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Swadeshi Polytex Ltd.

BSE: 503816 Sector: Industrials
NSE: N.A. ISIN Code: INE243N01011
BSE 00:00 | 19 Feb 18.70 0.89
(5.00%)
OPEN

18.70

HIGH

18.70

LOW

18.70

NSE 05:30 | 01 Jan Swadeshi Polytex Ltd
OPEN 18.70
PREVIOUS CLOSE 17.81
VOLUME 25
52-Week high 18.70
52-Week low 9.50
P/E 1.22
Mkt Cap.(Rs cr) 7
Buy Price 18.70
Buy Qty 983.00
Sell Price 0.00
Sell Qty 0.00
OPEN 18.70
CLOSE 17.81
VOLUME 25
52-Week high 18.70
52-Week low 9.50
P/E 1.22
Mkt Cap.(Rs cr) 7
Buy Price 18.70
Buy Qty 983.00
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. SwadeshiPolytex Limited (‘the Company') which comprise the Balance Sheet as at 31stMarch 2018 and the Statement Profitand Loss (including Other ComprehensiveIncome) the statement of changes in Equity and the statement of Cash Flows for the yearthen ended and a summaryofthesignificantaccounting policies and other explanatoryinformation.

Management's Responsibility for the Ind AS Financial Statements

The Company's Board of Directors is responsible for the matters statedin Section 134(5) of the Companies Act 2013 ("the Act") with respect to thepreparation of these Ind AS financial statements that give a true and fair view of thefinancial position financial performance including other flows and changes in equity ofthe Company in accordance with the Indian Accounting Standards (Ind AS) prescribed undersection 133 of the Act read with the Companies (Indian Accounting Standards) Rules 2015as amended and other accounting principles generally accepted in India.

This responsibility also includes maintenance of adequate accountingrecords in accordance with the provisions of the Act for safeguarding the assets of theCompany and 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 Ind AS 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 Ind AS financialstatements based on our audit. In conducting our Audit we have taken into account theprovisions of the Act the accounting and auditing standards and matters which arerequired to be included in the audit report under the provisions of the Act and the Rulesmade there under and the order issued under section 143(11) of the Act. We conducted ouraudit of the Ind AS financial statements in accordance with the Standards on Auditing Act.Those Standards require that we comply with ethical specified requirements and plan andperform the audit to obtain reasonable assurance about whether the Ind AS financialstatements are free from material misstatement. An audit involves performing procedures toobtain audit evidence about the amounts and the disclosures in the Ind ASfinancialstatements. The procedures selected depend on the auditor's judgment includingthe assessment of the risks of material misstatement of the Ind AS financial statementswhether due to fraud or error. In making those risk assessments the auditor considersinternal financial control relevant to the Company's preparation of the Ind ASfinancialstatements that give a true and fair view in order to design audit proceduresthat are appropriate in the circumstances. An audit also includes evaluating theappropriateness of the accounting policies used and the reasonableness of the accountingestimates made by the Company's Directors as well as evaluating the overall presentationof the Ind AS financial statements.

We believe that the audit evidence obtained by us is sufficient andappropriate to provide 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 theexplanations given to us the aforesaid Ind AS financial statements give the informationrequired by the Act in the manner so required and give a true and fair view in conformitywith the accounting principles generally accepted in India of the state of affairs(financial position) of the Company as at 31st March 2018 and its loss (financialperformance including other comprehensive income) the changes in equity and its cashflows 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) ofthe Act we give in "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 based on our audit wereport that: a) We have sought and obtained all the information and explanations which tothe best of our knowledge and belief were necessary for the purposes of our audit of theaforesaid Ind AS

Financial Statements. b) In our opinion proper books of account asrequired by law have been kept by the Company so far as it appears from our examination ofthose books. c) The Balance Sheet the Statement of Profit and Loss including OtherComprehensive Income the Statement of Changes in Equity and Cash Flow Statement dealtwith by this Report are in agreement with the books of account. d) In our opinion theaforesaid Ind AS financial statements comply with the Indian Accounting Standardsprescribed under section 133 of the Act read with relevant rules issued there under. e)On the basis of the written representations received from the directors of the Company ason 31st March 2018 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2018 from being appointed as a director in terms of Section164(2) of the Act. f) With respect to the adequacy of the internal financial controls overfinancial Company and the operating effectiveness of such controls refer to our separateReport in "Annexure B". g) With respect to the other matters to be included inthe Auditor's Report in accordance with Rule 11 of the Companies (Audit and Auditors)Rules 2014 as amended in our opinion and to the best of our information and accordingto the explanations given to us: i. The Company has disclosed the impact of pendinglitigations on its financial position in its Ind AS financial statements - Refer Note 30to the Ind AS financial statements. ii. We are explained that the Company did not have anylong term contracts including derivative contracts for which there were any materialforeseeable losses. iii. We are explained that there were no amounts which were requiredto be transferred to the Investor Education and Protection Fund by the Company.

For SPMR & ASSOCIATES

Chartered Accountants Firm's Regn. No. 007578N

Sd/-

M S LADHA

Partner

Membership No.: 088221

Place : Faridabad

Date : 15-05-2018

Camp: Ghaziabad

ANNEXURE "A" TO THE INDEPENDENT AUDITOR'S REPORT

(Referred to in paragraph 1 under ‘Report on Other Legal andRegulatory Requirements' section of our report to the Members of Swadeshi Polytex Limitedof even date) We report that: i) In respect of the Company's fixed assets: a) The Companyhas maintained proper records showing full particulars including quantitative details andsituation of fixed assets. b) We are explained that the management has carried out theyear end physical verification of majority of fixed assets. In our opinion the frequencyof physical verification is reasonable having regard to the size and nature of operationsof the Company According to the information and explanations given to us no materialdiscrepancies were noticed on such verification. c) According to the information andexplanations given to us the title deed of immovable property owned by the Company beingPushpak Bhawan at Ahmedabad are stated to be misplaced and the management is in theprocess of obtaining duplicate copy thereof from the concerned Authorities. Further theprovisions of this clause are not applicable in respect of leasehold land owned by theCompany and held as Stock in Trade. ii) The only inventory in hand is in the form of leasehold plot rights for which management has conducted physical verification in the form ofmeasurement frequency of which in our opinion is reasonable and no material discrepancieswere noticed on the physical verification of the same as compared to book records. iii)According to the information and explanations given to us the Company has grantedunsecured loan to a party covered in the register maintained under Section 189 of theCompanies Act 2013 ("the Act") in respect of which: a) In our opinion the rateof interest and other terms and conditions on which the loan had been granted to the partylisted in the register maintained under section 189 of the Act were not prima facieprejudicial to the Company's interest. b) In the case of loan granted to the party listedin the register maintained under Section 189 of the Act we are explained that the same isrepayable on demand. In our opinion repayment of interest is regular in terms of demandmade. We are also explained that no demand has been made during the year about repaymentof principal. c) In our opinion and in view of our comments in (a) and (b) above noamount is overdue for recovery as at the year-end. iv) In our opinion and according to theinformation and explanations given to us the Company had complied with the provisions ofSection 186 of the Act in respect of grant of loan to a party in earlier year. v) TheCompany has not accepted deposits during the year and does not have any unclaimed depositsas at March 31 2018 and therefore the provisions of the clause 3 (v) of the Order arenot applicable to the Company. vi) We are informed that the maintenance of cost recordshas not been specified Government under section 148(1) of the Companies Act 2013 for thebusiness activities carried out by the Company. Thus reporting under clause 3(vi) of theorder is not applicable to the Company. vii) According to the information and explanationsgiven to us in respect of statutory dues: a) The Company has been regular in depositingundisputed statutory dues including Provident Fund Employees' State Insurance IncomeTax Sales Tax Service Tax Goods and Service Tax Value Added Tax Customs Duty ExciseDuty Cess and other material statutory dues applicable to it with the appropriateauthorities and there were no arrears for a period of more than six months from the datethey became payable. b) According to information and explanation given to us and onthe basis of our examination of the books of accounts of the company following are thedetails of sales tax/income tax/custom duty/ service Tax/excise duty which have not beendeposited as at March 31 2018 on account of any dispute:

Name of Statute Nature of Amount Period Forum at which dispute Dues (Inlacs) is pending

Various Sales Tax Acts Sales Tax 15.74 Various Various Forum. TheCustoms Act 1962 Custom 8.50 Various D. C. Customs Duty Mumbai viii) According to theinformation and explanation given to us the Company has not taken any loans or borrowingsfrom financial institutions banks and government and has not issued any debentures. Hencereporting under clause 3 (viii) of the Order is not applicable to the Company. ix) TheCompany has neither raised money by way of initial public offer or further public offer(including debt instruments) and term loans nor applied the previously raised loans ifany during the year under report. Accordingly provisions of clause 3 (ix) of the Orderare not applicable to the Company. x) To the best of our knowledge and according to theinformation and explanations given to us no fraud by the Company or on the Company by itsofficers or employees has been noticed or reported during the course of our audit. xi) Inour opinion and according to the information and explanations given to us the Company haspaid/provided managerial remuneration in accordance with the requisite approvals mandatedby the provisions of section 197 read with Schedule V to the Act. xii) In our opinion andaccording to the information and explanations given to us the Company is not a Nidhicompany. Accordingly paragraph 3(xii) of the Order is not applicable. xiii) In ouropinion and according to the information and explanations given to us the Company is incompliance with Section 177 and 188 of the Companies Act 2013 where applicable for alltransactions with the related parties and the details of related party transactions havebeen disclosed in the Ind AS financial statements as required by the applicable accountingstandards. 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 and hence reporting under clause 3 (xiv) of the Order is not applicable to theCompany. xv) In our opinion and according to the information and explanations given to usduring the year the Company has not entered into any non-cash transactions with itsDirectors or persons connected to its directors and accordingly para 3 (xv) of the Orderis not applicable. xvi) The Company is not required to be registered under section 45-IAof the Reserve Bank of India Act 1934.

For SPMR & ASSOCIATES

Chartered Accountants Firm's Regn. No. 007578N

Sd/-

M S LADHA

Partner

Membership No.: 088221

Place : Faridabad

Date : 15-05-2018

Camp: Ghaziabad

ANNEXURE "B" TO THE INDEPENDENT AUDITOR'S REPORT

(Referred to in paragraph 2(f) under ‘Report on Other Legal andRegulatory Requirements' section of our report to the Members of Swadeshi Polytex Limitedof even date) Report on the Internal Financial Controls Over Financial Reporting underClause (i) of Subsection 3 of Section 143 of the Companies Act 2013 ("the Act")

We have audited the internal financial controls over financialreporting ofSwadeshi Polytex Limited ("the Company") as of 31 March 2018in conjunction with our audit of the Ind AS financial statements of the Company for theyear ended on that date.

Management's Responsibility for Internal Financial Controls

The Company's management is responsible for establishing andmaintaining internalfinancialcontrols based on the internal control overfinancialreportingcriteria 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 internalfinancial controls over financial reporting based on our audit. We conducted our audit inaccordance with the Guidance Note on Audit of Internal Financial Controls over FinancialReporting (the "Guidance Note") and the Standards on Auditing issued by ICAIprescribed under section 143(10) of the Companies Act 2013 to the extent applicable toan audit of internal financial controls both applicable to an audit of Internal FinancialControls and both issued by the Institute of Chartered Accountants of India. ThoseStandards and the Guidance Note require that we comply with ethical requirements and planand perform the audit to obtain reasonable assurance about whether adequate internalfinancial controls over financial reporting was established and maintained and if suchcontrols operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence aboutthe adequacy of the internal financial controls system over financial reporting and theiroperating effectiveness. Our audit of internal financial controls over financial reportingincluded obtaining an understanding of internal financial controls over financialreporting assessing the risk that a material weakness exists and testing and evaluatingthe design and operating effectiveness of internal control based on the assessed risk. Theprocedures selected depend on the auditor's judgment including the assessment of therisks of material 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

Acompany'sinternalfinancial reporting is a process designed to providereasonable assurance regarding the reliability of financial reporting and the preparationexternal purposes in accordance with generally accepted accounting principles. A company'sinternal financial control over financial reporting includes those policies and proceduresthat: a) Pertain to the maintenance of records that in reasonable detail accurately andfairly reflect the transactions and dispositions of the assets of the company; b) Providereasonable assurance that transactions are recorded as necessary to permit preparation offinancial statements in accordance with generally accepted accounting principles and thatreceipts and expenditures of the company are being made only in accordance withauthorizations of management and directors of the company and; c) Provide reasonableassurance regarding prevention or timely detection of unauthorized acquisition use ordisposition of the company's assets that could have a material effect on the financialstatements.

Limitations of Internal Financial Controls Over Financial Reporting

Because of the inherent limitations of internal financial controls overfinancial possibility of collusion or improper management override of controls materialmisstatements due to error or fraud may occur and not be detected. Also projections ofany evaluation of the internal financial controls over financial reporting to futureperiods are subject to the risk that the internal financial control over financialreporting may become inadequate because of changes in conditions or that the degree ofcompliance with the policies or procedures may deteriorate.

Opinion

In our opinion to the best of our information and according to theexplanations given to us 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 2018 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 SPMR & ASSOCIATES

Chartered Accountants Firm's Regn. No. 007578N

Sd/-

M S LADHA

Partner

Membership No.: 088221

Place : Faridabad

Date : 15-05-2018

Camp: Ghaziabad