We have audited the accompanying financial statements of SAWACA
BUSINESS MACHINES LIMITED (the Company), which comprise the Balance
Sheet as at 31/03/2015, the Statement of Profit and Loss and Cash flow
statement for the year then ended, and a summary of the 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
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
Qualified Opinion :
We further draw attention to fact that we have not made available with
the financial statement of partnership firm, in which your company has
made investment of Rs.14,77,303/-. In absence of such information, we
are not in position to comment, whether any diminution in the value of
the investment has to be made or not.
Report on Other Legal and Regulatory Requirements :
1. As required by the Companies (Auditor''s Report) Order, 2015, issued
by the central government in terms of section 143(11) of the Act, we
give in a Annexure a statement on the matter specified in paragraph 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 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 it appears from our examination of
(c) The Balance Sheet, the Statement of Profit and Loss, and 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 the written representations received from the
directors as on 31/03/2015 taken on record by the Board of Directors,
none of the directors is disqualified as 31/03/2015 from being
appointed as a director in terms of Section 164 (2) of the Act.
(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.
ii. The Company has made provision, as required under the applicable
law or accounting standards, for material foreseeable losses, if any,
on long-term contracts including derivative contracts.
iii. There has been no delay in transferring amounts, required to be
transferred, to the Investor Education and Protection Fund by the
Annexure to the Independent Auditors'' Report
(Referred to in paragraph 1 under ''Report on Other Legal and Regulatory
Requirements'' section of our report of even date)
(1) In Respect of Fixed Assets :
(a) The company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets. However
the situation of Fixed Asset were not identify as they are mostly Misc.
(b) As informed to us Fixed assets have been physically verified by the
management at reasonable intervals; No material discrepancies were
noticed on such verification.
(2) In Respect of Inventory :
(a) As informed to us the company is in business of trading of goods,
it did not have either opening or closing inventory as the goods are
being immediately sold, therefore this provisions are not applicable
(3) Loans and advances to parties covered under section 189 :
As informed to us the company has not granted any loans to parties
covered under section 189
(4) Internal Control in reference to Purchase of Inventory and Fixed
Assets and whether there is continue failure of Internal control :
There are adequate internal control system commensurate with the size
of the Company and the nature of its business for the purchase of
inventory and fixed assets and for the sale of goods and services.
During the course of our audit no major weakness has been noticed in
the internal control system.
(5) Rules followed while accepting Deposits : NA
(6) Maintenance of cost records
We have broadly reviewed the books of accounts relating to materials,
labour and other items of cost maintained by the company pursuant to
the Rules made by the Central Government for the maintenance of cost
records under sub-section (l) of section 148 of the Companies Act, 2013
and we are of the opinion that prima facie the prescribed accounts and
records have been made and maintained.
(7) According to the information and explanations given to us in
respect of statutory dues :
(a) The company is regular in depositing with appropriate authorities
undisputed statutory dues including Provident fund, Investor education
protection fund, Employees'' state insurance, Income tax, Sales tax,
Wealth tax, Service tax, Custom duty, Excise duty, Cess and other
material statutory dues applicable to it except for the cases shown in
(b) According to the records of the Company, there are no dues of
provident fund, employees ''state insurance, income-tax, sales-tax,
wealth tax, service tax, duty of customs, duty of excise, value added
tax or cess and any other statutory dues with the appropriate
authorities that have been not been deposited on amount of any dispute.
(8) Company which has been registered for a period less than five years
and accumulated losses are more than 50% of Net worth, Reporting of
The company does not have any accumulated losses at the end of the
financial year and has not incurred cash losses in the financial year
and in the immediately preceding financial year.
(9) Default in Repayment of Loans taken from Bank or Financial
Based on our audit procedures and as per the information and
explanations given by the management, we are of the opinion that the
company has not defaulted in repayment of dues to a financial
institution or bank.
(10) Terms for Loans and Advances from Banks or Financial Institutions
prejudicial to the interest of the company On the basis of records
examined by us and information provided by the management, we are of
the opinion that the company has not given guarantees for loans taken
by other from banks or financial institutions.
(11) Application versus purpose for which Loan Granted
(12) Reporting of Fraud During the Year Nature and Amount
According to the information and explanation given to us, no fraud on
or by the company has been noticed or reported during the year.
Annexure detail of (7)(a) :
Related To Authority Financial Year Amount Remarks
Income Tax Act Income Tax Act 2008-09 250,000.00 --
Income Tax Act Income Tax Act 2009-10 238,000.00 --
Income Tax Act Income Tax Act 2010-11 780,000.00 --
Income Tax Act Income Tax Act 2011-12 615,000.00 --
FOR,Marmik G. Shah & Associates
Marmik G. Shah
Place : Ahmedabad (Partner)
Date : 30/05/2015 M.No. : 133926