The members of
Swastika Investmart Limited
305 Madhuban Building Cochin Street S.B.S Road Fort
Mumbai Maharashtra - 400001
Report on the Standalone Financial Statements
We have audited the accompanying standalone financial statements of SWASTIKA INVESTMARTLIMITED("the Company") which comprise the Balance Sheet as at 31st March 2017the Statement of Profit and Loss the Cash Flow Statement for the year then ended and asummary of the significant accounting policies and other explanatory information.
Management's Responsibility for the Standalone 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 ofthese standalone financial statements that give a true and fair view of the financialposition financial performance and cash flows of the Company in accordance with theaccounting principles generally accepted in India including the Accounting Standardsspecified under Section 133 of the Act read with Rule 7 of the Companies (Accounts)Rules 2014.
This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding of the assets of the Companyand 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 financial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.
Our responsibility is to express an opinion on these standalone financial statementsbased on our audit. We have taken into account the provisions of the Act the accountingand auditing standards and matters which are required to be included in the audit reportunder the provisions of the Act and the Rules made thereunder.
We have conducted our audit in accordance with the Standards on Auditing specifiedunder Section 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 andthe disclosures in the financial statements. The procedures selected depend on theauditor's judgment including the assessment of the risks of material misstatement of thefinancial statements whether due to fraud or error. In making those risk assessments theauditor considers internal financial control relevant to the Company's preparation of thefinancial statements that give a true and fair view in order to design audit proceduresthat are appropriate in the circumstances.
An audit also includes evaluating the appropriateness of the accounting policies usedand the reasonableness of the accounting estimates made by the Company's Directors aswell as evaluating the overall presentation 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 standalone financial statements.
In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid standalone financial statements give the information requiredby the Act in the manner so required and give a true and fair view in conformity with theaccounting principles generally accepted in India of the state of affairs of the Companyas at 31st March 2017 and its profit and its cash flows 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 of India in terms of sub-section (11) of section 143 ofthe Act 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 it appears from our examination of those books.
(c) The Balance Sheet the Statement of Profit and Loss and the Cash Flow Statementdealt with by this Report are in agreement with the books of account.
(d) In our opinion the aforesaid standalone financial statements comply with theAccounting Standards specified under Section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014.
(e) On the basis of the written representations received from the directors as on 31stMarch 2017 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 the internal financial controls over financialreporting of the Company and the operating effectiveness of such controls refer to ourseparate Report in "Annexure B".
(g) With respect to the other matters to be 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 - Refer Note 22 to the financial statements;
ii. The company did not have any long term contracts including derivative contracts forwhich there were any material foreseeable losses.
iii. There has been no delay in transferring amounts required to be transferred tothe Investor Education and Protection Fund by the Company.
3. As required by Rule 11 of clause (d) of the Companies (Audit and Auditors) Rules2014 we report that:
The Company has provided requisite disclosures in the financial statements as toholdings as well as dealings in Specified Bank Notes during the period from 8th November2016 to 30th December 2016. Based on audit procedures and relying on the managementrepresentation we report that the disclosures are in accordance with books of accountmaintained by the Company and as produced to us by the Management. (Refer Note 22 pointno.14 to financial statement)
| ||FOR R.S. BANSAL & COMPANY |
| ||CHARTERED ACCOUNTANTS |
| ||FRN-000939C |
| ||(VIJAY BANSAL) |
|Date: 25th May 2017 ||(PARTNER) |
|Place: Indore ||M.NO. 075344 |
"Annexure A" to the Independent Auditor's Report
Referred to in paragraph first under the heading of "Report on Other Legal andRegulatory Requirements" of our report of even date to the members of SwastikaInvestmart Limited for the year ended on 31st March 2017.
As required by the Companies (Auditor's Report) Order issued by the Central Governmentin the terms of Section 143(11) of the Companies Act 2013 we further report that:-
(1) Fixed Assets: -
(a) As informed to us the company is maintaining proper records showing fullparticulars including quantitative details and situation of fixed assets. The entirerecords have been maintained in electronic form.
(b) As per information and explanation given to us these fixed assets have beenphysically verified by the management at reasonable intervals which in our opinion isreasonable having regard to the size of the Company and nature of its assets and nomaterial discrepancies were observed on such verification.
(c) As per information and explanation given to us there is no immovable property heldin the name of the company.
(2) Inventories: -
The inventory of the company comprises of shares and securities which have beenphysically verified during the year by the management at reasonable intervals and therewere no material discrepancies noticed on physical verification of stock as compared tobook records.
(3) Loan Granted: -
(a) According to the information and explanation given to us the Company has grantedunsecured loan to Swastika Commodities Private Limited being the company covered in theregister maintained under section 189 of the Companies Act 2013.
(b) As per information and explanation given to us there was no stipulation as topayment of principal; Hence we are unable to comment on this clause.
(c) As per the information provided to us the other terms & conditions of thegrant of such loan are not prejudicial to the interest of the Company.
(d) There was no amount overdue as at the end of the year.
(4) Loans Investments Securities and Guarantees: -
According to the information and explanation given to us the Company has granted loanto Swastika Commodities Private Limited and also provided guarantee in connection with aloan taken by Swastika Commodities Private Limited in compliance with the provisions ofSection 185 of the Act and in respect of investment made the company has complied withall the provisions of section 186 of the Act.
(5) Public Deposit: -
In our opinion and according to the information and explanation given to us thecompany has neither accepted nor invited any deposit from public within the provision ofSection 73 to 76 of Companies Act 2013 and rules made there under. As explained andinformed to us no order against the company has been passed by the Company Law BoardNational Company Law Tribunal or Reserve Bank of India or any tribunal/court.
(6) Cost Record: -
As informed to us the Central Government has not prescribed the maintenance of costrecords under Section 148(1) of the Companies Act 2013.
(7) Statutory Dues: -
(a) According to the information and explanation given to us the Company has beengenerally regular in depositing undisputed statutory dues relating to Provident FundEmployees' State Insurance Income Tax Sales Tax Service Tax Duties of Customs Dutiesof Excise Value Added Tax and any other statutory dues applicable to it with appropriateauthorities. There are no undisputed statutory dues payable which are outstanding as at31-03-2017 for a period of more than 6 months from the date they become payable except tothe following :
|S. No. Particulars Amount (in Rs.) || |
|1. Income Tax on Assessment ( A.Y. 2008-09 & 2009-10) ||394000/- |
(b) As informed and explained to us there are some dues of Income Tax Commercial Taxand other material statutory dues which have not been deposited on accounts of somedispute which are detailed as below:-
| || || ||(Amount in Rupees) |
|Statute ||Forum where Dispute is pending ||Amount involved ||Financial Year to which the amount relates |
|Income Tax Act ||CIT (A) - 9 Mumbai ||15573290/- ||F.Y. 2013-14 (A.Y. 2014-15) |
|Income Tax Act ||CIT (A) - 9 Mumbai ||522970/- ||F.Y. 2012-13 (A.Y. 2013-14) |
|Income Tax Act ||CIT (A) - 9 Mumbai ||980090/- ||F.Y. 2011-12 (A.Y. 2012-13) |
|Income Tax Act ||ITAT Mumbai ||5356928/- ||F.Y. 2010-11 (A.Y. 2011-12) |
|Income Tax Act ||CIT (A) - 9 Mumbai ||93375/- ||F.Y. 2006-07 (A.Y. 2007-08) |
(8) Default in repayment of dues to Financial Institutions Banks Government ordebenture holders: -
Based on our audit and according to information and explanation given to us by themanagement we are of the opinion that the company has not defaulted in repayment of duesto Financial Institutions Banks or Government and no debentures have been issued by theCompany till the date.
(9) Application of Term Loans and Initial/Further Public Offer:-
According to information and explanation given to us the company has not raised moneyby way of Initial/Further Public Offer and no term loan has been obtained by the company.
(10) Fraud Noticed or Reported: -
To the best of our knowledge and belief and according to the information &explanation given to us no fraud by the company or any fraud on the company by itsofficers or employees was noticed or reported during the year.
(11) Managerial Remuneration:-
As informed and explained to us the managerial remuneration has been provided inaccordance with the requisite approvals mandated by the provisions of section 197 readwith schedule V to the Companies Act 2013.
(12) Nidhi Company:-
To the best of our knowledge and belief the company is not a Nidhi Company; hence thisclause is not applicable.
(13) Related Party Transactions:-
To the best of our knowledge and belief and according to the information &explanation given to us all the transactions with the related parties are in accordancewith the provisions of section 188 and 177 of the Companies
Act 2013 and all the details have been disclosed in the Financial Statements asrequired by the accounting standards.
(14) Preferential Allotment/ Private Placement: -
As informed and explained to us the company has not made any preferential allotment/private placement of shares or fully or partly convertible debentures during the year.
(15) Non-Cash Transactions:-
According to information and explanation given to us the company has not entered intoany non-cash transactions with directors or persons connected with him.
(16) Registration with Reserve Bank of India: -
The Company is engaged in share broking business and therefore the Company is notrequired to be registered under section 45-IA of the Reserve Bank of India.Act 1934.
| ||For R. S. Bansal & Company |
| ||Chartered Accountants |
| ||Firm Reg. No.: 000939C |
| ||Vijay Bansal |
|Place: Indore ||Partner |
|Date: 25th May 2017 ||Membership No. : 075344 |