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Sword & Shield Pharma Ltd.

BSE: 531637 Sector: Health care
NSE: N.A. ISIN Code: INE722B01019
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NSE 05:30 | 01 Jan Sword & Shield Pharma Ltd
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VOLUME 100
52-Week high 11.96
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OPEN 4.05
CLOSE 4.05
VOLUME 100
52-Week high 11.96
52-Week low 3.91
P/E
Mkt Cap.(Rs cr) 2
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Sword & Shield Pharma Ltd. (SWORDSHIELD) - Auditors Report

Company auditors report

Independent Auditors' Report

To

The Members

SWORD AND SHIELD PHARMA LIMITED

Report on the Financial Statements

We have audited the accompanying financial statements of SWORD AND SHIELD PHARMALIMITED which comprise the Balance Sheet as at March 31 2017 the Statement of Profitand Loss and the Cash Flow Statement for the year then ended and a summary of significantaccounting policies and other explanatory information.

Management's Responsibility for the Financial Statements

The Company's Board of Directors is responsible for the matters in section 134(5) ofthe Companies Act 2013 ("the Act") with respect to the preparation of thesefinancial statements that give a true and fair view of the financial position financialperformance including other comprehensive income cash flows and changes in equity of theCompany in accordance with the accounting principles generally accepted in Indiaincluding the Accounting Standards specified under Section 133 of the Act read with Rule7 of the Companies (Accounts) Rules 2014. This responsibility also includes themaintenance of adequate accounting records in accordance with the provision of the Act forsafeguarding of the assets of the Company and for preventing and detecting the frauds andother irregularities; selection and application of appropriate accounting policies; makingjudgments and estimates that are reasonable and prudent; and design implementation andmaintenance of adequate internal financial control 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.

Auditor's Responsibility

Our responsibility is to express an opinion on these financial statements based on ouraudit.

We have taken into account the provisions of the Act the accounting and auditingstandards and matters which are required to be included in the audit report under theprovisions 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 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 financial control relevant to the

Company's preparation of the financial statements that give true and fair view in orderto design audit procedures that are appropriate in the circumstances. 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.

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid financial statements give the information required by the Actin the manner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India; of the financial position of the Company as at31st March 2017 and its financial performance including other comprehensive income itscash flows and the changes in equity 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 Section 143(11) of the CompaniesAct 2013 we give in the Annexure-A a statement on the matters specified in paragraphs 3and 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 appears from our examination of those books.

c) The Balance Sheet the Statement of Profit and 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) Rules 2014.

e) On the basis of 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 ofSection 164(2) of the Act.

f) With respect to the adequacy of the internal financial control over financialreporting of the Company and the operating effectiveness of such controls refer to ourseparate report in Annexure-B and g) With respect to the other matters included in theAuditor's Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules2014 in our opinion and to the best of our information and according to the explanationsgiven to us :

i. The Company has disclosed the impact of pending litigations on its financialposition in its financial statements

ii. The Company did not have any long-term contracts including derivatives contractsfor which there were any material foreseeable losses.

iii. There were no amounts which required to be transferred to the Investor Educationand Protection

Fund by the Company.

For B. K. PATEL & CO.

CHARTERED ACCOUNTANTS

Firm Reg. No.: 112647W

K. D. PATEL

PARTER

MEMBERSHIP NO.: 39919

Office

301 `Samruddhi'

Opp. Old High Court

Navjivan P.O.

Ahmedabad – 380 014.

Place : Ahmedabad

Date : May 30 2017

Annexure-A to Independent Auditors' Report

(Referred to in Paragraph 1 under the heading of "Report on Other Legal andRegulatory Requirements" of our report of even date)

i. In respect of its fixed assets:

a. As the Company has no fixed assets accordingly clause (a) (b) and (c) of theparagraph 3(i) of the

Order is not applicable.

ii. In respect of its inventories:

a. As the Company has no inventory of any kind accordingly clause (a) (b) and (c) ofthe paragraph

3(ii) of the Order is not applicable.

iii. The Company has not granted any loan to any party listed in the registermaintained under section

189 of the Companies Act accordingly clause (a) and (b) of the paragraph 3(iii) of theOrder is not applicable.

iv. The Company has not given any loan to directors or made any investment or givenany security or guarantee accordingly paragraph 3(xv) of the Order is not applicable.

v. As informed to us the Company has not accepted any deposit from public.

vi. As explained to us the maintenance of cost records under sub section (1) ofsection 148 of the

Companies Act 2013 are not prescribed by the Central Government for the product of theCompany.

vii. In respect of its statutory dues:

a. According to the information and explanations given to us the Company has beengenerally regular in depositing undisputed statutory dues including value added tax cessand any other statutory applicable to it with the appropriate authorities during theperiod. As explained to us Company did not have any dues on account of employees' stateinsurance wealth tax duty of customs. According to the information and explanationsgiven to us no undisputed amounts payable in respect of sales tax customs duty exciseduty cess and other material statutory dues applicable to it were in arrears as at 31stMarch 2017 for a period of more than six months from the date they became payable exceptRs. 44974/- on account of professional tax.

b. According to information and explanation given to us there are no dues of incometax wealth tax sales tax duty of custom duty of excise value added tax and cess whichhave not been deposited on account of any dispute

viii. As Company has no borrowings from any bank or financial institutionsgovernment or debenture holders during the year accordingly paragraph 3(viii) of theOrder is not applicable.

ix. The Company did not raise any money by way of initial public offer (includingdebt instruments) and term loans during the year; accordingly paragraph 3(ix) of the Orderis not applicable.

x. According the information and explanation given to us and to the best of ourknowledge and belief no material fraud on or by the Company was noticed or reportedduring the period.

xi. According to information and explanation given to us and based on ourexamination of the records of the Company the Company has paid for managerialremuneration in accordance with the requisite approvals mandated by the provisions ofSection 197 read with Schedule V to the Act.

xii. In our opinion and according to information and explanation given to us theCompany is not a

Nidhi Company accordingly paragraph 3(xii) of the Order is not applicable.

xiii. In our opinion and according to 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 188 of the Act where applicable and detailsof such transactions have been disclosed in financial statements as required by theapplicable accounting standards.

xiv. In our opinion and according to information and explanation given to us andbased on our examination of the records of the Company the Company has not made anypreferential allotment or private placement of shares or fully or partly convertibledebentures during the year accordingly paragraph 3(xiv) of the Order is not applicable.

xv. In our opinion and according to information and explanation given to us andbased on our examination of the records of the Company the Company has not entered intoany non-cash transactions with directors or persons connected with him accordinglyparagraph 3(xv) of the Order is not applicable.

xvi. In our opinion and according the information and explanation given to us theCompany is not required to be registered under Section 45IA of the Reserve Bank of IndiaAct 1934

For B. K. PATEL & CO. CHARTERED ACCOUNTANTS Firm Reg. No.: 112647W

K. D. PATEL PARTER

MEMBERSHIP NO.: 39919

Office

301 `Samruddhi' Opp. Old High Court Navjivan P.O. Ahmedabad – 380 014.

Place : Ahmedabad Date : May 30 2017

Annexure-B to Independent Auditors' Report

(Referred to in Paragraph 2(f) under the heading of "Report on Other Legal andRegulatory Requirements" of our report of even date)

Report on the Internal Financial Controls Over Financial Reporting under Clause (i) ofSubsection 3 of Section 143 of the Companies Act 2013 ("the Act")

We have audited the internal financial controls over financial reporting of SWORDAND SHIELD PHARMA LIMITED ("the Company") as of 31st March 2017 inconjunction with our audit of the financial statements of the Company for the year endedon that 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.

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") issued by the Institute of Chartered Accountants of Indiaand the Standards on Auditing prescribed under Section 143(10) of the Companies Act 2013to the extent applicable to an audit of internal financial controls. Those Standards andthe Guidance Note require that we comply with ethical requirements and plan and performthe audit to obtain reasonable assurance about whether adequate internal financialcontrols over financial reporting was established and maintained and if such controlsoperated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls system over financial reporting and their operatingeffectiveness. Our audit of internal financial controls over financial reporting includedobtaining an understanding of internal financial controls over financial reportingassessing the risk that a material weakness exists and testing and evaluating the designand operating effectiveness of internal control based on the assessed risk. The proceduresselected depend on the auditors' judgment including the assessment of the risks ofmaterial 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

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 permitpreparation of financial statements in accordance with generally accepted accountingprinciples and that receipts and expenditures of the company are being made only inaccordance with authorisations of management and directors of the company; and

3) provide reasonable assurance regarding prevention or timely detection ofunauthorised 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.

OPINION

In our opinion to the best of our information and according to the explanations givento us the Company has in all material respects an adequate internal financial controlssystem over financial reporting and such internal financial controls over financialreporting were operating effectively as at 31st March 2017 based on the internal controlover financial reporting criteria established by the Company considering the essentialcomponents of internal control stated in the Guidance Note on Audit of Internal FinancialControls Over Financial Reporting issued by the Institute of Chartered Accountants ofIndia.

For B. K. PATEL & CO. CHARTERED ACCOUNTANTS Firm Reg. No.: 112647W

K. D. PATEL PARTER

MEMBERSHIP NO.: 39919

Office

301 `Samruddhi' Opp. Old High Court Navjivan P.O. Ahmedabad – 380 014.

Place : Ahmedabad Date : May 30 2017

DISCLAIMER

We B.K.Patel & Co Chartered Accountants - have relied upon the documentsinformation and explanations provided to us by the management of the Company for thepurpose of forming our observations and views in this report. The responsibility at alltimes for the design and implementation of the related Internal Financial Controlsincluding adequate disclosures will be of the management of the Company including themaintenance of adequate records system and internal control sections and applications ofthe internal policies and safe guarding the assets of the company. The management of theCompany will be responsible for correcting control lapses if any. We are not aware of anyinformation record to the contrary which will lead us to believe that the conclusionstared in this Financial Statements is no longer valid. We have assumed that no changesmodifications of what so ever nature have been made to the policies and proceduresimplemented by the company whether oral or in writing subsequent to the date of reviewspecified in our report. And observations stated in this Financial Statements are to thebest of knowledge of B.K. Patel & Co and such knowledge shall mean the actualknowledge of employees and Partners of B.K. Patel & Co. In course of preparing of thisreport :

1. We have presumed accuracy of all statements information documents andclarifications which were provided to us.

2. We have assumed the genuineness of all signatures on and the authenticity andcompleteness of all documents the copies of which alone have been reviewed by us.

3. We assumed the conformity of originals of all documents supplied to us as photocopyscanned documents PDF files etc.

4. We have assumed that documents submitted to us in connection with any particularissue are the only documents relating to such issue.

Limitations of liability:

In no event B.K. Patel & Co. and / or its Partners and / or its employees shall beheld liable for any direct indirect consequential special incidental or loss damagesor expenses (including without limitation damages loss of profit goodwill opportunitycost loss of goodwill. indemnification etc.) arising out of this report even if we haveadvise for this possible existence. Any decision for depending on our report is to be madeby the Company and no communication by B.K. Patel & Co should be treated as aninvitation or inducement to engage the Company to act as suggested advice in the report.

Circulation of the Report

The above report is for sole and exclusive benefit of the Company. The Company agreesnot to modify derive commercial use exploit any type of undue advantage or benefits fromthe report.

Office For B. K. PATEL & CO.
301 `Samruddhi' CHARTERED ACCOUNTANTS
Opp. Old High Court Firm Reg. No.: 112647W
Navjivan P.O.
Ahmedabad – 380 014.
K. D. PATEL
Place : Ahmedabad PARTER
Date : May 30 2017 MEMBERSHIP NO.: 39919