Advance Syntex Ltd Auditor Reports

To the Members of

M/s. ADVANCE SYNTEX LIMITED.

Report on the Financial Statements Qualified Opinion

We have audited the financial statements of ADVANCE SYNTEX LIMITED, which comprise the balance sheet as at Slst March 202S, and the statement of Profit and Loss (including Other Comprehensive Income), Statement of Chang in Equity, Statement of Cash Flow for the year then ended, and notes to the 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, except for the possible effect of the matter described in the basis of qualified opinion section of our report, 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 Ind AS specified under section 133 of the act read with the companies (Accounting Standards) Rules, 2006, as amended (Ind AS) and other accounting principles generally accepted in India, of the state of affairs of the Company as at March 31, 2023 and its loss and other comprehensive income/loss, change in equity and cash flow for the year ended on that date.

Basis for Qualified Opinion

a) Refer to Note No 2(j) of the annual financial statements, the company has defaulted in repayment of certain loans and interest to the banks and other financial institutions during the year and such banks or financial institutions have categorised dues form the company as a Nonperforming Assets. Consequently, the company has not recognized interest expense on borrowing from such banks and other financial institutions. We are unable to comment on amount of interest as exact information is not available.

As a result, finance cost, liabilities on account of interest and total comprehensive loss are understated.

b) Refer to Note No 2(t) (iv) of the audited annual financial results with regard to excess or short provision of gratuity has not been worked out by the company.

As a result, the gratuity expenses, liabilities on account of provision for gratuity and total comprehensive loss are understated.

c) We draw your attention below:

i. The company has continued to incur losses resulting in reduction in Net-worth, and severe Liquidity Constraints; Some Banks or financial institutions have recalled their loans.

ii. That the Company cannot be categorised as a Going Concern in view of the accounting standards generally accepted in India.

iii. However, considering the Ongoing Operations with improved business prospects, continue to execute orders in hand, and obtaining new orders despite adversities and efforts to control costs, the Management is positive about the viability of Companys operation.

In view of the above, the financial results have been prepared by the Management on a "Going Concern" basis and no adjustment is considered necessary, except for the provisions made in the Books of Account, to the recorded assets, recorded liabilities, contingent liabilities and other commitments.

iv. The accounts of trade receivable, trade payables and advances are subject to reconciliation /confirmation. In many cases recovery from debtors and realisation of advances is doubtful. Impairment with respect to such receivables / advances has not been made by the company. However, the statement of financial statements regarding recoverability of trade receivables, advances and impairment of assets other than those provided for during the year, which has been considered good by the management.

v. The inventory consists of many slow-moving items which is resulted to cash liquidity problem to the company.

vi. Majority of the lenders of the Company have not charged interest on outstanding loan dues, since the dues from the Company were categorised as a Non-performing Asset with certain Banks and financial institutions during the year. Accordingly, the Company has not provided for accrued interest on outstanding Loans of such Banks and financial institutions for the full year ended on 31st March, 2023 and we are unable to quantify the amount of interest to be provided on such borrowing due to non-availability of confirmation of balances form such banks and other financial institutions.

vii. The Companys Management is of opinion that the Company shall continue its operations considering the Orders in hand the, whereby the Companys operations will be viable and can be termed as Going Concern and accordingly we have prepared our report with observation stated above.

Our opinion is not modified in respect of these matters.

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 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 financial statements under the provisions of the Companies Act, 2013 and the Rules there under, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the ICAIs Code of Ethics. We believe that the audit evidence obtained by us is sufficient and appropriate to provide a basis for our audit opinion on the financial statement. We have obtained is sufficient and appropriate to provide a basis for our qualified opinion.

Key Audit Matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the financial statements of the current period. These matters were addressed in the context of our audit of the financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters as all key audit matters already mentioned in basis of qualified openion.

Other Matters

The Companys Management and Board of Directors are responsible for the preparation of the other information. The other information comprises the information included in the Boards Report including Annexure(s) to Boards Report, but does not include the Financial Statements and our auditors report thereon. Our opinion on the Financial Statements does not cover the other information and we do not express any form of assurance conclusion thereon. In connection with our audit of the Financial 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 therein, we are required to report that fact. We have nothing to report in this regard.

Managements Responsibility for the 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 financial statements that give a true and fair view of the financial position and financial performance of the Company in accordance with the Ind AS and accounting principles generally accepted in India, including the accounting Standards 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 of the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate implementation and maintenance of 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 statement that give a true and fair view and are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, 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 are also responsible for overseeing the Companys financial reporting process.

Auditors Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the 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 financial statements.

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 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, 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, but not for the purpose of expressing an opinion on whether the Company has adequate internal financial controls with reference to financial statements 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 management.

• Conclude 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 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.

• Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

We communicate 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 provide those charged with governance 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 those charged with governance, we determine those matters that were of most significance in the audit of the standalone financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditors report unless law or regulation precludes public disclosure about the matters 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.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditors Report) Order, 2020 ("the Order") issued by the Central Government of India in terms of sub-section (11) of section 143 of the Act, we give in the "Annexure A" a statement on the matters specified in paragraphs 3 and 4 of the Order, to the extent applicable.

2. As required by Section 143(3) of the Act, we report that:

a. we have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit;

b. in our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books;

c. The Balance Sheet, the Statement of Profit and Loss (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 financial statements, except details covered under "Basis of Qualified Opinion", 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, and 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".

g. With respect to the matter to be included in the Auditors Report under Section 197(16) of the Act, 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. The remuneration paid to any director is not in excess of the limit laid down under Section 197 of the Act. The Ministry of Corporate Affairs has not prescribed other details under Section 197(16) of the Act which are required to be commented upon by us.

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 except disclose in para vii (c) of Annexure - A of the audit report.

ii. the Company did not have any long-term contracts including derivative contracts as at March 31, 2023;

iii. there were no amounts which were required to be transferred to the Investor Education and Protection Fund by the Company.

iv. The management has represented that, to the best of its knowledge and belief, other than as disclosed in the notes to the accounts, 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, whether, directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the company ("Ultimate Beneficiaries") or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries;

v. The management has represented, that, to the best of its knowledge and belief, other than as disclosed in the notes to the accounts, 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, whether, directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party ("Ultimate Beneficiaries") or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries; and

vi. Based on audit procedures which we considered reasonable and appropriate in the circumstances, nothing has come to our notice that has caused us to believe that the representations under subclause (i) and (ii) contain any material mis-statement.

vii. The company has not declared or paid any dividend during the year in contravention of the provisions of section 123 of the Companies Act, 2013.

For V. J. AMIN & CO

[Chartered Accountants]

FRN : 100335W

C.A. CHINTANKUMAR J. PATEL

[Partner]

M. NO. 134028

PLACE : VADODARA

DATE : 30-05-2023

UDIN: 23134028BGTGAQ9368

ANNEXURE A to the Auditors Report

Referred to in paragraph 1 under the heading "Report on other Legal and Regulatory Requirements" of our report on even date

On the basis of records produced before us for our verification/ examination as we considered appropriate and in terms of information and explanations given to us for our enquiries, we state that;

i. In respect of its fixed assets:

a) The Company has maintained proper records showing full particulars including quantitative details and situation of property, plant and equipment and capital work in progress.

b) There is not any intangible asset held by the company.

c) As explained to us, all property, plant and equipment have been physically verified by the management in a phased periodical manner, which in our opinion is reasonable, having regard to the size of the company and nature of its assets. As informed to us, no material discrepancies were noticed on such physical verification.

d) As explained to us, Gross Block Value of property, plant and equipment worth Rs. 5.35 Crore has been disposed-off during the year and it has affected the going concern of the company.

e) As explained to us, the company has not revalued its Property, Plants and Equipment during the year.

f) The title deed of all the immovable properties (Which are included under the head "Property, plant and equipment") are held in the name of the company.

g) In the opinion of the Management fixed assets should be clubbed into a single group for the assets which are having useful life as prescribed in the Schedule II to the Companies Act, 2013. Accordingly, they have clubbed the same based on useful life.

h) No proceedings have been initiated during the year or are pending against the Company as at March 31, 2023 for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 (as amended in 2016) and rules made thereunder.

ii. In respect of its inventories:

a) The inventories, except goods in transit and goods in inspection have been physically verified during the year at reasonable intervals by the management and no material discrepancies were noticed on physical verification.

b) According to the information and explanation 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) On the basis of our examination of the records of Inventories, we are of the opinion that the company has maintained proper records of inventories. As per the information and explanation given to us, no material discrepancies were noticed on physical verification.

d) As per explanation and information given to us, the company has sanctioned working capital limits of Rs. 22.50 Crore from banks and other financial institutions on the basis of security of working capital. The company has not filed quarterly statement or returns to the banks and other financial institutions regularly.

Hence, the banks and other financial institutions have classified loan given to the company as NPA as per the guidelines of the RBI.

iii. In respect of the loans, secured or unsecured, granted by the company to companies, firms or other parties covered in the register maintained under Section 189 of the Companies Act, 2013.

a) The Company has not granted loan to firms and other parties covered in the register maintained under section 189 of the Companies Act, 2013. Hence no reporting is given on this clause.

b) According to the sub clause a) above applicability of all other terms and conditions for such loans and about prejudicial to the interest of the company, reporting since not required not given.

c) The Company has taken loan under section 189 of companies act, 2013 & its repayable on demand.

d) According to the information and explanations given to us all other terms and conditions for such loans are not prima facie prejudicial to the interest of the company.

iv. In respect of loan to Directors/ Company in which director is interested under section 185 of the Companies Act 2013.

In our opinion and according to the information and explanations given to us, the Company has not advanced loans to Directors/ company in which a director is interested to which the provisions of Section 185 of the Companies Act apply and the Company has also not given any loans or advances, has not made investments and has not given guarantees / securities to the company to which the provisions of Section 186 of the Companies Act apply, hence not commented upon.

v. In respect of deposits from public.

According to the information and explanation given to us, the Company has not accepted any deposit from the public. Therefore, the provisions of Clause (v) of paragraph 3 of the Order are not applicable to the Company.

vi. In respect of maintenance of cost records.

In pursuant to the Companies (Cost Records and Audit) Rules, 2014 prescribed by the central Government under Section 148 (1) of the Companies Act, 2013, is not applicable to the company.

vii. In respect of statutory dues:

a) According to the records of the Company, undisputed statutory dues including Employees State Insurance, Sales Tax, Wealth Tax, Duty of Customs, Duty of Excise, Value Added Tax, Income Tax, Service Tax, Provident Fund and Professional Tax, Cess and other material statutory dues have been generally regularly deposited with appropriate authorities.

b) According to the information and explanation given to us, no undisputed statutory dues including Employees State Insurance, Sales Tax, Wealth Tax, Duty of Customs, Duty of Excise, Value Added Tax, Service Tax, Provident Fund and Professional Tax, Cess and other material statutory dues were outstanding as at 31st March, 2023 for a period more than six months from the date of becoming payable except Interest on Income Tax of following years:

Sr. No.	Financial Year	Amount in (Rs.)
1	2017-18	728940
2	2018-19	977530

c) The disputed Statutory dues are as listed below;

Related To	Authority Where Case is Pending	Financial Year	Disputed Amount Rs.	Remarks
VAT	Sales Tax Appellate Tribunal, Ahemdabad	2009-10	5,88,725	Input credit claimed is disallowed in proportion. It is explained that in 1st appeal the order shall be in favor of applicant. The Company had paid under protest Rs.2,30,000/-.
CST	Sales Tax Appellate Tribunal, Ahemdabad	2009-10	3,59,779	Input credit claimed is disallowed in proportion. It is explained that in 1st appeal the order shall be in favor of applicant. The Company had paid under protest Rs.65,000/-
VAT	Sales Tax Appellate Tribunal, Ahemdabad	2010-11	5,62,575	Input credit claimed is disallowed during assessment due to Input used in manufacturing and sales of exempted goods. The Company has paid under protest Rs. 35,000/-
CST	Sales Tax Appellate Tribunal, Ahemdabad	2010-11	30,53,188	Input credit claimed is disallowed during assessment due to Input used in manufacturing and sales of exempted goods. The Company has paid under protest Rs. 2,00,000/-
VAT	Sales Tax Appellate Tribunal, Ahemdabad	2011-12	2,78,146	Input credit claimed is disallowed during assessment due to Input used in manufacturing and sales of exempted goods. The Company has paid under protest Rs. 56,000/-
CST	Sales Tax Appellate Tribunal, Ahemdabad	2011-12	11,75,942	Input credit claimed is disallowed during assessment due to Input used in manufacturing and sales of exempted goods. The Company has paid under protest Rs.2,40,000/-
CST	Sales Tax Appellate Tribunal, Ahemdabad	2012-13	23,88,714	Input credit claimed is disallowed during assessment due to Input used in manufacturing and sales of exempted goods. The Company has paid under protest Rs.4,78,000/-
VAT	Dy. Comm. Of Commercial Tax, Vadodara	2013-14	31,34,951	Input credit claimed is disallowed during assessment due to Input used in manufacturing and sales of exempted goods. The Company has paid under protest Rs.4,24,000/-
CST	Dy. Comm. Of Commercial Tax, Vadodara	2013-14	92,42,226	Due to non-submission of C forms and disallowance of deduction U/s.6 (2) of the CST Act. The Company has paid under protest Rs.3,45,000/-
CST	Dy. Comm. Of Commercial Tax, Vadodara	2015-16	17,82,637	Due to non-submission of C forms and disallowance of deduction U/s.6 (2) of the CST Act. The company has paid amount under protest Rs. 1,75,000/-
VAT	Dy. Comm. Of Commercial Tax, Vadodara	2015-16	58,60,085	Input credit claimed is disallowed during assessment due to Input used in manufacturing and sales of exempted goods. The Company has paid under protest Rs._4,23,000/-
VAT	Dy. Comm. Of Commercial Tax, Vadodara	2016-17	55,04,419	Input credit claimed is disallowed during assessment due to Input used in manufacturing and sales of exempted goods. The Company has paid under protest Rs. 5,87,500/-
CST	Dy. Comm. Of Commercial Tax, Vadodara	2016-17	15,77,890	Due to non-submission of C forms and disallowance of deduction U/s.6 (2) of the CST Act. The company has paid amount under protest Rs. 1,88,500/-
VAT	Dy. Comm. Of	2017-18	50,75,048	Input credit claimed is disallowed during assessment due
	Commercial Tax, Vadodara			to Input used in manufacturing and sales of exempted goods. The company has paid amount under protest Rs. 5,60,000/-
CST	Dy. Comm. Of Commercial	2017-18	10,45,523	Due to non-submission of C forms and disallowance of deduction U/s.6 (2) of the CST Act. The company has paid amount under protest Rs. 1,15,000/-

viii. In respect of transactions not recorded in Books of account have been surrender or disclosed as income under Income Tax Act, 1961.

According to the information and explanations given to us and records examined by us, there are no transactions which have not been recorded in the books of account of the company,

ix. In respect of dues to financial institution /banks/debentures.

a) According to the information and explanations given to us and as per the books and records examined by us, the Company has defaulted in repayment of interest and principal amount to financial institutions or bank. The company does not have records relating to repayment schedule of the loan after the restructuring the loan amount and hence the details of no of days delay is not available. Other details of default are as under:

Sr. No.	Nature of Borrowing	Name of Lender	Amount not Paid on due date (Amount Rs.)	Whether Principle or Interest.
1	Cash Credit	Axis Bank	194472790	Both
2	Term Loan (WC)	Axis Bank	28142109	Both
3	Term Loan (WC)	ICICI Bank	604669	Both
4	Term Loan (WC)	AMBIT FINVEST PRIVATE LIMITED	2487528	Both
5	Term Loan (WC)	Digikredit Finance Pvt. LTD	463260	Both
6	Term Loan (WC)	Siemens Financial Services Pvt Ltd	4660453	Both
7	Term Loan (WC)	KOTAK MAHINDRA BANK LTD	3024477	Both
8	Term Loan (WC)	IVL FINANCE LTD	2312992	Both
9	Term Loan (WC)	MAS FINANCIAL SERVICES LTD	12143488	Both
11	Term Loan (WC)	Idfc First Bank Ltd	185867	Both
12	Term Loan (WC) and Over Draft	Aditya Birla Finance Ltd.	75822008	Both
13	Term Loan (WC)	CAPITAL FLOAT	250000	Both
14	Term Loan (WC)	ECL FINANCE LTD	3046234	Both
15	Term Loan (WC)	Edelweiss Retail Finance Ltd	1451690	Both
16	Term Loan (WC)	ELECTRONICA FINANCE LTD	3250652	Both
17	Term Loan (WC)	Hero Fincorp	8179297	Both
18	Term Loan (WC)	TATA CAP FIN SERVICES LTD.	4067420	Both

b) According to the information and explanations given to us, the company is not a declared willful defaulter by the bank or financial institutions.

c) According to the information and explanations given to us and as per books of record examined by us, the loan funds were applied for the purpose for which the loan was obtained by the company.

d) According to the information and explanations given to us and as per books of record examined by us, loan fund raised for short term basis have not been utilized for long term purpose.

e) According to the information and explanations given to us, the company has not taken any loan form its subsidiaries or associate or joint ventures during the year.

f) According to the information and explanations given to us, the company has not raised any loan fund on pledge of securities held in its subsidiaries or joint ventures or associate companies.

x. In respect of money raised by way of initial public offer or further public offer.

(a) The Company has not raised any money by way of initial public offer or further public offer (including debt instruments) during the year.

(b) The company has not made any preferential allotment or private placement of shares or convertible debentures (fully, partially or optionally convertible) during the year.

xi. In respect of Fraud.

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 explanation given to us, we have neither come across any instance of material fraud on or by the Company, noticed or reported during the year, nor have we been informed of any such case by the management.

xii. In respect of Nidhi Company.

In our opinion, the Company is not a Nidhi Company. Accordingly, provisions of clause 3(xii) of the Order are not applicable.

xiii. In respect of related party transactions.

In our opinion all transactions with the related parties are in compliance with Sections 177 and 188 of Act, where applicable, and the requisite details have been disclosed in the financial statements etc., as required by the applicable Ind AS.

xiv. In respect of Internal Audit of the company.

The company has appointed an Internal Auditor and there is not any adverse observation found in the internal audit report. We have considered the internal audit report before finalizations of our report.

xv. In respect of Non-Cash transactions with directors or persons connected with directors.

According to information and explanations given to us and based on our examination of the records of the Company, the Company has not entered into non-cash transactions with directors or persons connected with him as referred to in section 192 of Act. Accordingly, paragraph 3(xv) of the Order is not applicable.

xvi. In respect of registration under RBI Act, 1934.

The Company is not required to be registered under Section 45-IA of the Reserve Bank of India Act, 1934.

xvii. In respect of cash losses.

The company has incurred cash losses of Rs. 325.51 Lakh in current financial year and Rs. 240.64 Lakh in the immediately preceding financial year.

xviii. In respect of resignation of Statutory Auditor.

As there is no resignation of statutory auditor, concern of outgoing statutory auditor is not applicable.

xix. In respect of meeting of the liabilities.

On the basis of the financial ratios, ageing and expected dates of realisation of financial assets and payment of financial liabilities, other information accompanying the financial statements, we are of the opinion that the company may not be in position to discharge its liabilities as and when they fall due within a period of one year from the date of balance sheet.

xx. In respect of CSR expenditure.

Conditions prescribed under section 135(1) of the companies act for CSR expenditure are not applicable to the company. Hence, no such expenditure has incurred during the year by the company.

xxi. In respect of adverse remarks by respective auditors of subsidiary.

As the company is not having subsidiary companies, reporting of adverse remarks by respective auditor of subsidiary which is to be included in consolidated financial statement is not applicable.

For, V. J. Amin & Co.,

Chartered Accountants

FRNo.100335W

(CA Chintankumar J Patel)

Partner

Membership No.134028

Place: Vadodara

Date: 30-05-2023

Annexure - B to the Auditors Report

Report on the Internal Financial Controls under Clause (i) of Sub Section 3 of Section 143 of the Companies Act, 2013 ("the Act")

We have audited the internal financial controls over financial reporting of "ADVANCE SYNTEX LIMITED" "the Company" as of 31st March, 2022 in conjunction with our audit of the financial statements of for the period ended on that date.

Managements Responsibility for Internal Financial Controls

The Companys management is responsible for estab lishing 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 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 (the "Guidance Note") 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 India. 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 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 Companys internal financial controls system over financial reporting.

Meaning of Internal Financial Controls Over Financial Reporting

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 Over Financial Reporting

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 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, 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 31st March, 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 except in followings:

1. The company does not have appropriate internal control system to get confirmation for outstanding balances of trade receivable and trade payable.

2. The company has not obtained the balance certificates form the financial institutions in respect of outstanding loan liability as on 31st March, 2023 because the company has defaulted in repayment of loan and the lender financial institutions has categorized dues from the company as Non-Performing Assets.

3. The company does not have appropriate internal control system to determine the NRV of the Inventory. Hence, we are unable to quantify the impaired value of the Inventory.

For, V. J. Amin & Co.,

Chartered Accountants

FRNo.100335W

(CA Chintankumar J Patel)

Partner

Membership No.134028

Place: Vadodara

Date: 30-05-2023