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Swadeshi Industries & Leasing Ltd.

BSE: 506863 Sector: Industrials
NSE: N.A. ISIN Code: INE716M01026
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NSE 05:30 | 01 Jan Swadeshi Industries & Leasing Ltd
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VOLUME 4000
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Sell Price 0.00
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OPEN 0.76
CLOSE 0.76
VOLUME 4000
52-Week high 8.02
52-Week low 0.76
P/E
Mkt Cap.(Rs cr) 8
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Swadeshi Industries & Leasing Ltd. (SWADESHIINDS) - Auditors Report

Company auditors report

To the Members of

Swadeshi Industries & Leasing Limited Report on the Financial Statements

We have audited the accompanying financial statements of Swadeshi Industries &Leasing Limited (‘the Company') which comprise the balance sheet as at March312017 the statement of profit and loss and the cash flow statement for the year thenended and a summary of significant 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 ("the Act") with respect to the preparationand presentation of these financial statements that give a true and fair view of thefinancial position financial performance and cash flows of the Company in accordance withthe accounting principles generally accepted in India including the Accounting Standardsspecified under Section 133 of the Act read with Rule 7 of the Companies (Accounts)Rules 2014. This responsibility also includes maintenance of adequate accounting recordsin accordance with the provisions of the Act for safeguarding the assets of the Companyand for preventing and detecting frauds and other irregularities; selection andapplication of appropriate accounting policies; making judgments and estimates that arereasonable and prudent; and design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the accuracy andcompleteness of the accounting records relevant to the preparation and presentation ofthe financial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.

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 the 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 andthe disclosures in the financial statements. The procedures selected depend on theauditor's judgment including the assessment of the risks of material misstatement of thefinancial statements whether due to fraud or error. In making those risk assessments theauditor considers internal financial control relevant to the Company's preparation of thefinancial statements that give a true and fair view in order to design audit proceduresthat are appropriate in the circumstances but not for the purpose of expressing anopinion on whether the Company has in place an adequate internal financial controls systemover financial reporting and the operating effectiveness of such controls. An audit alsoincludes evaluating the appropriateness of the accounting policies used and thereasonableness of the accounting estimates made by the Company's Directors as well asevaluating 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 audit opinion on the financial statements.

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid financial statements give the information required by the Actin the manner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India of the state of affairs of the Company as at March31 2017 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 ofthe Act to appoint a whole time Key Managerial Person which includes Company Secretary asdefined under section 2 (24) of the Act.

During the course of our audit it has been observed that the Company has not compliedwith the requirement of Section 203 of the Companies Act 2013 by not appointing a CompanySecretary 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 ("the Order")issued by the Central Government of India in terms of sub-section (11) of section 143 ofthe Act we give in the Annexure A statement on the matters specified in theparagraph 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 bestof 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 theCompany 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 statementdealt with by this Report are in agreement with the books of account;

(d) In our opinion the aforesaid financial statements comply with the AccountingStandards 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 31March 2017 taken on record by the Board of Directors none of the directors isdisqualified as on 31 March 2017 from being appointed as a director in terms of Section164 (2) of the Act; and

(f) With respect to the adequacy of the internal financial controls over financialreporting of the company and the operating effectiveness of such controls refer to ourseparate Report in "Annexure B".

(g) With respect to the other matters to be included in the Auditor's Report inaccordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 in our opinionand 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 financialposition in its financial statements;

ii. the Company does not have any material foreseeable losses on long-term contractsincluding derivative contracts; and

iii. The Company is not required to transfer any amounts to the Investor Education andProtection Fund by the Company.

iv. The Company has provided requisite disclosures in its financial statements as toholdings as well as dealings in specified banks notes during the period from 8th November2016 to 30th December 2016 and these are in accordance with the books of accountsmaintained by the company

For Dhawan & Co.
Chartered Accountants
FRN: 002864N
M C Gupta
Place : Mumbai (Partner)
Date : 27/05/2017 M.No.70834

"Annexure A" referred To In Independent Auditor's Report

(i) In respect of its Fixed Assets

a. The company has maintained proper records showing full particulars includingquantitative details and situation of its fixed assets;

b. Fixed assets have been physically verified by the management at reasonableintervals and No material discrepancies were noticed on such verification.

c. The title deeds of immovable properties are held in the name of the company.Except for the capital work in progress against which the company has given an advance butthe registration of the same is pending.

(ii) In Respect of its Inventories

a. As explained to us the inventories have been physically verified by themanagement during the year at reasonable intervals.

b. On the basis of our examination The Company has maintained proper records ofinventories and No material discrepancies were noticed on physical verification andRecords maintained by the Company.

(iii) According to the information and explanation given to us the Company has notgranted any loans secured or unsecured to companies firms Limited LiabilityPartnerships or other parties covered in the register maintained under section 189 of theCompanies Act 2013. Accordingly the provisions of the Clause 3(iii)(a) (b) and (c) ofthe order are not applicable to the Company hence not commented upon.

(iv) In our opinion andaccording to information and explanations given to us thecompany has not advanced loans to Directors/company in which the director is interested towhich the provisions of Section 185 of the Companies Act 2013 apply and hence notcommented upon. In our opinion and according to the information and explanations given tous the company has not made investment and given guarantee/provided security which fallsunder the purview of section 186 of the Companies Act 2013 and hence not commented upon.

(v) The company has not accepted any deposits from the public. Accordinglyparagraph 3(v) of the order is not applicable to the company and hence not commented upon.

(vi) As per the information and explanation given to us the maintenance of costrecords specified by the Central Government under sub-section (1) of section 148(1) of theCompanies Act 2013 is not applicable to the Company and hence not commented upon.

(vii) In respect of its Statutory Dues

a. According to the information and explanations given to us no undisputed amountis payable in respect of provident fund employees' state insurance income-taxsales-tax service tax duty of customs duty of excise value added tax cess and othermaterial statutory dues were outstanding at the year end for the period of more than sixmonths from the date they became payable.

Name of the statue Nature of dues Amount (In Lacs) Period which the amount relates Remark
Income Tax Act 1961 Outstanding Demands 6180/- A.Y. 2008-09 AO notice u/s 154_WE Dated 16/08/2010
Income Tax Act 1961 Outstanding Demands 23110 /- A.Y. 2008-09 AO notice u/s 154 Dated 22/04/2010
Income Tax Act 1961 Outstanding Demands 11820/- A.Y. 2009-10 CPC notice u/s 143(1)(a) Dated 29/12/2010
Income Tax Act 1961 Outstanding Demands 110570/- A.Y. 2009-10 CPC notice u/s 143(1)(a) Dated 29/12/2010
Income Tax Act 1961 Outstanding Demands 1518/- A.Y. 2014-15 CPC notice u/s 220(2) Dated 31/03/2015
Income Tax Act 1961 Short Payment 1560/- F.Y. 2009-10 Unpaid till Date
Income Tax Act 1961 Interest on Short Payment 660/- F.Y. 2009-10 Unpaid till Date
Income Tax Act 1961 Short Payment 12500/- F.Y. 2010-11 Unpaid till Date
Income Tax Act 1961 Interest on Short Payment 6050/- F.Y. 2010-11 Unpaid till Date
Income Tax Act 1961 Short Payment 1040/- F.Y. 2011-12 Unpaid till Date
Income Tax Act 1961 Interest on Short Payment 110/- F.Y. 2011-12 Unpaid till Date
Income Tax Act 1961 Late Filling Levy 400/- F.Y. 2012-13 Unpaid till Date
Income Tax Act 1961 Interest on Late Payment 44/- F.Y. 2012-13 Unpaid till Date
Income Tax Act 1961 Late Filling Levy 15430/- F.Y 2013-14 Unpaid Till Date
Income Tax Act 1961 Short payment 2250/- F.Y 2015-16 Unpaid Till Date
Income Tax Act 1961 Interest u/s 201 33/- F.Y 2015-16 Unpaid Till Date
Income Tax Act 1961 Interest u/s 201 102/- F.Y 2015-16 Unpaid Till Date

b. According to the information and explanations given to us and based on the auditprocedures conducted by us there are no material dues of any statutory payment which havenot been deposited with the appropriate authorities on account of any dispute.:

(viii) According to the information and explanations given to us the Company hasnot defaulted in repayment of loans or borrowings from financial institutions banksgovernment or debenture holders during the year.

(ix) According to the information and explanations given to us the Company has notraised any money by way of initial public offer or further public offer (including debtinstruments) and term loans during the year. Accordingly paragraph 3(ix) of the Order isnot applicable to the company and hence not commented upon.

(x) Based on the audit procedures performed for the purpose of reporting the trueand fair view of the financial statements and according to the information andexplanations given by the management we report that there were no material fraud by theCompany or on the Company by its officers or employees has been noticed or reported duringthe year under review.

(xi) According to the information and explanations given by the managementManagerial remuneration has been paid or provided during the year under review. All therequired Approvals are in place mandated by the provisions of section 197 read withSchedule V of the Companies Act 2013.

(xii) In our opinion and according to the information and explanations given to usthe Company is not a Nidhi company. Consequently provisions of clause 3(xii) of the Orderare not applicable to the company and hence not commented upon.

(xiii) According to the information and explanations given by the managementtransactions with the related parties are in compliance with sections 177 and 188 ofCompanies Act 2013 where applicable and the details have been disclosed in the FinancialStatements as required by the applicable accounting standards.

(xiv) According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has not made any preferentialallotment or private placement of shares or fully or partly convertible debentures duringthe year under review and hence reporting under clause 3 (xiv) are not applicable to thecompany and hence not commented upon.

(xv) According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has not entered into non-cashtransactions with directors or persons connected with him as referred to in section 192 ofCompanies Act 2013.

(xvi) According to the information and explanations given to us and based on ourexamination of the records of the Company the Company is not required to get registeredunder section 45-IA of the Reserve Bank of India Act 1934.

For Dhawan & Co.
Chartered Accountants
FRN: 002864N
M C Gupta
Place : Mumbai (Partner)
Date : 27/05/2017 M.No.70834

"Annexure B" referred in Independent Auditor's Report

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

We have audited the internal financial controls over financial reporting of SWADESHIINDUSTRIES AND LEASING LIMITED ("the Company") as of March 312017 inconjunction with our audit of the financial statements of the Company for the year endedon 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 company's policies the safeguarding of its as sets the preventionand detection of frauds and errors the accuracy and completeness of the accountingrecords and the timely preparation of reliable financial information as required underthe Companies Act 2013.

Auditors' 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 issued by ICAI and deemedto be prescribed under section 143(10) of the Companies Act 2013 to the extentapplicable to an audit of internal financial controls both applicable to an audit ofInternal Financial Controls and both issued by the Institute of Chartered Accountants ofIndia. Those Standards and the Guidance Note require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetheradequate 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 financial controls over financial reporting includedobtaining an understanding of internal financial controls over financial reportingassessing the risk that a material weakness exists and testing and evaluating the designand operating effectiveness of internal control based on the assessed risk. The proceduresselected depend on the auditor's judgment including the assessment of the risks ofmaterial misstatement 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 Company's internal financial controls systemover financial reporting.

Meaning of Internal Financial Controls over Financial Reporting

A company's internal financial control 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 of records that in reasonable detail accurately andfairly reflect the transactions and dispositions of the assets of the company;

2) provide reasonable assurance that transactions are recorded as necessary to permitpreparation of financial statements in accordance with generally accepted accountingprinciples and that receipts and expenditures of the company are being made only inaccordance with authorisations of management and directors of the company; and

3) provide reasonable assurance regarding prevention or timely detection ofunauthorised acquisition use or disposition of the company's assets that could have amaterial 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 has in all material respects an adequate internalfinancial controls system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at March 31 2017 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note on Audit ofInternal Financial Controls Over Financial Reporting issued by the Institute of CharteredAccountants of India.

For Dhawan & Co.
Chartered Accountants
FRN: 002864N
M C Gupta
Place : Mumbai (Partner)
Date : 27/05/2017 M.No.70834