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Ind-Swift Ltd.

BSE: 524652 Sector: Health care
NSE: INDSWFTLTD ISIN Code: INE788B01028
BSE LIVE 15:24 | 21 Nov 9.11 0.37
(4.23%)
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9.15

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9.16

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8.80

NSE 14:25 | 21 Nov 9.10 0.40
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9.10

HIGH

9.10

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8.65

OPEN 9.15
PREVIOUS CLOSE 8.74
VOLUME 9278
52-Week high 11.84
52-Week low 5.01
P/E
Mkt Cap.(Rs cr) 49
Buy Price 9.11
Buy Qty 130.00
Sell Price 9.16
Sell Qty 495.00
OPEN 9.15
CLOSE 8.74
VOLUME 9278
52-Week high 11.84
52-Week low 5.01
P/E
Mkt Cap.(Rs cr) 49
Buy Price 9.11
Buy Qty 130.00
Sell Price 9.16
Sell Qty 495.00

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 ofInd-Swift Limited whichcomprise the Balance Sheet as at March 31 2017 and the Statement of Profit and Loss andCash Flow Statement for the year ended on March 31 2017 and a summary of significantaccounting explanatory information. policies and other

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 cash flows of theCompany in accordance with the Accounting Standards specified under section 133 of the

2013 read with rule 7 of the Companies Accounts Rules 2014. This responsibilityincludes maintenance of adequate accounting records in accordance with the provisions ofthe Act for safeguarding assets of the company and for preventing and detecting frauds andother irregularities; selection and application of appropriate accounting policies; makingjudgments and estimates that are reasonable and prudent; and the design implementationand maintenance of adequateinternalfinancialcontrol that were operating effectively forensuring the accuracy and completeness of accounting records relevant to the preparationand presentation of the financial statements that give a true and fair view and are freefrom material fraud or error.

Auditor’s Responsibility

Our responsibility is to express an opinion on these financial statements based on ouraudit. We provisions of the Act the accounting and auditing standards and matters whichare required to be included in the audit report under the provisions of the Act and rulesmade 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’s judgment including the assessmentof the risks of material misstatement of the financial statements whether due to fraud orerror. In making those risk assessments the auditor considers internal control relevantto the Company’s preparation and fair presentation of the financial statements thatgive a true and fair view in order to design audit procedures that are appropriate in thecircumstances. An audit also includes evaluating the appropriateness of accountingpolicies used and the reasonableness of the accounting estimates made by Company’sDirectors as well as evaluating the overall presentation of the 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 unaccountedinterestliability financialyear is Rs. 134.76 cr. (Refer NoteNo.36 respectofthesameforthe 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. 134.76 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.245.90 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. 245.90 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. 41(ii) of notes to accounts). Inview of this impairment loss in respect of these units have not been provided in accountsbeing not ascertainable.

We are unable to comment on the resultant impact on the assets.

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 2017 and its loss and its cash flow that date.

Report on other Legal and Regulatory Requirements

1. As required by the Companies (Auditor’s Report) Order 2016 ("theOrder") issued by the Central Government of India in terms of sub-section (11) ofsection 143 of the Companies Act 2013 we give in the Annexure-A a statement on thematters specified in paragraphs 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) statements comply with the Accounting Standards specified under Section 133 of theinouropinion thefinancial 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 312017 and taken on record by the Board of Directors none of the directors is disqualifiedas on March 31 2017 from being appointed as a director in terms of sub-section (2) ofsection 164 of the Companies 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.

(iv) The company has provided requisite disclosures in its standalone financialStatements as to the holding and dealing in Bank notes as specified during the peroidstarting from 8 th Nov 2016 to 31st December 2016 and these are in accordance with thebooks to accounts maintained by the company. Refer Note 45.

for J. K. Jain & Associates
Chartered Accountant
J. K. Jain
Place: Chandigarh (Partner)
Date : 30/05/2017 M. No. : 08314

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 2017.

(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 systemverification of physical 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.No serious discrepancies werenoticedonsuchverification.

(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 titledeeds are 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 4.42
2 Land & Building PLOT NO. 42 IND-AREA PH-2 CHANDIGARH LEASEHOLD 18.25 7.99

(ii) As explained to us the inventory has been physically verified by the managementat reasonable intervals during the year .In our opinion thefrequencyofverificationisreasonable. No material discrepancies were noticed verificationbetween 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. 61.41 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) Due to financial difficulties the company is unable to repay the deposits acceptedfrom public as required by Section 73 to 76 of the Compaines Act 2013 and the Companies(Acceptance of Deposits) Rules 2014. The Hon'ble Company Law Board restructured fixedDeposit Scheme of the company vide its order dated 30.09.2013. further during the year thecompany has filed application with National Company Law Tribunal (NCLT) to againrestructure the repayment schedule and the matter is sub judice with NCLT.

(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 InsuranceIncome Tax Sales Tax Service Tax Custom Duty Excise Duty Value added tax Cess andother material statutory dues applicable to it with appropriate authorities. Weare informed that there are some undisputed statutory dues as at the year endoutstanding for a period of more than six months from the date they became payablewhich are Tax Deducted at Source under Income Tax Act for Rs 24.19 lacs Provident fundRs 91.53 lacs Employees State Insurance for Rs.59.41 lacs Entry Tax for Rs.119.64 lacs Service tax Rs. 22.25 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 AND PENALTY DEMAND 62.39 2007-08 TO 2010-11 CESTAT CHANDIGARH
2 SERVICE TAx SERVICE TAx DEMAND 8.92 2012-13 COMMISSIONER (APPEALS) CE CHD-II
3 SERVICE TAx SERVICE TAx DEMAND 47.88 2013-14 COMMISSIONER (APPEALS) CE CHD-II
4 SERVICE TAx SERVICE TAx DEMAND 3.17 2013-14 TO 2014-15 COMMISSIONER (APPEALS) CE CHD-II
5 SERVICE TAx SERVICE TAx DEMAND 3.71 2014-15 COMMISSIONER (APPEALS) CE CHD-II
6 SERVICE TAx SERVICE TAx DEMAND 16.75 2013-14 COMMISSIONER (APPEALS) CE CHD-II
7 SERVICE TAx SERVICE TAx AND PENALTY DEMAND 41.00 2009-10 TO 2010-11 CESTAT CHANDIGARH
8 INCOME TAx ACT 1961 INCOME TAx DEMAND 425.47 2005-06 PUNJAB & HARYANA HIGH COURT
9 INCOME TAx ACT 1961 INCOME TAx DEMAND 22.46 2007-08 INCOME TAx APPELLATE TRIBUNAL
10 BENGAL VAT ACT SALES TAx DEMAND 36.20 2009-10 SALES TAx TRIBUNAL
11 BENGAL VAT ACT SALES TAx DEMAND 90.48 2010-11 SALES TAx TRIBUNAL
12 BENGAL VAT ACT SALES TAx DEMAND 35.71 2011-12 SALES TAx TRIBUNAL
13 U.P. VAT ACT SALES TAx DEMAND 2.72 2009-10 SALES TAx TRIBUNAL
14 U.P. VAT ACT SALES TAx DEMAND 3.29 2010-11 SALES TAx TRIBUNAL
15 U.P. VAT ACT SALES TAx DEMAND 1.06 2014-15 SALES TAx TRIBUNAL
16 M.P. VAT ACT SALES TAx DEMAND 5.54 2013-14 SALES TAx TRIBUNAL
17 CHANDIGARH VAT ACT SALES TAx DEMAND 590.53 2010-11 SALES TAx TRIBUNAL
18 HIMACHAL PRADESH VAT ACT SALES TAx DEMAND 80.72 2006-07 DETC (APPEALS) SHIMLA
19 CENTRAL ExCISE ACT 1944 DUTY fOR GOODS AND PENALTY 1362.90 2007-08 TO 2013-14 CESTAT CHANDIGARH
20 CENTRAL ExCISE ACT 1944 CENVAT CREDIT/ REfUND/ PENALTY 38.73 2005-2008 CESTAT CHANDIGARH

(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 31.03.2017 Period of Default Remarks
(Rs. In crores)
1 BANK OF INDIA 81.98 More than 2 years -
2 CANARA BANK 77.40 More than 2 years -
3 CATHOLIC SYRIAN BANK 36.62 NA Entire loan portfolio transferred to Phoenix ARC (P) Ltd. Hence period of default not applicable
4 CENTRAL BANK OF INDIA 9.56 More than 2 years -
Entire loan portfolio transferred to Edelweiss
5 EXPORT IMPORT BANK 22.87 N.A. Assets Reconstruction Company Limited. Hence period of default not applicable
6 PUNJAB NATIONAL BANK 428.18 N.A. Entire loan portfolio transferred to Edelweiss Assets Reconstruction Company Limited. Hence period of default not applicable
7 STATE BANK OF INDIA 72.49 More than 3 years -
Entire loan portfolio transferred to Edelweiss
8 STATE BANK OF PATIALA 145.90 NA Assets Reconstruction Company Limited. Hence period of default not applicable
Entire loan portfolio transferred to Edelweiss
9 STATE BANK OF HYDERABAD 37.83 NA Assets Reconstruction Company Limited. Hence period of default not applicable
10 STATE BANK OF MYSORE 8.00 More than 1 years -
Entire loan portfolio transferred to Edelweiss
11 IFCI LTD 30.39 NA Assets Reconstruction Company Limited. Hence period of default not applicable
Entire loan portfolio transferred to Edelweiss
TATA CAPITAL 10.61 N.A. Assets Reconstruction Company Limited. Hence period of default not applicable
12.
Entire loan portfolio transferred to Edelweiss
13. IDBI BANK 40.59 N.A. Assets Reconstruction Company Limited. Hence period of default not applicable

(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 as required by the applicable the Accounting Standards.

(xiv) According to the explanations and information given to us and based on ourexamination of records of the company during the year the company has allotted 3817712Equity Shares to promoters group on preferential basis against promoters contributionalready infused by the promoters under the CDR package of the Company.

(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: 30.05.2017 (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 2017 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 Reporting issuedby the Institute of Chartered Accountants of

India. These responsibilities include the design Implementation and maintenance ofadequate Internal financial controls that were operating effectively for ensuring theorderly and efficient conduct of its business including adherence to the Company’spolicies the safeguarding of its assets the prevention and detection of frauds anderrors the accuracy and completeness of the accounting records and the timelypreparation of reliable financial information as required under the Companies Act 2013.

Auditor’s Responsibility

Our responsibility is to express an opinion on the Company’s Internalfinancialcontrols over financialreporting based on our audit.

We conducted our audit in accordance with the Guidance Note on Audit of Internalfinancial Controls Over financial Reporting (the "Guidance Note") and theStandardsonAuditingasspecifiedunder section 143(10) of the Companies Act 2013 to theextent applicable to financial controls both applicable to an audit of InternalFinancial Controls and both issued auditofInternal by the Institute of CharteredAccountants of India. Those Standards and the Guidance Note require that we comply withethical requirements and plan and perform the audit to obtain reasonable assurance aboutwhether adequate Internal financial controls over financial reporting was established andmaintained and if such 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 obtainingcontrols over financial reporting assessing the risk that a material weakness exists andanunderstandingofInternalfinancial 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 sufficientand 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 processdesigned to provide reasonable assurance regarding the reliability of financial reportingand the preparation of financial statements for external purposes in accordance withgenerally accepted accounting principles. A Company’s Internal financial control overfinancial reporting includes those policies and procedures that (1) pertain to themaintenance of records that In reasonable detail accurately and fairly reflect thetransactions and dispositions of the assets of the Company (2) provide reasonableassurance that transactions are recorded as necessary to permit preparation of financialstatements in accordance with generally accepted accounting principles and that receiptsand expenditures of the Company are being made only in accordance with authorizations ofmanagement and directors of the

Company; and (3) provide reasonable assurance regarding prevention or timely detectionof unauthorized acquisition use or disposition of the Company’s assets that couldhave 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 though the Company has reasonably adequate 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 however the Companyneeds to further improve the Internal financial Control Systems in order to improvefinancial health and performance of the Company.

for J.K. JAIN & ASSOCIATES
Chartered Accountants
Place: Chandigarh J. K. JAIN
Date: 30.05.2017 (Partner)
M. No. 083140