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Sword & Shield Pharma Ltd.

BSE: 531637 Sector: Health care
NSE: N.A. ISIN Code: INE722B01019
BSE LIVE 13:13 | 21 Sep 6.65 -0.35
(-5.00%)
OPEN

6.65

HIGH

7.00

LOW

6.65

NSE 05:30 | 01 Jan Stock Is Not Traded.
OPEN 6.65
PREVIOUS CLOSE 7.00
VOLUME 1798
52-Week high 11.96
52-Week low 3.30
P/E
Mkt Cap.(Rs cr) 3
Buy Price 6.65
Buy Qty 209.00
Sell Price 0.00
Sell Qty 0.00
OPEN 6.65
CLOSE 7.00
VOLUME 1798
52-Week high 11.96
52-Week low 3.30
P/E
Mkt Cap.(Rs cr) 3
Buy Price 6.65
Buy Qty 209.00
Sell Price 0.00
Sell Qty 0.00

Sword & Shield Pharma Ltd. (SWORDSHIELD) - Auditors Report

Company auditors report

To

The Members

SWORD AND SHIELD PHARMA LTD.

Report on the Financial Statements

We have audited the accompanying financial statements of SWORD AND SHIELD PHARMALTD. which comprise the Balance Sheet as at March 31 2016 the Statement of Profitand Loss and the Cash Flow Statement for the year then ended and a summary of significantaccounting policies and other explanatory information.

Management’s Responsibility for the Financial Statements

The Company’s Board of Directors is responsible for the matters in section 134(5)of the Companies Act 2013 ("the Act") with respect to the preparation of thesefinancial statements that give a true and fair view of the financial position financialperformance and cash flows of the Company in accordance with the accounting principlesgenerally accepted in India including the Accounting Standards specified under Section133 of the Act read with Rule 7 of the Companies (Accounts) Rules 2014. Thisresponsibility also includes the maintenance of adequate accounting records in accordancewith the provision of the Act for safeguarding of the assets of the Company and forpreventing and detecting the frauds and other irregularities; selection and application ofappropriate accounting policies; making judgments and estimates that are reasonable andprudent; and design implementation and maintenance of internal financial control thatwere operating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the financial statements thatgive a true and fair view and are free from material misstatement whether due to fraud orerror.

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 thereunder.

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 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 true and fair view in order to designaudit procedures that are appropriate in the circumstances. An audit also includesevaluating the appropriateness of accounting policies used and the reasonableness of theaccounting estimates made by Company’s Directors as well as evaluating the overallpresentation 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; a) in the case of the Balance Sheet of the stateof affairs of the Company as at March 31 2016;

b) in the case of the Statement of Profit and Loss of the profit for the year ended onthat date; and

c) in the case of the Cash Flow Statement of the cash flows for the year ended on thatdate.

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 Section 143(11) of theCompanies Act 2013 we give in the Annexure-A a statement on the matters specified inparagraphs 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 purposes 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 the Statement of Profit and Loss and Cash Flow Statement dealtwith 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 written representations received from the directors as on 31stMarch 2016 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2016 from being appointed as a director interms of Section 164(2) of the Act.

f) With respect to the adequacy of the internal financial control over financialreporting of the Company and the operating effectiveness of such controls refer to ourseparate report in Annexure-B and

g) With respect to the other matters 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 did not have any long-term contracts including derivatives contractsfor which there were any material foreseeable losses.

iii. There were no amounts which required to be transferred to the Investor Educationand Protection Fund by the Company.

For B. K. PATEL & CO
Chartered Accountants
Firm Reg. No.112647W
K. D. Patel
Ahmedabad Partner
30-5-2016 Membership No. 39919

Annexure-A to Independent Auditors’ Report

(Referred to in Paragraph 1 under the heading of "Report on Other Legal andRegulatory Requirements" of our report of even date)

(i) In respect of its fixed assets:

(a) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.

(b) As explained to us all the fixed assets have been physically verified bythe Management in accordance with a program of verification which in our opinion providesfor physical verification of all the fixed assets at reasonable intervals having regard tothe size of the Company and the nature of its assets. According to the information andexplanations given to us no material discrepancies were noticed on such verification.

(c) According to the information and explanation given to us and on the examinationof the records of the Company title deeds of immoveable properties were held in the nameof the Company.

(ii) In respect of its inventories:

(a) As explained to us the inventories of finished and raw materials at Factorywere physically verified during the year by the Management.

(b) In our opinion and according to the information and explanations given to usthe discrepancies noticed on verification between the physical stocks and the book recordswere not material.

(iii) The Company has not granted any loan to any party listed in the registermaintained under section 189 of the Companies Act accordingly clause (a) and (b) of theparagraph 3(iii) of the Order is not applicable.

(iv) The Company has not given any loan to directors or made any investment orgiven any security or guarantee accordingly paragraph 3(xv) of the Order is notapplicable.

(v) As informed to us the Company has not accepted any deposit from public.

(vi) As explained to us the maintenance of cost records under sub section (1) ofsection 148 of the Companies Act 2013 are not prescribed by the Central Government forthe product of the Company.

(vii) In respect of its Statutory dues:

(a) According to the information and explanations given to us the Company has beengenerally regular in depositing undisputed statutory dues including provident fundemployees’ state insurance income-tax sales-tax wealth tax service tax duty ofexcise value added tax cess and any other statutory applicable to it with theappropriate authorities during the period. As explained to us Company did not have anydues on account of employees’ state insurance wealth tax duty of customs. Accordingto the information and explanations given to us no undisputed amounts payable in respectof sales tax customs duty excise duty cess and other material statutory dues applicableto it were in arrears as at 31st March 2016 for a period of more than sixmonths from the date they became payable except Rs.43824/- on account of professional tax.

(b) According to information and explanation given to us there are no dues of incometax wealth tax sales tax duty of custom duty of excise value added tax and cess whichhave not been deposited on account of any dispute

(viii) As Company has no borrowings from any bank or financial institutionsgovernment or debenture holders during the year accordingly paragraph 3(viii) of theOrder is not applicable.

(ix) The Company did not raise any money by way of initial public offer (includingdebt instruments) and term loans during the year accordingly paragraph 3(ix) of the Orderis not applicable.

(x) According the information and explanation given to us and to the best of ourknowledge and belief no material fraud on or by the Company was noticed or reportedduring the period.

(xi) According to information and explanation given to us and based on ourexamination of the records of the Company the Company has paid for managerialremuneration in accordance with the requisite approvals mandated by the provisions ofSection 197 read with Schedule V to the Act.

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

(xiii) In our opinion and according to information and explanation given to us andbased on our examination of the records of the Company transactions with the relatedparties are in compliance with Section 177 and 188 of the Act where applicable and detailsof such transactions have been disclosed in financial statements as required by theapplicable accounting standards.

(xiv) In our opinion and according to information and explanation given to us andbased on our examination of the records of the Company the Company has not made anypreferential allotment or private placement of shares or fully or partly convertibledebentures during the year accordingly paragraph 3(xiv) of the Order is not applicable.

(xv) In our opinion and according to information and explanation given to us andbased on our examination of the records of the Company the Company has not entered intoany non-cash transactions with directors or persons connected with him accordinglyparagraph 3(xv) of the Order is not applicable.

(xvi) In our opinion and according the information and explanation given to us theCompany is not required to be registered under Section 45IA of the Reserve Bank of IndiaAct 1934

For B. K. PATEL & CO
Chartered Accountants
Firm Reg. No. 112647W
K. D. Patel
Ahmedabad Partner
30-5-2016 Membership No. 39919

Annexure-B to Independent Auditors’ Report

(Referred to in Paragraph 2(f) under the heading of "Report on Other Legal andRegulatory Requirements" of our report of even date)

Report on the Internal Financial Controls Over Financial Reporting under Clause (i) ofSub-section 3 of Section 143 of the Companies Act 2013 ("the Act")

We have audited the internal financial controls over financial reporting of SWORDAND SHIELD PHARMA LTD ("the Company") as of 31st March 2016 in conjunctionwith our 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 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 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 accordancewith the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting(the "Guidance Note") issued by the Institute of Chartered Accountants of Indiaand the Standards on Auditing prescribed under Section 143(10) of the Companies Act 2013to the extent applicable to an audit of internal financial controls. Those Standards andthe Guidance Note require that we comply with ethical requirements and plan and performthe audit to obtain reasonable assurance about whether adequate internal financialcontrols over financial reporting was established and maintained and if such controlsoperated 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 auditors' 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 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 to the best of our information and according to the explanations givento us the Company has in all material respects an adequate internal financial controlssystem over financial reporting and such internal financial controls over financialreporting were operating effectively as at 31st March 2016 based on the internal controlover financial reporting criteria established by the Company considering the essentialcomponents of internal control stated in the Guidance Note on Audit of Internal FinancialControls Over Financial Reporting issued by the Institute of Chartered Accountants ofIndia.

For B. K. PATEL & CO
Chartered Accountants
Firm Reg. No. 112647W
K. D. Patel
Ahmedabad Partner
30-5-2016 Membership No. 39919