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Swaraj Automotives Ltd.

BSE: 539353 Sector: Auto
NSE: N.A. ISIN Code: INE724G01014
BSE LIVE 14:33 | 13 Dec 90.45 0
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90.45

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90.45

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NSE 05:30 | 01 Jan Stock Is Not Traded.
OPEN 90.45
PREVIOUS CLOSE 90.45
VOLUME 172
52-Week high 90.45
52-Week low 27.55
P/E 7.35
Mkt Cap.(Rs cr) 22
Buy Price 90.45
Buy Qty 129183.00
Sell Price 0.00
Sell Qty 0.00
OPEN 90.45
CLOSE 90.45
VOLUME 172
52-Week high 90.45
52-Week low 27.55
P/E 7.35
Mkt Cap.(Rs cr) 22
Buy Price 90.45
Buy Qty 129183.00
Sell Price 0.00
Sell Qty 0.00

Swaraj Automotives Ltd. (SWARAJAUTOMOT) - Auditors Report

Company auditors report

To the Members of Swaraj Automotives Limited Report on the Financial Statements

We have audited the accompanying financial statements of Swaraj Automotives Limited("the Company") which comprise the Balance Sheet as at 31 March 2017 thestatement of Profit and Loss and the Cash Flow statement for the year then ended and asummary of significant accounting policies and other explanatory information.

Management's Responsibility for the Financial Statements

The Management and Board of Directors of the Company is responsible for the matters insection 134(5) of the Companies Act 2013 ("the Act") with respect to thepreparation of these financial statements that give a true and fair view of the financialposition financial performance and cash flows of the Company in accordance with theaccounting 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 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 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 control systemover financial reporting and the operating effectiveness of such controls. An audit alsoincludes evaluating the appropriateness of accounting policies used and the reasonablenessof the accounting estimates made by the Management and Board of Directors of the Companyas 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 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:

(i) in the case of the Balance Sheet of the state of affairs of the Company as at 31March 2017;

(ii) in the case of the Statement of Profit and Loss of the profit for the year endedon that date; and

(iii) in the case of the Cash Flow statement of the cash flows for the year ended onthat date.

Report on Other Legal and Regulatory Requirements

1. In accordance with the Companies (Auditor's Report) Order 2016 ('The Order') asamended issued by the Central Government of India in terms of sub section (11) of section143 of the Companies Act 2013 and on the basis such checks of books and records of theCompany we considered appropriate and according to information and explanations given tous we give in the Annexure a statement on the matters specified in paragraph 3 and 4 ofthe Order.

2. As required by section 143(3) of the Act we report that:

i. 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;

ii. 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;

iii. The Balance Sheet Statement of Profit and Loss and Cash Flow Statement dealtwith by this report are in agreement with the books of account;

iv. In our opinion the Balance Sheet Statement of Profit and Loss and Cash FlowStatement comply with the applicable Accounting Standards specified under Section 133 ofthe Companies Act 2013 read with Rule 7 of the Companies (Accounts) Rules 2014;

v. On the basis of written representations received from the Directors as on 31stMarch 2017 and taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2017 from being appointed as a director in terms of Section164(2) of the Act.

vi. 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 A".

vii. 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:

a) The Company has disclosed the impact of pending litigations on its financialposition in its financial statements

b) The Company did not have any long term contracts including derivative contracts forwhich there were any material foreseeable losses;

c) There was no delay in transferring amounts required to be transferred to theInvestor Education and Protection Fund by the Company during the year.

d) The company has provided requisite disclosures in the financial statements as to theholdings as well as dealings in Specified Bank Notes during the period from 8th November2016 to 30th December 2016. Based on audit procedures and relying on the Managementrepresentation we report that the disclosures are in accordance with books of Accountmaintained by the Company and as produced to us by the Management - Refer Note (2.40).

For J.S.CHOPRA & ASSOCIATES
CHARTERED ACCCOUNTANTS
Firm registration number : 008849N
Jagdeep S. Chopra FCA
Place : Chandigarh Partner
Dated : 12 May 2017 Membership No.: 087476

ANNEXURE TO THE AUDITORS' REPORT

The Annexure referred to in our report to the members of Swaraj Automotives Limited("the Company") for the year ended 31 March 2017. We report that:

(i) In respect of Fixed Assets:

a. The Company has maintained proper records to show full particulars includingquantitative details and situation of Fixed Assets;

b. According to the information and explanations given to us the management has apolicy of physical verification of fixed assets in a phased manner. Some of these fixedassets have been physically verified by the management during the current year and thediscrepancies noticed on comparison between book records and physical inventory were notmaterial and have been properly dealt with in the books of accounts. In our opinion thefrequency of verification is reasonable having regard to the size of the Company andnature of its assets.

c. The title deeds of immovable properties are held in the name of the company.

(ii) In respect of Inventory:

a. The inventory of finished goods stores spare parts and raw materials of theCompany in its possession have been physically verified by the management at reasonableperiod. Stock-intransit as on 31st March 2017 has been verified by the management onsubsequent receipt of the goods.

b. In our opinion and according to the information and explanations given to us theprocedures of physical verification of inventories followed by the management werereasonable and adequate in relation to the size of the Company and the nature of itsbusiness.

c. On the basis of our examination of the records of inventories we are of the opinionthat the Company has maintained proper records for inventory. According to the informationand explanations given to us there were no material discrepancies noticed on physicalverification of inventory as compared to the book records and these have been properlydealt with in the books of accounts.

(iii) According to the information and explanation given to us the Company has notgranted any loan secured or unsecured to companies firms Limited Liability Partnershipsor other parties covered in the register maintained under section 189 of the Companies Act

(iv) In our opinion and according to the information and explanations given to us thecompany has complied with the provisions of section 185 and 186 of the Companies Act 2013in respect of loans investments guarantees and security.

(v) The Company has not accepted any deposits from the public and hence the directivesissued by the Reserve Bank of India and the provisions of Sections 73 to 76 or any otherrelevant provisions of the Act and the Companies (Acceptance of Deposit) Rules 2015 withregard to the deposits accepted from the public are not applicable.

(vi) On the basis of information given to us we are of the opinion that prima faciethe cost records and accounts prescribed by the Central Government of India under subsection (1) of section 148 of the Companies Act 2013 have been maintained. However weare not required to and have not carried out any detailed examination of such accounts andrecords.

(vii) In respect of statutory dues:

a) According to information and explanations given to us and the records of theCompany examined by us amounts deducted / accrued in the books of account in respect ofundisputed statutory dues including Provident Fund Employees State Insurance Income TaxSales Tax Service Tax Custom Duty Excise Duty Valued Added Tax cess and any otherstatutory dues where applicable have been generally regularly deposited during the yearwith the appropriate authorities.

According to information and explanations given to us no undisputed amounts payable inrespect of the aforesaid dues were outstanding for a period of more than six months as at31 March 2017 from the date they became payable.

b) The disputed statutory dues that have not been deposited on account of matterspending before appropriate authorities are reported below. According to the informationand explanations given to us the following dues of Excise Duty have not been deposited bythe Company on account of disputes.

S.No. Name of the Statute Nature of the dues Amount of Tax Liability (Rs. Lacs) Period to which the amount relates Forum where dispute is Pending
1. Central Excise Excise Duty 9.78 2005-06 to April 2008 Appellate Tribunal
2. Central Excise Excise Duty 13.26 March 2009 to Dec. 2011 Commissioner Appeals
3. Central Excise Service Tax 3.00 2008-09 to Oct. 2009 Appellate Tribunal
Total 26.04

(viii) Based on our audit procedures and according to the information and explanationgiven to us the Company has not defaulted in repayment of dues to banks financialinstitutions Government or debenture holders.

(ix) The Company has not raised moneys by way of initial public offer or further publicoffer including debt instruments and term loans. Hence the provisions of clause 3 (ix) ofthe Order are not applicable to the Company and not commented upon.

(x) Based upon the audit procedures performed and according to the information andexplanations given to us no fraud by the Company or on the Company by its officers oremployees has been noticed or reported during the year that causes the financialstatements to be materially misstated.

(xi) Based upon the audit procedures performed and according to the information andexplanations given to us the managerial remuneration has been paid or provided inaccordance with the requisite approvals mandated by the provisions of section 197 readwith Schedule V to the Companies Act.

(xii) In our opinion the Company is not a Nidhi Company. Therefore the provisions ofclause 3 (xii) of the Order are not applicable to the Company.

(xiii) In our opinion all transactions with the related parties are in compliance withsection 177 and 188 of Companies Act 2013 and the details have been disclosed in theFinancial Statements as required by the applicable accounting standards.

(xiv) The company has not made any preferential allotment or private placement ofshares or fully or partly convertible debentures during the year under review. Hence theprovisions of clause 3 (xiv) of the Order are not applicable to the Company and notcommented upon.

(xv) Based upon the audit procedures performed and the information and explanationsgiven to us the Company has not entered into any non-cash transactions with directors orpersons connected with him.

Accordingly the provisions of clause 3 (xv) of the Order are not applicable to theCompany and hence not commented upon.

(xvi) In our opinion the Company is not required to be registered under section 45 IAof the Reserve Bank of India Act 1934 and accordingly the provisions of clause 3 (xvi)of the Order are not applicable to the Company and hence not commented upon.

For J.S.CHOPRA & ASSOCIATES
CHARTERED ACCCOUNTANTS
Firm registration number : 008849N
Jagdeep S. Chopra FCA
Place : Chandigarh Partner
Dated : 12th May 2017 Membership No.: 087476

ANNEXURE A TO AUDITORS REPORT

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

We have audited the internal financial controls over financial reporting of SwarajAutomotives Limited ("the Company") as on 31st March 2017 in conjunction withour audit of the 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 responsibilitiesinclude the design implementation and maintenance of adequate internal financial controlsthat were operating effectively for ensuring the orderly and efficient conduct of itsbusiness including adherence to 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.

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 accordance with the Guidance Note on Audit of InternalFinancial Controls Over Financial Reporting (the "Guidance Note") and theStandards on Auditing issued by ICAI and deemed to be prescribed under section 143(10) ofthe Companies Act 2013 to the extent applicable to an audit of internal financialcontrols both applicable to an audit of Internal Financial Controls and both issued bythe Institute of Chartered Accountants of India. Those Standards and the Guidance Noterequire that we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether adequate internal financial controls over financialreporting was established and maintained and if such controls operated effectively in allmaterial 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 judgement 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 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 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 31st March 2017 based on"the internal control over financial reporting criteria established by the Companyconsidering the essential components of internal control stated in the Guidance Note onAudit of Internal Financial Controls Over Financial Reporting issued by the Institute ofChartered Accountants of India".

For J.S.CHOPRA & ASSOCIATES
CHARTERED ACCCOUNTANTS
Firm registration number : 008849N
Jagdeep S. Chopra FCA
Place : Chandigarh Partner
Dated : 12 May 2017 Membership No.: 087476