Report on the audit of the Standalone Financial Statements To
The Members of Swastika Investmart Limited
We have audited the standalone financial statements of SwastikaInvestmart Limited ("the Company") which comprise the balance sheet as at 31March 2021 and the statement of profit and loss (including other comprehensive income)statement of changes in equity and statement of cash flows for the year then ended andnotes to the standalone financial statements including a summary of the significantaccounting policies and other explanatory information. In our opinion and to the best ofour information and according to the explanations given to us the aforesaid standalonefinancial statements give the information required by the Companies Act 2013("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 of theCompany as at 31 March 2021 and profit and other comprehensive income changes in equityand its cash flows for the year ended on that date.
Basis for Opinion
We conducted our audit in accordance with the Standards on Auditing(SAs) specified under Section 143(10) of the Act. Our responsibilities under those SAs arefurther described in the Auditor's Responsibilities for the Audit of the FinancialStatements section of our report. We are independent of the Company in accordance with theCode of Ethics issued by the Institute of Chartered Accountants of India together with theethical requirements that are relevant to our audit of the standalone financial statementsunder the provisions of the Act and the Rules there under and we have fulfilled our otherethical responsibilities in accordance with these requirements and the Code of Ethics. Webelieve that the audit evidence we have obtained is sufficient and appropriate to providea basis for our opinion.
Key Audit Matters
Key audit matters are those matters that in our professional judgmentwere of most significance in our audit of the standalone financial statements of thecurrent period. These matters were addressed in the context of our audit of the standalonefinancial statements as a whole and in forming our opinion thereon and we do not providea separate opinion on these matters.
We have determined the matters described below to be the key auditmatters to be communicated in our report:
|Key Audit Matter ||Auditor's Response |
|Provisions and Contingent liabilities in respect of certain litigations of Assessment of Direct and Indirect Taxes not acknowledged as debt (Note No. 31 read with Note No. l(C)xiii to the consolidated financial statements): ||Our audit approach involved |
| ||a. Understanding the current status of the litigations/tax assessments; |
| ||b. Examining communication received from various Tax Authorities/ Judicial forums and follow up action thereon; |
|The Company has material uncertain tax positions including matters under dispute which involves significant judgment to determine the possible outcome of these disputes. The company assessment is supported by the facts of matter there own judgement post experience. Accordingly unexpected adverse outcomes may significantly impact the company reported profit and the balance sheet. ||c. Evaluating the merit of the subject matter under consideration with reference to available independent legal advice; and |
|We determined the above area as a key Audit matter in view of associated uncertainly relating to the outcome of these matters. ||d. Review and analysis of evaluation of the contentions of the Company through discussions collection of details of the subject matter under consideration and the likely outcome. |
The Company's management and Board of Directors are responsiblefor the other information. The other information comprises the information included in theCompany's annual report but does not include the standalone financial statements andour auditors' report thereon.
Our opinion on the standalone financial statements does not cover theother information and we do not express any form of assurance conclusion thereon. Inconnection with our audit of the standalone financial statements our responsibility is toread the other information and in doing so consider whether the other information ismaterially inconsistent with the standalone financial statements or our knowledge obtainedin the audit or otherwise appears to be materially misstated. Based on the work we haveperformed we conclude that there is a material misstatement of this other information; weare required to report that fact. We have nothing to report in this regard.
Management's Responsibility for the Standalone FinancialStatements
The Company's management and Board of Directors are responsiblefor the matters stated in Section 134(5) of the Act with respect to the preparation ofthese standalone financial statements that give a true and fair view of the state ofaffairs loss and other comprehensive income changes inequity and cash flows of theCompany in accordance with the accounting principles generally accepted in Indiaincluding the Indian Accounting Standards (Ind AS) specified under section 133 of the Act.
This responsibility also includes maintenance of adequate accountingrecords in accordance with the provisions of the Act for safeguarding of 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 standalone financial statements that give a true and fair view and are free frommaterial misstatement whether due to fraud or error.
In preparing the standalone financial statements management and Boardof Directors are responsible for assessing the Company's ability to continue as a goingconcern disclosing as applicable matters related to going concern and using the goingconcern basis of accounting unless management either intends to liquidate the Company orto cease operations or has no realistic alternative but to do so. Board of Directors isalso responsible for overseeing the Company's financial reporting process.
Auditor's Responsibilities for the Audit of the StandaloneFinancial Statements
Our objectives are to obtain reasonable assurance about whether thestandalone financial statements as a whole are free from material misstatement whetherdue to fraud or error and to issue an auditor's report that includes our opinion.Reasonable assurance is a high level of assurance but is not a guarantee that an auditconducted in accordance with SAs will always detect a material misstatement when itexists. Misstatements can arise from fraud or error and are considered material ifindividually or in the aggregate they could reasonably be expected to influence theeconomic decisions of users taken on the basis of these standalone financial statements.
As part of an audit in accordance with SAs we exercise professionaljudgment and maintain professional skepticism throughout the audit. We also:
Identify and assess the risks of material misstatement of thestandalone financial statements whether due to fraud or error design and perform auditprocedures responsive to those risks and obtain audit evidence that is sufficient andappropriate to provide a basis for our opinion. The risk of not detecting a materialmisstatement resulting from fraud is higher than for one resulting from error as fraudmay involve collusion forgery intentional omissions misrepresentations or the overrideof internal control.
Obtain an understanding of internal control relevant to theaudit in order to design audit procedures that are appropriate in the circumstances. UnderSection143(3)(i) of the Act we are also responsible for expressing our opinion on whetherthe company has adequate internal financial controls with reference to standalonefinancial statements in place and the operating effectiveness of such controls.
Evaluate the appropriateness of accounting policies used and thereasonableness of accounting estimates and related disclosures made by management.
Conclude on the appropriateness of management's use of the goingconcern basis of accounting and based on the audit evidence obtained whether a materialuncertainty exists related to events or conditions that may cast significant doubt on theCompany's ability to continue as a going concern. If we conclude that a materialuncertainty exists we are required to draw attention in our auditor's report to therelated disclosures in the standalone financial statements or if such disclosures areinadequate to modify our opinion. Our conclusions are based on the audt evidence obtainedup to the date of our auditor's report. However future events or conditions may cause theCompany to cease to continue as a going concern.
Evaluate the overall presentation structure and content of thestandalone financial statements including the disclosures and whether the standalonefinancial statements represent the underlying transactions and events in a manner thatachieves fair presentation. We communicate with those charged with governance regardingamong other matters the planned scope and timing of the audit and significant auditfindings including any significant deficiencies in internal control that we identifyduring our audit.
We also provide those charged with governance with a statement that wehave complied with relevant ethical requirements regarding independence and tocommunicate with them all relationships and other matters that may reasonably be thoughtto bear on our independence and where applicable related safeguards. From the matterscommunicated with those charged with governance we determine those matters that were ofmost significance in the audit of the standalone financial statements of the currentperiod and are therefore the key audit matters.
We describe these matters in our auditors' report unless law orregulation precludes public disclosure about the matter or when in extremely rarecircumstances we determine that a matter should not be communicated in our report becausethe adverse consequences of doing so would reasonably be expected to outweigh the publicinterest benefits of such communication.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditors' Report)Order 2016("the Order") issued by the Central Government in terms of Section 143(11) ofthe Act we give in the "Annexure A" a statement on the matters specified inparagraphs 3 and 4 of the Order to the extent applicable.
(A) As required by Section 143(3) of the Act were report that:
(a) We have sought and obtained all the information and explanationswhich to the best of our knowledge and belief were necessary for the purposes of ouraudit.
(b) In our opinion proper books of account as required by law havebeen kept by the Company so far as it appears from our examination of those books.
(c) The balance sheet the statement of profit and loss (includingother comprehensive income) the statement of changes in equity and the statement of cashflows dealt with by this report are in agreement with the books of account.
(d) In our opinion the aforesaid standalone financial statementscomply with the Ind AS specified under Section 133 of the Act.
(e) On the basis of the written representations received from thedirectors as on 31 March 2021 taken on record by the Board of Directors none of thedirectors is disqualified as on 31 March 2021 from being appointed as a director in termsof Section 164(2) of the Act.
(f) With respect to the adequacy of the internal financial controlswith reference to standalone financial statements of the Company and the operatingeffectiveness of such controls refer to our separate report in "Annexure B".
(B) With respect to the other matters to be included in the Auditors'Report in accordance with Rule11 of the Companies (Audit and Auditors) Rules 2014 in ouropinion and to the best of our information and according to the explanations given to us:
i. The Company has disclosed the impact of pending litigations as at 31March 2021 on its financial position in its standalone financial statements - Refer Note31(ii) to the standalone financial statements;
ii. The Company did not have any long-term contracts includingderivative contracts for which there were any material foreseeable losses.
iii. There has been no delay in transferring amounts required to betransferred to the Investor Education and Protection Fund by the Company.
(C) With respect to the matter to be included in the Auditors' Reportunder Section 197(16):
In our opinion and according to the information and explanations givento us the remuneration paid by the Company to its directors during the current year is inaccordance with the provisions of Section 197of the Act. The remuneration paid to anydirector is not in excess of the limit laid down under Section 197of the Act. The Ministryof Corporate Affairs has not prescribed other details under Section 197(16) which arerequired to be commented upon by us.
Annexure A to the Independent Auditor's Report of even date on theStandalone Financial Statements of Swastika Investmart Limited for the year ended March31 2021
(Referred in paragraph 1 under the heading "Report on other Legaland Regulatory Requirement" of our report of even date to the members of SwastikaInvestmart Limited for the year ended 31st March 2021)
(I) (a) The Company has maintained proper record showing fullparticulars including quantitative details and situation of fixed assets.
(b) As informed to us the management of the Company has physicallyverified the fixed assets at reasonable intervals which in our opinion is reasonablehaving regards to the size of the Company and nature of its assets and no materialdiscrepancies were noticed on such verification.
(c) As per the information and explanations given to us there is noimmovable property.
(II) As explained to us the inventory of the company comprises ofshares and securities have been kept in dematerialized form which have been verifiedduring the year by the management at reasonable intervals and there were no materialdiscrepancies noticed on verification with Demat statement as compared to book records.
(III) As per the information and explanation given to us the Companyhas not granted secured/unsecured loans to companies firms LLP or other parties coveredin the register maintained under section 189 of the Companies Act 2013.
(IV) According to the information and explanation given to us theCompany provided guarantee in connection with a loan taken by Swastika Commodities PrivateLimited in compliance with the provisions of Section 185 of the Act and in respect ofinvestment made the company has complied with all the provisions of section 186 of theAct.
(V) In our opinion and as per the information and explanation given tous the Company has not accepted any deposits from the public within the meaning ofSection 73 to 76 of the Act and rules framed there under to the extent notified.
(VI) As informed to us the Central Government has not prescribed themaintenance of cost records under Section 148(1) of the Companies Act 2013.
(VI I) (a) According to the information and explanation given to usand the records of the company examined by us in our opinion the Company is generallyregular in depositing undisputed dues relating to Provident Fund Employees' StateInsurance Income Tax Duties of Customs Duties of Excise Value Added Tax Goods andService Tax Cess and other material statutory dues as applicable to it with appropriateauthorities. There are no undisputed statutory dues payable which are outstanding as atMarch 31st 2021 for a period of more than 6 months from the date they became payable.
(b) According to the information given to us and the records of thecompany examined by us there are no dues of Income tax Sales Tax Custom duty Exciseduty Value added tax Goods and Service Tax Cess and Professional tax which have notbeen deposited with appropriate authorities on account of any dispute other than mentionedbelow :
|Statute ||Forum where Dispute is pending ||Amount involved ||Financial Year to which the amount relates |
|Income Act Tax ||CIT(A)-9 Mumbai ||1094319/- ||F.Y. 2014-15 (A.Y. 2015-16) |
|Income Act Tax ||CIT(A)-9 Mumbai ||522970/- ||F.Y. 2012-13 (A.Y. 2013-14) |
|Income Act Tax ||CIT(A)-9 Mumbai ||109689/- ||F.Y. 2016-17 (A.Y. 2017-18) |
|Income Act Tax ||CIT(A)-9 Mumbai ||93375/- ||F.Y. 2006-07 (A.Y. 2007-08) |
(VIII) According to the records of the Company examined by us and theinformation and explanation given to us the Company has not defaulted in repayment ofloans or borrowings to any bank as at the Balance Sheet date. The Company neither has anyloans or borrowings from financial institutions or Government nor has it issued anydebentures as at the Balance Sheet date.
(IX) According to information and explanation given to us the companyhas not raised money by way of Initial/Further Public Offer and no term loan has beenobtained by the company during the year.
(X) During the course of our examination of the books and records ofthe Company carried out in accordance with the generally accepted auditing practices inIndia and according to the information and explanations given to us we have neither comeacross any instance of fraud by the Company or on the Company by its officers oremployees noticed or reported during the year nor have we been informed of any such caseby the Management.
(XI) According to the information and explanation given to us andbased on documents provided to us the managerial remuneration has been paid/ provided inaccordance with the requisite approvals mandated by the provisions of section 197 readwith schedule V to the Companies Act 2013.
(XII) As the Company is not a Nidhi Company and the Nidhi Rules 2014are not applicable to it the provisions of Clause 3(xii) of the Order are not applicableto the Company.
(XIII) According to the 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 section 188 of the Act. The details of suchtransactions have been disclosed in the standalone financial statements as required underIndian Accounting Standard (Ind AS) 24 Related Party Disclosures specified under section133 of the Act.
(XIV) According to the information and explanation given to us theCompany has not made any preferential allotment/private placement of shares or fully orpartly convertible debenture during the year.
(XV) According to the information and explanation given to us theCompany has not entered into any non-cash transactions with Directors or Persons connectedwith them.
(XVI) The Company is not required to be registered under section 45-IAof the Reserve Bank of India Act 1934.
Annexure B to the Independent Auditor's Report of even date on thestandalone financial statements of Swastika Investmart Limited for the year ended March31 2021
Report on the Internal Financial Controls under clause (i) ofSub-section 3 of Section 143 of the Companies Act 2013 ("the Act")
We have audited the internal financial controls with reference tostandalone financial statements of Swastika Investmart Limited ("the Company")as of March 31 2021 in conjunction with our audit of the standalone financial statementsof the Company for the year ended on that date.
Management's Responsibility for Internal Financial Controls
The Company's management is responsible for establishing andmaintaining internal financial controls based on the internal control with reference tostandalone financial statements criteria established by the Company considering theessential components of internal control stated in the Guidance Note on Audit of InternalFinancial Controls Over Financial Reporting issued by The Institute of CharteredAccountants of India (ICAO. These responsibilities include the designimplementation and maintenance of adequate internal financial controls that were operatingeffectively for ensuring the orderly and efficient conduct of its business includingadherence to Company's policies the safeguarding of its assets the prevention anddetection of frauds and errors the accuracy and completeness of the accounting recordsand the timely preparation of reliable financial information as required under theCompanies Act 2013.
Our responsibility is to express an opinion on the Company's internalfinancial controls with reference to standalone financial statements based on our audit.We conducted our audit in accordance with the Guidance Note on Audit of Internal FinancialControls Over Financial Reporting (the "Guidance Note") and the Standards onAuditing issued by ICAI and deemed to be prescribed under section 143(10) of theCompanies Act 2013 to the extent applicable to an audit of internal financial controlsboth applicable to an audit of Internal Financial Controls and both issued by TheInstitute of Chartered Accountants of India. Those Standards and the Guidance Note requirethat we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether adequate internal financial controls with reference tostandalone financial statements was established and maintained and if such controlsoperated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence aboutthe adequacy of the internal financial controls system with reference to standalonefinancial statements and their operating effectiveness. Our audit of internal financialcontrols with reference to standalone financial statements included obtaining anunderstanding of internal financial controls with reference to standalone financialstatements 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 standalone financial statements whether due tofraud or error.
We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our audit opinion on the Company's internal financialcontrols system with reference to standalone financial statements.
Meaning of Internal Financial Controls with reference to StandaloneFinancial Statements
A company's internal financial control with reference to standalonefinancial statements is a process designed to provide reasonable assurance regarding thereliability of financial reporting and the preparation of standalone financial statementsfor external purposes in accordance with generally accepted accounting principles. Acompany's internal financial control with reference to standalone financial statementsincludes those policies and procedures that (1) pertain to the maintenance of recordsthat 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 standalone financialstatements in accordance with generally accepted accounting principles and that receiptsand expenditures 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 standalone financial statements.
Inherent Limitations of Internal Financial Controls with reference toStandalone Financial Statements
Because of the inherent limitations of internal financial controls withreference to standalone financial statements including the possibility of collusion orimproper management override of controls material misstatements due to error or fraud mayoccur and not be detected. Also projections of any evaluation of the internal financialcontrols with reference to standalone financial statements to future periods are subjectto the risk that the internal financial control with reference to standalone financialstatements may become inadequate because of changes in conditions or that the degree ofcompliance with the policies or procedures may deteriorate.
In our opinion the Company has in all material respects an adequateinternal financial controls system with reference to standalone financial statements andsuch internal financial controls with reference to standalone financial statements wereoperating effectively as at March 31 2021 based on the internal control 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.
| ||For S A H A J AND COMPANY |
| ||Chartered Accountants |
| ||FRN: 020149C |
|Place: Indore ||(CA. Tarun Sawlani) |
|Date: May 25 2021 ||Partner |
|UDIN: 21429351AAAACT2693 ||M No: 429351 |