Report on the Standalone Financial Statements
We have audited the accompanying standalone financial statements of
SWASTIKA INVESTMART LIMITED (the Company), which comprise the Balance
Sheet as at 31st March, 2015, the Statement of Profit and Loss, the
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 Standalone 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 standalone 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 standalone
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 standalone
financial statements.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid standalone 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 31 st 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
a statement on the matters specified in paragraphs 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
those books.
(c) The Balance Sheet, the Statement of Profit and 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 standalone 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 31st March, 2015 taken on record by the Board of
Directors, 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.
(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 24 (1) to
the 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-Refer Note 1.4(d)
to the financial statements.
iii. There has been no delay in transferring amounts, required to be
transferred, to the Investor Education and Protection Fund by the
Company
As required by the Companies (Auditor''s Report) Order issued by the
Central Government in 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 full particulars, including quantitative details and situation
of fixed assets.
(b) As per information and explanation given to us, these fixed assets
have been physically verified by the management at reasonable intervals
and no material discrepancies were observed.
(2) Inventories: -
(a) The inventory of the company comprises of shares and securities,
which have been physically verified during the year by the management
at regular interval.
(b) In our opinion and according to the information and explanation
given to us, procedures of physical verification of inventories
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 and according to the information and explanation
given to us, the Company has maintained proper records of its
inventories and no material discrepancies have been noticed on physical
verification of stock as compared to book records.
(3) Loan Granted: -
According to the information and explanation given to us, the Company
has not granted unsecured loans to parties covered under section 189 of
the Act.
(4) Internal Control Procedure: -
In our opinion and according to the information and explanations given
to us, there is an adequate internal control system commensurate with
the size of the Company and the nature of its business, for the
purchase of inventory and other assets and for the sale of goods and
services. During the course of our audit, we have not observed any
major weakness or continuing failure to correct major weakness in the
internal control system of the company in respect of these areas.
(5) Public Deposit: -
In our opinion and according to the information and explanation given
to us, the company has neither accepted nor invited any deposit from
public within the provision of Section 73 to 76 of Companies Act, 2013
and rules made there under. As explained and informed to us, no order
against the company has been passed by the Company Law Board, National
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 cost record 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 been generally regular in depositing undisputed dues
relating to Provident Fund, Employees'' State Insurance, Income Tax,
Sales Tax, Wealth Tax, Service Tax, Duties of Customs, Duties of
Excise, Value Added Tax, Cess and other material statutory dues
applicable to it with appropriate authorities. There are no undisputed
statutory dues payable which are outstanding as at 31-03-2015 for a
period of more than 6 months from the date they become payable, except
to the following:
S.
No. Particulars Amount (in Rs.)
1. Income Tax on Assessment (A. Y. 2008-09 a 2009-10) 3,94,000/-
(b) As informed and explained to us, there are some dues of Income Tax,
Commercial Tax and other material statutory dues which have not been
deposited on accounts of some dispute, which are detailed as below:-
Statute Forum where Amount
involved Financial Year
to which
Dispute is pending (Rs.) the amount relates
Income Tax Act CIT (A) - 9, Mumbai 9,80,090/- F.Y. 2011-12 (A.Y.
2012-13)
Income Tax Act CIT (A) - 8, Mumbai 69,62,560/- F.Y. 2010-11 (A.Y.
2011-12)
Income Tax Act ITAT 93,375/- F.Y. 2006-07
(A.Y. 2007-08)
Finance Act 1994
(for Service Tax) C.C., CE & ST,
Indore 30,89,019/- F.Y. 2005-06 to
F.Y. 2007-08
(c) As per the information and explanation given to us, the required
amount has been transferred to Investor Education and Protection Fund
in accordance with relevant provisions of Companies Act, 1956 (1 of
1956) and rules made thereunder within time.
(8) Accumulated Cash Losses: -
As informed and explained to us, the company has no accumulated losses
at the end of the financial year. Further, the Company has not incurred
any cash losses during the current financial year and in the
immediately preceding financial year.
(9) Default in repayment of dues to Financial Institutions, Banks or
debenture holders: -
Based on our audit and according to information and explanation given
to us by the management, we are of the opinion that the company has not
defaulted in repayment of dues to Financial Institutions, Banks or
debenture holders.
(10) Guarantee given by the Company for Loan taken by others: -
As informed and explained to us, the company has not given any
guarantees for loans taken by others from banks or financial
institutions; hence this clause is not applicable to the company.
(11) Utilization of Terms Loans:-
According to information and explanation given to us, no term loan has
been obtained by the company in current financial year; hence this
clause is not applicable.
(12) Fraud Noticed or Recorded:-
To the best of our knowledge and belief and according to the
information a explanation given to us, no fraud on or by the Company
was noticed or recorded during the period.
For R. S. Bansal & Company
Chartered Accountants
Firm Reg. No.:000939C
Vijay Bansal
Place: Indore Partner
Date: 25th May, 2015 Membership No. : 075344
