactions that needed to be entered into the register have been so entered.

(b) According to the information and explanations given to us, the transactions exceeding Rs.5,00,000/-(Rupees five lacs only) have been made at prices, which are prima facie, 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 complied with the directions issued by the Reserve Bank of India and provisions of Section 58A & 58AA of the Companies Act,1956 and the rules framed thereunder with regard to the deposits accepted from the public.

(vii) In our opinion, Internal Audit System followed by the management is commensurate with the size of the company and nature of its business.

(viii) The Company is required to maintain cost records under section 209 (1)(d) of the Companies Act, 1956 for the products of the company and according to the information & explanations given to us , the company has maintained proper records as prescribed by the Central Government but we have not carried out the examination of these records.

(ix) (a) According to the information and explanations given to us and the records of the company examined by us, the company has been regular in depositing undisputed statutory dues including Provident Fund, Investor Education Protection Fund, Employees' State Insurance, Income Tax, Sales Tax, Wealth Tax, Custom Duty, Excise Duty, cess and other material statutory dues applicable to it. We are informed that there are no undisputed statutory dues as at the year end outstanding for a period of more than six months from the date they became payable.

(b) According to the information and explanations given to us and the records of the company examined by us, there are no disputed dues of Income Tax, FBT, Wealth Tax, Sales Tax, Custom Duty and Excise Duty and cess matters.

(x) The company does not have accumulated losses as at the end of the financial year 31st March, 2013. But the company has incurred cash losses of Rs 92.11 crores during the nine months period ending on 31st March, 2013.

(xi) According to the records of the company examined by us and the information and explanations given to us, the company during the period has not defaulted in repayment of dues to financial institutions or banks.

(xii) According to the information & explanations given to us, the company has not granted any loans or advances on the basis of security by way of pledge of shares, debentures and other securities.

(xiii) The provisions of any special statute as specified under paragraph 4 (xiii) of the Order in respect of nidhi/mutual benefit fund/societies are not applicable to the Company.

(xiv) In our opinion and according to the information & explanations given to us, the company has maintained proper records of the transactions relating to dealing in shares, securities & other investments & also entries have been made therein timely. Also all the shares, securities etc. have been held by the company in its own name.

(xv) In our opinion and according to the information & explanations given to us, the terms and conditions on which the company has given guarantees during the year for loans taken by others from banks or financial institutions are prima facie not prejudicial to the interest of the company.

(xvi) In our opinion and according to the explanations given to us, the term loans taken during the year have been applied for the purpose for which they were obtained.

(xvii) According to the information & explanations given to us and on overall examination of the balance sheet of the company, we report that short term funds have not been used to finance long term investments and vice versa.

(xviii) The company has not made preferential allotment of shares to parties and companies covered in the register maintained under section 301 of the Companies Act, 1956 during the period.

(xix) During the period, since the company has not issued any debentures, paragraph 4 (xix) of the Order is not applicable.

(xx) During the period, since the company has not raised any money by way of public issue, paragraph 4 (xx) of the Order is not applicable.

(xxi) Based upon the audit procedures performed and information and explanations given by the management, we report that no fraud on or by the company has been noticed or reported during the course of our audit for the period ended 31st March, 2013.

For J.K. JAIN & ASSOCIATES CHARTERED ACCOUNTANTS

Place: Chandigarh (J. K. JAIN) Date: 28.05.2013 Partner Membership No. 083140




Mar 31, 2011

1. We have audited the attached Balance Sheet of M/s Ind-Swift Limited as at 31st March 2011 and also the Profit and Loss Account and the Cash Flow Statement of the Company for the year ended on the same date annexed thereto. 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.

2. We conducted our audit in accordance with auditing standards generally accepted in India. These 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.

3. As required by Companies (Auditor's Report) Order, 2003, and as amended by Companies (Auditors Report) (Amendment) Order, 2004, issued by the Central Government of India in terms of Section 227 (4A) of the Companies Act, 1956, we annex hereto a statement on the matters specified in paragraph 4 and 5 of the said order.

4. Further to our comments in the annexure referred to in Paragraph (3) above:- a.) We have obtained all the information and explanations which to the best of our knowledge and belief were necessary for purpose of our audit.

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 such books.

c.) The Balance Sheet and Profit and Loss Account and Cash Flow Statement referred to in this Report are in agreement with the books of accounts.

d.) In our opinion the Profit and Loss Account and Balance Sheet and cash fow statements comply with the requirements of the accounting standards referred to in Sub Section (3C) of Section 211 of the Companies Act 1956.

e.) During the course of our Audit, we have not come across with any such observation which has any adverse effect on the functioning of the company.

f.) Pursuant to the provisions of sub section (1)(g) of section 274 of the Companies Act 1956, we report as under :

On the basis of written representations received from the Directors and taken on record by the Board of Directors, we report that none of the Directors is disqualified as on 31st March, 2011 from being appointed as a Director of the company in terms of Clause (g) of sub section (1) of section 274 of the Companies Act, 1956.

g.) In our opinion and to the best of our information and according to the explanations given to us, the said statement of accounts read with notes thereon, give the information required by Companies Act, 1956 in the manner as required and give a true and fair view:- a) In case of the Balance Sheet, of the state of affairs of the Company as at 31st March, 2011,

b) In the case of the Profit and Loss Account, of the profit for the year ended on 31.3.2011 and

c) In the case of Cash fow Statement, of the Cash Flow of the Company for the year ended on that date.

ANNEXURE TO THE AUDITOR'S REPORT (Referred to in Para (3) of our Report of even date)

(i) (a) The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets. (b) According to information and explanations given to us, the Company has a system of physical verification of all its fixed assets once in a year, which in our opinion is reasonable having regard to the size of the Company and the nature of its assets. No serious discrepancies were noticed on such verification. (c) During the year, company has not disposed off any substantial/major part of fixed assets.

(ii) (a) As explained to us, the stocks of stores, spare parts,raw materials and fnished goods have been physically verified by the management at regular intervals during the year.

(b) In our opinion and according to information & explanations given to us, the procedure of physical verification of stocks 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 & according to the information & explanations given to us and on the basis of our examination of the records of inventory, the company is maintaining proper records of its inventory. The discrepancies noticed on physical verification of stocks of stores, spare parts, raw material and fnished goods were not significant in relation to the operations of the Company and the same have been properly dealt with in the books of accounts.

(iii) (a) According to the information and explanation given to us, the Company has taken/granted any loans, secured or unsecured from/to Companies, firms or other parties covered in the register maintained u/s 301 of the Companies Act, 1956. Company has taken loan from one party and balance outstanding as on 31st March, 2011 is NIL. As regards the loan given, Company has granted loan to parties and the balance outstanding as on 31st March 2011 of Balance Sheet is Rs.588.94 lacs.

(b) According to the information & explanations given to us, the loans granted are unsecured and in our opinion, the terms & conditions of loans granted, are not prima facie prejudicial to the interests of the company.

(c) According to the information & explanations given to us, the company as well as the parties to whom loan have been given are regular in repayment of principal amount and payment of interest as stipulated.

(iv) In our opinion and according to the information and explanations given to us, there are adequate internal control procedures commensurate with the size of the Company and the nature of its business with regard to purchase of stores, raw materials including components, plant and machinery, equipment and other assets and for the sale of goods.

(v) In respect of transactions entered in the register maintained in pursuance of section 301 of the Companies Act, 1956.

(a) To the best of our knowledge and belief and according to the information and explanations given to us, the transactions that needed to be entered into the register have been so entered.

(b) According to the information and explanations given to us, the transactions exceeding Rs.5,00,000/-(Rupees five lacs only) have been made at prices, which are prima facie, 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 complied with the directions issued by the Reserve Bank of India and provisions of Section 58A & 58AA of the Companies Act,1956 and the rules framed thereunder with regard to the deposits accepted from the public.

(vii) In our opinion, Internal Audit System followed by the management is commensurate with the size of the company and nature of its business.

(viii) The Company is required to maintain cost records under section 209 (1)(d) of the Companies Act, 1956 for the products of the company and according to the information & explanations given to us, the company has maintained proper records as prescribed by the Central Government but we have not carried out the examination of these records.

(ix) (a) According to the information and explanations given to us and the records of the company examined by us, the company has been regular in depositing undisputed statutory dues including Provident Fund, Investor Education Protection Fund, Employees' State Insurance, Income Tax, Sales Tax, Wealth Tax, Custom Duty, Excise Duty, cess and other material statutory dues applicable to it. We are informed that there are no undisputed statutory dues as at the year end outstanding for a period of more than six months from the date they became payable. (b) According to the information and explanations given to us and the records of the company examined by us, there are no disputed dues of Income Tax, FBT, Wealth Tax, Sales Tax, Custom Duty and Excise Duty and cess matters.

(x) The company does not have accumulated losses as at the end of the financial year March 31, 2011. Further the company has not incurred any cash losses during the financial year ended March 31, 2011 and in the preceding financial year ended March 31, 2010.

(xi) According to the records of the company examined by us and the information and explanations given to us, the company during the year has not defaulted in repayment of dues to financial institutions or banks.

(xii) According to the information & explanations given to us, the company has not granted any loans or advances on the basis of security by way of pledge of shares, debentures and other securities.

(xiii) The provisions of any special statute as specified under paragraph 4 (xiii) of the Order are not applicable to the Company.

(xiv) In our opinion and according to the information & explanations given to us, the company has maintained proper records of the transactions relating to dealing in shares, securities & other investments & also entries have been made therein timely. Also all the shares, securities etc. have been held by the company in its own name.

(xv) In our opinion and according to the information & explanations given to us, the terms and conditions on which the company has given guarantees during the year for loans taken by others from banks or financial institutions are prima facie not prejudicial to the interest of the company.

(xvi) In our opinion and according to the explanations given to us, the term loans taken during the year have been applied for the purpose for which they were obtained.

(xvii) According to the information & explanations given to us and on overall examination of the balance sheet of the company, we report that short term funds have not been used to fnance long term investments and vice versa.

(xviii) The company has not made preferential allotment of shares to parties and companies covered in the register maintained under section 301 of the Companies Act, 1956 during the year.

(xix) During the year, since the company has not issued any debentures, paragraph 4 (xix) of the Order is not applicable.

(xx) During the year, since the company has not raised any money by way of public issue, paragraph 4 (xx) of the Order is not applicable.

(xxi) Based upon the audit procedures performed and information and explanations given by the management, we report that no fraud on or by the company has been noticed or reported during the course of our audit for the year ended March 31, 2011.

For J.K. JAIN & ASSOCIATES

CHARTERED ACCOUNTANTS

Place: Chandigarh (J.K. JAIN)

Date: 31.08.2011 Partner

Membership No. 83140


Mar 31, 2010

1. We have audited the attached Balance Sheet of M/s Ind-Swift Limited as at 31st March 2010 and also the Profit and Loss Ac- count and the Cash Flow Statement of the Company for the year ended on the same date annexed thereto. These financial state- ments are the responsibility of the Compa- nys Management. Our responsibility is to express an opinion on these financial state- ments based on our audit.

2. We conducted our audit in accordance with auditing standards generally accepted in In- dia. These standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial state- ments are free of material misstatement. An audit includes examining, on a test basis, ev- idence supporting the amounts and disclo- sures in the financial statements. An audit also includes assessing the accounting prin- ciples used and significant estimates made by the Management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reason- able basis for our opinion.

3. As required by Companies (Auditors Re- port) Order, 2003, and as amended by Companies (Auditors Report) (Amendment) Order, 2004, issued by the Central Govern- ment of India in terms of Section 227 (4A) of the Companies Act, 1956, we annex hereto a statement on the matters speci- fied in paragraph 4 and 5 of the said order.

4. Further to our comments in the annexure referred to in Paragraph (3) above :-

a. We have obtained all the information and explanations which to the best of our knowl- edge and belief were necessary for purpose of our audit.

b. In our opinion, proper books of accounts as required by law have been kept by the Com- pany so far as appears from our examina- tion of such books.

c. The Balance Sheet and Profit and Loss Ac- count and Cash Flow Statement referred to in this Report are in agreement with the books of accounts.

d. In our opinion the Profit and Loss Account and Balance Sheet and cash flow state- ments comply with the requirements of the accounting standards referred to in Sub Sec- tion (3C) of Section 211 of the Compa- nies Act 1956.

e. During the course of our Audit, we have not come across with any such observation which has any adverse effect on the func- tioning of the company.

f. Pursuant to the provisions of sub section (l)(g) of section 274 of the Companies Act 1956, we report as under :

On the basis of written representations re- ceived from the Directors and taken on re- cord by the Board of Directors, we report that none of the Directors is disqualified as on 31st March, 2010 from being appointed as a Director of the company in terms of Clause (g) of sub section (1) of section 274 of the Companies Act, 1956.

g. In our opinion and to the best of our information and according to the explana- tions given to us, the said statement of accounts read with notes thereon, give the information required by Companies Act, 1956 in the manner as required and give a true and fair view:-

a) In case of the Balance Sheet, of the state of affairs of the Company as at 31st March, 2010,

b) In the case of the Profit and Loss Account, of the profit for the year ended on 31.3.2010 and

c) In the case of Cash flow Statement, of the Cash Flow of the Company for the year ended on that date.

ANNEXURE TO THE AUDITORS REPORT (Referred to in Para (3) of our Report of even date)

(i) (a) The Company has maintained proper records snowing full particulars, includ- ing quantitative details and situation of fixed assets.

(b) According to information and explana- tions given to us, the Company has a system of physical verification of all its fixed assets once in a year, which in our opinion is reasonable having regard to the size of the Company and the nature of its assets. No serious discrepan- cies were noticed on such verification.

(c) During the year, company has not dis- posed off any substantial/major part of fixed assets.

(ii) (a) As explained to us, the stocks of stores, spare parts, raw materials and finished goods have been physically verified by the management at regular intervals dur- ing the year.

(b) In our opinion and according to informa- tion & explanations given to us, the Pro- cedure of physical verification of stocks followed by the management are rea- sonable and adequate in relation to the size of the Company and the nature of its business.

(c) In our opinion & according to the infor- mation & explanations given to us and on the basis of our examination of the re- cords of inventory, the company is main- taining proper records of its inventory. The discrepancies noticed on physical verification of stocks of stores, spare parts, raw material and finished goods were not significant in relation to the operations of the Company and the same have been properly dealt with in the books of ac- counts.

(iii) (a) According to the information and ex- planation given to us, the Company has taken/granted any loans, secured or unsecured from/to Companies, firms or other parties covered in the register main- tained u/s 301 of the Companies Act, 1956. Company has taken loan from one party and balance outstanding as on 31st March. 2010 is Rs. 195.38 Lacs. As re- gards the loan given, Company has been granted loan to one party and the bal-

ance outstanding as on 31st March 2010 of Balance Sheet is Rs. 1056.84 lacs.

(b) According to the information & explana tions given to us, the loans granted are unsecured and in our opinion, the terms & conditions of loans granted, are not pri ma facie prejudicial to the interests of the company.

(c) According to the information & explana- tions given to us, the company as well as the parties to whom loan have been giv- en are regular in repayment of principal amount and payment of interest as stipu- lated.

(iv) In our opinion and according to the in- formation and explanations given to us, there are adequate internal con- trol procedures commensurate with the size of the Company and the nature of its business with regard to purchase of stores, raw materials including com- ponents, plant and machinery, equip- ment and other assets and for the sale of goods.

(v) In respect of transactions entered in the register maintained in pursuance of sec- tion 301 of the Companies Act, 1956.

(a) To the best of our knowledge and belief and according to the information and ex- planations given to us, the transactions that needed to be entered into the register have been so entered.

(b) According to the information and expla- nations given to us, the transactions ex- ceeding Rs.5,00,000/-(Rupees five lacs only) have been made at prices, which are prima facie, reasonable having regard to the prevailing market prices at the rel- evant time.

(vi) In our opinion and according to the information and explanations given to us, the company has complied with the directions issued by the Reserve Bank of India and provisions of Section 58A & 58AA of the Companies Act, 1956 and the rules framed thereunder with regard to the deposits accepted from the public.

(vii) In our opinion, Internal Audit System fol- lowed by the management is commen- surate with the size of the company and nature of its business.

(viii) The Company is required to maintain cost records under section 209 (l)(d) of the Companies Act ,1956 for the products of the company and according to the in- formation & explanations given to us , the company has maintained proper records as prescribed by the Central Government but we have not carried out the examina- tion of these records.

(ix) (a) According to the information and explanations given to us and the records of the company examined by us, the company has been regular in depositing undisputed statutory dues including Prov- ident Fund, Investor Education Protection Fund, Employees State Insurance, In- come Tax, Sales Tax, Wealth Tax, Custom Duty, Excise Duty, cess and other material statutory dues applicable to it. We are in- formed that there are no undisputed stat- utory dues as at the year end outstanding for a period of more than six months from the date they became payable.

(b) According to the information and expla- nations given to us and the records of the company examined by us, there are no disputed dues of Income Tax, FBT. Wealth Tax, Sales Tax, Custom Duty and Excise Duty and cess matters.

(x) The company does not have accumulated losses as at the end of the financial year March 31, 2010. Further the company has not incurred any cash losses during the financial year ended March 31, 2010 and in the preceding financial year ended March 31, 2009.

(xi) According to the records of the company examined by us and the information and explanations given to us, the company during the year has not defaulted in re- payment of dues to financial institutions or banks.

(xii) According to the information & explana- tions given to us, the company has not granted any loans or advances on the ba- sis of security by way of pledge of shares, debentures and other securities.

(xiii) The provisions of any special statute as specified under paragraph 4 (xiii) of the Order are not applicable to the Company.

(xiv) In our opinion and according to the in- formation & explanations given to us, the company has maintained proper records of the transactions relating to dealing in shares, securities & other investments & also entries have been made therein time- ly. Also all the shares, securities etc. have been held by the company in its own name.

(xv) In our opinion and according to the in formation & explanations given to us, the terms and conditions on which the company has given guarantees during the year for loans taken by others from banks or financial institutions are prima facie not prejudicial to the interest of the company.

(xvi) In our opinion and according to the expla nations given to us, the term loans taken during the year have been applied for the purpose for which they were obtained.

(xvii) According to the information & explana tions given to us and on overall examina- tion of the balance sheet of the company. we report that short term funds have not been used to finance long term invest- ments and vice versa.

(xviii) The company has not made preferential allotment of shares to parties and com- panies covered in the register maintained under section 301 of the Companies Act, 1956 during the year.

(xix) During the year, since the company has not issued any debentures, paragraph 4 (xix) of the Order is not applicable.

(xx) During the year, since the company has not raised any money by way of public issue, paragraph 4 (xx) of the Order is not applicable.

(xxi) Based upon the audit procedures per- formed and information and explanations given by the management, we report that no fraud on or by the company has been noticed or reported during the course of our audit for the year ended March 31, 2010.

For J.K. JAIN & ASSOCIATES

CHARTERED ACCOUNTANTS

Place: Chandigarh (J.K. JAIN)

Date: 06.08.2010 Partner

Membership No. 83140

 
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