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Swagtam Trading & Services Ltd.

BSE: 539406 Sector: Others
NSE: N.A. ISIN Code: INE150R01019
BSE 05:30 | 01 Jan Swagtam Trading & Services Ltd
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Swagtam Trading & Services Ltd. (SWAGTAMTRADING) - Auditors Report

Company auditors report

TO THE MEMBERS OF

SWAGTAM TRADING & SERVICES LTD.

Report on the IND AS financial statements

We have audited the accompanying IND AS financial statements of SWAGTAM TRADING &SERVICES LIMITED [CIN:

L51909DL1984PLC289131] (the Company ) which comprise of the Balance Sheet as at March31 2019 and the Statement of Profit and Loss and Cash Flow Statement for the year endedand a summary of significant accounting policies notes and other explanatory information.

Management 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 andpresentation of these standalone IND AS financial statements that give a true and fairview of the financial position financial performance including other comprehensiveincome cash flows and change in equity of the Company in accordance with the accountingprinciples generally accepted in India including the Indian Accounting Standards (AS)prescribed under Section 133 of the Act read with relevant rules issued thereunder. Thisresponsibility also includes maintenance of adequate accounting records 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 IND AS financial statements that give a true and fairview and are free from material misstatement whether due to fraud or error.

Auditors Responsibility

Our responsibility is to express an opinion on these standalone IND AS financialstatements based on our audit. We have taken into account the provisions of the Act theaccounting and auditing standards and matters which are required to be included in theaudit report under the provisions 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 IND AS financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts anddisclosures in the IND AS financial statements. The procedures selected depend on theauditor‘s judgment including the assessment of the risks of material misstatement ofthe IND AS financial statements whether due to fraud or error. In making those riskassessments; the auditor considers internal 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 but not for the purposeof expressing an opinion on whether the Company has in place an adequate internalfinancial controls system over financial reporting and the operating effectiveness of suchcontrols. An audit also includes evaluating the appropriateness of accounting policiesused and the reasonableness of the accounting estimates made by Company‘s Directorsas well as evaluating the overall 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 IND AS financial statements give the information required by the Act inthe 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 31.03.2019; b) in the case of the Statement of Profit andLoss Account of the Profit of the company for the year ended on that date. c) in the caseof the Cash Flow Statements of the cash flows for the year ended on that date

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditors‘ Report) Order 2016 (the Order )issued by the Central Government of

India in terms of sub section (11) of Section 143 of the Act a statement on thematters specified in paragraphs 3 and 4 of the Order: We Report that: i) In respect ofCompany‘s Fixed Assets. a) The company is maintained proper records showing fullparticulars including quantitative details and situation of fixed assets.

b) Fixed assets were physically verified by the management at reasonable intervals.According to the information and explanation given to us no material discrepancies werenoticed on such verification and properly dealt with in the Books of Account. c) All theAssets were purchased by the company in its own name.

ii) The company is primarily engaged in the business of real estate commissionbullion commodities etc. and does not hold any inventory. Therefore the provisions ofClause 3(ii) of the said Order are not applicable to the Company. In case of sharesverification was carried on at reasonable intervals and no discrepancies were noticed.

iii) According to the information and explanations given to us and on the basis of ourexamination of the books of account the Company has not granted loans secured orunsecured to companies firms or other parties covered in the register maintained undersection 189.

iv) According to the information and explanations given to us and on the basis of ourexamination of the books of account the Company has not granted loans made investmentsprovide guarantees or securities under section 185 & 186 of the Companies Act 2013.

v) In our opinion and according to the information and explanations given to us theCompany has not accepted Fixed Deposits and nothing is outstanding and there is nocontravention therefore the provisions of the clause 3 (v) of the Order are notapplicable to the Company.

vi) The provision of clause (3) (vi) of the Order are not applicable to the Company asthe Company is not covered by the Companies (Cost Records and Auditors) Rules 2014.

vii) According to the information and explanations given to us in respect of statutorydues:

a. The Company has been regular in depositing undisputed statutory dues includingprovident fund employees‘ state insurance income tax GST sales tax service taxduty of customs duty of excise value added tax cess and other material statutory duesapplicable to it with the appropriate authorities.

b. There were no undisputed amounts payable in respect of income tax sales taxservice tax duty of customs duty of excise value added tax cess and other materialstatutory dues in arrears as at March 31 2019 for a period of more than six months fromthe date they become payable.

viii) In our opinion and according to the information and explanations given to us theCompany has not accepted nor defaulted in repayment of loans or borrowing to a financialinstitution bank Government or dues to debenture holders and nothing is outstanding.

ix) In our opinion and according to the information and explanations given to us theCompany has not raised any money through IPO / FPO (including debt instruments) and termloans during the year and nothing is outstanding. x) In our opinion and according to theinformation and explanations given to us no fraud by Company or any fraud on the companyby its Officers or employees has been noticed or reported during the year.

xi) In our opinion and according to the information and explanations given to usManagerial Remuneration has been paid or provided in accordance with requisite approvalsmandated by the provisions of section 197 read with schedule V of the Companies Act 2013.xii) Company is not Nidhi company then the provisions of clause (3) (xii) of the Orderare not applicable to the company.

xiii) In our opinion and according to the information and explanations given to us allrelated parties transactions if any wherever applicable have been disclosed in IND-ASfinancial statements. xiv) In our opinion and according to the information andexplanations given to us the Company has not made preferential issue / private placementof shares or debentures during reporting period.

xv) According to the information and explanations given to us the Company has notentered into any non cash transactions with directors or persons connected with himduring the reporting period.

xvi) The company is not required to be registered u/s 45-IA of Reserve Bank of IndiaAct 1934.

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 theStatement of Profit & Loss and Cash Flow Statement dealt with by this Report are inagreement with the books of account;

d) In our opinion the aforesaid IND-AS financial statements comply with the AccountingStandards specified under Section 133 of the Act read with Rule 7 of the Companies(Accounts) Rule 2014;

e) On the basis of written representations received from the Directors as on 31stMarch 2019 and taken on record by the Board of Directors none of the Directors isdisqualified as on 31st March 2019 from being appointed as a director in terms of section164(2) of the Act;

f) With respect to the adequacy of internal financial controls over financial reportingof the company and the operating effectiveness of such controls refer to separate reportin annexure I‘

g) With respect to the other matters to be included in the Auditor‘s Report inaccordance with Rule 11 of the Companies (Audit & Auditors) Rule 2014 in ouropinion and to the best of our information and according to the explanations given to us:

i. Company does not have any pending litigation which would impact its financialposition;

ii. Company did not have any long-term contracts including derivatives contracts forwhich there were any material foreseeablelosses.

For GHOSH KHANNA AND CO.

Chartered Accountants

Firm Registration No. 003366N

(Deepti Manchanda)

Partner

Membership No. 517699

Place: New Delhi

Date: 17.05.2019

ANNEXURE-I

TO THE INDEPENDENT AUDITOR REPORT OF EVEN DATE ON THE STANDALONE IND AS FINANCIAL

STATEMENTS OF SWAGTAM TRADING AND SERVICES LIMITED [CIN: L51909DL1984PLC289131]

(as referred in Paragraph 2 of Other Legal and Regulatory Matters in IndependentAuditor‘s Report)

REPORT ON THE INTERNAL FINANCIAL CONTROLS UNDER CLAUSE (I) OF SUB-SECTION 3 OF SECTION143 OF THE COMPANIES ACT 2013 (gTHE ACTh)

We have audited the internal financial controls over financial reporting of SWAGTAMTRADING AND SERVICES LIMITED (the Company ) as of March 31 2019 in conjunction with ouraudit of the standalone IND AS financial statements of the Company for the year ended onthat date.

MANAGEMENT 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 ) and the Standards on Auditing issued by ICAI and deemed to beprescribed 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 performingprocedures to obtain audit evidence about the adequacy of the internal financial controlssystem over financial reporting and their operating effectiveness. Our audit of internalfinancial controls over financial reporting included obtaining an understanding ofinternal financial controls over financial reporting assessing the risk that a materialweakness exists and testing and evaluating the design and operating effectiveness ofinternal control based on the assessed risk. The procedures selected depend on theauditor‘s judgement including the assessment of the risks of material misstatementof the IND AS financial statements whether due to fraud or error. We believe that theaudit evidence we have obtained is sufficient and appropriate to provide a basis for ouraudit opinion on the Company‘s internal financial controls system over financialreporting.

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 IND AS financial statements for external purposes in accordancewith generally accepted accounting principles. A company‘s internal financial controlover financial reporting 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 permitreparation of IND AS financial statements in accordance with generally accepted accountingprinciples and that receipts and expenditures of the company are being made only inaccordance with authorizations of management and directors of the company; and

3) provide reasonable assurance regarding prevention or timely detection ofunauthorized acquisition use or disposition of the company‘s assets that could havea material effect on the IND AS 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 2019 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 GHOSH KHANNA AND CO.

Chartered Accountants

Firm Registration No. 003366N

(Deepti Manchanda)

Partner

Membership No. 517699

Place: New Delhi

Date: 17.05.2019