TO THE MEMBERS OF
KIRAN SYNTEX LTD..
CIN :L17110GJ1986PLC009099
Report on the Financial Statements
We have audited the accompanying standalone financial statements of KIRAN SYNTEX LTD,
("the Company"), which comprise the Balance Sheet as at March 31, 2023, and the
Statement of Profit and Loss,and Cash Flow Statement 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, 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, and its profit/loss, and its cash flows for
the year ended on that date.
Basis for opinion
We conducted 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 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.
Managements Responsibility for the Standalone Financial Statements
The Companys Board of Directors are responsible for the matters stated in section
134(5) of the Companies Act 2013 ("the act) with respect to preparation of these
standalone financial statements that give a true and fair view of the financial position,
financial performance including other comprenensive income, cash flow and changes in
equity of the company in accordance with accounting principles genarally acceptable in
India, including the accounting standards specified under section 133 of the act. This
responsibility also includes maintanance of adequate accounting records in accordance with
provisions of the act for safeguarding assets of the company and for preventing and
detecting frauds and other irregularities, selection and applications of, appropriate
accounting policies, making judgments and estimates that are reasonable and prudent, and
design implementation and maintenance of adeqaute financial internal controls, that were
operating effectively for ensuring the accuracy and completeness of accounting
records,relevant to the preparation and presentation of the financial statements that give
a true and fair view and are free from any 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 concernand 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 Responsibility
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. An audit involves performing
procedures to obtain audit evidence about the amounts and disclosures in the financial
statements. 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. In making those risk assessments, the auditor considers internal
control relevant to the companys preparation of the financial statements that give a true
and fair view in order to design audit procedures that are appropriate in the financial
circumstances but not for the purpose of expressing an opinion on effectiveness of the
companys internal control. 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.
As part of an audit in accordance with SAs, we exercise professional judgment and
maintain professional skepticism throughout the audit. We also:
i. Identify 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, misrepresentations, or the override of internal control.
ii. Report that based on our audit and in our opinion, the internal financial control
system in designed and operating effectively to provide reasonable assurance regarding the
reliability of financial reporting and preparation of financial statements.
iii. Evaluate the appropriateness of accounting policies used and the reasonableness of
accounting estimates and related disclosures made by management.
iv. 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 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.
v. 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.
vi. 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.
vii. 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.
INFORMATION OTHER THAN THE FINANCIAL STATEMENTS AND AUDITORS REPORT THEREON
The Companys Board of Directors is responsible for the other information. The other
information comprises the information included in the Annual Report, but does not include
the Standalone 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 our audit of the Standalone
Financial Statements, our responsibility is to read the other information and, in doing
so, consider whether such other information is materially inconsistent with the financial
statements or our knowledge obtained in the 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.
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 terms of section 143 (11) of the companies act 2013. We enclose
Annexure "A" statement on the matters specified in paragraph 3 & 4 of the
said 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 & explanation 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 the 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 aforesaid standalone financial statements comply with the
Accounting Standards specified under section 133 of the act read with Companies
(Accounting Standards) Rule 2021.
e) On the basis of written representations received from the directors as on 31st March
2023, and 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) i) 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
(ii) 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
(iii) Based on our audit procedures which we have 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 (i) and (ii) contain any material misstatement."
g) With respect to the adequacy of 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", and
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 had not disclosed the impact of pending litigations on its financial
position in its financial statements - Refer Note No.39 to the financial statements;
ii. The company did not have any long term contracts including derrivative contracts
for which there were any forseable losses
iii. There were no amounts which were required to be transferred to the Investor
Education and Protection. Fund by the company.
iv. No dividend declared or paid during the year by the company.
for, M M S & ASSOCIATES
Chartered Accountants,
(F.R.No.: 110250W)
PRAMOD BOTHRA
Partner
M. No.: 42831
1003, Rathi Palace,
Ring Road, Surat 395 002.
ANNEXURE TO THE INDEPENDENT AUDITORS REPORT
The Annexure referred to our Independent Auditors Report to the members of the company
Kiran Syntex Limited on the standalone financial statements for the year ended on 31st
March 2023, we report that-
a) (i) The Company has maintained proper records showing full particulars, quantitative
details and situation of Property, Plant & Equipment.
(ii) The Company has maintained proper records showing full particulars of intangible
assets
b) As explained to us the Management has carried out physical verification of these
Property, Plant and Equipment at reasonable intervals and no major discrepancies are
noticed on such verification. In our opinion the periodicity of physical verification is
reasonable having regard to the size of the company and nature of its property, plant and
equipment.
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 all immovable properties
disclosed in the financial statements are held in the name of the company.
d) According to the information and explanations given to us and on the basis of our
examination of the records of the company, the company has not revalued its property,
plant and equipment or intangible aseets.
e) According to the information and explanations given to us and on the basis of our
examination of the records of the company , no proceedings have been initiated or pending
against the company for holding any benami property under the Benami Transactions
(Prohibition) Act,1988 and rules made thereunder.the company has not holding any benami
property under the Benami Transactions (Prohibition) Act 1988 (45 of 1988) and rules made
thereunder.
(ii) (a) As per information & explanation given to us,during the year, physical
verification of inventory has been carried out by the management at reasonable intervals,
and as explained to us, no material discrepancies of 10% or more in each class were
noticed on physical verification of inventory as compared to the books records.
(b) As per information & explanation given to us, the company has not been
sanctioned working capital limits in excess of five crore Rs. from banks or financial
institutions on the basis of security of current assets.
(iii) The company has not made investments in one of its associate concern however has
not provided any guarantee or security or granted any loans or advances to any companies,
firms, limited liability partnerships or any other parties.
(A) As the company has not provided any loans or advances in the nature of loans and
guarantee or security to its subsidiary joint ventures and associates, this clause is not
applicable
(B) As the company has not provided any guarantee or security or granted any loans or
advances to any companies other than its subsiides, associates, firms, limited liability
partnerships or any other parties thus this clause is not applicable.
(b) The investments made, guarantee provided, security given and the terms and
cnditions of the grant of loans and advances in the nature of loans and guarantee provided
are not prejudicial to the companys interest
(c) The company has not provided any loans or advances in the nature of loans therefore
the clause related to regular payment of interest and principal as per the stipulated
terms and conditions does not apply
(d) There is no over due amount for more than ninety days in respect of loans and
advances in the nature of loans granted by the company
(e) During the year no loan has been renewed or extended or fresh loans grated to
settle the overdues of the existing loans.
(f) The company has not granted any loans or advances in the nature of loans repayble
on demand or without stipulating any terms of repayment.
(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 loans, investments, guarantees, and security, except for Sudershan Texprint
P. Ltd. Rs.1,04,00,000/-
The Company has given advances to Supplier - Sudershan Texprint Private Limited since a
long.
The terms of interest and repayment have not been specified. In absence of specific
terms.
We are unable to comment on compliance with regard to repayment terms and rate of
interest.
(v) The Company has not accepted any deposits which are deemed to be deposit 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.
(vi) 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.
(vii) (a) According to the informations & explanations given to us, and as per our
verification, the Company has been regular in depositing undisputed statutory dues like
Provident Fund, ESIC, Goods & Service Tax, Income-Tax, Sales Tax, Service Tax duty of
customes, duty of excise, VAT, cess and any other statutory dues to the appropriate
authorities. No undisputed statutory dues were outstanding at the end of the year for a
period of more than six months from the date they became payable.
(b) According to the informations & explanations given to us, the company has not
deposited the following dues by way of demands raised by Provident Fund Department on
account of disputes.
| Name of the Statute |
Nature of dues |
Amount (Rs) |
Period |
Forum |
| EPFO |
EPF Delay & Interest |
6553895 |
1999 to 2005 |
EPF Appellate Tribunal |
(viii) As per information & explanations given to us during the year the company
has not surrendered or disclosed any income in the tax assessment under the income tax act
1961 (43 of 1961) which are not recorded in the books of accounts.
(viii) As per information & explanations given to us during the year the company
has not surrendered or disclosed any income in the tax assessment under the income tax act
1961 (43 of 1961) which are not recorded in the books of accounts.
a) As per information & explanations given to us and as per analysis of the Balance
Sheet the Company has not defaulted in repayment of loans or other borrowings or in the
payment of interest thereon to any lender\
b) As per information & explanations given to us and as per our verifications of
the records, the company has not been declared wilful defaulter by bank or financial
institution or other lender.
c) As per information & explanations given to us, and as per our verification there
are no term loans which were applied for the purpose other than for which the loans were
obtained
d) As per information & explanations given to us and as per analysis of the Balance
Sheet the funds raised by the company on short term loans basis have not been utilised for
long term purpose.
e) As per information & explanations given to us the Company has not taken any
funds from any entity or person on account of or to meet the obligations of its
subsidaries, associates or joint ventures.
f) As per information & explanations given to us and as per our verifications of
the records, the company has not raised loans during the year on the pledge of securites
held in its subsidaries, associates or joint ventures.
(x) (a) The Company is a Public Ltd Company and has not raised any money by way of the
Initial Public Offer or any further Public offer.
(b) The Company has not made any preferential allotment or private allotment or private
placement of shares or debentures during the year.
(xi) (a) Based upon the audit procedures performed and the information and explanations
given by the management, we report that no fraud by the Company or on the company has been
noticed or reported during the year.
(b) We report that no fraud by the Company or on the company has been noticed or
reported during the year hence not required to file Form ADIT-4 as prescribed under rule
13 of the Companies (Audit and Auditors) Rules, 2014 with the central Government.
(c) The company is a public limited company and there is no whistle blower complaints
received by the company.
(xii) The Company is not a Nidhi Company. Therefore, the provisions of Net owned Fund
to be Deposit Ratio and clause (b) and ( c ) are not applicable.
(xiii) In our opinion, all transactions with the related parties are in compliance with
section 177 and 188 of Companies Act, 2013 wherever applicable and the details have been
disclosed in the Financial Statements as required by the applicable accounting standards.
(xiii) In our opinion, all transactions with the related parties are in compliance with
section 177 and 188 of Companies Act, 2013 wherever applicable and the details have been
disclosed in the Financial Statements as required by the applicable accounting standards.
(xiv) In our opinion and based on our examination, the company does not have an
internal audit system and is not required to have an internal audit system as per
provisions of the Companies Act 2013.
(xv) 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 therefore the provisions of section 192 are not
applicable hence not commented upon.
(xvi) In our opinion, the company is not required to be registered under section 45 IA
of the Reserve Bank of India Act, 1934. The company has not conducted any Non Banking
Financial or Housing Finance activity during the year
(xvii) In our opinion and based on our examination, the company has incurred cash
losses in the financial year and in the immediately preceding financial year.
(xviii) There has been no resignation of the statutory auditors during the year and
accordingly this clause is not applicable.
(xix) According to the information and explanations given to us and 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, 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 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.
(xx) According to the information and explanations given to us and on the basis of the
financial statement the provisions of section 135 of the Companies Act are not applicable
to the company.
(xxi) In our opinion, the company is not required to prepare consolidated financial
statements thus clause is not apply.
AANNEXURE - 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 KIRAN
SYNTEX LTD.
("The Company") as of 31 March 2023 in conjunction with our audit of
the 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 Institue 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 erros. the accuracy and completeness of the
accounting records, and the timely preparation of reliable financial information, as
required under the Companies Act, 2013.
Auditors Reponsibility
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 Gudance Note on Audit of Internala 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.
Out audit involves performing procedures to obain audit evidenceabout the adequacy of
the internal financial controls system over financial reporting included obtaining an
understanding of internal financial controls 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 iss 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 Control over Financial Reporting
A companys internal financial control over 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 relfect the transactions and dispositions of the assets of the
company; (2) provide reasonable assurance that transactions are recorded ass 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 managements and diectors 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 overde 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 and subject of the risk that the internal financial controls over
financial reporting may become inadequate because of changes in conditions, or that the
degree of compliance with the policies or procedures may detenorate
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
Accounts of India.
for, M M S & ASSOCIATES
Chartered Accountants,
(F.R.No.: 110250W)
PRAMOD BOTHRA
Partner
M. No.: 42831
1003, Rathi Palace,
Ring Road, Surat 395 002.
DATE: MAY 23, 2023
PLACE:SURAT
+91-9892691696
