Mar 31, 2023
SWAN ENERGY LIMITED
Report on the Audit of the ''Standalone Financial Statements'' (SFS)
I. Opinion
We have audited the accompanying standalone financial statements of Swan Energy Limited ("the Company"), which comprise the Balance sheet as at 31st March, 2023, the Statement of Profit and Loss (including other comprehensive income), the Statement of Changes in Equity and the Statement of Cash Flows for the year then ended, and notes to the standalone financial statements, including a summary of significant accounting policies and other explanatory information (hereinafter referred to as "the SFS").
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid SFS give the information required by the Companies Act, 2013 (''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, 2023, its profit including other comprehensive income, changes in equity and its cash flows for the year ended on that date.
II. Basis for Opinion
We conducted our audit in accordance with the Standards on Auditing (SAs) specified under Section 143 (10) of the Act. Our responsibilities under those SAs are further described in the ''Auditor''s Responsibilities for the Audit of the SFS'' section of our report. We are independent of the Company in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India together with the ethical requirements that are relevant to our audit of the SFS under the provisions of the Act and the Rules thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the Code of Ethics. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion on the SFS.
III. Key Audit Matters
Key audit matters (KAM) are those matters that, in our professional judgement, were of most significance in our audit of the SFS of the current period. These matters were addressed in the context of our audit of the SFS as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. We have determined the matters described below to be the key audit matters to be communicated in our report.
1 Key Audit Matter Revenue recognition
(Refer Note no. 2.14 of the standalone financial statements)
Revenue is one of the key profit drivers and is therefore susceptible to misstatement. Cut-off is the key assertion in so far as revenue recognition is concerned, since an inappropriate cut-off can result in material misstatement of results for the year.
Auditor''s Response
We assessed the appropriateness of the revenue recognition accounting policies and applicable accounting standards. Our audit procedures with regard to revenue recognition included testing controls in place (both automated/manual) for dispatches/deliveries, inventory reconciliations, circularization of receivable balances, substantive testing for cut-offs and analytical review procedures.
Provision for taxation, litigation, and other significant provisions
(Refer Note no. 2.20, 6, 21, 26 and 34 of the standalone financial statements)
These provisions require the management to make judgements and estimates in relation to the issues and exposures arising from a range of matters in the regular course of business. The key judgement lies in the estimation of provisions which may differ from future obligations. Additionally, there is a risk that provisions could be provided inappropriately that are not yet committed.
Auditor''s Response
We discussed with the management and tested the effectiveness of the controls in place for recognition of the provisions.
We used our subject experts to perform retrospective review of prior year provisions and to assess the value of material provisions and assessing whether there was an indication of management bias.
Assessment of contingent liabilities relating to litigations and claims (Refer Note no. 2.19 and 38 of the standalone financial statements)
The company is subject to challenges/scrutiny on range of matters relating to direct/indirect taxes, legal proceedings etc. Assessment of contingencies requires management to make judgements and estimates, which is inherently subjective.
Auditor''s Response
We discussed with the management and performed retrospective review of prior year judgements/estimates. We tested the effectiveness of the controls in place for recording the contingencies. We used our subject experts to assess the value of material contingencies and discussed the status and potential exposures with the company''s advisors.
IV. Information Other than the SFS and Auditors'' Report Thereon
The Company''s Board of Directors is responsible for the other information, which comprise the information included in the Company''s annual report but does not include the SFS and our auditors'' report thereon.
Our opinion on the SFS does not cover the other information and we do not express any form of assurance conclusion thereon.
In connection with our audit of SFS, our responsibility is to read the other information and, in doing so, consider, whether the other information is materially inconsistent with the SFS or our knowledge obtained during the course of our audit or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this other in formation, we are required to report that fact. We have nothing to report in this regard.
V. Responsibility of Management for the SFS
The Company''s Board of Directors is responsible for the matters stated in section 134(5) of the Act with respect to the preparation of these SFS that give a true and fair view of the financial position, financial performance including other comprehensive income, changes in equity and cash flows of the Company in accordance with the accounting principles generally accepted in India, including the Indian Accounting Standards (Ind AS) specified under section 133 of the Act. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding 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 the 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 SFS that give a true and fair view and are free from material misstatement, whether due to fraud or error.
In preparing the SFS, management is responsible for assessing the Company''s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.
Those Board of Directors are also responsible for overseeing the company''s financial reporting process.
VI. Auditor''s Responsibility for the Audit of the SFS
Our objectives are to obtain reasonable assurance about whether the SFS as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor''s report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with SAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these SFS.
As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:
⢠Identify and assess the risks of material misstatement of the SFS, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
⢠Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances. Under section 143(3)(I) of the Act, we are also responsible for expressing our opinion on whether the company has adequate internal financial controls system in place and the operating effectiveness of such controls.
⢠Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the management.
⢠Conclude on the appropriateness of management''s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company''s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor''s report to the related disclosures in the SFS or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor''s report. However, future events or conditions may cause the Company to cease to continue as a going concern.
⢠Evaluate the overall presentation, structure and content of the SFS, including the disclosures, and whether the SFS represent the underlying transactions and events in a manner that achieves fair presentation.
We communicate with those charged with governance (''TCWG'') regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
We also provide TCWG with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.
From the matters communicated with TCWG, we determine those matters that were of most significance in the audit of the SFS of the current period and are therefore the key audit matters. We describe these matters in our auditor''s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.
VII. Report on Other Legal and Regulatory Requirements
(A) As required by the Companies (Auditor''s Report) Order, 2020 ("the Order"), issued by the Central Government of India in terms of sub-section (11) of section 143 of the Companies Act, 2013, we give in the "Annexure A" a statement on the matters specified in paragraphs 3 and 4 of the Order, to the extent applicable.
(B) 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 (including other comprehensive income), the Statement of changes in Equity and the Statement of Cash Flows dealt with by this Report are in agreement with the books of account.
(d) In our opinion, the aforesaid standalone financial statements (SFS) comply with the Ind AS specified under Section 133 of the Act.
(e) On the basis of the written representations received from the directors as on March 31, 2023 taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2023 from being appointed as a director in terms of Section 164 (2) of the Act.
(f) With respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate Report in "Annexure B".
(C) 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:
a) The impact of the pending litigation as on March 31, 2023 is not expected to be material on the financial position of the company.
b) The Company did not have any long-term contracts, including derivative contracts, for which there were any material foreseeable losses.
c) There has been no delay in transferring amounts required to be transferred to the Investor Education and Protection Fund by the Company.
d) (a) The Management has represented that, to the best of its knowledge and belief, no funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the Company to or in any other person(s) or entity(ies), including foreign entities ("Intermediaries"), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall, directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever ("Ultimate Beneficiaries") by or on behalf of the Company or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
(b) The Management has represented, that, to the best of its knowledge and belief, no funds have been received by the Company from any person(s) or entity(ies), including foreign entities ("Funding Parties"), with the understanding, whether recorded in writing or otherwise, that the Company shall, directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever ("Ultimate Beneficiaries") by or on behalf of the Funding Party or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
(c) Based on the audit procedures performed that have been considered reasonable and appropriate in the circumstances, nothing has come to our notice that has caused us to believe that the representations under sub-clause (a) and (b) above, contain any material misstatement.
e) The dividend declared or paid during the year by the company is in compliance with Section 123 of the Act.
f) Proviso to Rule 3(1) of the Companies (Accounts) Rules, 2014 for maintaining books of account using accounting software which has a feature of recording audit trail (edit log) facility is applicable to the Company with effect from April 1, 2023, and accordingly, reporting under Rule 11(g) of Companies (Audit and Auditors) Rules, 2014 is not applicable for the financial year ended March 31, 2023.
(D) With respect to matter to be included in the Auditor''s Report under Section 197 (16):
In our opinion and according to the information and explanations given to us, the remuneration paid by the Company to its directors during the current year is in accordance with the provisions of Section 197 of the Act.
For N.N Jambusaria & CO Chartered Accountants Firm No.:104030W
Place: Mumbai Membership Number.: 038979
Date: 20th May, 2023 UDIN No.: 23038979BGUZJM3579
Mar 31, 2022
I. Opinion
We have audited the accompanying standalone financial statements of Swan Energy Limited ("the Company"), which comprise the Balance sheet as at 31st March, 2022, the Statement of Profit and Loss (including other comprehensive income), the Statement of Changes in Equity and the Statement of Cash Flows for the year then ended, and notes to the standalone financial statements, including a summary of significant accounting policies and other explanatory information (hereinafter referred to as "the SFS").
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid SFS give the information required by the Companies Act, 2013 (''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, 2022, its profit including other comprehensive income, changes in equity and its cash flows for the year ended on that date.
II. Basis for Opinion
We conducted our audit in accordance with the Standards on Auditing (SAs) specified under Section 143 (10) of the Act. Our responsibilities under those SAs are further described in the ''Auditor''s Responsibilities for the Audit of the SFS'' section of our report. We are independent of the Company in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India together with the ethical requirements that are relevant to our audit of the SFS under the provisions of the Act and the Rules thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the Code of Ethics. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion on the SFS.
III. Key Audit Matters
Key audit matters (KAM) are those matters that, in our professional judgement, were of most significance in our audit of the SFS of the current period. These matters were addressed in the context of our audit of the SFS as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. We have determined the matters described below to be the key audit matters to be communicated in our report.
1 Key Audit Matter Revenue recognition
(Refer Note no. 2.14 of the standalone financial statements)
Revenue is one of the key profit drivers and is therefore susceptible to misstatement. Cut-off is the key assertion in so far as revenue recognition is concerned, since an inappropriate cut-off can result in material misstatement of results for the year.
Auditor''s Response
We assessed the appropriateness of the revenue recognition accounting policies and applicable accounting standards. Our audit procedures with regard to revenue recognition included testing controls in place (both automated/manual) for dispatches/deliveries, inventory reconciliations, circularization of receivable balances, substantive testing for cut-offs and analytical review procedures.
2 Key Audit Matter
Provision for taxation, litigation, and other significant provisions
(Refer Note no. 2.20, 6, 21, 26 and 34 of the standalone financial statements)
These provisions require the management to make judgements and estimates in relation to the issues and exposures arising from a range of matters in the regular course of business. The key judgement lies in the
estimation of provisions which may differ from future obligations. Additionally, there is a risk that provisions could be provided inappropriately that are not yet committed.
Auditor''s Response
We discussed with the management and tested the effectiveness of the controls in place for recognition of the provisions.
We used our subject experts to perform retrospective review of prior year provisions and to assess the value of material provisions and assessing whether there was an indication of management bias.
3 Key Audit Matter
Assessment of contingent liabilities relating to litigations and claims (Refer Note no. 2.19 and 38 of the standalone financial statements)
The company is subject to challenges/scrutiny on range of matters relating to direct/indirect taxes, legal proceedings etc. Assessment of contingencies requires management to make judgements and estimates, which is inherently subjective.
Auditor''s Response
We discussed with the management and performed retrospective review of prior year judgements/estimates. We tested the effectiveness of the controls in place for recording the contingencies. We used our subject experts to assess the value of material contingencies and discussed the status and potential exposures with the company''s advisors.
IV. Information Other than the SFS and Auditors'' Report Thereon
The Company''s Board of Directors is responsible for the other information, which comprise the information included in the Company''s annual report but does not include the SFS and our auditors'' report thereon.
Our opinion on the SFS does not cover the other information and we do not express any form of assurance conclusion thereon.
In connection with our audit of SFS, our responsibility is to read the other information and, in doing so, consider, whether the other information is materially inconsistent with the SFS or our knowledge obtained during the course of our audit or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.
V. Responsibility of Management for the SFS
The Company''s Board of Directors is responsible for the matters stated in section 134(5) of the Act with respect to the preparation of these SFS that give a true and fair view of the financial position, financial performance including other comprehensive income, changes in equity and cash flows of the Company in accordance with the accounting principles generally accepted in India, including the Indian Accounting Standards (Ind AS) specified under section 133 of the Act. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding 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 the 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 SFS that give a true and fair view and are free from material misstatement, whether due to fraud or error.
In preparing the SFS, management is responsible for assessing the Company''s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.
Those Board of Directors are also responsible for overseeing the company''s financial reporting process.
VI. Auditor''s Responsibility for the Audit of the SFS
Our objectives are to obtain reasonable assurance about whether the SFS as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor''s report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with SAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these SFS.
As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:
⢠Identify and assess the risks of material misstatement of the SFS, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
⢠Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances. Under section 143(3)(i) of the Act, we are also responsible for expressing our opinion on whether the company has adequate internal financial controls system in place and the operating effectiveness of such controls.
⢠Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the management.
⢠Conclude on the appropriateness of management''s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company''s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor''s report to the related disclosures in the SFS or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor''s report. However, future events or conditions may cause the Company to cease to continue as a going concern.
⢠Evaluate the overall presentation, structure and content of the SFS, including the disclosures, and whether the SFS represent the underlying transactions and events in a manner that achieves fair presentation.
We communicate with those charged with governance (''TCWG'') regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
We also provide TCWG with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.
From the matters communicated with TCWG, we determine those matters that were of most significance in the audit of the SFS of the current period and are therefore the key audit matters. We describe these matters in our auditor''s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.
VII. Report on Other Legal and Regulatory Requirements
(A) As required by the Companies (Auditor''s Report) Order, 2020 ("the Order"), issued by the Central Government of India in terms of sub-section (11) of section 143 of the Companies Act, 2013, we give in the ''Annexure - A'' a statement on the matters specified in paragraphs 3 and 4 of the Order, to the extent applicable.
(B) 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 (including other comprehensive income), the Statement of changes in Equity and the Statement of Cash Flows dealt with by this Report are in agreement with the books of account.
(d) In our opinion, the aforesaid standalone financial statements (SFS) comply with the Ind AS specified under Section 133 of the Act.
(e) On the basis of the written representations received from the directors as on March 31, 2022 taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2022 from being appointed as a director in terms of Section 164 (2) of the Act.
(f) With respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate Report in ''Annexure - B''.
(C) 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 impact of the pending litigation as on March 31, 2022 is not expected to be material on the financial position of the company.
ii. The Company did not have any long-term contracts, including derivative contracts, for which there were any material foreseeable losses.
iii. There has been no delay in transferring amounts required to be transferred to the Investor Education and Protection Fund by the Company.
(D) With respect to matter to be included in the Auditor''s Report under Section 197 (16):
In our opinion and according to the information and explanations given to us, the remuneration paid by the Company to its directors during the current year is in accordance with the provisions of Section 197 of the Act.
For N.N Jambusaria & CO Chartered Accountants Firm No.:104030W
Mumbai, 30th May, 2022 Nimesh Jambusaria
Partner
Membership Number : 038979
UDIN No.: 22038979AKCJVK2394
Mar 31, 2018
1. We have audited the accompanying SFS of Swan Energy Limited (âthe Companyâ), which comprise the Balance sheet as at March 31, 2018, the Statement of Profit and Loss (including Other Comprehensive Income), the Cash Flow Statement and the Statement of Changes in Equity for the year then ended, and a summary of significant accounting policies and other explanatory information (hereinafter referred to as âStandalone Financial Statementsâ (SFS)).
Managementâs Responsibility for the Standalone Financial Statements
2. The Companyâs Board of Directors is responsible for the matters stated in Section 134 (5) of the Companies Act, 2013 (âthe Actâ) with respect to the preparation of these SFS that give a true and fair view of the Financial position, Financial performance including other comprehensive income, cash flows and changes in equity of the Company in accordance with the accounting principles generally accepted in India, including the Indian Accounting Standards (Ind AS) specified under Section 133 of the Act, read with the Companies (Indian Accounting Standards) Rules,2015, as amended.
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 SFS that give a true and fair view and are free from material misstatement, whether due to fraud or error.
Auditorâs Responsibility
3. Our responsibility is to express an opinion on these SFS based on our audit.
4. We have taken into account the provisions of 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.
5. We conducted our audit of the SFS in accordance with the Standards on Auditing, issued by The Institute Of Chartered Accountants Of India, as 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.
6. An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the SFS. The procedures selected depend on the auditorâs judgment, including the assessment of the risks of material misstatement of the SFS, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Companyâs preparation of the SFS 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 polices used and the reasonableness of the accounting estimates made by the Companyâs Directors, as well as evaluating the overall presentation of the SFS.
7. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the SFS.
Opinion
8. In our opinion and to the best of our information and according to the explanations given to us, the SFS 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 March 31, 2018, its Profit including Other Comprehensive Income, its Cash Flows and the statement of Changes in Equity for the year ended on that date.
Other Matters
9. Opening balances have been considered based on the audited financial statements prepared in accordance with the Companies (accounting Standards) Rules, 2006 (AS), issued by the other auditors whose unqualified audit reports dated May 30, 2017 and May 30, 2016 have been furnished to us. The differences arisen due to transition from previous AS to Ind AS have been derived from such audited financial statements.
Report on Other Legal and Regulatory Requirements
10. As required by the Companies (Auditorâs Report) Order, 2016 (âthe Orderâ) issued by the Central Government of India in terms of sub-section (11) of section 143 of the Act, we give in the Annexure âAâ a statement on the matters specified in paragraphs 3 and 4 of the Order.
11. 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, Statement of Profit and Loss including Other Comprehensive Income, the Cash Flow Statement and the Statement of Changes in Equity dealt with by this Report are in agreement with the books of account;
d) In our opinion, the aforesaid SFS comply with the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules 2015 as amended;
e) On the basis of the written representations received from the Directors as on March 31, 2018 and taken on record by the Board of Directors, none of the Directors is disqualified as on March 31, 2018 from being appointed as a Director in terms of Section 164 (2) of the Act.
f) With respect to the adequacy of the Internal Financial Controls over financial reporting of the Company and operating effectiveness of such controls, refer to our separate Report in Annexure B to this report .
g) With respect to other matters to be included in the Auditorâs Report in accordance with Rule
11 of the Companies (Audit and Auditors) Rules, 2014 , in our opinion and to the best of our knowledge and belief and according to the information and explanations given to us:
i. The impact of the pending litigations as on March 31, 2018 is not expected to be material on the standalone Ind AS financial position ofthe Company.
ii. The Company did not have any long-term contracts, including derivative contracts for which there were any material foreseeable losses;
iii. There has been no amount due as at 31st March, 2018 which was required to be transferred to the Investor Education and Protection Fund by the Company.
(Referred to in Paragraph 10, under âReport on other legal and Regulatory Requirements section of our report)
(i) a) The Company has maintained proper records showing full particulars, including quantitative details and situation offxed assets.
b) As explained to us, all the fixed assets have been physically verified by the management in accordance with a phased program of verification designed to cover all items over a period of three years, Considering the size and the nature of business, the frequency of verification is reasonable and the discrepancies noticed on such verification which has been properly dealt with in the books of accounts were not material.
c) The title deeds of immovable properties, as disclosed in Note 2 & 3 on fixed assets to the financial statements, are held in the name of the Company.
(ii) The inventories have been physically verified during the year by the management. In our opinion, the frequency of verification is reasonable and the discrepancies noticed on such verification which has been properly dealt with in the books of accounts were not material.
(iii) The Company has granted unsecured loans to companies covered in the register maintained under section 189 of the Act. There are no firms/LLPs/ other parties covered in the register maintained under section 189 of the Act.
(a) In respect of the aforesaid loans, the terms and conditions under which such loans were granted are not prejudicial to the Companyâs interest.
(b) In respect of aforesaid loans, the schedule of repayment of principal and interest, if any, has been stipulated, and the parties are repaying the principal amounts, and also regular in payment of interest as if any applicable.
(c) In respect of the aforesaid loans, there is no amount which is overdue for more than ninety days.
(iv) In our opinion and according to the information and explanations given to us, the company has complied with the provisions of section 185 and 186 of the companies Act, 2013 in respect of the loans and investments made and guarantees and security provided by it.
(v) The Company has not accepted any deposits from the public within the meaning of sections 73 to 76 of the Act and the notified Rules framed there under.
(vi) Pursuant to the rules made by the Central Government of India, the Company is required to maintain cost records as prescribed under Section 148(1) of the Act in respect of its products. We have broadly reviewed the same, and are of the opinion that, prima facie, the prescribed accounts and records have been made and maintained. We have not, however, made a detailed examination of the records with a view to determine whether they are accurate or complete.
(vii) a) According to the information and explanations given to us and books and the records of the Company examined by us, in our opinion, the Company has generally been regular in depositing the undisputed statutory dues including Provident Fund, Employee State Insurance Fund, Income Tax, Sales Tax, Service Tax, Duty of Customs, Duty of Excise, Value Added Tax, Goods and service Tax, Cess and other statutory dues with the appropriate authorities.
b) According to the information and explanation given to us, no undisputed amounts payable in respect of Provident Fund, Employees State Insurance Fund, Income Tax, Sales Tax, Service Tax, Duty of Customs, Duty of Excise, Value Added Tax, Goods and service Tax, Cess and other statutory dues were in arrears as at 31 March 2018 for a period of more than six months from the date they became payable.
c) According to the information and explanations given to us, there are no amounts which are payable in respect of Income Tax, Sales Tax, Service Tax, Duty of Custom, Duty of Excise, Value Added Tax and Cess which have not been deposited with appropriate authorities on account of any dispute other than those mentioned below:
Name of the statute |
Nature of dues |
Amount Demanded Rs. in Lakhs |
Period to which the amount relates |
Forum where dispute is pending |
Remark if any |
Income Tax Act,1961 |
Income Tax |
1,522.98 |
A.Y 2009-10 |
High Court |
Department has gone in appeal |
(viii) In our opinion and according to the information and explanation given to us, the Company has not defaulted in repayment of its dues to banks, financial institutions, Government and debenture holders during the year.
(ix) In our opinion, and according to the information and explanations given to us, the term loans have been applied, for the purposes for which they were obtained.
(x) 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 and according to the information and explanations given to us, we have neither come across any instances of material fraud on or by the Company by its officers or employees, noticed or reported during the year, nor have we been informed of any such cases by the management.
(xi) According to the information and explanations given by the management and based on the audit procedure performed, the managerial remuneration has been paid / provided in accordance with the requisite approvals mandate by the provisions of section 197 read with Schedule V to the Companies Act, 2013.
(xii) In our opinion, the Company is not a Nidhi company. Therefore, the provision of clause 3(xii) of the order is not applicable to the Company and hence not commented upon.
(xiii) According to the information and explanations given by the management, in our opinion, transactions with related parties are in compliance with section 177 and 188 of the Companies Act, 2013 where applicable and the details have been disclosed in the notes to the financial statements, as required by the applicable accounting standards.
(xiv) According to the information and explanations given by the management, the preferential allotment of equity shares, made by the company during the year under review, is in compliance with the requirements of Section 42 of the Act. The amount raised have been used for the purpose for which these have been raised and pending such utilisation, have been deployed in liquid fund/fixed deposits.
(xv) According to the information and explanations given by the management, the Company has not entered into any non-cash transactions with directors or persons connected with him. Accordingly, paragraph 3(xv) of the Order and Sec. 192 of Companies Act, 2013 are not applicable.
(xvi) In our opinion, the company is not required to be registered under Section 45-IA of the Reserve Bank of India Act, 1934. Accordingly, the provisions of Clause 3(xvi) of the Order are not applicable to the Company.
Referred to in Paragraph 11(f) of our Report of even date to the members of Swan Energy Limited on the SFS as of and for the year ended March 31, 2018
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 (âthe Actâ)
We have audited the internal financial controls over financial reporting of Swan Energy Limited (âthe Companyâ) as of March 31, 2018 in conjunction with our audit of the SFS of the Company for the year ended on that date.
Managementâs Responsibility for Internal Financial Controls
The Companyâs management is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued by the Institute of Chartered Accountants of India (ICAI). These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to companyâs policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under The Companies Act, 2013.
Auditorâs Responsibility
Our responsibility is to express an opinion on the Companyâs internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (the âGuidance Noteâ) and the Standards on Auditing, specified under section 143(10) of The Companies Act, 2013 to the extent applicable to an audit of internal financial controls. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditorâs judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Companyâs internal financial controls system over financial reporting.
Meaning of Internal Financial Controls Over Financial Reporting
A companyâs internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A companyâs internal financial control over financial reporting includes those policies and procedures that
(1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly refect the transactions and dispositions of the assets of the company;
(2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and
(3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the companyâs assets that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls Over Financial Reporting
Because ofthe inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Opinion
In our opinion and to the best of our information and according to the explanations given to us , the Company has in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at March 31, 2018, based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the ICAI.
For N. N. Jambusaria & Co.
Chartered Accountants
Firm Registration No. 104030W
Nimesh N. Jambusaria
Partner
M. No. 038979
Mumbai, May 30, 2018
Mar 31, 2017
Report on the Financial Statements
1. We have audited the accompanying standalone financial statements of Swan Energy Limited (âthe Companyâ), which comprise the Balance sheet as at March 31, 2017, the Statement of Profit and Loss, Cash Flow Statement for the year then ended, and a summary of significant accounting policies and other explanatory information.
Managementâs Responsibility for the Financial Statements
2. the Companyâs Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013(âthe Actâ) 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 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.
Auditorâs Responsibility
3. Our responsibility is to express an opinion on these standalone financial statements based on our audit.
4. We have taken into account the provisions of Act and the Rules made there under including the accounting standards and matters which are required to be included in the audit report.
5. We conducted our audit in accordance with the Standards on Auditing specified under Section 143(10) of the Act. those standards and pronouncements 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.
6. 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 auditorâs 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 Companyâs 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 polices used and the reasonableness of the accounting estimates made by the Companyâs Directors, as well as evaluating the overall presentation of the financial statements.
7. 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
8. 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 March 31, 2017, and its profit and its cash flows for the year ended on that date.
Report on Other Legal and Regulatory Requirements
9. As required by âthe Companies (Auditorâs Report) Order,2016 issued by the Central Government of India in terms of sub-section (11) of section 143 of the Act(hereinafter referred to as the âOrderâ), and on the basis of such checks of the books and records of the Company as we considered appropriate and according to the information and explanations given to us, we give in the Annexureâ Aâ a statement on the matters specified in paragraphs 3 and 4 of the Order.
10. 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 Repot 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 March31, 2017 taken on record by the Board of Directors, none of the Directors is disqualified as on March 31, 2017 from being appointed as a Director in terms of Section 164 (2) of the Act;
f) With respect to the adequacy of the Internal Financial Controls over financial reporting of the Company and operating effectiveness of such controls, refer to our separate Report in Annexure B.
g) With respect to other matters to be included in the Auditorâs Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our knowledge and belief and according to the information and explanations given to us:
i. The impact of the pending litigations as on March 31, 2017 is not expected to be material on the standalone financial position of the Company.
ii. The Company did not have any long term contracts, including derivative contracts for which there were any material foreseeable losses;
iii. There has been no amount due as at 31st March, 2017 which was required to be transferred to the Investor Education and Protection Fund by the Company.
iv. The Company has provided requisite disclosures in the standalone financial statements as regards its holding and dealings in Specified Bank Notes as defined in the Notification S.O. 3407(E) dated November 8, 2016 of the Ministry of Finance, during the period from November 8, 2016 to December 30, 2016. Based on audit procedures performed and the representations provided to us by the management, we report that the disclosures are in accordance with the books of account maintained by the Company and as produced to us by the Management.
âANNEXURE Aâ TO INDEPENDENT AUDITORâS REPORT:
Referred to in Paragraph 9 of the Independent Auditorsâ Report of even date to the members of Swan Energy Limited on the standalone financial statements as of and for the year ended March 31, 2017
(i) a) The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets.
b) As explained to us, all the fixed assets have been physically verified by the management in accordance with a phased programme of verification designed to cover all items over a period of three years, Considering the size and the nature of business, the frequency of verification is reasonable and the discrepancies noticed on such verification which has been properly dealt with in the books of accounts were not material.
c) The title deeds of immovable properties, as disclosed in Note 10 on fixed assets to the financial statements, are held in the name of the Company.
(ii) The inventories have been physically verified during the year by the management. In our opinion, the frequency of verification is reasonable and the discrepancies noticed on such verification which has been properly dealt with in the books of accounts were not material.
(iii) The Company has granted unsecured loans to four companies covered in the register maintained under section 189 of the Act. There are no firms/LLPs/ other parties covered in the register maintained under section 189 of the Act.
(a) In respect of the aforesaid loans, the terms and conditions under which such loans were granted are not prejudicial to the Companyâs interest.
(b) In respect of aforesaid loans, the schedule of repayment of principal and interest if any has been stipulated, and the parties are repaying the principal amounts, and also regular in payment of interest as if any applicable.
(c) In respect of the aforesaid loans, there is no amount which is overdue more than ninety days.
(iv) In our opinion and according to the information and explanations given to us, the company has complied with the provisions of section 185 and 186 of the companies Act, 2013 in respect of the loans and investments made and guarantees and security provided by it.
(v) The Company has not accepted any deposits from the public within the meaning of sections 73 to 76 of the Act and the notified Rules framed there under.
(vi) Pursuant to the rules made by the Central Government of India, the Company is required to maintain cost records as prescribed under Section 148(1) of the Act in respect of its products. We have broadly reviewed the same, and are of the opinion that, prima facie, the prescribed accounts and records have been made and maintained. We have not, however, made a detailed examination of the records with a view to determine whether they are accurate or complete.
(vii) a) According to the information and explanations given to us and books and the records of the Company examined by us, in our opinion, the Company has generally been regular in depositing the undisputed statutory dues including Provident Fund, Employee State Insurance Fund, Income Tax, Sales Tax, Service Tax, Duty of Customs, Duty of Excise, Value Added Tax, Cess and other statutory dues with the appropriate authorities.
b) According to the information and explanation given to us, no undisputed amounts payable in respect of Provident Fund, Employees State Insurance Fund, Income Tax, Sales Tax, Service Tax, Duty of Customs, Duty of Excise, Value Added Tax, Cess and other statutory dues were in arrears as at 31 March 2017 for a period of more than six months from the date they became payable.
c) According to the information and explanations given to us, there are no amounts which are payable in respect of Income Tax, Sales Tax, Service Tax, Duty of Custom, Duty of Excise, Value Added Tax and Cess which have not been deposited with appropriate authorities on account of any dispute other than those mentioned below:
Name of the statute |
Nature of dues |
Amount Demanded Rs. in Lakhs |
period to which the amount relates |
Forum where dispute is pending |
Remark if any |
Income tax Act,1961 |
Income tax |
1,522.98 |
A.Y 2009-10 |
ITAT |
Department has gone in appeal |
Income tax Act,1961 |
Income tax |
1,233.99 |
A.Y 2010-11 |
ITAT |
Department has gone in appeal |
Income tax Act,1961 |
Income tax |
415.18 |
A.Y 2011-12 |
ITAT |
Department has gone in appeal |
(viii) In our opinion and according to the information and explanation given to us, the Company has not defaulted in repayment of its dues to banks, financial institutions, Government and debenture holders during the year.
(ix) In our opinion, and according to the information and explanations given to us, the term loans have been applied, for the purposes for which they were obtained. there was no initial public offer or further public offer (including debt instrument).
(x) 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 and according to the information and explanations given to us, we have neither come across any instances of material fraud on or by the Company by its officers or employees, noticed or reported during the year, nor have we been informed of any such cases by the management.
(xi) According to the information and explanations given by the management and based on the audit procedure performed, the managerial remuneration has been paid / provided in accordance with the requisite approvals mandate by the provisions of section 197 read with Schedule V to the Companies Act, 2013.
(xii) In our opinion, the Company is not a Nidhi company. therefore, the provision of clause 3(xii) of the order is not applicable to the Company and hence not commented upon.
(xiii) According to the information and explanations given by the management, in our opinion, transactions with related parties are in compliance with section 177 and 188 of the Companies Act, 2013 where applicable and the details have been disclosed in the notes to the financial statements, as required by the applicable accounting standards.
(xiv) According to the information and explanations given to us and on an overall examination of the Balance Sheet, the company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year under review and hence, reporting requirements under clause 3(xiv) are not applicable to the company and not commented upon.
(xv) According to the information and explanations given by the management, the Company has not entered into any non-cash transactions with directors or persons connected with him. Accordingly, paragraph 3(xv) of the Order and Sec. 192 of Companies Act, 2013 are not applicable.
(xvi) In our opinion, the company is not required to be registered under Section 45-IA of the Reserve Bank of India Act, 1934. Accordingly, the provisions of Clause 3(xvi) of the Order are not applicable to the Company.
For V. R.Renuka & Co.
Chartered Accountants
Firm Registration No. 108826W
V. R. Renuka
Proprietor
M. No. 032263
Mumbai, May 30, 2017
Mar 31, 2016
1. We have audited the accompanying standalone financial statements of
Swan Energy Limited("the Company"), which comprise the Balance
sheet as at March 31, 2016, the Statement of Profit and Loss, Cash Flow
Statement for the year then ended, and a summary of significant
accounting policies and other explanatory information.
Management''s Responsibility for the Financial Statements
2. 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 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
3. our responsibility is to express an opinion on these standalone
financial statements based on our audit.
4. We have taken into account the provisions of Act and the Rules made
there under including the accounting standards and matters which are
required to be included in the audit report.
5. We conducted our audit in accordance with the Standards on Auditing
specified under Section 143(10) of the Act. Those standards and
pronouncements 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.
6. 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 polices 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.
7. 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
8. 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 March 31, 2016, and its profit and its
cash flows for the year ended on that date.
Report on Other Legal and Regulatory Requirements
9. As required by ''the Companies (Auditor''s Report) order,2016
issued by the Central Government of India in terms of sub-section (11)
of section 143 of the Act(hereinafter referred to as the "order"),
and on the basis of such checks of the books and records of the Company
as we considered appropriate and according to the information and
explanations given to us, we give in the Annexure'' A'' a statement on
the matters specified in paragraphs 3 and 4 of the order.
10. 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 Repot 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 March 31, 2016 taken on record by the Board of
Directors, none of the Directors is disqualified as on March 31, 2016
from being appointed as a Director in terms of Section 164 (2) of the
Act;
f) With respect to the adequacy of the Internal Financial Controls over
financial reporting of the Company and operating effectiveness of such
controls, refer to our separate Report in Annexure B.
g) With respect to 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 knowledge and belief and
according to the information and explanations given to us:
i. The impact of the pending litigations as on March 31, 2016 is not
expected to be material on the standalone financial position of the
Company.
ii. The Company did not have any long term contracts, including
derivative contracts for which there were any material foreseeable
losses;
iii. There has been no amount due as at 31st March, 2016 which was
required to be transferred to the Investor Education and Protection
Fund by the Company.
Referred to in Paragraph 9 of the Independent Auditor''s Report of
even date to the members of Swan Energy Limited on the standalone
financial statements as of and for the year ended March 31, 2016
(i) a) The Company is maintaining proper records showing full
particulars, including quantitative details and situation of fixed
assets.
b) As explained to us, all the fixed assets have been physically
verified by the management in accordance with a phased programme of
verification designed to cover all items over a period of three years,
Considering the size and the nature of business, the frequency of
verification is reasonable and the discrepancies noticed on such
verification which has been properly dealt with in the books of
accounts were not material.
c) The title deeds of immovable properties, as disclosed in Note 10 on
fixed assets to the financial statements, are held in the name of the
Company.
(ii) The inventories have been physically verified during the year by
the management. In our opinion, the frequency of verification is
reasonable and the discrepancies noticed on such verification which has
been properly dealt with in the books of accounts were not material.
(iii) The Company has granted unsecured loans to four companies covered
in the register maintained under section 189 of the Act. There are no
firms/LLPs/ other parties covered in the register maintained under
section 189 of the Act.
(a) In respect of the aforesaid loans, the terms and conditions under
which such loans were granted are not prejudicial to the Company''s
interest.
(b) In respect of aforesaid loans, the schedule of repayment of
principal and interest if any has been stipulated, and the parties are
repaying the principal amounts, and also regular in payment of interest
as if any applicable.
(c) In respect of the aforesaid loans, there is no amount which is
overdue more than ninety days.
(iv) In our opinion and according to the information and explanations
given to us, the company has complied with the provisions of section
185 and 186 of the companies Act, 2013 in respect of the loans and
investments made and guarantees and security provided by it.
(v) The Company has not accepted any deposits from the public within
the meaning of sections 73 to 76 of the Act and the notified Rules
framed there under.
(vi) Pursuant to the rules made by the Central Government of India, the
Company is required to maintain cost records as prescribed under
Section 148(1) of the Act in respect of its products. We have broadly
reviewed the same, and are of the opinion that, prima facie, the
prescribed accounts and records have been made and maintained. We have
not, however, made a detailed examination of the records with a view to
determine whether they are accurate or complete.
(vii) a) According to the information and explanations given to us and
books and the records of the Company examined by us, in our opinion,
the Company has generally been regular in depositing the undisputed
statutory dues including Provident Fund, Employee State Insurance Fund,
Income Tax, Sales Tax, Service Tax, Duty of Customs, Duty of Excise,
Value Added Tax, Cess and other statutory dues with the appropriate
authorities.
b) According to the information and explanation given to us, no
undisputed amounts payable in respect of Provident Fund, Employees
State Insurance Fund, Income Tax, Sales Tax, Service Tax, Duty of
Customs, Duty of Excise, Value Added Tax, Cess and other statutory dues
were in arrears as at 31 March 2016 for a period of more than six
months from the date they became payable.
c) According to the information and explanations given to us, there are
no amounts which are payable in respect of Income Tax, Sales Tax,
Service Tax, Duty of Custom, Duty of Excise, Value Added Tax and Cess
which have not been deposited with appropriate authorities on account
of any dispute other than those mentioned below:
Name of the Nature of Amount Period to Forum
where Remark if any
statute dues Demanded which the dispu
te is
Rs. in
Lakhs amount
relates pending
Income Tax Income Tax 58.72 A.Y 2008-09 ITAT Department has
Act, 1961 gone in appeal
Income Tax Income Tax 1,522.98 A.Y 2009-10 ITAT Department has
Act, 1961 gone in appeal
Income Tax Income Tax 1,233.99 A.Y 2010-11 ITAT Department has
Act, 1961 gone in appeal
Income Tax Income Tax 415.18 A.Y 2011-12 ITAT Department has
Act, 1961 gone in appeal
(viii) In our opinion and according to the information''s and explanation
given to us, the Company has not defaulted in repayment of its dues to
banks, financial institutions, Government and debenture holders during
the year.
(ix) In our opinion, and according to the information and explanations
given to us, the Term loans have been applied, for the purposes for
which they were obtained. There was no initial public offer or further
public offer (including debt instrument).
(x) 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 and according to the information and
explanations given to us, we have neither come across any instances of
material fraud on or by the Company by its officers or employees,
noticed or reported during the year, nor have we been informed of any
such cases by the management.
(xi) According to the information and explanations given by the
management and based on the audit procedure performed, the managerial
remuneration has been paid / provided in accordance with the requisite
approvals mandate by the provisions of section 197 read with Schedule V
to the Companies Act, 2013.
(xii) In our opinion, the Company is not a Nidhi company. Therefore,
the provision of clause 3(xii) of the order is not applicable to the
Company and hence not commented upon.
(xiii) According to the information and explanations given by the
management, in our opinion, transactions with related parties are in
compliance with section 177 and 188 of the Companies Act, 2013 where
applicable and the details have been disclosed in the notes to the
financial statements, as required by the applicable accounting
standards.
(xiv) According to the information and explanations given to us and on
an overall examination of the Balance Sheet, the company has not made
any preferential allotment or private placement of shares or fully or
partly convertible debentures during the year under review and hence,
reporting requirements under clause 3(xiv) are not applicable to the
company and not commented upon.
(xv) According to the information and explanations given by the
management, the Company has not entered into any non-cash transactions
with directors or persons connected with him. Accordingly, paragraph
3(xv) of the order and Sec. 192 of Companies Act, 2013 are not
applicable.
(xvi) In our opinion, the company is not required to be registered
under Section 45-IA of the Reserve Bank of India Act, 1934.
Accordingly, the provisions of Clause 3(xvi) of the order are not
applicable to the Company.
For V. R.Renuka & Co.
Chartered Accountants
Firm Registration No. 108826W
V. R. Renuka
Proprietor
M. No. 032263
Mumbai, May 30, 2016
Mar 31, 2015
1. We have audited the accompanying standalone financial statements of
Swan Energy Limited ("the Company"), which comprise the Balance sheet
as at March 31, 2015, the Statement of profit and Loss, Cash Flow
Statement for the year then ended and a summary of significant
accounting policies and other explanatory information.
Management's Responsibility for the Financial Statements
2. 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 to 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 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.
Auditors' Responsibility
3. our responsibility is to express an opinion on these financial
statements based on our audit.
4. We have taken into account the provisions of Act and the Rules made
thereunder including the accounting standards and matters which are
required to be included in the audit report.
5. We conducted our audit in accordance with the Standards on Auditing
specified under Section 143(10) of the Act and other applicable
authoritative pronouncements issued by the Institute of Chartered
Accountants of India. those standards and pronouncements 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.
6. 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, but not for the purpose of expressing
an opinion on whether the Company has in place an adequate internal
financial control systems over financial reporting and the operating
effectiveness of such controls. An audit also includes evaluating the
appropriateness of the accounting polices 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
7. 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
8. 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 March 31,2015, and its profit and its cash flows for the year ended
on that date.
Report on Other Legal and Regulatory Requirements
9. 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 and on the basis of such
checks of the books and records of the Company as we considered
appropriate and according to the information and explanations given to
us, we give in the Annexure a statement on the matters specified in
paragraphs 3 and 4 of the order.
10. 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 and Loss, and the Cash
Flow Statement dealt with by this Repot 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 March 31,2015 taken on record by the Board of
Directors, none of the Directors is disqualified as on March 31,2015
from being appointed as a Director in terms of Section 164 (2) of the
Act;
f) With respect to 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 knowledge and belief and
according to the information and explanations given to us:
i. the impact of the pending litigations as on March 31st, 2015 is not
expected to be material on the financial position of the Company.
ii. the Company did not have any long term contracts, including
derivative contracts for which there were any material foreseeable
losses;
iii. there has been no amount due as at March 31, 2015 which was
required to be transferred to the Investor Education and Protection
Fund by the Company.
Referred to in Paragraph 9 of the Independent Auditors' Report of even
date to the members of Swan Energy Limited on the standalone financial
statements as of and for the year ended March 31, 2015
(i) a) The Company is maintaining proper records showing full
particulars,including quantitative details and situation of fixed
assets.
b) As explained to us, all the fixed assets have been physically
verified by the management in accordance with a phased programme of
verification, which in our opinion is reasonable, considering the size
and the nature of business. the frequency of verification is reasonable
and no discrepancies have been noticed on such physical verification.
(ii) a) the inventories have been physically verified during the year
by the management. In our opinion, the frequency of verification is
reasonable.
b) In our opinion, the procedures of physical verification of the
inventories followed by the management are reasonable and adequate in
relation to the size of the Company and the nature of its business.
c) on the basis of our examination of the inventory records, in our
opinion, the Company is maintaining proper records of inventory. the
discrepancies noticed on physical verification of inventory as compared
to book records were not material.
(iii) the Company has granted unsecured loans to five companies covered
in the register maintained under section 189 of the Act. the Company
has not granted any secured/unsecured loans to firms or other parties
covered in the register maintained under section 189 of the Act.
a) In respect of the aforesaid loans, the parties are repaying the
principal amounts, as stipulated. However, as explained by the
management, no interest has been charged on the same.
b) In respect of the aforesaid loans, there is no overdue amount more
than Rupees one Lakh.
(iv) In our opinion and according to the information and explanations
given to us, there is adequate internal control system commensurate
with the size of the Company and the nature of its business with regard
to purchase of inventories, fixed assets and the sale of goods and
services. During the course of our audit, we have not observed any
continuing failure to correct major weakness in internal control
system.
(v) the Company has not accepted any deposits from the public within
the meaning of sections 73 to 76 of the Act and the Rules framed there
under to the extent notified.
(vi) As per information & explanations given to us, the Central
Government has not prescribed for the maintenance of cost records as
required under section 148 (1) of the Companies Act, 2013.
(vii) a) According to the information and explanation given to us and
the records of the Company examined by us, in our opinion, the Company
is regular in depositing the undisputed statutory dues including
Provident Fund, Employee State Insurance Fund, Income tax, Sales tax,
Service tax, Wealth tax, Duty of Customs, Duty of excise, value Added
tax and other statutory dues with the appropriate authorities.
b) According to the information and explanations given to us, there are
no undisputed amounts which are payable in respect of Income tax, Sales
tax, Wealth tax, Service tax, Duty of Custom, Duty of excise, value
Added tax and Cess.
c) As explained to us and on the basis of examination of the records,
there was no amount due as at March 31, 2015 which was required to be
transferred to the Investor education and Protection Fund by the
Company.
(viii) the company has no accumulated losses as at the end of the
financial year and it has not incurred any cash losses in the current
financial year and in the immediately preceding financial year.
(ix) In our opinion and according to the information and explanation
given to us, the Company has not defaulted in repayment of its dues to
banks and financial institutions during the year.
(x) In our opinion and according to the information and explanations
given to us, the terms and conditions of the guarantees given by the
Company for loans taken by its subsidiary companies during the year are
not prejudicial to the interest of the Company.
(xi) In our opinion and according to the information and explanations
given to us, the term loans have been applied, on an overall basis, for
the purpose for which they were obtained.
(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 and according to the information and
explanations given to us, we have neither come across any instances of
material fraud on or by the Company, noticed or reported during the
year, nor have we been informed of any such cases by the management.
For V. R.Renuka & Co.
Chartered Accountants
Firm Registration No. 108826W
V. R. Renuka
Proprietor
M. No. 032263
Mumbai, May 29, 2015
Mar 31, 2014
We have audited the accompanying financial statements of Swan Energy
Limited ("the Company"), which comprise the Balance Sheet as at March
31, 2014, the Statement of Profit and Loss and the Cash Flow Statement
for the year then ended, and a summary of significant accounting
policies and other explanatory information.
Management''s Responsibility for the Financial Statements
The Company''s Management is responsible for 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 Standards notified under the Companies
Act, 1956 (the Act) read with the General Circular 15/2013 dated 13th
September, 2013 of the Ministry of Corporate Affairs in respect of
Section 133 of the Companies Act, 2013 and in accordance with the
accounting principles generally accepted in India. This responsibility
includes the design, implementation and maintenance of internal control
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.
Auditors'' Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. 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 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 control relevant to the Company''s preparation and
fair presentation of the financial statements in order to design audit
procedures that are appropriate in the circumstances. An audit also
includes evaluating the appropriateness of accounting policies used and
the reasonableness of the accounting estimates made by management, 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.
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:
a. In the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2014;
b. In the case of the Statement of Profit and Loss, of the profit for
the year ended on that date; and
c. In the case of the Cash Flow Statement, of the 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, 2003 ("the
Order") issued by the Central Government of India in terms of Section
227 (4A) of the Act, we give in the Annexure a statement on the matters
specified in paragraphs 4 and 5 of the Order.
2. As required by section 227(3) of the Act, we report that:
a. We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose 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 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 Balance Sheet, the Statement of Profit and Loss,
and the Cash Flow Statement comply with the Accounting Standards
notified under the Act read with the General Circular 15/2013 dated
13th September, 2013 of the Ministry of Corporate Affairs in respect of
Section 133 of the Companies Act, 2013;
e. On the basis of written representations received from the directors
as on March 31, 2014, taken on record by the Board of Directors, none
of the directors is disqualified as on March 31, 2014, from being
appointed as a director in terms of Section 274 (1) (g) of the Act.
Annexure to Independent Auditor''s Report
Referred to in Paragraph 1 of the Auditors'' Report under the head of
''Report on Other Legal and Regulatory Requirements'' of our report of
even date.
1) In respect of its fixed assets:
a. The company has maintained proper records showing full particulars
including quantitative details and situation of its fixed assets on the
basis of available information.
b. As explained to us, all the fixed assets have been physically
verified by the management in a phased manner, which in our opinion is
reasonable, having regard to the size of the Company and nature of its
assets. No material discrepancies were noticed on such physical
verification.
c. In our opinion, the Company has not disposed off a substantial part
of its fixed assets during the year and the going concern status of the
Company is not affected.
2) In respect of its inventories:
a. The inventories have been physically verified during the year by the
management. In our opinion, the frequency of verification is
reasonable.
b. In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventories
followed by the management are reasonable and adequate in relation to
the size of the Company and nature of its business.
c. The Company has maintained proper records of inventories. As
explained to us, there were no material discrepancies noticed on
verification of inventories as compared to the book records.
3) In respect of the loans, secured or unsecured, granted or taken by
the company to/from companies, firms or other parties covered in the
register maintained under section 301 of the Companies Act,1956:
a. The Company has given interest free loans to two subsidiaries. In
respect of the said loans, the maximum amount outstanding at any time
during the year was '' 41,385.10 Lacs and the year-end balance is Rs.
33,174.93 Lacs.
b. In our opinion and according to the information and explanation
given to us, the rate of interest wherever charged and other terms and
conditions of the loans given by the company, are not prima facie
prejudicial to the interest of the company. Repayment is regular.
c. According to the information and explanations given to us and on the
basis of our examination of the books of account, the Company has not
taken loans from companies, firms or other parties listed in the
register maintained under Section 301 of the Companies Act, 1956.
Consequently, the requirement of sub clauses (iii) (f) & (g) of
paragraph 4 of the Order are not applicable to the company.
4) In our opinion and according to the information and explanations
given to us, there is adequate internal control system commensurate
with the size of the Company and the nature of its business for the
purchase of inventory/material, fixed assets and for the sale of
goods/flats/offices and services. During the course of our audit, we
have not observed any continuing failure to correct major weaknesses in
such internal control system.
5) In respect of the contracts or arrangements referred to in Section
301 of the Companies Act, 1956:
a. According to the information and explanations given to us, we are of
the opinion that the particulars of all contracts or arrangements that
need to be entered into the Register maintained under Section 301 of
the Act, have been so entered.
b. In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of such contracts or
arrangements and exceeding the value of Rs. 5,00,000/- in respect of
any party have been made at prices which are reasonable having regard
to the prevailing market prices at the relevant time.
6) The Company has not accepted any deposit from the public within the
meaning of Sections 58A and 58AA of the Act and the Rules made there
under.
7) In our opinion, the Company has an internal audit system
commensurate with its size and the nature of its business.
8) We have broadly reviewed the cost records maintained by the Company
pursuant to the Companies (Cost Accounting Records) Rules, 2011
prescribed by the Central Government U/s 209 (1) (d) of the Act and are
of the opinion that prima facie the prescribed Cost Records have been
maintained. We have, however, not made a detailed examination of the
cost records with a view to determine whether they are accurate or
complete.
9) In respect of Statutory dues:
a. According to the information and explanation provided to us, the
Company is generally regular in depositing with appropriate authorities
undisputed statutory dues including Provident Fund, Investor Education
and Protection Fund, Income Tax, Value Added Tax, Wealth tax, Excise
duty, Cess and other material statutory dues applicable to it.
b. Details of dues of Income tax which has not been deposited as on
March 31, 2014 on account of disputes are given below:
Sr. Name of Nature of dues Amount Period to Forum where
No Statute (Rs.in Lacs) which it dispute is
relates pending
1 Income Tax Income Tax 415.18 A.Y 2011-12 CIT(A)
Act, 1961
Total 415.18
10) The Company has no accumulated losses as at the end of the
financial year and it has not incurred any cash losses in the financial
year ended on that date or in the immediately preceding financial year.
11) According to the information and explanations given to us, the
Company has not defaulted in repayment of dues to banks and financial
institutions during the year.
12) The Company has not granted any loans and advances on the basis of
security by way of pledge of shares, debenture and other securities.
Therefore, the provisions of Clause 4(xii) of the Order are not
applicable to the Company.
13) In our opinion, the Company is not a chit fund or nidhi/mutual
benefit fund/ society. Therefore, the provisions of clause 4 (xiii) of
the Order are not applicable to the Company.
14) According to the information and explanations given to us, the
Company has not dealt (other than in Mutual Fund Units) or traded in
shares, securities, debentures or other investments during the year.
For dealings in units of Mutual Funds, the Company has maintained
proper records of transactions and contracts. All the investments have
been held by the Company in its own name.
15) In our opinion and according to the information and explanations
given to us, the terms and conditions of the guarantees given by the
Company for loans taken by others from banks or financial institutions
during the year, are not prejudicial to the interest of the Company.
16) In our opinion and according to the information and explanation
given to us, the term loans have been applied for the purposes for
which they were obtained.
17) In our opinion and according to the information and explanation
given to us and on an overall examination of the Balance Sheet and Cash
Flow Statement of the Company, we are of the opinion that no funds
raised on the short term basis have been utilized for long term
investment.
18) During the year, the Company has made preferential allotment of
shares to the Companies covered in the Register under section 301 of
the Act. In our opinion and according to the information and
explanations given to us, the price at which shares have been issued is
not prejudicial to the interest of the Company.
19) According to the information and explanations given to us, the
Company has not issued any secured debentures; therefore the provisions
of clause (xix) of the order are not applicable to the Company.
20) The Company has not raised any money by way of public issue during
the year.
21) In our opinion and according to the information and explanations
given to us, no material fraud on or by the Company has been noticed or
reported during the year.
For V.R. Renuka & Co.
Chartered Accountants
Firm Registration No. 108826W
V.R. Renuka
Proprietor
M. No. 032263
Mumbai, May 30, 2014
Mar 31, 2013
Report on the Financial Statements
We have audited the accompanying financial statements of Swan Energy
Limited ("the Company"), which comprise the Balance Sheet as at March
31,2013, the Statement of Profit and Loss and the Cash Flow Statement
for the year then ended, and a summary of significant accounting
policies and other explanatory information.
Management''s Responsibility for the Financial Statements
Management is responsible for 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
Accounting Standards referred to in sub-section (3C) of section 211 of
the Companies Act, 1956 ("the Act"). This responsibility includes the
design, implementation and maintenance of internal control 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.
Auditors'' Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. 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 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 control relevant to the Company''s preparation and
fair presentation of the financial statements in order to design audit
procedures that are appropriate in the circumstances. An audit also
includes evaluating the appropriateness of accounting policies used and
the reasonableness of the accounting estimates made by management, 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.
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:
a. In the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2013;
b. In the case of the Statement of Profit and Loss, of the profit for
the year ended on that date; and
c. In the case of the Cash Flow Statement, of the 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, 2003 ("the
Order") issued by the Central Government of India in terms of
sub-section (4A) of section 227 of the Act, we give in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the Order.
2) As required by section 227(3) of the Act, we report that:
a. We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose 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, Statement of Profit and Loss, and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account;
d. In our opinion, the Balance Sheet, Statement of Profit and Loss,
and Cash Flow Statement comply with the Accounting Standards, referred
to in subsection (3C) of section 211 of the Companies Act, 1956;
e. On the basis of written representations received from the directors
as on March 31, 2013, and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31, 2013, from being
appointed as a director in terms of clause (g) of sub-section (1) of
section 274 of the Companies Act, 1956.
Annexure to the Independent Auditors'' Report
Referred to in Paragraph 1 of the Auditors'' Report under the head of
''Report on Other Legal and Regulatory Requirements'' of our report of
even date.
On the basis of such checks as we considered appropriate and according
to the information and explanation given to us during the course of our
audit, we report that:
1) In respect of its fixed assets:
a. The company has maintained proper records showing full particulars
including quantitative details and situation of its fixed assets.
b. According to the information and explanation given to us, the
Company has formulated the regular program of verification by which all
the assets of the Company are verified in a phase manner, which in our
opinion, is reasonable having regard to the size of trie Company and
nature of its assets and no material discrepancies were noticed.
c. In our opinion and according to the information and explanations
given to us, no fixed asset has been disposed off by the Company during
the year and hence does not affect the going concern status of the
Company.
2) In respect of its inventories:
a. As explained to us the management has conducted physical
verification of stock at reasonable intervals during the year. In
respect of land as stock in trade, we are informed that verification
has been conducted as to the area and title of the land.
b. In our opinion and according to the information and explanation
given to us, the procedure of physical verification of stock followed
by the management is reasonable and adequate in relation to the size of
the Company and nature of its business.
c. On the basis of examination of inventory records, in our opinion,
the Company has maintained proper records of inventory, the
discrepancies noticed on verification between the physical stock and
book records were not material and the same has been properly dealt
with in the books of accounts.
3) In respect of the loans, secured or unsecured, granted or taken by
the company to/from companies, firms or other parties covered in the
register maintained under section 301 of the Companies Act,1956:
a. According to the information and explanations given to us and on
the basis of our examination of the books of account, the Company has
granted loans to related parties. In respect of the said loans, the
maximum amount outstanding at any time during the year and year-end
balance is Rs. 38,310.6 Lacs.
b. In our opinion and according to the information and explanation
given to us, the rate of interest wherever charged and other terms and
conditions of the loans given by the company, are not prima facie
prejudicial to the interest of the company. Repayment is regular.
c. According to the information and explanations given to us and on
the basis of our examination of the books of account, the Company has
not taken loans from companies, firms or other parties listed in the
register maintained under Section 301 of the Companies Act, 1956.
Consequently, the requirement of sub clauses (iii) (f) & (g) of
paragraph 4 of the Order are not applicable to the company.
4) 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 for the purchase of inventory/material, fixed assets and for
the sale of goods/flats/offices and services. Further on the basis of
our examination of books and records of the Company and according to
the information and explanation given to us, we have neither come
across nor have been informed of any continuing failure to correct
major weaknesses in the aforesaid internal control procedures.
5) In our opinion and according to the information and explanations
given to us, there are no transactions of purchase of goods and
materials and sale of goods, materials and services aggregating during
the period to Rs. 5,00,000 or more in respect of each party, in pursuance
of contracts or arrangements entered in the register maintained Under
Section 301 of the Companies Act, 1956.
6) In our opinion and according to the information and explanations
given to us, the Company has not accepted any deposits from the Public
to which the directives issued by the Reserve Bank of India and
provisions of Section 58A and Section 58AA of the Companies Act 1956
and the rules made there under are applicable.
7) As per information & explanations given by the management, the
Company has an internal audit system commensurate with its size and the
nature of its business.
8) We have broadly reviewed the cost records maintained by the Company
pursuant to the Companies (Cost Accounting Records Rules, 2011
prescribed by the Central Government U/s 209 (1) (d) of the Companies
Act, 1956 and are of the opinion that prima facie the prescribed Cost
Records have been maintained. We have, however, not made a detailed
examination of the Cost Records with a view to determine whether they
are accurate or complete.
9) In respect of Statutory dues:
a. According to the information and explanation provided to us, the
Company is generally regular in depositing with appropriate authorities
undisputed statutory dues including Provident Fund, Investor
Education and Protection Fund, Income Tax, Value Added Tax, Wealth tax,
Excise duty, Cess and other material statutory dues applicable to it.
b. According to the information and explanations given to us, there are
no dues of Sales Tax, Service tax, Custom Duty, Wealth Tax, Excise duty
or cess outstanding on account of any dispute, other than disputed
Income tax demand as under:
Sr. Nature of Amount Period to Forum where
dispute
Name of Statute which it
No dues (Rs.
in
Lacs) relates is Pending
1 Income Tax Act, 1961 Income Tax 16.50 A.Y 2003-04 ITAT
2 Income Tax Act, 1961 Income tax 343.20 A.Y. 2006-07 ITAT
3 Income Tax Act, 1961 Income Tax 233.99 A.Y. 2010-11 CIT(A)
Total 1,593.69
10) As at the balance sheet date, the Company does not have any
accumulated losses. The Company has not incurred cash losses during the
year under report, and has also not incurred cash loss in the preceding
financial year.
11) According to the information and explanations given to us, the
Company has not defaulted in repayment of dues to banks and financial
institutions during the year.
12) According to the information and explanations given to us, the
Company has not granted loans and advances on the basis of security by
way of pledge of shares, debenture and other securities.
13) According to the information and explanations given to us and in
our opinion, the Company is not a chit fund or nidhi/mutual benefit
fund/ society. Therefore, the provisions of clause 4 (xiii) of the
order are not applicable to the Company.
14) According to the information and explanations given to us, the
Company has not dealt (other than in Mutual Fund Units) or traded in
shares, securities, debentures or other investments during the year.
For dealings in units of Mutual Funds, the Company has maintained
proper records of transactions and contracts. All the investments have
been held by the Company in its own name.
15) According to the information and explanations given to us, the
Company has given the guarantees for the loans taken by its subsidiary
company from banks, the terms and conditions whereof, in our opinion,
are not prejudicial to the interest of the Company.
16) In our opinion and according to the information and explanation
given to us, the Company had applied the term loans for the purpose for
which the loan was obtained.
17) In our opinion and according to the information and explanation
given to us and on an overall examination of the Balance Sheet and Cash
Flow Statement of the Company, we report that no funds raised on the
short term basis have been utilized for long term investment.
18) According to the information and explanations given to us, the
Company had not made any preferential allotment of shares to parties
and companies covered in the register maintained U/s. 301 of the
Companies Act 1956.
19) According to the information and explanations given to us, the
Company has not issued any secured debentures, therefore the provisions
of clause (xix) of the order are not applicable to the Company.
20) During the year covered by our audit report, the Company has not
raised any money by way of public issue, therefore the provisions of
clause (xx) of the order are not applicable to the Company.
21) To the best of our knowledge and belief, according to the
information and explanation given to us and based on the audit
procedures performed, we report that no material fraud on or by the
Company has been noticed or reported during the course of our audit.
For V.R.Renuka & Co.
Chartered Accountants
Firm Registration No. 108826W
V.R. Renuka
Proprietor
M. No. 032263
Mumbai, May 30, 2013
Mar 31, 2012
1. We have audited the attached Balance SÃeet of SWAN ENERGY LIMITED
as at March 31, 2012 and the Statement of Profit and Loss Account and
also the Cash Flow Statement of the Company for the year ended March
31, 2012, 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 the 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 tn*~ accounting principles used and significant estimates
made by 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 the Companies (Auditor's Report) Order, 2003, as
amended by the Companies (Auditor's Report) (Amendment) Order, 2004
(together the "Order"), issued by the Central Government of India in
terms of sub-section (4A) of Section 227 of'The Companies Act 1956' of
India (the 'Act') and on the basis of such checks of the books and
records of the Company as we considered necessary and appropriate and
according to the information and explanations given to us during the
course of audit, we enclose in the Annexure a statement on the matters
specified in paragraphs 4 and 5 of the said Order.
4. Furtherto ourcomments in the Annexure referred to above, we report
that:
a. We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
b. In our opinion, proper books of accounts 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 Account and
Cash Flow Statement dealt with by this report are in agreement with the
books of account;
d. In our opinion, the Balance Sheet, the Statement of Profit and Loss
Account and Cash Flow Statement dealt with by this report are in
compliance with the Accounting Standards (AS) referred to infection 211
(3C) of the Companies Act, 1956.
e. On the basis of information and explanations given to us and
representations received from the Directors of the Company and taken on
record by the Board of Directors, we report that no Director is
disqualified from being appointed as director of the Company under
clause (g) of sub section (1) of Section 274 of the Companies Act, 1956
f. In our opinion and to the best of our information and according to
the explanations given to us, the said financial statements, read with
Notes thereon, give the information required by the Companies Act,
1956, in the manner so required and give a true and fair view in
conformity with the accounting principles, generally accepted in India;
(i) In the case of the Balance Sheet, of the state of the Company's
affairs as at March 31,2012;
(ii) In the case of the Statement of Profit and Loss Account, of the
Profit of the Company for the year ended on that date,
(iii) In the case of the Cash Flow Statement, of the Cash Flows for the
year ended on that date.
Annexure to the Auditors' Report (Referred to in Paragraph (3) of our
Report of even date)
i) a. The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
b. According to the information and explanation given to us, the
Company has formulated the regular program of verlf. ,tion by which all
the assets of the Company are verified in a phase manner, which in our
opinion, is reasonable having regard to the size of the Company and
nature of its assets and no material discrepancies were noticed.
c. According to the information and explanation given to us,
substantial part of fixed assets has not been disposed off by the
Company during the year.
ii) a. As explained to us, the management has conducted physical
verification of inventory at reasonable Intervals during the year. In
respect of land as stock in trade, we are informed that verification
has been conducted as to the area and title of the land.
b. In our opinion and according to the information and explanation
given to us, the procedure of physical verification of inventory
followed by the management are reasonable and adequate in relation to
the size of the Company and nature of its business.
c. On the basis of examination of inventory records, in our opinion,
the Company has maintained proper records of inventory, the
discrepancies noticed on verification between the physical stock and
book records were not material and the same has been properly dealt
with in the books of accounts.
iii) a. During the year, the Company has not availed any loan from a
Company covered in the register maintained u/s. 301 of the Companies
Act, 1956.
b. During the year, the Company has granted loan to Company covered in
the register maintained u/s. 301 of the Companies Act, 1956.
c. In our opinion, the rate of interest and other terms and conditions
of loan granted bythe Company are not prima facie prejudicial to the
interest of the Company. Repayment is regular.
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 for the purchase of inventory/material, fixed assets and for
the sale of goods/flats/offices and services. Further on the basis of
our examination of books and records of the Company and according to
the information and explanation given to us, we have neither come
across nor have been informed of any continuing failure to correct
major weaknesses in the aforesaid internal control procedures
v) In our opinion and according to the information and explanations
given to us, there are no transactions of purchase of goods and
materials and sale of goods, materials and services aggregating in
excess of Rs. 5,00,000 in respect of each party, in pursuance of
contracts or arrangements entered in the register maintained Under
Section 301 of the Companies Act, 1956.
vi) In our opinion and according to the information and explanations
given to us, the Company has not accepted any deposits from the Public
to which the directives issued by the Reserve Bank of India and
provisions of Section 58Aand Section 58AAof the Companies Act 1956 and
the rules made there under are applicable.
vii) In our opinion, the Company has an Internal Audit System
commensurate with the size and nature of its business.
viii) As informed to us, for the present business activities of the
Company, the maintenance of cost records under Section 209 (1) (d) of
the Companies Act, 1956, is not required.
(ix) a. According to the information and explanation provided to us,
the Company is generally regular in depositing with appropriate
authorities undisputed statutory dues including Provident Fund,
Investor Education and Protection Fund, Income Tax, Value Added Tax,
Wealth tax, Excise duty, Cess and other material statutory dues
applicable to it.
b. According to the information and explanations given to us, there are
no dues of Sales Tax, Service tax, Custom Duty, Wealth Tax, Excise duty
or cess outstanding on account of any dispute, other than disputed
Income tax demand as under:
Sr.
No. Assessment Year Nature
of Dues Amount
(Rs. In Lacs) Forum where case is
pending
1. 2003-04 Income tax 16.50 ITAT
2. 2006-07 Income tax 343.20 ITAT
(x) As at the balance sheet date, the Company does not have any
accumulated losses. The Company has not incurred cash losses during the
year under report, and has also not incurred cash loss in the preceding
financial year.
(xi) According to the information and explanations given to us, the
Company has not defaulted in repayment of dues to banks and financial
institutions during the year.
(xii) According to the information and explanations given to us, the
Company has not granted loans and advances on the basis of security by
way of pledge of shares, debenture and other securities.
(xiii) According to the information and explanations given to us and in
our opinion, the Company is not a chit fund or nidhi/ mutual benefit
fund/ society. Therefore, the provisions of clause 4 (xiii) of the
order are not applicable to the Company.
(xiv) According to the information and explanations given to us, the
Company has dealt in and/or traded in mutual funds during the year.
Proper records have been maintained of the transactions and timely
entries have been made therein. The investments have been held by the
Company in its own name.
(xv) According to the informa* on and explanations given to us, the
Company has given the guarantees for the loans taken by its subsidiary
company from banks, the terms and conditions whereof, in our opinion,
are not prejudicial to the interest of the Company.
(xvi) In our opinion and according to the information and explanation
given to us, the Company had applied the term loans for the purpose for
which the loan was obtained.
(xvii) In our opinion and according to the information and explanation
given to us and on an overall examination of the Balance Sheet and Cash
Flow Statement of the Company, we report that no funds raised on the
short term basis have been utilized for long term investment.
(xviii) According , the information and explanations given to us, the
Company had not made any preferential allotment of shares to parties
and companies covered in the register maintained U/s. 301 of the
Companies act 1956.
(xix) According to the information and explanations given to us, the
Company has not issued any secured debentures, therefore the provisions
of clause (xix) of the order are not applicable to the Company.
(xx) During the year covered by our audit report, the Company has not
raised any money by way of public issue, therefore the provisions of
clause (xx) of the order are not applicable to the Company.
(xxi) To the best of our knowledge and belief, according to the
information and explanation given to us and based on the audit
procedures performed, we report that no material fraud on or by the
Company has been noticed or reported during the course of our audit.
For V. R. Renuka & Co.
Chartered Accountants
Firm Registration No. 108826W
V. R. Renuka
Proprietor
Mumbai, August 17, 2012 MN- 032263
Mar 31, 2011
We have audited the attached Balance Sheet of SWAN ENERGY LIMITED as at
31st March, 2011 and the Profit and Loss Account and also the Cash Flow
Statement of the Company for the year ended 31st March, 2011, 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.
1. We conducted our audit in accordance with the auditing standards
generally accepted in India. Those 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 management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
2. As required by the Companies (Auditor's Report) Order, 2003, as
amended by the Companies (Auditor's Report) (Amendment) Order, 2004
(together the "Order"), issued by the Central Government of India in
terms of sub-section (4A) of Section 227 of 'The Companies Act 1956' of
India (the 'Act') and on the basis of such checks of the books and
records of the Company as we considered necessary and appropriate and
according to the information and explanations given to us during the
course of audit, we enclose in the Annexure a statement on the matters
specified in paragraphs 4 and 5 of the said Order.
3. Further to our comments in the Annexure referred to above, we
report that:
a. We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
b. In our opinion, proper books of accounts 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 Profit and Loss Account and Cash Flow
Statement dealt with by this report are in agreement with the books of
account;
d. In our opinion, the Balance Sheet, the Profit and Loss Account and
Cash Flow Statement dealt with by this report are in compliance with
the Accounting Standards (AS) referred to in Section 211 (3C) of the
Companies Act, 1956.
e. On the basis of information and explanations given to us and
representations received from the directors of the Company and taken on
record by the Board of Directors, we report that no director is
disqualified from being appointed as director of the Company under
clause (g) of sub section (1) of Section 274 of the Companies Act,
1956.
4. In our opinion and to the best of our information and according to
the explanations given to us, the said financial statements, read with
note No. B-6 of Schedule 12, relating to disclosure of the amount
payable to small scale industrial undertakings, give the information
required by the Companies Act, 1956, in the manner so required and give
a true and fair view in conformity with the accounting principles,
generally accepted in India:
(a) In the case of the Balance Sheet, of the state of the Company's
affairs as at 31st March, 2011;
(b) In the case of the Profit & Loss Account, of the Profit of the
Company for the year ended on that date,
(c) In the case of the Cash Flow Statement, of the Cash Flows for the
year ended on that date.
Annexure to the Auditors' Report
(Referred to in Paragraph (2) of our Report of even date)
(I) a. The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
b. According to the information and explanation given to us, the
Company has formulated the regular program of verification by which all
the assets of the Company are verified in a phase manner, which in our
opinion, is reasonable having regard to the size of the Company and
nature of its assets and no material discrepancies were noticed.
c. According to the information and explanation given to us,
substantial part of fixed assets has not been disposed of by the
Company during the year
(Ii) a. As explained to us, the management has conducted physical
verification of traded items at reasonable Intervals during the year.
In respect of land as stock in trade, we are informed that verification
has been conducted as to the area and title of the land.
b. In our opinion and according to the information and explanation
given to us, the procedure of physical verification of traded items and
stock in trade followed by the management are reasonable and adequate
in relation to the size of the company and nature of its business.
c. On the basis of examination of inventory records, in our opinion,
the Company has maintained proper records of inventory, the
discrepancies noticed on verification between the physical stock and
book records were not material and the same has been properly dealt
with in the books of accounts.
(Iii) a. During the year, the company has availed loan of Rs. 1,610
lakhs from a Company covered in the Register maintained u/s. 301 of the
Companies Act, 1956.
During the year, the Company has granted loan of Rs. 820 lakhs to a
Company covered in the Register maintained u/s. 301 of the Companies
Act, 1956.
b. In our opinion, the rate of interest and other terms and conditions
of loan taken by the Company are not prima facie prejudicial to the
interest of the Company. Repayment is regular.
(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 for the purchase of inventory/material, fixed assets and
for the sale of goods/flats/offices and services. Further on the basis
of our examination of books and records of the Company and according to
the information and explanation given to us, we have neither come
across nor have been informed of any continuing failure to correct
major weaknesses in the aforesaid internal control procedures
(v) In our opinion and according to the information and explanations
given to us, there are no transactions of
purchase of goods and materials and sale of goods, materials and
services aggregating during the period to Rs. 5,00,000 or more in
respect of each party, in pursuance of contracts or arrangements
entered in the register maintained Under Section 301 of the Companies
Act, 1956.
(vi) In our opinion and according to the information and explanations
given to us, the Company has not accepted any
deposits from the Public to which the directives issued by the Reserve
Bank of India and provisions of Section 58A and Section 58AA of the
Companies Act 1956 and the Rules made there under are applicable.
(Vii) In our opinion, the Company has an Internal Audit System
commensurate with the size and nature of its business.
(viii) As informed to us, for the present business activities of the
Company, the maintenance of Cost records under
Section 209 (1) (d) of the Companies Act, 1956, is not required.
(Ix)a. According to the information and explanation provided to us, the
company is generally regular in depositing with appropriate authorities
undisputed statutory dues including Provident Fund, Investor Education
and Protection Fund, Income Tax, Value Added Tax, Wealth tax, Excise
duty, Cess and other material statutory dues applicable to it.
b. According to the information and explanations given to us, there are
no dues of Sales Tax, Service tax, Custom Duty, Wealth Tax, Excise duty
or cess outstanding on account of any dispute, other than disputed
Income tax demand as under:
Sr.
No. Assessment Nature of Dues Amount (Rs. In Lacs) Forum where case
Year is pending
1. 2003-04 Income tax 16.50 ITAT
2. 2006-07 Income tax 343.20 ITAT
(X) As at the balance sheet date, the company does not have any
accumulated losses. The company has not incurred cash losses during the
year under report, and has also not incurred cash loss in the preceding
financial year.
(Xi) According to the information and explanations given to us, the
Company has not defaulted in repayment of dues to banks and financial
institutions during the year.
(Xii) According to the information and explanations given to us, the
Company has not granted loans and advances on the basis of security by
way of pledge of shares, debenture and other securities.
(Xiii) According to the information and explanations given to us and in
our opinion, the Company is not a chit fund or nidhi/ mutual benefit
fund/ society. Therefore, the provisions of clause 4 (xiii) of the
order are not applicable to the Company.
(Xiv) According to the information and explanations given to us, the
Company has dealt in and/or traded in shares, securities, debentures
and other investments during the year. Proper records have been
maintained of the transactions and timely entries have been made
therein. The investments have been held by the Company in its own name.
(Xv) According to the information and explanations given to us, the
Company has not given any guarantee for loan taken by others from bank
or financial institution.
(Xvi) In our opinion and according to the information and explanation
given to us, the Company had applied the term loans for the purpose for
which the loan was obtained.
(Xvii) In our opinion and according to the information and explanation
given to us and on an overall examination of the Balance Sheet and Cash
Flow Statement of the Company, we report that no funds raised on the
short term basis have been utilized for long term investment.
(Xviii) According to the information and explanations given to us, the
Company had not made any preferential allotment of shares to parties
and companies covered in the Register maintained U/s. 301 of the
Companies act 1956.
(Xix) According to the information and explanations given to us, the
Company has not issued any secured debentures, therefore the provisions
of clause (xix) of the order are not applicable to the Company.
(XX) During the period covered by our audit report, the Company has not
raised any money by way of public issue, therefore the provisions of
clause (xx) of the order are not applicable to the Company.
(XXi) To the best our knowledge and belief, according to the
information and explanation given to us and based on the audit
procedures performed, we report that no material fraud on or by the
Company has been noticed or reported during the course of our audit.
For V. R. Renuka & Co.
Chartered Accountants
Firm Registration No. 108826W
V. R. Renuka
Proprietor
Mumbai, 12th August 2011 M.N. 32263
Mar 31, 2010
We have audited the attached Balance Sheet of SWAN ENERGY LIMITED as at
31st March 2010 and the Profit and Loss Account and also the Cash Flow
Statement of the Company for the year ended 31st March 2010, annexed
thereto. These financial statements are the responsibility of the
Companys management. Our responsibility is to express an opinion on
these financial statements based on our audit.
1. We conducted our audit in accordance with the auditing standards
generally accepted in India. Those 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 management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
2. As required by the Companies (Auditors Report) Order, 2003, as
amended by the Companies (Auditors Report) (Amendment) Order, 2004
(together the "Order"), issued by the Central Government of India in
terms of sub-section (4A) of Section 227 of The Companies Act 1956 of
India (the Act) and on the basis of such checks of the books and
records of the Company as we considered necessary and appropriate and
according to the information and explanations given to us during the
course of audit, we enclose in the Annexure a statement on the matters
specified in paragraphs 4 and 5 of the said Order.
3. Further to our comments in the Annexure referred to above, we
report that:
a. We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
b. In our opinion, proper books of accounts 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 Profit and Loss Account and Cash Flow
Statement dealt with by this report are in agreement with the books of
account;
d. In our opinion, the Balance Sheet, the Profit and Loss Account and
Cash Flow Statement dealt with by this report are in compliance with
the Accounting Standards (AS) referred to in Section 211 (3C) of the
Companies Act, 1956.
e. On the basis of information and explanations given to us and
representations received from the directors of the Company and taken on
record by the Board of Directors, we report that no director is
disqualified from being appointed as director of the Company under
clause (g) of sub section (1) of Section 274 of the Companies Act,
1956.
4. In our opinion and to the best of our information and according to
the explanations given to us, the said financial statements, read with
note No. B-6 of Schedule 12, relating to disclosure of the amount
payable to small scale industrial undertakings, give the information
required by the Companies Act, 1956, in the manner so required and give
a true and fair view in conformity with the accounting principles,
generally accepted in India:
(a) in the case of the Balance Sheet, of the state of the Companys
affairs as at 31SI March, 2010;
(b) in the case of the Profit & Loss Account, of the Profit of the
Company for the year ended on that date, and
(c) In the case of the Cash Flow Statement, of the Cash Flows for the
year ended on that date.
Annexure to the Auditors Report
(Referred to in Paragraph (2) of our Report of even date)
(i) (a) The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
(b) According to the information and explanation given to us, the
Company has formulated the regular programme of verification by which
all the assets of the Company are verified in a phased manner, which in
our opinion, is reasonable having regard to the size of the Company and
nature of its assets and no material discrepancies were noticed.
(c) According to the information and explanation given to us,
substantial part of fixed assets has not been disposed of by the
Company during the year.
(ii) (a) As explained to us the management has conducted physical
verification of traded items at reasonable Intervals during the year.
In respect of land as stock in trade, we are informed that verification
has been conducted as to the area and title of the land.
(b) In our opinion and according to the information and explanation
given to us, the procedure of physical verification of traded items and
stock in trade followed by the management are reasonable and adequate
in relation to the size of the Company and nature of its business.
(c) On the basis of examination of inventory records, in our opinion,
the Company has maintained proper records of inventory, the
discrepancies noticed on verification between the physical stock and
book records were not material and the same has been properly dealt
with in the books of accounts.
(iii) (a) During the year, the Company has availed loan of Rs. 1805.00
lacs from a Company covered in the register maintained u/s. 301 of the
Companies Act, 1956.
During the year, the Company has granted loan of Rs. 3054.90 lacs to a
Company covered in the register maintained u/s. 301 of the Companies
Act, 1956.
(b) In our opinion, the rate of interest and other terms and conditions
of loan taken/granted by the Company are not prima facie prejudicial to
the interest of the Company, repayment is regular.
(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 for the purchase of inventory/ material, fixed assets and for
the sale of goods/flats/offices and services. Further on the basis of
our examination of books and records of the Company and according to
the information and explanation given to us, we have neither come
across nor have been informed of any continuing failure to correct
major weaknesses in the aforesaid internal control procedures.
(v) In our opinion and according to the information and explanations
given to us, there are no transactions of purchase of goods and
materials and sale of goods, materials and services aggregating during
the period to Rs. 5, 00,000 or more in respect of each party, in
pursuance of contracts or arrangements entered in the register
maintained Under Section 301 of the Companies Act, 1956.
(vi) In our opinion and according to the information and explanations
given to us, the Company has not accepted any deposits from the Public
to which the directives issued by the Reserve Bank of India and
provisions of Section 58A and Section 58AA of the Companies Act 1956
and the rules made there under are applicable.
(vii) In our opinion, the Company has an Internal Audit System
commensurate with the size and nature of its business.
(viii) As informed to us, for the present business activities of the
Company, the maintenance of cost records under Section 209 (1) (d) of
the Companies Act, 1956, is not required.
(ix) (a) According to the information and explanation provided to us,
the Company is generally regular in depositing with appropriate
authorities undisputed statutory dues including Provident Fund,
Investor Education and Protection Fund, Income Tax, Value Added Tax,
Wealth tax, Excise duty, Cess and other material statutory dues
applicable to it. (b) According to the information and explanation
given to us, there are no dues of Sales Tax, Service tax, Custom Duty,
Wealth Tax, Excise duty or cess outstanding on account of any dispute,
other than disputed Income tax demand as under:
Sr.
No. Assessment Year Nature of Dues Amount
(Rs. In Lacs) Forum Where
case is
Pending
1. 2006-07 Income tax 343.20 ITAT
(x) As at the balance sheet date, the Company does not have any
accumulated losses. The Company has not incurred cash losses during the
year under report, and has also not incurred cash loss in the preceding
financial year.
(xi) According to the information and explanations given to us, the
Company has not defaulted in repayment of dues to banks and financial
institutions during the year.
(xii) According to the information and explanations given to us, the
Company has not granted loans and advances on the basis of security by
way of pledge of shares, debenture and other securities.
(xiii) According to the information and explanations given to us and in
our opinion, the Company is not a chit fund or nidhi/ mutual benefit
fund/ society. Therefore, the provisions of clause 4 (xiii) of the
order are not applicable to the Company.
(xiv) According to the information and explanations given to us, the
Company has dealt in and/or traded in shares, securities, debentures
and other investments during the year. Proper records have been
manitained of the transactions and timely entries have been made
therein. The investments have been held by the Company in its own name.
(xv) According to the information and explanations given to us, the
Company has not given any guarantee for loan taken by others from bank
or financial institution.
(xvi) In our opinion and according to the information and explanation
given to us, the Company has applied the term loans for the purpose for
which the loan was obtained.
(xvii) In our opinion and according to the information and explanation
given to us and on an overall examination of the Balance Sheet and Cash
Flow Statement of the Company, we report that no funds raised on the
short term basis have been utilized for long term investment.
(xviii) According to the information and explanations given to us, the
Company has not made any preferential allotment of shares to parties
and companies covered in the register maintained U/s. 301 of the
Companies act 1956.
(xix) According to the information and explanations given to us, the
Company has not issued any secured debentures, therefore the provisions
of clause (xix) of the order are not applicable to the Company.
(xx) During the period covered by our audit report, the Company has not
raised any money by way of public issue, therefore the provisions of
clause (xx) of the order are not applicable to the Company.
(xxi) To the best of our knowledge and belief, according to the
information and explanation given to us and based on the audit
procedures performed, we report that no material fraud on or by the
Company has been noticed or reported during the course of our audit.
For V. R. Renuka & Co.
Chartered Accountants
Firm Registration No. 108826W
V.R. Renuka
Proprietor
Mumbai, 11th August, 2010. M.N. 32263