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Ind-Swift Ltd.

BSE: 524652 Sector: Health care
NSE: INDSWFTLTD ISIN Code: INE788B01028
BSE LIVE 10:19 | 21 Sep 7.67 -0.28
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7.62

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7.70

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7.62

NSE 11:08 | 21 Sep 7.85 -0.10
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OPEN

7.80

HIGH

7.85

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OPEN 7.62
PREVIOUS CLOSE 7.95
VOLUME 2200
52-Week high 11.84
52-Week low 4.36
P/E
Mkt Cap.(Rs cr) 42
Buy Price 7.60
Buy Qty 600.00
Sell Price 8.19
Sell Qty 100.00
OPEN 7.62
CLOSE 7.95
VOLUME 2200
52-Week high 11.84
52-Week low 4.36
P/E
Mkt Cap.(Rs cr) 42
Buy Price 7.60
Buy Qty 600.00
Sell Price 8.19
Sell Qty 100.00

Ind-Swift Ltd. (INDSWFTLTD) - Auditors Report

Company auditors report

To the Members of Ind-Swift Limited

Chandigarh.

Report on the Financial Statements

We have audited the accompanying financial statements of Ind- Swift Limitedwhich comprise the Balance Sheet as at March 31 2016 and the Statement of Profit andLoss and Cash Flow Statement for the year ended on March 31 2016 and a summary ofsignificant accounting policies and other explanatory information.

Management's Responsibility for the Financial Statements

The company's Board of Directors is responsible for the matters stated in section134(5) of the Companies Act 2013 with respect to the preparation of financial statementsthat give a true and fair view of the financial position financial performance and cashflows of the Company in accordance with the Accounting Standards specified under section133 of the Companies Act 2013 read with rule 7 of the Companies Accounts Rules 2014.This responsibility includes maintenance of adequate accounting records in accordance withthe provisions of the Act for safeguarding assets of the company and for preventing anddetecting frauds and other irregularities; selection and application of appropriateaccounting policies; making judgments and estimates that are reasonable and prudent; andthe design implementation and maintenance of adequate internal financial control thatwere operating effectively for ensuring the accuracy and completeness of accountingrecords relevant to the preparation and presentation of the financial statements thatgive a true and fair view and are free from material misstatement whether due to fraud orerror.

Auditor's Responsibility

Our responsibility is to express an opinion on these financial statements based on ouraudit.

We have taken into account the provisions of the Act the accounting and auditingstandards and matters which are required to be included in the audit report under theprovisions of the Act and rules made there under.

We conducted our audit in accordance with the Standards on Auditing specified undersection 143(10) of the Act. Those Standards require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetherthe financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts anddisclosures in the financial statements. The procedures selected depend on the auditor'sjudgment including the assessment of the risks of material misstatement of the financialstatements whether due to fraud or error. In making those risk assessments the auditorconsiders internal control relevant to the Company's preparation and fair presentation ofthe financial statements that give a true and fair view in order to design auditprocedures that are appropriate in the circumstances. An audit also includes evaluatingthe appropriateness of accounting policies used and the reasonableness of the accountingestimates made by Company's Directors as well as evaluating the overall presentation ofthe financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our qualified audit opinion on financial statements.

Basis for the Qualified Opinion

1. The company has not provided interest on cash credit term loans working capitalterm loans and funded interest term loans with some banks since these banks have notcharged interest on these accounts post such accounts becoming NPAs. The unaccountedinterest liability in respect of the same for the financial year is Rs. 111.21 cr. (ReferNote No.36 of Notes to Accounts)

Had the provision for the same been made the loss for the year and accumulated losseswould have been higher by Rs. 111.21 cr.

Our opinion is qualified in respect of above.

2. The company has not booked Accrued Interest on Fixed Deposit during the year for Rs.289.93 Lacs as per the scheme approved by Company Law Board. (Refer Note No.35 (ii) ofNotes to Accounts)

Had the provision for the same been made the loss for the year and accumulated losseswould have been higher by Rs. 289.93 lacs.

Our opinion is qualified in respect of above.

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

Our opinion is qualified in respect of above.

Qualified Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us except for the effects of the matter described in the Basis for the QualifiedOpinion paragraph above the aforesaid financial statements give the information requiredby the Act in the manner so required and give a true and fair view in conformity with theAccounting Principles generally accepted in India of the state of affairs of the Companyas at 31st March 2016 and its loss and its cash flow for the year ended on that date.

Report on other Legal and Regulatory Requirements

1. As required by the Companies (Auditor's Report) Order 2016 ("the Order")issued by the Central Government of India in terms of sub-section (11) of section 143 ofthe Companies Act 2013 we give in the Annexure-A a statement on the matters specified inparagraphs 3 and 4 of the Order.

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 bestof 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 theCompany so far as appears from our examination of those books

c) the Balance Sheet Statement of Profit and Loss and Cash Flow Statement dealt withby this Report are in agreement with the books of account.

d) in our opinion the financial statements comply with the Accounting Standardsspecified under Section 133 of the Companies Act 2013 read with Rule 7 of the Companies(Accounts) Rules2014 .

e) on the basis of written representations received from the directors as on March 312016 and taken on

record by the Board of Directors none of the directors is disqualified as on March 312016 from being appointed as a director in terms of sub-section (2) of section 164 of theCompanies Act 2013.

f) With respect to adequacy of internal financial control over financial reporting ofthe company and the operating effectiveness of such controls refer to our separate reportin Annexure-B; and

g) With respect to the other matters included in the audit report in accordance withrule 11 of the companies (Audit and Auditor) Rules 2014 in our opinion and to the bestof our information and according to the explanations given to us.

(i) The company has disclosed the impact of pending litigations on it's financialposition in it's financial statements.

(ii) The company has made provision as required under the applicable law or accountingstandards for material foreseeable losses if any on long term contracts includingderivative contracts.

(iii) There has been no delay in transferring amounts required to be transferred tothe Investor Education and Protection Fund by the company.

for J. K. Jain & Associates
Chartered Accountant
J. K. Jain
Place: Chandigarh (Partner)
Date : 30.05.2016 M. No.:083140

The Annexure "A" referred to in paragraph 1 of the Our Report of even date tothe members of Ind- Swift Limited on the accounts of the company for the year ending onMarch 31 2016.

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

(b) According to information and explanations provided to us the Company has a systemof physical verification of all its fixed assets once in a year which in our opinion isreasonable having regard to the size of the Company and the nature of its assets. Noserious discrepancies were noticed on such verification.

(c) According to the information and explanation provided to us all the immovableproperties are held in the name of the company except the following where the title deedsare not in the name of the company:-

S. No. Particulars Address Lease Hold/ Free Hold Gross Block (Rs in Lacs) Net Block (Rs in Lacs)
1 Land & Building Plot No. 781 Ind-Area Ph-2 Chandigarh Leasehold 12.00 4.59
2 Land & Building Plot No. 42 Ind-Area Ph-2 Chandigarh Leasehold 18.25 8.30

(ii) As explained to us the inventory has been physically verified by the managementat reasonable intervals during the year .In our opinion the frequency of verification isreasonable. No material discrepancies were noticed on verification between the physicalstocks and book records.

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

a) In our opinion the terms and conditions of the grant of such loans are notprejudicial to the interest of the company.

b) The principle and interest due on loan to Swift Fundamental Research & EducationSociety (SFRE) are not received by the company as stipulated during the year and nointerest has been provided on loan to SFRE during the year.

c) According to the information & explanations given to us the company has takenreasonable steps to recover the amount from Swift Fundamental Research & EducationSociety and such loan is overdue by Rs. 61.48 crores for more than 90 days.

(iv) In our opinion and according to the information and explanations given to us thecompany has provided advances to its directors during the year as per the company policyin this regard.

(v) In our opinion and according to the information and explanations given to us thecompany has not complied with the provisions of Section 73 to 76 of the Companies Act 2013and the Companies (Acceptance of Deposits ) Rules 2014 with regard to the repayment ofthe deposits accepted from the public and maintenance of liquid assets. The Hon'bleCompany Law Board restructured Fixed Deposit Scheme of the company vide its order dated30.09.2013. The Restructured Repayment schedule is being adhered to by the company.Company has filed an application to Central Government (Ministry of Corporate Affairs) forrelaxation of provision to maintain liquid asset (15% of deposits maturing in the nextfinancial year).The application is still pending.

(vi) The Company is required to maintain cost records under sub-section (1) of section148 the Companies Act 2013 for the products of the company and according to theinformation & explanations given to us the company has maintained proper records asprescribed by the Central Government but we have not carried out the examination of theserecords.

(vii) (a) According to the information and explanations given to us and the records ofthe company examined by us the company has been generally regular in depositingundisputed statutory dues including Provident Fund Employees State Insurance Income TaxSales Tax Service Tax Custom Duty Excise Duty Value added tax Cess and other materialstatutory dues applicable to it with appropriate authorities. We are informed that thereare some undisputed statutory dues as at the year end outstanding for a period of morethan six months from the date they became payable which are Tax Deducted at Source underIncome Tax Act for Rs31.15 lacs Provident fund Rs 36.42 lacs Employees State Insurancefor Rs.64.24 lacs Entry Tax for Rs. 118.89 lacs Service tax Rs. 10.27 lacs and salestax/work contract tax Rs. 1.32 lacs.

(b) According to the information and explanations given to us and the records of thecompany examined by us there are following disputed dues as referred of Income Tax SalesTax Service Tax Custom Duty Excise Duty Value Added Tax and Cess:

S.No. Name of the Statute Nature of Dues Amount (Rs. In Lacs) Period Forum Where Dispute Is Pending
1 Service Tax Service Tax Demand 33.00 2011-12 CESTAT
2 Service Tax Service Tax Demand 7.82 Apr 2014 to Sep 15 Commissioner (Appeals) CE Chd-II
3 Service Tax Service Tax Demand 8.92 2012-13 Commissioner (Appeals) CE Chd-II
4 Service Tax Service Tax Demand 47.87 2013-14 Commissioner (Appeals) CE Chd-II
5 Service Tax Service Tax Demand 3.17 Oct 14 to Sep 14 Office of the Assistant Commissioner Derabassi
6 Service Tax Service Tax Demand 3.71 Oct 14 to Mar 15 Office of the Assistant Commissioner Derabassi
7 Service Tax Service Tax Demand 23.44 Apr 14 to Sep 14 Office of the Assistant Commissioner Derabassi
8 Service Tax Service Tax Demand 18.79 Apr 14 to Sep 14 Office of the Assistant Commissioner Derabassi
9 Service Tax Service Tax Demand 16.75 2013-14 Commissioner (Appeals) CE Chd-II
10 Income Tax Act 1961 Income Tax Demand 425.47 2005-06 Punjab & Haryana High Court
11 Income Tax Act 1961 Income Tax Demand 22.46 2007-08 Income Tax Appellate Tribunal
12 Bengal VAT Act Sales Tax Demand 120.44 2009-10 Sales Tax Tribunal
13 Bengal VAT Act Sales Tax Demand 90.48 2010-11 Sales Tax Tribunal
14 Bengal VAT Act Sales Tax Demand 7.8 2011-12 Sales Tax Tribunal
15 U.P. VAT Act Sales Tax Demand 2.72 2009-10 Sales Tax Tribunal
16 U.P. VAT Act Sales Tax Demand 3.29 2010-11 Sales Tax Tribunal
17 U.P. VAT Act Sales Tax Demand 6.36 2012-13 Sales Tax Tribunal
18 U.P. VAT Act Sales Tax Demand 1.06 2014-15 Sales Tax Tribunal
19 M.P. VAT Act Sales Tax Demand 19.23 2011-12 The Commissioner Commercial Taxes
20 M.P. VAT Act Sales Tax Demand 8.71 2012-13 The Commissioner Commercial Taxes
21 M.P. VAT Act Sales Tax Demand 5.54 2013-14 The Commissioner Commercial Taxes
22 Chandigarh VAT Act Sales Tax Demand 590.53 2010-11 Punjab & Haryana High Court
23 Himachal Pradesh VAT Act Sales Tax Demand 80.72 2006-07 Detc (Appels) Shimla
24 Central Excise Act 1944 Excise & Custom Demand 681.43 2007-13 Commissioner (Appeals) CE Chd-II
25 Central Excise Act 1944 Excise & Custom Demand 133.39 2014-15 Commissioner (Appeals) CE Chd-II
26 Central Excise Act 1944 Excise & Custom Demand 19.37 2010-11 CESTAT

(viii) According to the records of the company examined by us and the information andexplanations given to us the company during the year has defaulted in repayment of duesto Banks/ financial institutions. Lender wise detail of default is given below:

Lenderwise detail of default in repayment of loans.

Sr No. Name of lender Amount of default as on 31.03.2016 (Rs. In crores) Period of Default Remarks
1 BANK OF INDIA 83.30 More than 1 year -
2 CANARA BANK 69.48 More than 1 year -
3 PHOENIX ARC (P) LTD.: Catholic Syrian Bank 36.62 NA Entire loan portfolio transferred to ARC. Hence period of default not applicable
4 CENTRAL BANK OF INDIA 9.56 More than 1 year -
5 EXPORT IMPORT BANK 22.64 More than 1 year -
6 PUNJAB NATIONAL BANK 428.88 More than 2 year -
7 STATE BANK OF INDIA 72.49 More than 2 year -
8 Edelweiss Asset Reconstruction Company Limited : (STATE BANK OF PATIALA) 148.65 NA Entire loan portfolio transferred to ARC. Hence period of default not applicable
9 Edelweiss Asset Reconstruction Company Limited : (STATE BANK OF HYDERABAD) 38.54 NA Entire loan portfolio transferred to ARC. Hence period of default not applicable
10 STATE BANK OF MYSORE 8.00 Less than 1 year -
11 Edelweiss Asset Reconstruction Company Limited : (IFCI BANK) 30.77 NA Entire loan portfolio transferred to ARC. Hence period of default not applicable
12 TATA CAPITAL 10.61 More than 2 year -

(ix) The company did not raise any money by way of initial public offer (including debtinstruments) and term loans during the year. Accordingly paragraph 3(ix) of the order isnot applicable.

(x) According to the information and explanation given to us no fraud by the company oron the company by it's officers or employees has been noticed or reported during thecourse of our audit.

(xi) In our opinion and according to the information given to us company has providedmanagerial remuneration in accounts in excess of the limits prescribed by the provisionsof Section 197 read with Schedule V of the Companies Act However company is in process ofobtaining the approval of Central Government in this regard.

(xii) In our opinion and according to the explanations and information given to us thecompany is not a NIDHI company. Accordingly paragraph 3(xii) of the order is notapplicable

(xiii) According to the explanations and information given to us and based on ourexamination of records of the company transactions with the related parties are incompliance with Section 177 and Section 188 of the Companies Act 2013 where applicableand details of such transactions have been disclosed in the financial statements asrequired by the applicable Accounting Standards.

(xiv) According to the explanations and information given to us and based on ourexamination of records of the company the company has not made any preferential allotmentor private placement of shares or fully or partly convertible debentures during the year.

(xv) According to the explanations and information given to us and based on ourexamination of records of the company the company has not entered into non cashtransactions with directors or persons connected with them. Accordingly the paragraph3(xv) not applicable.

(xvi) The company is not required to be registered under section 45-IA of the ReserveBank of India Act 1934.

for J.K. JAIN & ASSOCIATES
CHARTERED ACCOUNTANTS
Place: Chandigarh J. K. JAIN
Date: 30.05.2016 (Partner)
M. No.083140

"Annexure B" to the independent Auditor's Report of even date on theFinancial Statements of Ind-Swift Limited.

Report on the Internal Financial Controls under Clause (I) OF Sub-section 3 of Section143 of the Companies Act 2013 ("the Act").

To the Members of Ind-Swift Limited

We have audited the Internal financial controls over financial reporting of Ind-SwiftLimited ("the Company") as of March 31 2016 in conjunction with our audit ofthe standalone financial statements of the Company for the year ended on that date.

Management's Responsibility for Internal Financial Controls

The Company's Management is responsible for establishing and maintaining Internalfinancial controls based on the Internal control over financial reporting criteriaestablished by the Company considering the essential components of Internal control statedin the Guidance Note on Audit of Internal Financial Controls Over Financial Reportingissued by the Institute of Chartered Accountants of India. These responsibilities includethe design Implementation and maintenance of adequate Internal financial controls thatwere operating effectively for ensuring the orderly and efficient conduct of its businessincluding adherence to the Company's policies the safeguarding of its assets theprevention and detection of frauds and errors the accuracy and completeness of theaccounting records and the timely preparation of reliable financial information asrequired under the Companies Act 2013.

Auditor's Responsibility

Our responsibility is to express an opinion on the Company's Internal financialcontrols over financial reporting based on our audit. We conducted our audit in accordancewith the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting(the "Guidance Note") and the Standards on Auditing as specified under section143(10) of the Companies Act 2013 to the extent applicable to an audit of Internalfinancial controls both applicable to an audit of Internal Financial Controls and bothissued by the Institute of Chartered Accountants of India.

Those Standards and the Guidance Note require that we comply with ethical requirementsand plan and perform the audit to obtain reasonable assurance about whether adequateInternal financial controls over financial reporting was established and maintained and ifsuch controls operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe Internal financial controls system over financial reporting and their operatingeffectiveness. Our audit of Internal controls over financial reporting included obtainingan understanding of Internal financial controls over financial reporting assessing therisk that a material weakness exists and testing and evaluating the design and operatingeffectiveness of Internal control based on the assessed risk. The procedures selecteddepend on the auditor's judgement including the assessment of the risks of materialmisstatement of the financial statements whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Internal financial controls system overfinancial reporting.

Meaning of Internal Financial Controls Over Financial Reporting

A Company's Internal financial controls over financial reporting is a process designedto provide reasonable assurance regarding the reliability of financial reporting and thepreparation of financial statements for external purposes in accordance with generallyaccepted accounting principles. A Company's Internal financial control over financialreporting includes those policies and procedures that (1) pertain to the maintenance ofrecords that In reasonable detail accurately and fairly reflect the transactions anddispositions of the assets of the Company (2) provide reasonable assurance thattransactions are recorded as necessary to permit preparation of financial statements inaccordance with generally accepted accounting principles and that receipts andexpenditures of the Company are being made only in accordance with authorizations ofmanagement and directors of the Company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorized acquisition use or disposition of theCompany'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 financialreporting including the possibility of collusion or Improper management override ofcontrols material misstatements due to error or fraud may occur and not be detected.Also projections of any evaluation of the Internal Financial Controls over financialreporting to future periods are subject to the risk that the Internal financial controlover financial reporting may become inadequate because of changes in conditions or thatthe degree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion the Company needs improvements in its Internal Financial ControlsSystems in all material respects based on the Internal Control over Financial Reportingcriteria established by the Company considering the essential components of Internalcontrol stated in the Guidance Note on Audit of Internal Financial Controls over FinancialReporting issued by the Institute of Chartered Accountants of India.

for J.K. JAIN & ASSOCIATES
CHARTERED ACCOUNTANTS
Place: Chandigarh J. K. JAIN
Date: 30.05.2016 (Partner)
M. No.083140