TO THE MEMBERS OF
SWAGTAM TRADING & SERVICES LTD
Report on the Financial Statements
We have audited the accompanying financial statements of SWAGTAM TRADING & SERVICESLIMITED [CIN: L51909DL1984PLC289131] ("the Company") which comprise of theBalance Sheet as at March 31 2017 and the Statement of Profit and Loss and Cash FlowStatement for the year then ended and a summary of significant accounting policies notesand other explanatory information.
Management's Responsibility for the Financial Statements
The Company's Board of Directors is responsible for the preparation of these financialstatements that give a true and fair view of the financial position financial performanceof the Company in accordance with the Accounting principles generally accepted.
This responsibility also includes maintenance of adequate accounting records forsafeguarding the 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 financial statements that give a true and fair viewand are free from material misstatement whether due to fraud or error.
Our responsibility is to express an opinion on these financial statements based on ouraudit. 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 control relevant to the Company's preparation of the financialstatements that give a true and fair view in order to design audit procedures that areappropriate in the circumstances but not for the purpose of expressing an opinion onwhether the Company has in place an adequate internal financial controls system overfinancial 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 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.
In our opinion and to the best of our information and according to the explanationsgiven to us the financial statements give the information required by the Act in themanner 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 state of affairs of the company as at31.03.2017;
b) in the case of the Profit and Loss Account of the Profit for the year ended on thatdate.
c) in the case of the Cash Flow Statements of the cash flows for the year ended onthat date Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditors' Report) Order 2016 ("theOrder") issued by the Central Government of India in terms of sub - section (11) ofSection 143 of the Act a statement on the matters specified in paragraphs 3 and 4 of theOrder:
We Report that:
i) In respect of Company's Fixed Assets.
a) The company is maintained proper records showing full particulars includingquantitative 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 the Assets were purchased by the company in its own name.
ii) The company is primarily engaged in the business of real estate commission etc.and purchase & sale of jewellery bullion commodities etc. and does not hold anyinventory. Therefore the provisions of Clause 3(ii) of the said Order are not applicableto the Company.
In case of shares verification was carried on at reasonable intervals and nodiscrepancies 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 sales tax service tax duty ofcustoms 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 2017 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 the information and explanations given to us nofraud by Company or any fraud on the company by its Officers or employees has been noticedor 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 inFinancial Statement.
xiv) In our opinion and according to the information and explanations given to us theCompany has not made preferential issue / private placement of shares or debentures duringreporting period.
xv) According to the information and Explanations given to us the Company has notentered into any non - cash transactions with directors or person 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 the Statement of Profit & 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) Rule 2014;
e) 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;
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' and
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 foreseeable losses
iii. Company has provided requisite disclosures in its financial statements (Notesto Account 2.20) as to holdings as well as dealings in Specified Bank Notes duringthe period from 8th November 2016 to 30th December 2016 and these are in accordancewith the books of accounts maintained by the company.
For GHOSH KHANNA & CO.
Firm Registration No.-003366N
Place: New Delhi
Date : 26.05.2017
TO THE INDEPENDENT AUDITOR'S REPORT OF EVEN DATE ON THE STANDALONE FINANCIAL STATEMENTSOF SWAGTAM TRADING AND SERVICES LIMITED [CIN No 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 ("THE ACT")
We have audited the internal financial controls over financial reporting of SwagtamTrading and Services Limited ("the Company") as of March 312017 in conjunctionwith our audit of the standalone financial statements of the Company for the year ended onthat 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 the preventionand detection of frauds and errors the accuracy and completeness of the accountingrecords and the timely preparation of reliable financial information as required underthe Companies Act 2013.
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 judgement 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
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 permitreparation of 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 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.
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 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 GHOSH KHANNA AND CO.
Chartered Accountants Firm Registration No. 003366N
Membership No. 517699
Place : New Delhi
Date : 26.05.2017