1. We have audited the attached balance sheet of M/s Ind-Swift Limited
as on 30th June 2012 and also the Statement of Profit and Loss Account
and the Cash Flow Statement of the Company for the 15 month period the
ended on the same date annexed thereto. These financial statements are
the responsibility of the Company''s Management. Our responsibility is
to express an opinion on these financial statements based on our audit.
2. We conducted our audit in accordance with auditing standards
generally accepted in India. These standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by the Management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides a reasonable
basis for our opinion.
3. As required by Companies (Auditor''s Report) Order, 2003, and as
amended by Companies (Auditors Report) (Amendment) Order, 2004, issued
by the Central Government of India in terms of Section 227 (4A) of the
Companies Act, 1956, we annex hereto a statement on the matters
specified in paragraph 4 and 5 of the said order.
4. Further to our comments in the annexure referred to in paragraph
a. We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary the for purpose of our
b. In our opinion, proper books of accounts as required by law have
been kept by the Company so far as appears from our examination of such
c. The Balance Sheet and Statement of Profit and Loss Account and Cash
Flow Statement referred to in this Report are in agreement with the
books of accounts.
d. In our opinion the statement of Profit and Loss Account and Balance
Sheet and cash flow statements comply with the requirements of the
accounting standards referred to in Sub Section (3c) of Section 211 of
the Companies Act 1956.
e. During the course of our Audit, we have not come across any such
observation which has any adverse effect on the functioning of the
f. Pursuant to the provisions of sub section (l)(g) of section 274 of
the Companies Act 1956, we report as under:
On the basis of written representations received from the Directors and
taken on record by the Board of Directors, we report that none of the
Directors is disqualified as on 30th June, 2012 from being appointed as
a Director of the Company in terms of clause (g) of sub section (1) of
section 274 of the Companies Act, 1956.
g. In our opinion and to the best of our information and according to
the explanations given to us, they said statement of accounts read with
and subject to notes thereon, give the information required by the
Companies Act,1956 in the manner as required and give a true and fair
a) In case of the Balance Sheet, of the state of affairs of the Company
as at 30th June,2012
b) In the case of the Statement of Profit and Loss Account, of the loss
for the period ended on 30th June 2012 and
c) In the case of Cash flow Statement, of the Cash Flow of the Company
for the period ended on that date.
(i) (a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
(b) According to information and explanations given to us, the Company
has a system of physical verification of all its fixed assets once in a
year, which in our opinion is reasonable having regard to the size of
the Company and the nature of its assets. No serious discrepancies were
noticed on such verification.
(c) During the period, Company has no disposed off any
substantial/major part of fixed assets.
(ii) (a) As explained to us, the stocks of stores, spare parts, raw
materials and finished goods have been physically verified by the
management at regular intervals during the period.
(b) In our opinion and according to information & explanations given to
us, the Procedure of physical verification of stocks followed by the
management are reasonable and adequate in relation to the size of the
Company and the nature of its business.
(c) In our opinion & according to the information & explanations given
to us and on the basis of our examination of the records of inventory,
the Company is maintaining proper records of its inventory. The
discrepancies noticed on physical verification of stocks of stores,
spare parts, raw material and finished goods were not significant in
relation to the operations of the Company and the same have been
properly dealt with in the books of accounts.
(iii) (a) According to the information and explanation given to us, the
Company has granted loans, secured or unsecured to Companies, firms or
other parties covered in the register maintained u/s 301 of the
Companies Act, 1956. As regards the loan given, Company has granted
loan to parties and the balance outstanding as on 30th June ,2012 of
Balance Sheet is Rs. 5592.24 lacs.
(b) According to the information & explanations given to us, the loans
granted are unsecured and in our opinion, the terms & conditions of
loans granted, are not prima facie prejudicial to the interests of the
Company except the fact that the rate of interest charged on loans to
sister concern i.e. Swift fundamental research & education society, at
a lower rate of 12% p.a.
(c) According to the information & explanations given to us, the
Company as well as the parties to whom loan have been given are regular
in repayment of principal amount and payment of interest as stipulated.
(iv) In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the Company and the nature of its
business with regard to purchase of stores, raw materials including
components, plant and machinery, equipment and other assets and for the
sale of goods.
(v) In respect of transactions entered in the register maintained in
pursuance of section 301 of the Companies Act, 1956.
(a) To the best of our knowledge and belief and according to the
information and explanations given to us, the transactions that needed
to be entered into the register have been so entered.
(b) According to the information and explanations given to us, the
transactions exceeding Rs,5,00,000/- (Rupees five lacs only) have been
made at prices, which are prima facie, reasonable having regard to the
prevailing market prices at the relevant time.
(vi) In our opinion and according to the information and explanations
given to us, the Company has complied with the directions issued by the
Reserve Bank of India and provisions of Section 58A & 58AA of the
Companies Act,1956 and the rules framed there under with regard to the
deposits accepted from the public.
(vii) In our opinion, Internal Audit System followed by the management
is commensurate with the size of the Company and nature of its
(viii) The Company is required to maintain cost records under section
209 (l)(d) of the Companies Act, 1956 for the products of the Company
and according to the information & explanations given to us , the
Company has maintained proper records as prescribed by the Central
Government but we have not carried out the examination of these
(ix) (a) According to the information and explanations given to us and
the records of the Company examined by us, the Company has been regular
in depositing undisputed statutory dues including Provident Fund,
Investor Education Protection Fund, Employees'' State Insurance, Income
Tax, Sales Tax, Wealth Tax, Custom Duty, Excise Duty, cess and other
material statutory dues applicable to it. We are informed that there
are no undisputed statutory dues as at the yearend outstanding for a
period of more than six months from the date they became payable.
(b) According to the information and explanations given to us and the
records of the Company examined by us, there are no disputed dues of
Income Tax, FBT, Wealth Tax, Sales Tax, Custom Duty and Excise Duty and
(x) The Company does not have accumulated losses as at the end of the
financial year 30th June, 2012. Further the Company has not incurred
any cash losses during the 15 month financial period ended June 30,
2012 and in the preceding financial year ended March 31, 2011.
(xi) According to the records of the Company examined by us and the
information and explanations given to us, the Company during the period
has not defaulted in repayment of dues to financial institutions or
(xii) According to the information & explanations given to us, the
Company has not granted any loans or advances on the basis of security
by way of pledge of shares, debentures and other securities.
(xiii) The provisions of any special statute as specified under
paragraph 4 (xiii) of the Order are not applicable to the Company.
(xiv) In our opinion and according to the information & explanations
given to us, the Company has maintained proper records of the
transactions relating to dealing in shares, securities & other
investments & also entries have been made therein timely. Also all the
shares, securities etc. have been held by the Company in its own name.
(xv) In our opinion and according to the information & explanations
given to us, the terms and conditions on which the Company has given
guarantees during the year for loans taken by others from banks or
financial institutions are prima facie not prejudicial to the interest
of the Company.
(xvi) In our opinion and according to the explanations given to us, the
term loans taken during the year have been applied for the purpose for
which they were obtained.
(xvii) According to the information & explanations given to us and on
overall examination of the balance sheet of the Company, we report that
short term funds have not been used to finance long term investments
and vice versa.
(xviii) The Company has made preferential allotment of shares to
parties and companies covered in the register maintained under section
301 of the Companies Act, 1956 during the period and the price at which
shares have been issued is not prejudicial to the interest of the
(xix) During the period, since the Company has not issued any
debentures, paragraph 4 (xix) of the Order is not applicable.
(xx) During the period, since the Company has not raised any money by
way of public issue, paragraph 4 (xx) of the Order is not applicable.
(xxi) Based upon the audit procedures performed and information and
explanations given by the management, we report that no fraud on or by
the Company has been noticed or reported during the course of our audit
for the period ended June, 30th 2012.
For J.K. JAIN & ASSOCIATES
Place: Chandigarh (J.K. JAIN)
Date: 28-08-2012 Partner
Membership No. 083140