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Swadeshi Industries & Leasing Ltd.

BSE: 506863 Sector: Industrials
NSE: N.A. ISIN Code: INE716M01026
BSE LIVE 15:28 | 11 Dec 3.24 -0.01
(-0.31%)
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3.24

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3.24

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NSE 05:30 | 01 Jan Stock Is Not Traded.
OPEN 3.24
PREVIOUS CLOSE 3.25
VOLUME 14773
52-Week high 8.02
52-Week low 3.24
P/E
Mkt Cap.(Rs cr) 35
Buy Price 0.00
Buy Qty 0.00
Sell Price 3.24
Sell Qty 1333934.00
OPEN 3.24
CLOSE 3.25
VOLUME 14773
52-Week high 8.02
52-Week low 3.24
P/E
Mkt Cap.(Rs cr) 35
Buy Price 0.00
Buy Qty 0.00
Sell Price 3.24
Sell Qty 1333934.00

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

Company auditors report

Independent Auditor’s Report

To the Members of

Swadeshi Industries & Leasing Limited

Report on the Standalone Financial Statements

We have audited the accompanying standalone financial statements of SwadeshiIndustries & Leasing Limited (‘the Company’) which comprise the balancesheet as at 31 March 2016 the statement of profit and loss and the cash flow statementfor the year then ended and a summary of significant accounting policies and otherexplanatory information.

Management’s Responsibility for the Standalone 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 standalone financial statements that give a true and fair viewof the financial position financial performance and cash flows of the Company inaccordance with the accounting principles generally accepted in India including theAccounting Standards specified under Section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014. This responsibility also includes maintenance ofadequate accounting records in accordance with the provisions of the Act for safeguardingthe assets of the Company and for preventing and detecting frauds and otherirregularities; selection and application of appropriate accounting policies; makingjudgments and estimates that are reasonable and prudent; and design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the accuracy and completeness of the accounting records relevant to thepreparation and presentation of the financial statements that give a true and fair viewand 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 statementsbased on our audit.

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 ofthe financial statements whether due to fraud or error. In making those risk assessmentsthe auditor considers internal financial control relevant to the Company’spreparation of the financial statements that give a true and fair view in order to designaudit procedures that are appropriate in the circumstances but not for the purpose ofexpressing an opinion on whether the Company has in place an adequate internal financialcontrols system over financial reporting and the operating effectiveness of such controls.An audit also includes evaluating the appropriateness of the accounting policies used andthe reasonableness of the accounting estimates made by the Company’s Directors aswell 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 audit opinion on the standalone financial statements.

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid standalone 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 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 ofthe Act to have 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 ("theOrder") issued by the Central Government of India in terms of sub-section (11) ofsection 143 of the Act we give in the Annexure A statement on the matters specified inthe 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 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 standalone financial statements comply with theAccounting Standards specified under Section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014;

(e) On the basis of the written representations received from the directors as on 31March 2016 taken on record by the Board of Directors none of the directors isdisqualified as on 31 March 2016 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.

For Motilal & Associates
Chartered Accountants
Registration No.:106584W
(Motilal Jain)
M. No. 036811
Place : Mumbai
Date : 27/05/2016

ANNEXURE TO THE AUDITORS’ REPORT

Issued by the Central Government under sub section 11 of section 143 of the CompaniesAct 2013 (18 of 2013)

The Annexure-A referred to in Independent Auditors’ Report to the members of theCompany 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 intervalsby the management and no material discrepancies were noticed on verification between thephysical stock and the books records during the year under review;

iii. The Company has not granted any loans to any parties covered in the registermaintained under section 189 of the Companies Act 2013 (‘the Act’). Thusparagraphs 3(iii)(a) 3(iii)(b) and 3(iii)(c) of the order are not applicable to theCompany.

iv. The Company has not entered into any transaction that falls under the preview ofsection 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 underSection 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 includingprovident fund employees’ state insurance income-tax sales-tax service tax dutyof customs duty of excise value added tax cess and any other statutory dues to theappropriate authorities and there are no arrears of arrears of outstanding statutory duesas on the last day of the financial year concerned for a period of more than six monthsfrom the date they became payable; b. The dues of income tax or sales tax or service taxor duty of customs or duty of excise or value added tax have not been deposited on accountof 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 Income Tax 6180 A.Y. 2008-09 Assessing Officer Notice
1961 u/s 154_WE dated on 16/08/2010
Income Tax Act Income Tax 33930 A.Y. 2008-09 Assessing Officer Notice u/s 154
1961 dated on 22/04/2010
Income Tax Act Income Tax 110570 A.Y. 2009-10 CPC Notice u/s 143(1)(a)
1961 dated on 29/12/2010
Income Tax Act Income Tax 11820 A.Y. 2009-10 CPC Notice u/s 143(1)(1)
1961 dated on 29/12/2010
Income Tax Act Income Tax 1518 A.Y. 2014-15 CPC Notice u/s 220(2)
1961 dated on 31/03/2015
Income Tax Act Income Tax 33010/- A.Y.2015-16 CPC dated 27/02/2016
1961

viii. The Company does not have any loans or borrowings from any financial institutionbanks government or debenture holders during the year. Accordingly paragraph 3(viii) ofthe Order is not applicable to the company. ix. The Company did not raise any money by wayof initial public offer or further public offer (including debt instruments) and termloans during the year. Accordingly paragraph 3(ix) of the Order is not applicable to thecompany.

x. According to the information and explanations given to us no material fraud by theCompany or on the Company by its officers or employees has been noticed or reported duringthe course of our audit..

xi. According to the information and explanations given to us Managerial remunerationhas not been paid or provided for during the year under review thus Paragraph 3(xi) ofthe order is not applicable to the company.

xii. Company is not a Nidhi Company accordingly paragraph 3(xii) of the Order is notapplicable to the company.

xiii. All transactions with the related parties are in compliance with sections 177 and188 of Companies Act 2013 where applicable and the details have been disclosed in theFinancial Statements etc. 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.

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. Accordingly paragraph 3(xv) ofthe Order is not applicable to the company.

xvi. Company is not required to be registered under section 45-IA of the Reserve Bankof India Act 1934.

For Motilal & Associates
Chartered Accountants
Registration No.:106584W
(Motilal Jain)
M. No. 036811
Place : Mumbai
Date : 27/05/2016

ANNEXURE B TO THE INDEPENDENT AUDITOR’S REPORT OF EVEN DATE ON THE FINANCIALSTATEMENTS OF SWADESHI INDUSTRIES AND LEASING LIMITED

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 31 2016 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 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.

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 controlssystem over financial reporting.

Meaning of Internal Financial Controls over Financial Reporting

A company’s internal financial control 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 authorisations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorised 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 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 2016 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 Motilal & Associates
Chartered Accountants
Registration No.:106584W
(Motilal Jain)
M. No. 036811
Place : Mumbai
Date : 27/05/2016