Financial Year: 2022-2023
To the Members ofVinyoflex Limited
Report on the Audit of the Standalone Financial Statement
Opinion
1. We have audited the standalone financial statements ofVinyoflex Limited (CIN : (CIN:
L25200G31993PLC019830) (the "Company"), which comprise the balance sheet as at
31st March 2023, and the statement of Profit and Loss and cash flow statement forthe year
then ended and notes to the financial statements, including a summary of significant
accounting policies and otherexplanatory information.
2. In our opinion and to the best of our information and according to the explanations
given to us the aforesaid standalone financial statements give the information required by
the Act in the manner so required and give a true and fair view in conformity with the
accounting principles generally accepted in India, of the state of affairs of the Company
as at March 31,2023, and its Profit for the year ended on that date.
Report on the Audit of the Standalone Financial Statement 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
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 Code of Ethics. We believe that the audit evidence we have obtained
is sufficient and appropriate to provide a basis for our opinion.
Information other than the financial statements and auditors, report thereon
1. The Companys board of directors is responsible for the preparation of the other
information. The other information comprises the information included in the Boards
Report including Annexure to Boards Report but does not include the financial statements
and our auditors report thereon.
3. Our opinion on the financial statements does not cover the other information and we
do not express any form of assurance conclusion thereon.
4. 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 of this other
information; we are required to report that fact. We have nothing to report in this
regard.
Responsibility of Management and those charged with Governance forthe Standalone
Financial Statements
5. The Companys Board of Directors is responsible forthe matters stated in section
134(5) of the Companies Act, 2013 ("theAct") with respect to the preparation of
these standalone financial statements that give a true and fairview 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 theAct. This responsibility also includes maintenance of
adequate accounting records in accordance with the provisions of the Act for safeguarding
of the assets of the Company and for preventing and detecting frauds and other
irregularities; selection and application of appropriate accounting policies; making
judgments and estimates that are reasonable and prudent; and design, implementation and
maintenance of adequate internal financial controls, that were operating effectively for
ensuring the accuracy and completeness of the accounting records, relevant to
the preparation and presentation of the financial statement that give a true and fair
view and are free from material misstatement, whether due to fraud or error.
6. 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.
7. Those Board of Directors are also responsible for overseeing the companys financial
reporting process.
Auditors Responsibilities for the Audit of the Financial Statements
1. 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.
2. As a 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, orthe override of internal control.
• Evaluate the appropriateness of accounting policies used and the reasonableness
of accounting estimates and related d is closures 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.
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 Companies Act, 2013, we give in the "Annexure A" statement on the matters
specified in paragraphs 3and 4 ofthe Order, to theextentapplicable.
1. As required by Section 143(3)of the Act, were port 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 Company does not have any branch and therefore, this clause is not applicable.
[d] 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.
[e] In our opinion, the aforesaid standalone financial statements comply with the
Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the
Companies (Accounts) Rules, 2014.
[f] In our opinion, there are no observations or comments on financial transactions or
matters which have any adverse effect on the functioning of the Company;
[g] On the basis of the written representations received from the directors as on 31st
March, 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.
[h] There are no qualifications, reservation or adverse remarks relating to the
maintenance of accounts and other matters connected therewith.
[i] With respect to adequacy of the financial control over financial reporting of the
Company and the operating effectiveness of such controls, refer tp our separate Report in
"Annexure-B".
[j] 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:
(a) The Company does not have any pending litigations which would impact its financial
position in its financial statements;
(b) The Company has made provision, as required under the applicable law or accounting
standards, for material foreseeable losses, if any, on long-term contracts including
derivative contracts, and
(c) There were no amounts which were required to be transferred to the Investor
Education and Protection Fund by the Company.
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For For Bhavin Associates |
|
CHARTERED ACCOUNTANTS |
| Place: Rajkot |
(Firm Registration NO.101383W) |
| Date: 24-5-2023 |
| UDIN ; 23043796BGRVDX6420 |
Bhavin P. Bhansali |
|
Partner |
|
Membership No.043796 |
Annexure A
TO THE AUDITORS REPORT
With referred to in Paragraph-3 of our report to the shareholders of VINYOFLEX LIMITED
of even date, in our opinion and to the best of our knowledge and as per the information
and explanations given to us, the books and the records examined by us in the normal
course of audit, we report that:
1. a) The company has maintained electron records showing value of fixed assets.
b) As per information & explanation given to us by the management of the company,
all the assets have been physically verified by the management during the year and no
material discrepancies were noticed on such verification.
c) As per information & explanation given to us by the management of the company,
the title deeds of the immovable properties are held in the name of the company.
2. As explained to us, stock of inventories has been physically verified during the
year by the management. In our opinion, the frequency of verification is reasonable.
3. In our opinion and according to the information and explanation given to us, the
company has not granted any loan secured or unsecured to any parties covered in the
register maintained under Section-189 of the Companies Act-2013. Therefore, the provisions
of Clause-3(iii)(a) and 3(iii)(b) of the Companies [Auditors Report] Order, 2016 are not
applicable to the company.
4. As per information and explanation given to us, the company has complied with the
provisions of Section-185 and 186 of the CompaniesAct, 2013 in respect of loan,
investment, guarantees and security.
5. In our opinion and according to the information and explanation given to us, the
company has not accepted/invited any deposits falling within the preview of provisions of
Section-73 to 76 of any other relevant provisions of the Companies Act-2013 and rules
framed the under.
6. In our opinion and according to the information and explanation given to us, the
company is not required of maintain cost records as per the provisions of Clause-3(vi) of
the companies [Auditors Report] order, 2016 specified by the Central Government under
Section-148(1) of the Companies Act-2013.
7. In our opinion and according to information and explanation given to us, the company
has not defaulted in depositing undisputed statutory dues including provident fund,
employees state insurance, income tax, sales tax, service tax, duty of customs, duty of
excise, value added tax, cess and any other statutory dues to the appropriate authorities.
8. In our opinion and according to information and explanation given to us, the company
has not defaulted in the repayment of dues to any financial institution of Bank or
Debenture holders during the year.
9. In our opinion and according to information and explanation given to us, the term
loan is applied for the purpose for which loan was obtained.
10. According to the information and explanations given to us, neither any fraud by the
company nor any fraud on the company by its officers and employees has been noticed or
reported during the financial year.
11. According to the information and explanation given to us, the managerial
remuneration paid or provided, are in accordance with the requisite approvals mandated by
the provisions of Sectioin-197 read with Schedule-V to the Companies Act.
12. As the company is not a Nidhi Company, the provisions of Clause-3(xii) of the
Companies [Auditors Report] Order, 2016 are not applicable to the Company.
13. According to the information and explanation given to us, all transactions with the
related parties are In compliance with Sections-177 and 188 of the Companies Act-2013
where applicable and the details have been disclosed in the Financial Statements etc. as
required by the applicable accounting standards;
14. According to the information and explanation given to us, the company has complied
with the requirement of Section-42 of the companies Act-2013 regarding preferential
allotment and the amount raised have been used for the purposes for which thefunds were
raised.
15. Based on the audit procedures performed and the company has not entered into any
non-cash transactions with directors of persons connected with him. So the Clause-3(xv) of
the Companies [Auditors Report] Order, 2016 is not applicable to the company.
16. The company is not required to be registered under Section-45-IA of the Reserve
Bank of India Act, 1934 and hence the Clause-3(xvi) of the Companies (Auditor Report)
Order 2016 is not applicable to the company.
17. The company has not incurred cash losses in the current and in the immediately
preceding financial year.
18. There is resignation of the statutory auditors during the year. Accordingly,
Clause-3(xviii) of the Order is applicable.
19. 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 assumption nothing has come to our attentions, which causes us
to believe that any material uncertainty exists as on the date of the audit report that
the 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. In our opinion and according to the information and explanations given to us, there
is no unspent amount under Sub- Section (5) of Section-135 of the Companies Act-2013
pursuant to any project Accordingly, Clauses 3(xx)(a) and 3(xx)(b) of the order are not
applicable.
| Place: Rajkot |
For, Bhavin Associates |
|
Chartered Accountants |
| Date: 24.05.2023 |
Firm Registration No.101383W |
|
UDIN: 23043796BG RVDX6420 |
ANNEXURE B TO THE INDEPENDENT AUDITORS REPORT ON THE FINANCIAL STATEMENTS OF VINYOFLEX
LIMITED FOR THE YEAR ENDED 31 ST MARCH, 2023.
Report on the internal financial control with reference to the aforesaid financial
statements under clause (i) of Subsection 3 of section 143 of the Companies Act, 2013.
(Referred to in paragraph 1 A(f) under Report on Other Legal and Regulatory
Requirement section of our report of even date)
Opinion:
We have audited the internal financial control with reference to financial statement of
Vinyoflex Limited ("the company") as at 31 st March, 2023 in conjunction with
my/our audit of the financial statements of the Company for the year ended on that date.
In our opinion, the Company has, in all material respect, an adequate internal
financial controls with reference to financial statements and such internal financial
controls were operating effectively as at 31 st March, 2023 based on the internal
financial controls with reference to financial statements criteria established by the
Company considering the essential components of internal control stated in the Guidance
Note on Audit of Internal Financial Control Over Financial Reporting issued by the
Institute of Chartered Accountants of India, ("the Guidance Note").
Managements Responsibility for internal Financial Controls:
The Companys management and board of directors are responsible for establishing and
maintaining internal financial controls based on the internal financial controls with
reference to financial statements criteria established by the Company considering the
essential components of internal control stated in the Guidance Note. 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 safe guarding 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.(herein after referred to as
"the Act").
Auditor1 Responsibility:
Our responsibly is to express an opinion on the Companys internal financial controls
with reference to financial statements based on our audit. We conducted our audit in
accordance with the Guidance Note and standards on the auditing, prescribed under section
143(10) of the Act, to the extent applicable to an audit of internal financial controls
with reference to financial Statements. 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 with reference to financial
statements were established and maintained and whether 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 with reference to financial statements and their operating
effectiveness. Our audit of internal financial I controls with reference to financial
statements included obtaining and understanding of such internal financial controls,
assessing the risk that material weakness exists, and testing and evaluating the design
and operative 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 with
reference to financial statements.
Meaning of Internal Financial Controls with reference to Financial Reporting:
A companys internal financial control with reference to financial statements is a
process designed to provide reasonable assurance regarding the reliability of financial
reporting and the preparation of financial statements for external purpose in accordance
with generally accepted accounting principles. A companys internal financial control with
reference to financial statements includes those policies and procedures that (1) pertain
to the maintenance of records that, in reasonable detail, accurately and fairly reflect
the transactions and desposition of the assets of the Company: and (2) provide reasonable
assurance that transactions are recorded as necessary to permit preparation of financial
statements in accordance with generally accepted accounting principals, and that receipts
and expenditure of the company are being made only in accordance with authorisation of
management and directors of the company; and (3) provide resonable assurance regarding
prevention or timely detection of unauthorised acquisition, use, or desposition of the
companys assets that could have a material effect on the financial statements
Inherent Limitation of Internal Financial Controls with reference to Financial
Statements;
Because of inherent limitations of internal financial control with reference to
financial statements, including the possibility of collusion or improper management
override of control, material misstatement due to error or fraud may occur and not be
detected. Also, projection of any evaluation of the internal financial control with
reference to financial statements to future period are subject to the risk that the
internal financial control with reference to financial statements may become inadequate
because of changes in condition of that the degree of compliance with the policies or
procedure may deteriorate.
|
For For Bhavin Associates |
|
CHARTERED ACCOUNTANTS |
| Place: Rajkot |
(Firm Registration NO.101383W) |
| Date: 24-05-2023 |
sd /- |
|
Bhavin P. Bhansali |
|
Partner |
|
Membership No.043796 |
|
UDIN : 23043796BGRVDX6420 |
+91-9892691696
