Mar 31, 2016
To the Members of
Swadeshi Industries & Leasing Limited
Report on the Standalone Financial Statements
We have audited the accompanying standalone financial statements of Swadeshi Industries & Leasing Limited (''the Company''), which comprise the balance sheet as at 31 March 2016, the statement of profit and loss and the cash flow statement for the year then ended, and a summary of significant accounting policies and other explanatory information.
Management''s Responsibility for the Standalone Financial Statements
The Company''s Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 (âthe Actâ) with respect to the preparation and presentation of these standalone 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 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 maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
Auditor''s Responsibility
Our responsibility is to express an opinion on these standalone financial statements based on our audit.
We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made there under.
We conducted our audit in accordance with the Standards on Auditing specified under Section 143(10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and the 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 a true and fair view in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on whether the Company has in place an adequate internal financial controls system over financial reporting and the operating effectiveness of such controls. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Company''s Directors, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the standalone financial statements.
Opinion
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Company as at 31 March 2016 and its profit and its cash flows for the year ended on that date.
Other Matter
The Company, being a listed company, has been mandatorily required under Section 203 of the Act, to have whole time Key Managerial Person which includes Company Secretary as defined under section 2(24) of the Act.
During the course of our audit, it has been observed that the Company has not complied with the requirement of Section 203 of the Companies Act, 2013 by not appointing a Company Secretary, as a whole time Company Secretary for the year.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2016 (âthe Orderâ) issued by the Central Government of India in terms of sub-section (11) of section 143 of the Act, we give in the Annexure A statement on the matters specified in the paragraph 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 and the cash flow statement dealt with by this Report are in agreement with the books of account;
(d) In our opinion, the aforesaid standalone 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 the written representations received from the directors as on 31 March 2016 taken on record by the Board of Directors, none of the directors is disqualified as on 31 March 2016 from being appointed as a director in terms of Section 164 (2) of the Act; and
(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 âAnnexure Bâ.
(g) With respect to the other matters to be included in the Auditor''s 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 the impact of pending litigations on its financial position in its financial statements;
ii. the Company does not have any material foreseeable losses, on long-term contracts including derivative contracts; and
iii. The Company is not required to transfer any amounts to the Investor Education and Protection Fund by the Company.
ANNEXURE TO THE AUDITORSâ REPORT
Issued by the Central Government under sub section 11 of section 143 of the Companies Act, 2013, (18 of 2013)
The Annexure-A referred to in Independent Auditors'' Report to the members of the Company on the financial statements for the year ended 31 March 2016, we report that:-
i. Company does not hold any fixed assets during the year. Thus, paragraphs 3(i)(a), 3(i)(b) and 3(i)(c) of the order are not applicable to the company;
ii. The physical verification of inventory has been conducted at reasonable intervals by the management and no material discrepancies were noticed on verification between the physical stock and the books records during the year under review;
iii. The Company has not granted any loans to any parties covered in the register maintained under section 189 of the Companies Act, 2013 (''the Act''). Thus, paragraphs 3(iii)(a), 3(iii)(b) and 3(iii)(c) of the order are not applicable to the Company.
iv. The Company has not entered into any transaction that falls under the preview of section 185 and 186 of the Companies Act, 2013.
v. The company has not accepted any deposits from the public.
vi. The Central Government has not prescribed the maintenance of cost records under Section 148(1) of the Act, for any of the services rendered by the Company.
vii. a. The company is regular in depositing undisputed statutory dues including 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 and there are no arrears of arrears of outstanding statutory dues as on the last day of the financial year concerned for a period of more than six months from the date they became payable;
b. The dues of income tax or sales tax or service tax or duty of customs or duty of excise or value added tax have not been deposited on account of any dispute, are indicated below:
Name of the statue |
Nature of dues |
Amount (In Lacs) |
Period which the amount relates |
Forum where disputes pending |
Income Tax Act, 1961 |
Income Tax |
6,180 |
A.Y. 2008-09 |
Assessing Officer, Notice u/s 154_WE dated on 16/08/2010 |
Income Tax Act, 1961 |
Income Tax |
33,930 |
A.Y. 2008-09 |
Assessing Officer, Notice u/s 154 dated on 22/04/2010 |
Income Tax Act, 1961 |
Income Tax |
1,10,570 |
A.Y. 2009-10 |
CPC, Notice u/s 143(1)(a) dated on 29/12/2010 |
Income Tax Act, 1961 |
Income Tax |
11,820 |
A.Y. 2009-10 |
CPC, Notice u/s 143(1)(1) dated on 29/12/2010 |
Income Tax Act, 1961 |
Income Tax |
1,518 |
A.Y. 2014-15 |
CPC, Notice u/s 220(2) dated on 31/03/2015 |
Income Tax Act, 1961 |
Income Tax |
33,010/- |
A.Y.2015-16 |
CPC dated 27/02/2016 |
viii. The Company does not have any loans or borrowings from any financial institution, banks, government or debenture holders during the year. Accordingly, paragraph 3(viii) of the Order is not applicable to the company.
ix. The Company did not raise any money by way of initial public offer or further public offer (including debt instruments) and term loans during the year. Accordingly, paragraph 3(ix) of the Order is not applicable to the company.
x According to the information and explanations given to us, no material fraud by the Company or on the Company by its officers or employees has been noticed or reported during the course of our audit..
xi. According to the information and explanations given to us Managerial remuneration has not been paid or provided for during the year under review, thus Paragraph 3(xi) of the order is not applicable to the company.
xii. Company is not a Nidhi Company, accordingly, paragraph 3(xii) of the Order is not applicable to the company.
xiii. All transactions with the related parties are in compliance with sections 177 and 188 of Companies Act, 2013 where applicable and the details have been disclosed in the Financial Statements etc., as required by the applicable accounting standards;
xiv. According to the information and explanations given to us and based on our examination of the records of the Company, the Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year.
xv According to the information and explanations given to us and based on our examination of the records of the Company, the Company has not entered into non-cash transactions with directors or persons connected with him. Accordingly, paragraph 3(xv) of the Order is not applicable to the company.
xvi. Company is not required to be registered under section 45-IA of the Reserve Bank of India Act, 1934.
ANNEXURE B TO THE INDEPENDENT AUDITORâS REPORT OF EVEN DATE ON THE FINANCIAL STATEMENTS OF SWADESHI INDUSTRIES AND LEASING LIMITED
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 (âthe Actâ)
We have audited the internal financial controls over financial reporting of SWADESHI INDUSTRIES AND LEASING LIMITED (âthe Companyâ) as of March 31, 2016 in conjunction with our audit of the financial statements of the Company for the year ended on that date.
Managementâs Responsibility for Internal Financial Controls
The Company''s 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 company''s 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.
Auditorsâ Responsibility
Our responsibility is to express an opinion on the Company''s 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 âGuidance Noteâ) 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 auditor''s judgment, 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 Company''s internal financial controls system over financial reporting.
Meaning of Internal Financial Controls over Financial Reporting
A company''s 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 company''s 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 company''s 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, 2016, 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 Motilal & Associates
Chartered Accountants
Registration No.:106584W
(Motilal Jain)
M. No.036811
Place : Mumbai
Date : 27/05/2016
Mar 31, 2015
Report on the Standalone Financial Statements
We have audited the accompanying standalone financial statements of
Swadeshi Industries & Leasing Limited ('the Company'), which comprise
the balance sheet as at 31st March 2015, the statement of profit and
loss and the cash flow statement for the year then ended, and a summary
of significant accounting policies and other explanatory information.
Management's Responsibility for the Standalone 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 and presentation of these standalone 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 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 maintenance of adequate accounting records in accordance
with the provisions of the Act for safeguarding the assets of the
Company and for preventing and detecting frauds and other
irregularities; selection and application of appropriate accounting
policies; making judgments and estimates that are reasonable and
prudent; and design, implementation and maintenance of adequate
internal financial controls, that were operating effectively for
ensuring the accuracy and completeness of the accounting records,
relevant to the preparation and presentation of the financial
statements that give a true and fair view and are free from material
misstatement, whether due to fraud or error.
Auditor's Responsibility
Our responsibility is to express an opinion on these standalone
financial statements based on our audit.
We have taken into account the provisions of the Act, the accounting
and auditing standards and matters which are required to be included in
the audit report under the provisions of the Act and the Rules made
thereunder.
We conducted our audit in accordance with the Standards on Auditing
specified under Section 143(10) of the Act. Those Standards require
that we comply with ethical requirements and plan and perform the audit
to obtain reasonable assurance about whether the financial statements
are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and the 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 a
true and fair view in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing
an opinion on whether the Company has in place an adequate internal
financial controls system over financial reporting and the operating
effectiveness of such controls. An audit also includes evaluating the
appropriateness of the accounting policies used and the reasonableness
of the accounting estimates made by the Company's Directors, as well as
evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion on the standalone
financial statements.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid standalone financial statements
give the information required by the Act in the manner so required and
give a true and fair view in conformity with the accounting principles
generally accepted in India, of the state of affairs of the Company as
at 31 March 2015 and its profit and its cash flows for the year ended
on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor's Report) Order, 2015 ("the
Order") issued by the Central Government of India in terms of
sub-section (11) of section 143 of the Act, we give in the Annexure a
statement on the matters specified in the paragraph 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 and the cash
flow statement dealt with by this Report are in agreement with the
books of account;
(d) in our opinion, the aforesaid standalone financial statements
comply with the Accounting Standards specified under Section 133 of the
Act, read with Rule 7 of the Companies (Accounts) Rules, 2014;
(e) The going concern matter described in sub-paragraph (b) under the
Emphasis of Matters paragraph above, in our opinion, may have an
adverse effect on the functioning of the Company.
(f) on the basis of the written representations received from the
directors as on 31 March 2015 taken on record by the Board of
Directors, none of the directors is disqualified as on 31 March 2015
from being appointed as a director in terms of Section 164 (2) of the
Act; and
(g) 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 A".
(h) with respect to the other matters to be included in the Auditor's
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 the impact of pending litigations on its
financial position in its financial statements, if any.
ii. the Company has made provision, as required under the applicable
law or accounting standards, for material foreseeable losses, if any,
on long-term contracts including derivative contracts, if any; and
iii. No amounts were required to be transferred to the Investor
Education and Protection Fund.
ANNEXURE TO THE AUDITORS' REPORT
Issued by the Central Government under sub section 11 of section 143 of
the Companies Act, 2013, (18 of 2013)
The Annexure referred to in our Independent Auditors' Report to the
members of the Company on the standalone financial statements for the
year ended 31st March 2015, we report that:
(I) The company does not have fixed assets and hence Para 3(i) of the
Order is not applicable.
(II) The Company does not hold any physical Inventories. Thus,
Paragraph 3(ii) of the Order is not applicable.
(III) The Company has not granted loans to any bodies corporate covered
in the register maintained under section 189 of the Companies Act, 2013
('the Act').
(IV) In our opinion and according to the information and explanations
given to us, there is an adequate internal control system commensurate
with the size of the Company and the nature of its business with regard
to purchase of fixed assets and sales of goods. We have not observed
any major weakness in the internal control system during the course of
the audit.
(V) The Company has not accepted any deposits from the public.
(VI) The Central Government has not prescribed the maintenance of cost
records under section 148(1) of the Act, for any of the services
rendered by the Company.
(VII) (a) According to the information and explanations given to us and
on the basis of our examination of the records of the Company, amounts
deducted/ accrued in the books of account in respect of undisputed
statutory dues including provident fund, income tax, sales tax, wealth
tax, service tax, duty of customs, value added tax, cess and other
material statutory dues have been regularly deposited during the year
by the Company with the appropriate authorities. As explained to us,
the Company did not have any dues on account of employees' state
insurance and duty of excise.
According to the information and explanations given to us, no
undisputed amounts payable in respect of provident fund, income tax,
sales tax, wealth tax, service tax, duty of customs, value added tax,
cess and other material statutory dues were in arrears as at 31st March
2015 for a period of more than six months from the date they became
payable.
(b) According to the information and explanations given to us, there
are no material dues of wealth tax, duty of customs and cess which have
not been deposited with the appropriate authorities on account of any
dispute. However, according to information and explanations given to
us, 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 Nature Amount Period which
statue of dues (In Lacs) the amount relates
Income Tax Act, Income Tax 33,930 A.Y. 2008-09
1961
Income Tax Act, Income Tax 6,180 A.Y. 2008-09
1961
Income Tax Act, Income Tax 1,10,570 A.Y. 2009-10
1961
Income Tax Act, Income Tax 11,820 A.Y. 2009-10
1961
Income Tax Act, Income Tax 1,518 A.Y. 2014-15
1961
Income Tax Act, TDS Default 21,920 Till A.Y. 2011-12
1961
Income Tax Act, TDS Default 523 A.Y. 2013-14
1961
Income Tax Act, TDS Default 15,590 A.Y. 2014-15
1961
Name of the Statute Forum where disputes pending
Income Tax Act, 1961 Assessing Officer, Notice u/s 154 dated
on 22/04/2010
Income Tax Act, 1961 Assessing Officer, Notice u/s 154_WE
dated on 16/08/2010
Income Tax Act, 1961 CPC, Notice u/s 143(1)(a) dated on 29/12/2010
Income Tax Act, 1961 CPC, Notice u/s 143(1)(1) dated on 29/12/2010
Income Tax Act, 1961 CPC, Notice u/s 220(2) dated on 31/03/2015
Income Tax Act, 1961 TDS CPC, Default u/s 201 with Late Penalty
u/s 234E and Short Payment
Income Tax Act, 1961 TDS CPC, Default u/s 201 with Late Penalty
u/s 234E
Income Tax Act, 1961 TDS CPC, Default u/s 201 with Late Penalty
u/s 234E
c) According to the information and explanations given to us the
amounts which were required to be transferred to the investor education
and protection fund in accordance with the relevant provisions of the
Companies Act, 1956 (1 of 1956) and rules there under has been
transferred to such fund within time.
(VIII) The Company has accumulated losses of Rs..33,27,708 at the end
of the financial year and has not incurred cash losses in the financial
year and in the immediately preceding financial year.
(IX) The Company did not have any outstanding dues to financial
institutions, banks or debenture holders during the year.
(X) In our opinion and according to the information and the
explanations given to us, the Company has not given any guarantee for
loans taken by others from banks or financial institutions.
(XI) According to the information and the explanations given to us, the
Company did not apply for term loan during the year.
(XII) During the course of our examination of the books and records of
the company, carried in accordance with the auditing standards
generally accepted in India, we have neither come across any instance
of fraud on or by the Company noticed or reported during the course of
our audit nor .have we been informed of any such instance by the
Management.
For Motilal & Associates
Chartered Accountants
Registration No.:106584W
(Motilal Jain)
M. No. 036811
Place : Mumbai
Date : 28/05/2015
Mar 31, 2014
We have audited the accompanying financial statements of SWADESHI
INDUSTRIES & LEASING LIMITED, which comprise the Balance Sheet as at
March 31st 2014, and the Statement of Profit and Loss for the year
ended, and a summary of significant accounting policies and other
explanatory information.
MANAGEMENT''S RESPONSIBILITY FOR THE FINANCIAL STATEMENTS
Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position,
financial performance and cash flows of the Company in accordance with
the Accounting Standards referred to in sub-section (3C) of section 211
of the Companies Act, 1956 (Âthe ActÂ). 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 but not for the
purpose of expressing an opinion on the effectiveness of the entity''s
internal control. An audit also includes evaluating the appropriateness
of accounting policies used and the reasonableness of the accounting
estimates made by management, as well as evaluating the overall
presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
OPINION
In our opinion and to the best of our information and according to the
explanations given to us, the financial statements give the information
required by the Act in the manner so required and give a true and fair
view in conformity with the accounting principles generally accepted in
India:
a) in the case of the Balance Sheet, of the state of affairs of the
Company as at March 31st 2014;
b) in the case of the Profit and Loss Account, of the profit for the
year ended on that date; and
c) in the case if Cash Flow Statement, of the cash flows for the year
ended on that date.
REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS
1. The Companies (AuditorÂs Report) Order, 2003 issued by the Central
Government of India in terms of sub-section (4A) of Section 227 of the
Companies Act, 1956, apply to the Company.
2. In our opinion, the Balance sheet and the Profit and loss Account
dealt with by this report comply with the Accounting Standard (AS)
referred to in sub-section of Section 211 of the Companies Act, 1956.
3. 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 and Statement of Profit and Loss, dealt with by
this Report are in agreement with the books of account;
d) in our opinion, the Balance Sheet and Statement of Profit and Loss
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 March 31st 2014, and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31st 2014, from being
appointed as a director in terms of clause (g) of sub-section (1) of
section 274 of the Companies Act, 1956;
ANNEXURE TO THE INDEPENDENT AUDITORÂS REPORT FOR THE YEAR ENDED ON 31ST
MARCH, 2014
Referred to in our report of even date
(i) The Company has sold out all its Fixed Assets on as if where is
basis and amount realized during the year been credited to the Fixed
Asset Account and Loss arised has been booked in the Financial
statements under review.
(ii) In respect of inventories:
a) The inventory has been physically verified during the year by the
management. In our opinion, the frequency of verification is
reasonable.
b) The procedures of the physical verification of inventories followed
by the management are reasonable and adequate in relation to the size
of the company and the nature of its business.
c) The company is maintaining proper records of inventory. The
discrepancies noticed on verification between the physical stock and
the book records have been appropriately dealt with in the books of
account.
(iii) The company has not granted any loans, secured or unsecured to
companies, firms or other parties covered in the register maintained
under section 301of the Companies Act, 1956. Accordingly, paragraph 4
(iii) (b) (c) & (d) of the Order are not applicable.
(iv) In our opinion and according to the information and explanation
given to us, there is an adequate internal control system commensurate
with the size and nature of its business with regard to purchase of
inventory, fixed assets and for the sale of goods and services. We have
not observed any major weaknesses in the internal control system during
the course of the audit.
(v) To the best of our knowledge and belief and according to the
information and explanations given to us, the particulars of contracts
or arrangements that need to be entered into the register maintained
under section 301 of the Companies Act, 1956 have been so entered.
(vi) In our opinion and according to the information and explanation
given to us, the company has not accepted any deposits from public
within the meaning of section 58-A and 58AA of the Companies Act, 1956
and the rules framed there under.
(vii) The Company does not have any internal audit department. However,
we have been informed that the company is in the process of appointing
a firm of Chartered Accountant.
(viii) According to the information and explanation given to us the
Central Government of India has not prescribed the maintenance of cost
records under section 209 (1) (d) of the Companies Act, 1956 for any
product of the company.
(ix) The Company is regular in depositing undisputed statutory dues,
including Provident Fund, Investor Education and Protection Fund,
Employees State Insurance, Income-tax, Sales Tax, Wealth Tax, Service
Tax, Custom Duty, Excise Duty, Cess and any statutory dues with the
appropriate authorities with the exception of:
Name of the Statute Nature of Dues Period to which Amount
Profession Tax Act Profession Tax 2013-14 2,500/-
(x) The Company does not have accumulated losses more than 50% of its
net worth at the end of financial year. The Company does not have cash
losses in the current financial year covered by the audit but has cash
losses in the immediately preceding financial year
(xi) According to the information and explanations given to us and
based on the documents and records produced to us, the company did not
have any borrowing from a financial institution or bank or debenture
holders and hence clause 4(xi) of the companies (AuditorÂs Report)
Order, 2003 (as amended) is not applicable.
(xii) In our opinion and according to the explanation available, no
loans and advances have been granted by the company on the basis of
security by way of pledge of shares, debentures and other securities.
(xiii) In our opinion, the company is not a Chit fund or a Nidhi fund
or a mutual benefit fund/society. Accordingly, paragraph 4 (xiii) (a),
(b), (c), (d) of the order are not applicable to the company.
(xiv) The company is not dealing or trading in shares, securities,
debentures and other investments and hence not required to maintain
records of such transactions.
(xv) In our opinion, the company is not dealing in or trading in
shares, securities, debentures and other investments. Accordingly, the
provision of clause 4 (xiv) of the Companies (AuditorÂs Report) order,
2003 (as amended) are not applicable to the company.
(xvi) According to the information and explanations given to us, the
company has not given any guarantee for loans taken by others from
banks or financial institutions.
(xvii) According to the information and explanation given to us and
overall examination of the Balance Sheet of the Company, we are of the
opinion that there are no funds raised on short term basis that have
been applied for long term investment.
(xviii) The Company has not made any preferential allotment of shares
to the parties and companies covered in the register maintained under
section 301 of the Companies Act, 1956 during the year.
(xix) The Company did not have any outstanding debentures during the
year and therefore no security or charge has been created during the
year.
(xx) The Company has not raised any money by way of public issues
during the year.
(xxi) Based upon the audit procedures performed for the purpose of
reporting the true and fair view of the financial statements and as per
the information and explanations given by the management, we report
that no fraud on or before by the company has been noticed or reported
during the course of our audit.
For Motilal & Associates
Chartered Accountants
(FRN No. : 106584W)
CA Motilal Jain
Proprietor
Membership No. 036811
Place : Mumbai
Date : 28th May 2014
Mar 31, 2011
1. We have audited the attached Balance Sheet of M/s SWADESHI
INDUSTRIES AND LEASING LIMITED as at 31st March, 2011, the Profit and
Loss Accounts and the Cash Flow Statement of the Company for the year
ended on that date, both 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 misstatements. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
3. As required by the Companies (Auditors' Report) Order, 2003, issued
by the Central Government in terms of Section 227 (4A) of the Companies
Act, 1956, we enclose in the Annexure, a statement on the matters
specified in paragraphs 4 and 5 of the said Order.
4. Further to our comments in the Annexure referred to in paragraph 3
above, we report as follows:
a. We have obtained all the information and explanation, 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 as far as appears from our examination of
those books.
c. The Balance Sheet, the Profit and Loss Account and the Cash Flow
Statement dealt with by this report are in agreement with the books of
account.
d. In our opinion, the Balance Sheet, the Profit and Loss Account and
the Cash Flow Statement dealt with by this report are in compliance
with the accounting standards referred to in sub-section (3c) of
section 211 of the Companies Act,1956;
e. In our opinion and to the best of our information and according to
the explanation given to us, the said accounts give the information
required by the Companies Act, 1956, in the manner so required and give
a true and fair view in conformity with the accounting principles
generally accepted in India:
i) In the case of the Balance Sheet, of the state of the affairs of the
Company as at 31st March 2011 and
ii) In the case of the Profit & Loss Account, of the Profit/Loss of the
Company for the year ended on that date and
iii) In the case of the Cash Flow Statement, of the Cash Flow of the
Compgny for the year ended on that date.
f. On the basis of written representations received from the Directors,
taken on record by the Board of Directors, none of the directors is
disqualified as on 31st March 2011 from being appointed as a director
in terms of section 274 (1) (g) of the Companies Act, 1956
ANNEXURE TO THE AUDITOR'S REPORT
of SWADESHI INDUSTRIES AND LEASING LIMITED 2010-2011
Referred to in paragraph 3 of our report of even date
i) In respect of its fixed assets:
a. The Company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets.
b. All the assets have not been physically verified by the management
during the year but there is a regular programme of verification which,
in our opinion, is reasonable having regard to the size of the company
and the nature of its assets. No material discrepancies were noticed on
such verification.
c. During the year, no substantial or other part of the fixed assets
of the unit of the company was disposed off.
ii) In respect of inventory of raw material, stores and operating
supplies:
a. The inventory has been physically verified during the year by the
management. In our opinion, the frequency of verification is
reasonable.
b. The procedure of the physical verification of inventories
followedby the management are reasonable and adequate in relation to
the size of the company and the nature of its business
c. The company is maintaining proper records of inventory. The
discrepancies noticed on verification between the physical stock and
the book records have been appropriately dealt with in the books of
account.
iii) The company has not granted any loan, secured or unsecured, to
companies, firms or other parties covered in the register maintained
u/s 301 of the Companies Act, 1956.
iv) In respect of the loans, secured or unsecured, taken by the Company
from companies, firms or other parties covered in the register
maintained u/s 301 of the Companies Act, 1956
a) At the year-end, the outstanding balance of such loans is NIL. The
company having repaid all its previous dues as per the terms specified
during the previous year.
b) There are no overdue amounts outstanding at the year-end.
v) 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 inventory, fixed assets and with
regards to the sale of goods. During the course of our audit, we have
not observed any continuing failure to correct major weakness in
internal control.
vi) We are informed that there is no company, firm or party to be
listed in the register referred to the section 301 of the Companies
Act, 1956 and hence we have no comments to offer in respect of clauses
4 (v) (a) of the Companies (Auditor's Report) Order, 2003.
vii) In our opinion and according to the information and explanations
given to us, the Company has complied with the provision of section 58A
and 58AA of the Companies Act, 1956 and the Rules framed there unde'
with respect to the deposits accepted from the public.
viii) In our opinion, the company has an internal audit system
commensurate with the size and nature of its business.
ix) We have broadly reviewed the books of account maintained by the
company pursuant to the rules made by Central Government for the
maintenance of cost records under section 209 (1) (d) of the Companies
Act, 1956 and we are of the opinion that prima facie prescribed
accounts and records have been made and maintained.
x) The company is regular in depositing with appropriate authorities
undisputed statutory dues including provided fund, income tax, sales
tax, wealth tax, custom duty, excise duty, cess and other material
statutory dues applicable to it.
xi) In our opinion and according to the information and explanations
given to us, the company has not defaulted in repayment of dues to a
financial institution, bank or debenture holders.
xii) According to the information and explanations given to us, the
company has not granted any loans and advances on the basis of security
by way of pledge of shares, debentures and other securities.
xiii) In our opinion, the company is not a Chit fund or a Nidhi mutual
benefit fund/society. Therefore the provisions of clause 4(xiii) of the
Companies (Audit Report) order, 2003 are not applicable to the company.
xiv) In our opinion, the company is not dealing in or trading shares,
securities, debentures and other investments. Accordingly, the
provision of clause 4(xiv) of the Companies (Audit Report) order, 2003
are not applicable to the company.
xv) In our opinion and according to the information and explanations
given to us, the company has not given any guarantees for loans taken
by others from banks or financial institutions and hence we have no
comments to offer in respect of clause 4(xv) of the Companies (Audit
Report) order, 2003.
xvi) In our opinion, company has not taken any term loan during the
year under review.
xvii) According to the information and explanations given to us, and an
overall examination of the balance sheet of the company, we report that
no funds raised on short term basis have been used for long term
investment. No long term funds have been used to finance short term
assets excepts permanent working capital.
xviii) The company has not issued shares during the year and hence we
have no comments to offer in respect of clause 4(xviii) of the
Companies (Audit Report) order, 2003.
xix) The company has not issued any debentures during the year nor
there is any outstanding as on 31st March 2011.
xx) According to the information and explanations given to us, no fraud
on or by company has been noticed or reported during the course of our
audit.
For, Motilal & Associates
Chartered Accountants
FirmNo:-106584W
(M. L. Jain)
PROP
M.N.036811
Place : Mumbai
Dated : 27th June 2011
Mar 31, 2010
1. We have audited the attached Balance Sheet of M/s SWADESHI
INDUSTRIES AND LEASING LIMITED as at 31s1 March, 2010, the Profit and
Loss Accounts and the Cash Flow Statement of the Company for the year
ended on that date, both annexed thereto. These financial statements
are the responsibility of the Companys management. Our responsibility
is to express an opinion on these financial statements based on our
audit.
2. We conducted our audit in accordance with auditing standards
generally accepted in India. These Standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatements. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
3. As required by the Companies (Auditors Report) Order, 2003, issued
by the Central Government in terms of Section 227(4A) of the Companies
Act, 1956, we enclose in the Annexure, a statement on the matters
specified in paragraphs 4 and 5 of the said Order.
4. Further to our comments in the Annexure referred to in paragraph 3
above, we report as follows:
a. We have obtained all the information and explanation, 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 as far as appears from our examination of
those books.
c. The Balance Sheet, the Profit and Loss Account and the Cash Flow
Statement dealt with by this report are in agreement with the books of
account.
d. In our opinion, the Balance Sheet, the Profit and Loss Account and
the Cash Flow Statement dealt with by this report are in compliance
with the accounting standards referred to in sub-section (3c) of
section 211 of the Companies Act, 1956;
e. In our opinion and to the best of our information and according to
the explanation given to us, the said accounts give the information
required by the Companies Act, 1956, in the manner so required and give
a true and fair view in conformity with the accounting principles
generally accepted in India:
I) In the case of the Balance Sheet, of the state of the affairs of the
Company as at 31st March 2010 and
ii) In the case of the Profit & Loss Account, of the Profit/Loss of the
Company for the year ended on that date and
iii) In the case of the Cash Flow Statement, of the Cash Flow of the
Company for the year ended on that date.
f. On the basis of written representations received from the
directors, taken on record by the Board of Directors, none of the
directors is disqualified as on 31s1 March 2010. from being appointed
as a director in terms of section 274 (1)(g)ofthe Companies Act, 1956;
Annexure to the Auditors Report of SWADESHI INDUSTRIES AND LEASING
LIMITED 2009-2010
Referred to in paragraph 3 of our report of even date I) In respect of
its fixed assets:
a. The company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets.
b. All the assets have not been physically verified by the management
during the year but there is a regular programme of verification which,
in our opinion, is reasonable having regard to the size of the company
and the nature of its assets. No material discrepancies were noticed on
such verification.
c. During the year, no substantial or other part of the fixed assets
of the unit of the company was disposed off.
ii) In respect of inventory of raw material, stores and operating
supplies:
a. The inventory has been physically verified during the year by the
management. In our opinion, the frequency of verification is
reasonable.
b. The procedure of the physical verification of inventories followed
by the management are reasonable and adequate in relation to the size
of the company and the nature of its business
c. The company is maintaining proper records of inventory. The
discrepancies noticed on verification between the physical stock and
the book records have been appropriately dealt with in the books of
account.
iii) The company has not granted any loan, secured or unsecured, to
companies, firms or other parties covered in the register maintained
u/s 301 of the Companies Act, 1956.
iv) In respect of the loans, secured or unsecured, taken by the Company
from companies, firms or other parties covered in the register
maintained u/s 301 of the Companies Act, 1956
a) At the year-end, the outstanding balance of such loans is NIL. The
company having repaid all its previous dues as per the terms specified
during the previous year.
b) There are no overdue amounts outstanding at the year-end.
v) 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 inventory, fixed assets and with
regards to the sale of goods. During the course of our audit, we have
not observed any continuing failure to correct major weakness in
internal control.
vi) We are informed that there is no company, firm or party to be
listed in the register referred to the section 301 of the Companies
Act, 1956 and hence we have no comments to offer in respect of clauses
4 (v) (a) of the Companies (Auditors Report) Order, 2003.
vii) In our opinion and according to the information and explanations
given to us, the Company has complied with the provision of section 58A
and 58AA of the Companies Act, 1956 and the Rules framed there under,
with respect to the deposits accepted from the public.
viii) In our opinion, the company has an internal audit system
commensurate with the size and nature of its business.
ix) We have broadly reviewed the books of account maintained by the
company pursuant to the rules made by Central Government for the
maintenance of cost records under section 209 (1) (d) of the Companies
Act, 1956 and we are of the opinion that prima facie prescribed
accounts and records have been made and maintained.
x) The company is regular in depositing with appropriate authorities
undisputed statutory dues including provident fund, income tax, sales
tax, wealth tax, custom duty, excise duty, cess and other material
statutory dues applicable to it.
xi) In our opinion and according to the information and explanations
given to us, the company has not defaulted in repayment of dues to a
financial institution, bank or debenture holders.
xii) According to the information and explanations given to us, the
company has not granted any loans and advances on the basis of security
by way of pledge of shares, debentures and other securities.
xiii) In our opinion, the company is not a Chit fund or a Nidhi mutual
benefit fund/society. Therefore the provisions of clause 4(xiii) of the
Companies (Audit Report) order, 2003 are not applicable to the company.
xiv) In our opinion, the company is not dealing in or trading shares,
securities, debentures and other investments. Accordingly, the
provision of clause 4(xiv) of the Companies (Audit Report) order, 2003
are not applicable to the company.
xv) In our opinion and according to the information and explanations
given to us, the company has not given any guarantees for loans taken
by others from banks or financial institutions and hence we have no
comments to offer in respect of clause 4(xv) of the Companies (Audit
Report) order, 2003.
xvi) In our opinion, company has not taken any term loan during the
year under review.
xvii) According to the information and explanations given to us, and an
overall examination of the balance sheet of the company, we report that
no funds raised on short term basis have been used for long term
investment. No long term funds have been used to finance short term
assets excepts permanent working capital.
xviii) The company has not issued shares during the year and hence we
have no comments to offer in respect of clause 4(xviii) of the
Companies (Audit Report) order, 2003.
xix) The company has not issued any debentures during the year nor
there is any outstanding as on 31s March 2010.
xx) According to the information and explanations given to us, no fraud
on or by company has been noticed or reported during the course of our
audit.
Place :Mumbai For MOTILAL & ASSOCIATES,
Dated :28th June, 2010 Chartered Accountants.
M. L. JAIN
(Prop)
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