| Report on the Financial Statements
We have audited the accompanying financial statements of Swadeshi
Polytex Limited ('the Company') which comprise the Balance Sheet as at
31st March 2015, the Statement of Profit & Loss and the Cash Flow
Statement for the year then ended and Notes to Financial Statements
comprising of a summary of significant accounting policies and other
explanatory information.
Management's Responsibility for the Financial Statements
The Company's Board of Directors is responsible for the matters stated
in Section 134(5) of the Companies Act, 2013 ("the Act") with respect
to the preparation of these financial statements that give a true and
fair view of the financial position, financial performance and cash
flows of the Company in accordance with the accounting principles
generally accepted in India, including the Accounting Standards
specified 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 in accordance with the
provisions of the Act for safeguarding of the assets of the Company and
for preventing and detecting frauds and other irregularities; selection
and application of appropriate accounting policies; making judgments
and estimates that are reasonable and prudent; and design,
implementation and maintenance of adequate internal financial controls,
that were operating effectively for ensuring the accuracy and
completeness of the accounting records, relevant to the preparation and
presentation of the financial statements that give a true and fair view
and 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 our audit. We have taken into account the
provisions of the Act, the accounting and auditing standards and
matters which are required to be included in the audit report under the
provisions of the Act and the Rules made thereunder.
We conducted our audit in accordance with the Standards on Auditing
specified under Section 143(10) of the Act. Those Standards require
that we comply with ethical requirements and plan and perform the audit
to obtain reasonable assurance about whether the financial statements
are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and the disclosures in the financial statements. The
procedures selected depend on the auditor's judgment, including the
assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal financial control relevant
to the Company's preparation of the financial statements that give a
true and fair view in order to design audit procedures that are
appropriate in the circumstances. An audit also includes evaluating the
appropriateness of the accounting policies used and the reasonableness
of the accounting estimates made by the Company's Directors, as well as
evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide 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
explanations given to us, the aforesaid financial statements give the
information required by the Act in the manner so required and give a
true and fair view in conformity with the accounting principles
generally accepted in India of the state of affairs of the Company as
at 31st March 2015 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, 2015 ('the
Order') issued by the Central Government of India in terms of
sub-section (11) of section 143 of the Act, we give in the Annexure a
statement on the matters specified in paragraphs 3 and 4 of the Order,
to the extent applicable.
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 best of 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 the Company so far as appears from our examination of those
books;
c) The Balance Sheet, the Statement of Profit & Loss and the Cash Flow
Statement dealt with by this Report are in agreement with the books of
account;
d) In our opinion, the aforesaid financial statements comply with the
Accounting Standards specified under section 133 of the Act, read with
Rule 7 of the Companies (Accounts) Rules, 2014;
e) On the basis of written representation received from the directors
as on 31st March, 2015 taken on record by the Board of Directors, we
report that none of the Directors is disqualified as on 31st March,
2015 from being appointed as a Director in terms of Section 164(2) of
the Act ; and
f) With respect to the other matters to be included in the Auditor's
Report in accordance with Rule 11 of the Companies (Audit and Auditors)
Rules, 2014, in our opinion 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 on its
financial position in its financial statements - Refer Note 2.22.1 to
the financial statements;
ii. We are explained that the Company did not have any long term
contracts including derivative contracts for which there were any
material foreseeable losses.
iii. We are explained that there were no amounts which were required to
be transferred to the Investor Education and Protection Fund by the
Company.
Annexure to the Independent Auditors' Report
Referred to in Paragraph 1 under the heading "Report on Other Legal and
Regulatory Requirements" of our Report to the members of Swadeshi
Polytex Limited for the year ended 31st March 2015. We report that:
(i) (a) The Company has maintained proper records showing full
particulars including quantitative details
and situation of fixed assets.
(b) We are explained that the management has carried out the year end
physical verification of majority of fixed assets. In our opinion, the
frequency of the physical verification is reasonable having regard to
the size and nature of operations of the company. We are explained that
no material discrepancies were noticed on such physical verification.
(ii) (a) The only inventory in hand is in the form of lease hold plot
rights, for which management has conducted
physical verification in the form of measurement, frequency of which in
our opinion is reasonable;
(b) In our opinion and in view of nature of inventory, the action taken
and procedures followed by the management for physical verification of
inventory were found reasonable and adequate.
(c) In our opinion, the company has identified and maintained proper
records in respect of various plots of land and no material
discrepancies were noticed on the physical verification of the same as
compared to book records.
(iii) (a) The Company has granted loan to a party covered in the
register maintained under Section 189 of the
Companies Act, 2013 ("the Act").
(b) In the case of loan granted to the party listed in the register
maintained under Section 189 of the Act, the borrower has been regular
in the payment of interest as stipulated. We are explained that as per
the terms of arrangement, the repayment of principal is yet to
commence. Hence Clause iii (b) of the Order is not applicable in
respect of repayment of the principal amount.
(iv) In our opinion and according to the information and explanations
give to us, there are adequate internal control systems commensurate
with the size of the company and nature of its business with regard to
purchase of fixed assets and trading activities. Further, on the basis
of our examination and according to the information and explanations
given to us, we have neither come across nor have been informed of any
instance of major weakness in the aforesaid internal control
procedures.
(v) During the year under report, the company has not accepted any
deposit from the public to which provisions of sections 73 to 76 of the
Act and relevant rules framed there under apply.
(vi) We are informed that the maintenance of the cost records has not
been prescribed by the Central Government u/s 148(1) of the Act for the
company since no manufacturing activities were carried out by it during
the year under report.
(vii) (a) According to the information and explanation given to us and
on the basis of our examination of the books of account, the company
has been regular in depositing the undisputed statutory dues including
Provident Fund, Employees' State Insurance, Income-tax, Sales-tax,
Wealth Tax, Service Tax, Custom Duty, Excise Duty, value added tax,
cess and any other material statutory dues applicable to it with the
appropriate authorities.
(b) According to information and explanation given to us and on the
basis of our examination of the books of accounts of the company,
following are the details of sales tax/income tax/custom duty/wealth
tax/ service Tax/excise duty/cess, which have not been deposited on
account of any dispute.
Name of Nature of Amount Period Forum at which
Statute Dues (in lacs) dispute is
pending
Various Sales Tax 149.37 Various Various Forum
Sales Tax
Acts
The Central Excise Duty 165.22 Various CESAT & the
Excise Supreme Court
Act, 1944
The Central Penalty on 25.00 2012 CESAT Excise
Excise Duty
Act, 1944
The Customs Custom Duty 8.50 Various D. C. Customs
Act, 1962 Mumbai
(c) According to information and explanation given to us, there were no
amounts required to be transferred to the investor education and
protection fund in accordance with the relevant provisions of the
Companies Act, 1956 and rules made there under.
viii) At the end of the current financial year, company's accumulated
losses were more than 50% of its net worth. Further, the company has
not incurred cash losses during the current financial year as well as
in the immediately preceding financial year.
ix) According to the information and explanation given to us, we are
informed that the company had not borrowed any money from any bank or
financial institution and had not issued debentures during the year
under report.
x) According to the information and explanation given to us by the
Management, the Company had not given any guarantee for loans taken by
others from banks or financial institutions.
xi) We are informed that the Company had not obtained any term loans
during the current financial year.
xii) During the course of our examination of the books and records of
the company carried out in accordance with the generally accepted
auditing practices in India, we have neither come across any instance
of fraud on or by the Company, noticed and reported during the year,
nor have we been informed of such case by the Management.
For SANMARKS & ASSOCIATES
Chartered Accountants
Firm's Regn. No. 003343N
Sd/-
Place: Faridabad S. K. BANSAL
Date: 27th May, 2015 Partner
Membership No.: 082242 |