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Swadeshi Polytex Ltd.

BSE: 503816 Sector: Industrials
NSE: N.A. ISIN Code: INE243N01011
BSE 10:53 | 18 Jan 11.59 0.55
(4.98%)
OPEN

11.59

HIGH

11.59

LOW

11.59

NSE 05:30 | 01 Jan Stock Is Not Traded.
OPEN 11.59
PREVIOUS CLOSE 11.04
VOLUME 50
52-Week high 18.50
52-Week low 9.03
P/E 2.60
Mkt Cap.(Rs cr) 5
Buy Price 11.59
Buy Qty 1375.00
Sell Price 0.00
Sell Qty 0.00
OPEN 11.59
CLOSE 11.04
VOLUME 50
52-Week high 18.50
52-Week low 9.03
P/E 2.60
Mkt Cap.(Rs cr) 5
Buy Price 11.59
Buy Qty 1375.00
Sell Price 0.00
Sell Qty 0.00

Swadeshi Polytex Ltd. (SWADESHIPOLYTEX) - Auditors Report

Company auditors report

To

The Members of

Swadeshi Polytex Limited

Report on the Ind AS Financial Statements

We have audited the accompanying Ind AS financial statements of M/s. Swadeshi PolytexLimited (‘the Company') which comprise the Balance Sheet as at 31st March 2017 andthe Statement of Profit and Loss (including Other Comprehensive Income) the Cash FlowStatement and the Statement of Changes in Equity for the year then ended and asummaryofthesignificantaccounting policies and other explanatory information.

Management's Responsibility for the Ind AS 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 preparation ofthese Ind AS financial statements that give a true and fair view of the financialposition financial performance including other comprehensive income flows and changes inequity of the Company in accordance with the accounting principles generally accepted inIndia including the Indian Accounting Standards (Ind AS) prescribed under section 133 ofthe Act with relevant rules issued thereunder. This responsibility also includesmaintenance of adequate accounting records in accordance with the provisions of the Actfor safeguarding the 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 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 Ind AS financial statements that give a true and fairview and are free from material misstatement whether due to fraud or error.

Auditor's Responsibility

Our responsibility is to express an opinion on these Ind AS financial statements basedon our audit. We have taken into account the provisions of the Act the accounting andauditing standards and matters which are required to be included in the audit report underthe provisions of the Act and the Rules made thereunder.

We conducted our audit of the Ind AS financial statements in accordance with theStandards on Auditing specified under Section 143(10) of the Act. Those Standards requirethat requirements and plan and perform the audit to obtain reasonable assurance aboutwhether the Ind AS financial statements are free from material misstatement. An auditinvolves performing procedures to obtain audit evidence about the amounts and thedisclosures in the Ind AS financial statements. The procedures selected depend on theauditor's judgment including the assessment of the risks of material misstatement of theInd AS financial statements whether due to fraud or error. In making those riskassessments the auditor considers internal financial control relevant to the Company'spreparation of the Ind AS financial statements that give a true and fair view in order todesign audit procedures that are appropriate in the circumstances. An audit also includesevaluating the appropriateness of the accounting policies used and the reasonableness ofthe accounting estimates made by the Company's Directors as well as evaluating theoverall presentation of the Ind AS financial statements.

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

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid Ind AS financial statements give the information required bythe Act in the manner so required and give a true and fair view in conformity with theaccounting principles generally accepted in India including the Ind AS of the state ofaffairs (financial position) of the Company as at 31st March 2017 and its profit(financial performance including other comprehensive income) its cash flows and thechanges in equity 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 in terms of Section 143(11) of the Act we give in"Annexure A" a statement on the matters specified in paragraphs 3 and . 4 oftheOrder

2. As required by Section 143(3) of the Act we report that: a) We have sought andobtained all the information and explanations which to the best of our knowledge andbelief were necessary for the purposes of our audit of the aforesaid Ind AS

Financial Statements. b) In our opinion proper books of account as required by lawhave 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 the Cash Flow Statement and Statementof Changes in Equity dealt with by this Report are in agreement with the books of account.d) In our opinion the aforesaid Ind AS financial statements comply with the IndianAccounting Standards prescribed under section 133 of the Act read with relevant rulesissued thereunder. e) On the basis of the written representations received from thedirectors as on 31st March 2017 taken on record by the Board of Directors none of thedirectors is disqualified as on 31st March 2017 from being appointed as a director interms of Section 164(2) of the Act. f) With respect to the adequacy of the internalfinancial controls over financial reporting of the Company and the operating effectivenessof such controls refer to our separate Report in "Annexure B"; and g) Withrespect to the other matters to be included in the Auditor's Report in accordance withRule 11 of the Companies (Audit and Auditors) Rules 2014 in our opinion and to the bestof our information and according to the explanations given to us: i. The Company hasdisclosed the impact of pending litigations on its financial position in its Ind ASfinancial statements - Refer Note 1.8.1 to the Ind AS financial statements; ii. We areexplained that the Company did not have any long term contracts including derivativecontracts for which there were any material foreseeable losses. iii. We are explained thatthere were no amounts which were required to be transferred to the Investor Education andProtection Fund by the Company; iv. the Company has provided requisite disclosures in itsInd AS Financial Statements as to holdings as well as dealing in Specified Bank Notesduring the period from 8 November 2016 to 30 December 2016 and these are in accordancewith the books of accounts maintained by the Company. Refer Note 1.14 to the Ind ASfinancial statements;

For SANMARKS & ASSOCIATES
Chartered Accountants
Firm's Regn. No. 003343N
Sd/-
Place : Faridabad S. K. BANSAL
Date: 25-05-2017 Partner
Camp: Ghaziabad Membership No.: 082242

Annexure A to the Independent Auditors' Report

Referred to in Paragraph 1 under the heading "Report on Other Legal and RegulatoryRequirements" of our Report to the members of Swadeshi Polytex Limited for the yearended 31st March 2017. We report that:

(i) (a) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets. (b) We are explained that themanagement has carried out the year end physical verification of majority of fixed assets.In our opinion the frequency of the physical verification is reasonable having regard tothe size and nature of operations of the company. We are explained that the discrepanciesnoticed on physical verificationof fixed assets have been properly dealt with in the booksof accounts. (c ) According to the information and explanations given to us the titledeed of immovable property owned by the Company are stated to be misplaced and themanagement is in the process of obtaining duplicate copy thereof from the concernedAuthorities. Further the provisions of this clause are not applicable in respect ofleasehold land owned by the Company and held as Stock in Trade.

(ii) The only inventory in hand is in the form of lease hold plot rights for whichmanagement has conducted physical verification in the form of measurement frequency ofwhich in our opinion is reasonable and no material discrepancies were noticed on thephysical verification of the same as compared to book records.

(iii) The Company has granted unsecured loan to a party covered in the registermaintained under Section 189 of the Companies Act 2013 ("the Act").

(a) In our opinion the rate of interest and other terms and conditions on which theloan had been granted to the party listed in the register maintained under Section 189 ofthe Act were not prima facie prejudicial to the interest of the Company.

(b) In the case of loan granted to the party listed in the register maintained underSection 189 of the Act we are explained that the same is repayable on demand. In ouropinion repayment of interest is regular in terms of demand made. We are also explainedthat no demand has been made during the year about repayment of principal. (c) In ouropinion and in view of our comments in (a) and (b) above no amount is overdue forrecovery. (iv) According to the information and explanations given to us and the recordsof the Company examined by us the Company had complied with the provisions of Section 186with respect to loan given by it to a party in the earlier year.

(v) During the year under report the company has not accepted any deposit from thepublic to which provisions of sections 73 to 76 of the Act and relevant rules framed thereunder apply. (vi) We are informed that the maintenance of the cost records has notbeen prescribed by the Central Government u/s 148(1) of the Act for the company since nomanufacturing activities were carried out by it during the year under report.

(vii) (a) According to the information and explanation given to us and on the basis ofour examination of the books of account the company has been regular in depositing theundisputed statutory dues including Provident Fund Employees' State InsuranceIncome-tax Sales-tax Service Tax Custom Duty Excise Duty value added tax cess andany other material statutory dues applicable to it with the appropriate authorities.

(b) According to information and explanation given to us and on the basis of ourexamination of the books of accounts of the company following are the details of salestax/income tax/custom duty/ service Tax/excise duty which have not been deposited onaccount of any dispute.

Name of Statute Nature of Dues Amount (In lacs) Period Forum at which dispute is pending
Various Sales Tax Acts Sales Tax 94.13 Various Various Forum.
The Central Excise & Salt Act 1944 Excise Duty 139.18 Various CESAT & the Supreme Court
The Central Excise Act 1944 Penalty on Excise Duty 25.00 2012 CESAT
The Customs Act 1962 Custom Duty 8.50 Various D. C. Customs Mumbai

(viii) According to the information and explanation given to us the company had notborrowed any money from any financial institution bank or Government and had not issueddebentures during the year under report. Accordingly provisions of clause 3 (viii) of theOrder are not applicable for the year under report.

(ix) The Company had neither raised any money by way of initial public offer or furtherpublic offer (including debt instruments) and term loans nor applied the previously raisedloans if any during the year under report. Accordingly provisions of clause 3 (ix) ofthe Order are not applicable.

(x) According to the information and explanations given to us no fraud by the Companyor on the Company by its officers or employees has been noticed or reported during thecourse of our audit.

(xi) According to the information and explanations give to us the Company has not paidany managerial remuneration to any of its directors and it has no Managing Director WholeTime Director or Manager. Accordingly paragraph 3 (xi) of the Order is not applicable.

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

(xiii) According to the information and explanations given to us and based on ourexamination of the records of the Company transactions with the related parties are incompliance with sections 177 and 188 of the Act where applicable and details of suchtransactions have been disclosed in the Ind AS financial statements as required by theapplicable accounting standards.

(xiv) According to the information and explanations give 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.

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

For SANMARKS & ASSOCIATES
Chartered Accountants
Firm's Regn. No. 003343N
Sd/-
Place : Faridabad S. K. BANSAL
Date: 25-05-2017 Partner
Camp: Ghaziabad Membership No.: 082242

Annexure - B to the Independent Auditors' 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 Company")as of 31 March 2017 in conjunction with our audit of the Ind AS financial statements ofthe

Company for the year ended on that date.

Management's Responsibility for Internal Financial Controls

The Company's management is responsible for establishingandmaintaininginternalfinancialcontrols based on theinternalcontroloverfinancialreportingcriteria 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 (‘ICAI'). Theseresponsibilities include the design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the orderly and efficientconduct of its business including adherence to company's policies the safeguarding ofits assets the prevention and detection of frauds and errors the accuracy andcompleteness of the accounting records and the timely preparation of reliable financialinformation as required 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 auditinvolves performing procedures to obtain audit evidence about the adequacy of the internalfinancial controls system over financial reporting and their operating effectiveness. Ouraudit of internal financial controls over financial reporting included obtaining anunderstanding of internal financial controls over financial reporting assessing the riskthat 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 judgment including the assessment of the risks of materialmisstatement of the financial statements whether due to fraud or error. We believe thatthe audit evidence we have obtained is sufficient and appropriate to provide a basis forour audit opinion on the Company's internal financial controls system over financialreporting.

Meaning of Internal Financial Controls over Financial Reporting to providereasonable Acompany'sinternal financialcontrol over financial preparation of financialassuranceregarding the reliability of financial external purposes in accordance withgenerally accepted accounting principles. A company's internal financial control overfinancial reporting includes those policies and procedures that : (a) pertain to themaintenance of records that in reasonable detail accurately and fairly reflecttransactions and dispositions of the assets of the company; (b) 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; (c) 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 31 March 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 SANMARKS & ASSOCIATES
Chartered Accountants
Firm's Regn. No. 003343N
Sd/-
Place : Faridabad S. K. BANSAL
Date: 25-05-2017 Partner
Camp: Ghaziabad Membership No.: 082242