To the Members of Hind Syntex Limited
Report on the Financial Statements
We have audited the accompanying financial statements of HIND SYNTEX LIMITED
("the Company"), which comprise the Balance Sheet as at 31st March, 2016, 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.
Managements Responsibility forthe Financial Statements
The Company’s Board of Directors is responsible forthe matters stated in Section
134(5) of the Companies Act, 2013 ("the Act") with respect to the preparation
and presentation of these financial statements that give a true and fair view of the
financial position, financial performance and cash flows of the Company in accordance with
the accounting principles generally accepted in India, including the Accounting Standards
specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts)
Rules, 2014. This responsibility also includes maintenance of adequate accounting records
in accordance with the provisions of the Act for safeguarding the assets of the Company
and for preventing and detecting frauds and other irregularities; selection and
application of appropriate accounting policies; making judgments and estimates that are
reasonable and prudent; and design, implementation and maintenance of adequate internal
financial controls that were operating effectively for ensuring the accuracy and
completeness of the accounting records, relevant to the preparation and presentation of
the financial statements that give a true and fair view and are free from material
misstatement, whether due to fraud or error.
Auditor’s Responsibility
Our responsibility is to express an opinion on these financial statements based on our
audit.
We have taken into account the provisions of the Act, the accounting and auditing
standards and matters which are required to be included in the audit report under the
provisions of the Act and the Rules made thereunder.
We conducted our audit in accordance with the Standards on Auditing, 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.
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 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 accounting policies used and the reasonableness of the
accounting estimates made by the Company’s Directors, as well as evaluating the
overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to
provide a basis for our audit opinion on the financial statements.
Opinion
In ouropinion 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 31st
March, 2016, its profit and its cash flows forthe year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor’s Report) Order, 2016 ("the
Order") issued by the Central Government of India in terms of sub-section (11) of
section 143 of the Act, we give in the Annexure-A, a statement on the matters specified in
paragraphs 3 and 4 of the Order.
2. As required by section 143(3)of the Act,we further 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 pu rposes of ou r aud it;
b) in our opinion, proper books of account as required by law have been kept by the
Company so far as it appears from our examination of those books;
c) the Balance Sheet, the Statement of Profit and Loss and the Cash Flow Statement
dealt with by this Report are in agreement with the books of account;
d) in ouropinion, the aforesaid financial statements comply with the Accounting
Standards specified under Section 133 of the Act, read with Rule 7 of the Companies
(Accounts) Rules, 2014;
e) on the basis of the written representations received from the directors as on 31st
March, 2016 and taken on record by the Board of Directors, none of the directors is
disqualified as on 31 st March, 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 the operating effectiveness of such controls, refer to our
separate report in "Annexure B", and
g) 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 had disclosed the impact of pending litigations on its financial
position in its financial statements - Refer Note 20 to the financial statements.
ii. the Company did not have any long-term contracts including derivative contracts for
which there were any material foreseeable losses, and
iii. there were no amounts due which were required to be transferred to the Investor
Education and Protection Fund by the Company.
|
for V. SINGHI & ASSOCIATES |
|
Chartered Accountants |
|
Firm Registration No. 311017E |
|
(V.K. SINGHI) |
| Place: Kolkata |
Partner |
| Date : 17th May, 2016 |
Membership No. 050051 |
Annexure - A to the Independent Auditor’s Report
(Referred to in paragraph-1 on Other Legal and Regulatory Requirements of our Report of
even date to the members of Hind Syntex Limited on the Financial Statements of the Company
for the year ended 31st March, 2016)
On the basis of such checks, as we considered appropriate during the course of our
audit, we report that:
i. a) The Company is generally maintaining proper records showing full particulars
including quantitative details and situation of its Fixed Assets.
b) As explained to us, Fixed Assets have been physically verified by the management at
regular intervals, and as informed to us no material discrepancies were noticed on such
verification.
c) According to the information and explanations given to us, and on the basis of our
examination of the records of the Company, the title deeds of immovable properties are
held in the name of the Company.
ii. The inventories have been physically verified during the year at reasonable
intervals by the management. The discrepancies noticed on verification between the
physical stocks and book records were not material in relation to the operations of the
Company and the same have been properly dealt with in the books of account.
iii. According to the information and explanations given to us,the Company has not
granted any loan, secured or unsecured, to companies, firms or other parties covered in
the register maintained under Section 189 of the Act. Accordingly, clause 3(iii)(a), (b)
and (c) of the Order are not applicable.
iv. According to the information and explanations given to us, the Company has given
corporate guarantees to banks for loans taken by an associate company and terms and
conditions of which are not prima facie prejudicial to the interest of the Company.
v. According to the information and explanations given to us, the Company has not
accepted any deposits from the public during the year within the meaning of sections 73 to
76 of the Act and the rules framed there under to the extent notified.
vi. In our opinion and according to information and explanations given to us,
maintenance of cost records has been specified by the Central Government of India under
sub-section (1) of 148 of the Act and such accounts and records have been made and
maintained.
vii. a) As per records of the Company and according to the information and explanations
given to us, the Company is generally regular in depositing undisputed applicable
statutory dues including Provident Fund, Employees’ State Insurance, Income Tax,
Sales Tax, Service Tax, Custom Duty, Excise Duty, Value Added Tax, Cess and any other
statutory dues with the appropriate authoritiesand there are no undisputed amount payable
in respect of the same which were in arrears as on 31 st March, 2016 fora period of more
than six months from the date the same became payable.
b) According to the information and explanations given to us, the Company has not
deposited the following dues on account of disputes with the appropriate authorities:
| Name of the statue |
Nature of the dues |
Amountin Rs. |
Period to which the amount relate |
Forum where dispute is pending |
| Entry Tax Act, 1976 |
Entry Tax |
410,968 |
1997-98 |
High Court, Indore |
| Employees’ Provident Fund and Miscellaneous Provisions Act, 1952 |
Provident Fund |
1,083,267 |
April 2008 to December 2010 |
Employees’ Provident Fund Appellate Delhi Tribunal, New |
| CENVAT Credit Rules, 2004 and Central Excise Act, 1944 |
Availing of and Utilisation of CENVAT Credit |
76,028 |
September 2010 to December 2012 |
Asstt. Commissioner of Central Excise for revision |
| CENVAT Credit Rules, 2004 and Central Excise Act, 1944 |
Availing of and Utilisation of CENVAT Credit |
71,534 |
January 2013 to November 2013 |
Asstt. Commissioner of Central Excise for revision |
| Madhya Pradesh Value Added Tax Act, 2002 |
Value Added Tax |
4,91,167 |
2013-14 |
Dy. Commissioner of Commercial Taxes (Appeals), Ujjain (M.P.) |
viii. In our opinion and according to the information and explanations given to us, the
Company has not borrowed any loan from Bank or Financial Institution or government or
debenture holders during the year. Accordingly, clause 3(viii) of the Order is not
applicable.
ix. According to the information and explanations given to us and on an overall
examination of the Balance Sheet, we report that the Company did not raise any money byway
of initial public offer or further public offer (including debt instruments) and loans
during the year. Accordingly, clause 3(ix) of the Order is not applicable.
x. According to the information and explanations given to us, no material fraud by the
Company or on the Company by its officers or employees has been noticed or reported during
the course of our audit.
xi. In our opinion and according to the information and explanations given to us, and
based on our examination of the records of the Company, the managerial remuneration paid
or provided is in accordance with the requisite approvals mandated by the provisions of
section 197 read with Schedule V to the Act.
xii. In our opinion and according to the information and explanations given to us, the
Company is not a Nidhi Company. Accordingly, clause 3(xii) of the Order is not applicable.
xiii. According to the information and explanations given to us and based on our
examination of the records of the Company, transactions with the related parties are in
compliance with sections 177 and 188 of the Act, wherever applicable and the details in
respect of such transactions have been disclosed in the Financial Statements as required
by the applicable Accounting Standards.
xiv. According to the information and explanations given to us, the Company has not
made any preferential allotment or private placement of shares or fully or partly
convertible debentures.Accordingly, clause 3(xiv) of the Order is not applicable.
xv. According to the information and explanations given to us and on our examination of
the records of the Company, the Company has not entered into any non-cash transactions
with directors or persons connected with him.Accordingly, clause 3(xv) of the Order is not
applicable.
xvi. The Company is not required to be registered under section 45-IAof the Reserve
Bank of India Act, 1934.
|
forV. SINGHI & ASSOCIATES |
|
Chartered Accountants |
|
Firm Registration No. 311017E |
|
(V.K. SINGHI) |
| Place: Kolkata |
Partner |
| Date : 17th May, 2016 |
Membership No. 050051 |
Annexure - B to the Independent Auditor’s Report
(Referred to in paragraph-2(f) on Other Legal and Regulatory Requirements of our Report
of even date to the members of Hind Syntex Limited on the Financial Statements of the
Company for the year ended 31 st March, 2016)
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 Hind Syntex
Limited ("the Company") as of March 31,2016 in conjunction with our audit of the
financial statements of the Company for the year ended on that date.
Management’s 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 (‘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 undertheAct.
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 Act, 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 GuidanceNote 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 auditor’s 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 Over Financial Reporting
ACompanys 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 authorisations of
management and directors of the Company; and (3) provide reasonable assurance regarding
prevention or timely detection of unauthorised 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
overfinancial reporting were operating effectively as at March 31,2016, 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.
|
forV. SINGHI & ASSOCIATES |
|
Chartered Accountants |
|
Firm Registration No. 311017E |
|
(V.K. SINGHI) |
| Place: Kolkata |
Partner |
| Date : 17th May, 2016 |
Membership No. 050051 |
+91-9892691696
