Unique Document Identification Number
(UDIN) for this document is 23080855BGQJSU2665
To the Members of
Swiss Military Consumer Goods Limited
Report on the Audit of the Standalone Financial Statements
Opinion
We have audited the accompanying financial statements of Swiss Military Consumer
Goods Limited ("the Company"), which comprise the Standalone Balance Sheet
as at 31st March 2023, the Standalone Statement of Profit and Loss (including Other
Comprehensive Income), the Standalone statement of changes in Equity and the Standalone
statement of Cash Flow for the year then ended and notes to the Standalone financial
statements, including a summary of significant accounting policies and other explanatory
information.
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 Companies Act, 2013 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 31,2023, its Profit, total comprehensive income, the
changes in equity and its cash flows for the year on that date.
Basis for Opinion
We conducted our audit in accordance with the Standards on Auditing (SAs) specified
under section 143(10) of the Companies Act, 2013. Our responsibilities under those
Standards are further described in the Auditors Responsibilities for the Audit of the
Standalone Financial Statements 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
Standalone financial statements under the provisions of the Companies Act, 2013 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 standalone
financial statements.
Key Audit Matters
Key Audit Matters are those matters that, in our professional judgment, were of most
significance in our audit of the standalone financial statements of the current period.
These matters were addressed in the context of our audit of the standalone financial
statements 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.
Description of Key Audit Matters:
| Key audit matters |
How our audit addressed the key audit matter |
| Provisions, Litigations, Claims and Contingent Liabilities: (Refer Note- 22) |
|
| The management is required to make judgements and estimates in relation to the issues
and exposures arising from a range of matters relating to direct tax, indirect tax,
general legal proceedings and other eventualities arising in the regular course of
business. |
Our audit procedures included the following: |
|
• We tested the design, implementation and operating effectiveness of key
internal controls around the recognition and measurement of provisions. |
| The Company is also subject to complexities arising from uncertain tax positions on
deductibility of expenses and allowance of certain tax deductions. |
• We inquired the status in respect of significant provisions with the Companys
internal tax and legal team. |
| The key judgement lies in determining the likelihood and magnitude of the possible
cash outflows and interpretations of the legal aspects, tax legislations and judgements
previously made by authorities. By nature, these are complex and include many variables. |
• We assessed the value of material provisions in light of the nature of the
exposures, applicable regulations and related correspondence with the authorities. |
|
• We challenged the assumptions and critical judgements made by the Company which
impacted their estimate of provision required, considering judgements previously made by
the authorities in the relevant jurisdictions or any relevant opinions given by the
Companys advisors and assessing whether there was an indication of management bias. |
|
• We verified the calculation of provision on a test check basis. |
Information Other than the Financial Statements and Auditors Report thereon
The Companys Board of Directors is responsible for the preparation of the other
information. The other information comprises the information included in the Management
Discussion and Analysis, Boards Report including Annexures to Boards Report, Business
Responsibility Report, Corporate Governance and Shareholders INformation, but does not
include the financial statements and our auditors report thereon
Our opinion on the standalone financial statements does not cover the other information
and we do not express any form of assurance conclusion thereon.
In connection with ourauditof the standalonefinancial statements, our responsibility is
to read the other information and, in doing so, consider whether the other information is
materially inconsistent with the financial statements 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 reguired to report that fact. We have nothing to report in this
regard.
Managements Responsibilities for the Standalone Financial Statements
The Companys 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, 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) prescribed 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
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.
In preparing the financial statements, the Management is responsible for assessing the
Companys 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.
The Board of Directors is also responsible for overseeing the Companys financial
reporting process.
Auditors Responsibilities for the Audit of the Standalone Financial Statements
Our objectives are to obtain reasonable assurance about whether the standalone
financial statements as a whole are free from material misstatement, whether due to fraud
or error, and to issue an auditors 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 standalone financial statements.
As part of an audit in accordance with SAs, we exercised professional judgment and
maintain professional skepticism throughout the audit. We also:
• Identified and assess the risks of material misstatement of the standalone
financial statements, 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, misrepresentation override of internal control.
• Obtained 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 Companies Act, 2013, we are also responsible for expressing our opinion on
whether the company has adeguate internal financial controls system in place and the
operating effectiveness of such controls
• Evaluated the appropriateness of accounting policies used and the reasonableness
of accounting estimates and related disclosures made by management.
• Concluded on the appropriateness of managements 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 Companys
ability to continue as a going concern. If we conclude that a material uncertainty exists,
we are required to draw attention in our auditors report to the related disclosures in
the standalone financial Statements 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
auditors report. However, future events or conditions may cause the Company to cease to
continue as a going concern.
• Evaluated the overall presentation, structure and content of the standalone
financial statements, including the disclosures, and whether the financial statements
represent the underlying transactions and events in a manner that achieves fair
presentation.
• Materiality is the magnitude of misstatements in the financial statements that,
individually or in aggregate, makes it probable that the economic decisions of a
reasonably knowledgeable user of the financial statements may be influenced. We consider
quantitative materiality and qualitative factors in (i) planning the scope of our audit
work and in evaluating the results of our work; and (ii) to evaluate the effect of any
identified misstatements in the financial statements.
We communicated with those charged with governance 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 provided those charged with governance with a statement that we havecomplied
with relevant ethical requirements regarding independence, and to communicate with them
all relationships and other matters that may reasonably bethought to bear on our
independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determined those
matters that were of most significance in the audit of the financial statements of the
current period and are therefore the key audit matters. We described these matters in our
auditors report unless law or regulation precludes public disclosure about the matter or
when, in extremely rare circumstances, we determined 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.
Report on Other Legal and Regulatory Requirements
As required by the Companies (Auditors Report) Order, 2020 issued by the Central
Government of India in terms of Section 143 (11) of the Companies Act, 2013, We give it
the" Annexure-A" a statement on the matters specified in paragraph 3 and 4 of
the order. to the extent applicable.
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 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 it appears from our examination of those books.
c) The standalone Balance Sheet, the standalone Statement of Profit and Loss & the
Cash Flow Statement and Statement of standalone Changes in Equity dealt with by this
Report are in agreement with the books of account.
d) In our opinion, the aforesaid standalone financial statements comply with the Indian
Accounting Standards (Ind AS) 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 01st
April 2023 taken on record by the Board of Directors, none of the directors is
disqualified as on 31st March 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 with reference to
financial statements of the Company and the operating effectiveness of such controls,
refer to our separate Report in "Annexure B". Our report expresses an unmodified
opinion on the adequacy and operating effectiveness of the Companys internal financial
controls with reference to Standalone Financial Statements.
g) With respect to the other matters to be included in the Auditors Report in
accordance with the requirements of section 197(16) of the Act, as amended, in our opinion
and to the best of our information and explanations given to us, the remuneration paid by
the company of its director (s) during the year is accordance with the provisions of
sections 197 of the Act.
h) With respect to the other matters to be included in the Auditors Report in
accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion
and to the best of our information and according to the explanations given to us:
i. The Company does not have any pending litigations which would impact its financial
position
ii. The Company does not have any long-term contracts including derivative contracts
for which there were any material foreseeable losses.
iii. The Board of Directors of the company have proposed final dividend for the year,
which is subject to the approval of the members at the ensuing Annual General meeting, The
dividend declared is in accordance with section 123 of the Act to the extent it applies to
the declaration of dividend.
|
For B K Sood & Co. |
|
Chartered Accountants |
|
FRN. 000948N |
|
Sd/- |
|
B. K. Sood |
| Place: New Delhi |
Partner |
| Date: 09th Day of May, 2023 |
M. No. 080855 |
"Annexure A" to the Independent Auditors Report
(Referred to in paragraph I under Report on Other Legal and Regulatory Requirements
section of the Independent Auditors Report of even date to the members of "SWISS
MILITARY CONSUMER GOODS LIMITED on the standalone financial statements as of and for the
year ended 31st March, 2023
1) In respect of its fixed assets: -
a) The Company has maintained proper records showing full particulars including
quantitative details and situation of fixed assets.
b) The Property, Plant and Equipment have been physically verified by the management in
a phased manner, designed to cover all the items over a period of three years, which in
our opinion, is reasonable having regard to the size of the company and nature of its
business. Pursuant to the program, a portion of the fixed asset has been physically
verified by the management during the year and no material discrepancies between the books
records and the physical assets have been noticed.
c) According to the information and explanations given to us and based on the
examination of the title deeds of all the immovable properties (which are included under
the head of property, plant and equipment) are held in the name of the Company.
d) I n our opinion company has not revalued Property, Plant and Equipment or Intangible
assets or both during the year.
e) According to information and explanation given to us there are no proceedings
initiated or are pending against the company for holding any Benami property under the
Benami Transactions (Prohibition) Act, 1988.
2) In respect of its inventories: -
a) The management has physically verified the inventories at reasonable intervals and
during the year. In our opinion, the frequency of verification is reasonable.
b) No material discrepancies noticed on verification between the physical stocks and
the book records and such discrepancies have been properly dealt with in the books of
accounts.
3) Based upon the audit procedures performed and the information and explanations
given by the management, During the Year Company has not made a Loan or Advance
investments in, companies, firms, Limited Liability Partnership or any other parties
a) In our Opinion Company has not made investments, guarantees provided, security given
and the terms and conditions of the grant of all loans and advances in the nature of loans
and guarantees provided are not prejudicial to the companys Interest.
b) Based upon the audit procedures performed and the information and explanations given
to us by the management, the repayment schedule of loans and advances has been checked and
company is regular in repayment of principal and payment of interest on loans and
advances.
c) As per informed to us, there is no overdue in loans and advance for more than 90
Days.
d) As per information and explanations given to us by the management there are no loan
or advance in the nature of loan granted which has fallen due during the year has been
renewed or extended or fresh loans granted to settle the over dues of existing loans given
to the same parties.
e) As informed to us, there are no any loans or advance in the nature of loans granted
to promoters, related parties as defined in clause (76) of section 2 of the Companies Act,
2013.
4) In our opinion and according to the information and explanations given to us,
the company has not provided any loan, guarantees, and investments to which the provision
of sec 185 of the act apply.
However, regarding loans, guarantees, and Investments to which the provision of sec 186
apply, the company has complied with the provision of section.
5) The Company has not accepted any deposits from the public and hence the
directives issued by the Reserve Bank of India and the provisions of Sections 73 to 76 or
any other relevant provisions of the Act and the Companies (Acceptance of Deposit) Rules,
2015 with regard to the deposits accepted from the public are not applicable.
6) As informed to us, the maintenance of Cost Records has not been specified by the
Central Government under sub-section (1) of Section 148 of the Act, in respect of the
activities carried on by the company. Accordingly, clause is not applicable.
7) (a) According to information and explanations given to us and on the basis of
our examination of the books of account, and records, the Company has been generally
regular in depositing undisputed statutory dues including Goods and Service Tax, Provident
Fund, Employees State Insurance, Income-Tax, or any other statutory dues with the
appropriate authorities. According to the information and explanations given to us, no
undisputed amounts payable in respect of the above were in arrears as at March 31,2023
fora period of more than six months from the date on when they become payable.
(b) According to the information and explanation given to us, there are no dues of
Goods and service Tax, income tax, duty of customs outstanding on account of any dispute.
8) According to the information and explanations given to us and the records
examined by us, the Company has not taken any loans from financial institutions and banks
nor has it issued any debentures. Accordingly, the provisions of clause 3 (viii) of the
Order is not applicable to the Company.
9) (a) In our opinion and according to the information and explanations given to us,
the Company has not defaulted in the repayment of dues to banks and financial
institutions.
(b) In our opinion company is not a declared willful defaulter by any Bank or financial
institution or other lender.
(c) As per information and explanations given to us loan was applied for the purpose
for which the loans were obtained.
(d) According to the information and explanations no fund raised on short term basis
has been utilized for long term purposes.
(e) As per information Company has not taken any funds from any entity or person on
account of or to meet the obligations of its subsidiaries, associates or joint ventures.
(f) As per information Company has not raised loans during the year on the pledge of
securities held in its subsidiaries, joint ventures or associate companies.
10) (a) Based upon the audit procedures performed and the information and
explanations given by the management, the company has not raised moneys by way of initial
public offer or further public offer including debt instruments and term Loans.
Accordingly, the provisions of clause 3(x)(a) of the
Order are not applicable to the Company and hence not commented upon.
(b) Based upon the audit procedures performed and the information and explanations
given by the management, the company has not made any preferential allotment or private
placement of shares or fuIly or partly convertible debentures during the yea r under
review. Accordingly, the provisions of clause 3(x) (b) of the Order are not applicable to
the Company and hence not commented upon.
11) a) Based upon the audit procedures performed and the information and
explanations given by the management, we report that no fraud has been made by the Company
or on the company by its officers or employees that has been noticed or reported during
the year.
(b) Based upon the audit procedures performed and the information and explanations
given by the management, we have observed that no offence involving fraud has been
committed against the company by officers or employees of the company. Hence auditor has
not reported u/s (12) of section 143 of the companies Act and no forms has been filed by
the auditors in Form ADT-4 as prescribed under rule 13 of Companies (Audit and Auditors)
Rules, 2014 with the Central Government.
(c) Based upon the audit procedures performed we have not came cross any whistle-blower
complaints. Accordingly, the provisions of clause 3(xi)(c) of the Order are not applicable
to the Company and hence not commented upon.
12) in our opinion, the Company is not a Nidhi Company. Therefore, the provisions
of clause 3 (xii) of the order are not applicable to the Company.
13) In our opinion, all transactions with the related parties are in compliance
with sections 177 and 188 of the Act where applicable and the details have been disclosed
in the financial statements, as required by the applicable Indian accounting standards.
14) a). In our opinion the company has an adequate internal audit system
commensurate with the size and the nature of its business.
b). we have considered, the internal audit reports issued to the company during the
year and covering the period up to 31st March, 2023 for the period under audit.
15) Based upon the audit procedures performed and 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, the provisions of clause 3 (xv) of
the Order are not applicable to the Company.
16) (a) In our opinion, the company is not required to be registered under section
45 IA of the Reserve Bank of India Act, 1934 and accordingly, the provisions of clause 3
(xvi)(a) of the Order are not applicable to the Company.
(b) In our opinion, the company has not conducted any Non-Banking Financial or Housing
Finance activities. Accordingly, the provisions of clause 3 (xvi)(b) of the Order are not
applicable to the Company.
(c) In our opinion, company is not a Core Investment Company (CIC) as defined in the
regulations made by the Reserve Bank of India. Accordingly, the provisions of clause 3
(xvi)(c) of the Order are not applicable to the Company.
(d) As the Company is not a Core Investment Company as defined in the regulations made
by the Reserve Bank of India. Accordingly, the provisions of clause 3 (xvi)(d) of the
Order are not applicable to the Company.
17) The Company has not incurred cash losses during the financial year covered by
our audit and the immediately preceding financial year.
18) There is no resignation of the statutory auditors during the year. Accordingly,
the provisions of clause 3 (xviii) of the Order are not applicable to the Company.
19) On the basis of the financial ratios, ageing and expected dates of realization
of financial assets and payment of financial liabilities, other information accompanying
the financial statements and our knowledge of the Board of Directors and Management plans
and based on our examination of the evidence supporting the assumptions, nothing has come
to our attention, which causes us to believe that any material uncertainty exists as on
the date of the audit report indicating that Company is not capable of meeting its
liabilities existing at the date of balance sheet as and when they fall due within a
period of one year from the balance sheet date. We, however, state that this is not an
assurance as to the future viability of the Company. We further state that our reporting
is based on the facts up to the date of the audit report and we neither give any guarantee
nor any assurance that all liabilities falling due within a period of one year from the
balance sheet date, will get discharged by the Company as and when they fall due.
20) Based upon audit procedure performed and the information and explanations given by
the management, Companies does not fall under section 135 Corporate Social responsibility
of the said act. Accordingly, the provisions of clause 3 (xx) of the Order are not
applicable to the Company.
21) As the company does not have any subsidiary or a Joint venture, hence, the
provisions of clause 3 (xxi) of the Order are applicable to the Company.
|
For B K Sood & Co. |
|
Chartered Accoun tan ts |
|
i RN. 000948N |
|
Sd/- |
|
B. K. Sood |
| Place: New Delhi |
Partner |
| Date: 09th Day of May, 2023 |
M. No. 080855 |
"Annexure B "to the Independent Auditors Report
(Referred to in paragraph (f) under Report on Other Legal and Regulatory Requirements
section of our report of even date)
Report on the Internal Financial Controls with reference to the Standalone Financial
Statements under Clause (i) of Subsection 3 of Section 143 of the Companies Act, 2013
We have audited the Internal Financial Controls over financial reporting of SWISS
MILITARY CONSUMER GOODS LIMITED as of March 31, 2023 in conjunction with our audit of the
Standalone Ind AS financial statements of the Company for the year ended on that date.
Managements Responsibility for Internal Financial Controls
The Companys 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". 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 companys 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.
Auditors Responsibility
Our responsibility is to express an opinion on the Companys 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
and the Standards on Auditing, issued by ICAI and deemed to be prescribed under section
143(10) of the Companies Act, 2013, to the extent applicable to an audit of Internal
Financial Controls, both applicable to an audit of Internal Financial Controls and, both
issued by the Institute of Chartered Accountants of lndia. 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 auditors judgement, 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 Companys Internal Financial Controls system
over financial reporting.
Meaning of Internal Financial Controls with reference to the Standalone Financial
Statements
A companys 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 companys 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 reflect 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
companys assets that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls with reference to the Standalone
Financial Statements
Because of the 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 a re 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, 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, 2023, 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.
|
For B K Sood & Co. |
|
Chartered Accountants |
|
FRN. 000948N |
|
Sd/- |
|
B. K. Sood |
| Place: New Delhi |
Partner |
| Date: 09th Day of May, 2023 |
M. No. 080855 |
+91-9892691696
