TO THE SHARE HOLDERS'
ADVANCE SYNTEX LIMITED (Earlier Known As Advance Syntex Pvt. Ltd.)
REPORT ON THE FINACIAL STATEMENTS
We have audited the accompanying financial statements of Advance Syntex Ltd. ("thecompany")(Earlier it was Advance Syntex Private Limited) which comprise the BalanceSheet as at March 31st 2016 the Profit and Loss Statement for the period ended on 31stMarch 2016 Cash Flow for the period end on 31st March 2016 and other explanatoryinformation.
MANAGEMENT'S RESPONSIBILITY FOR THE FINANCIAL STATEMENTS
The company's Board of directors is responsible for the matters stated in section134(5) of the Companies Act 2013 ("the Act") with respect to the preparation ofthese financial statements that give true & fair view of the financial position financial performance of the Company in accordance with the accounting principles generallyaccepted in India including the accounting standards specified under section 133 of theAct read with rule 7 of the companies (Accounts) Rules 2014. This responsibility alsoincludes maintenance of adequate accounting records in accordance with provisions of theAct for safeguarding the assets of the Company and for preventing and detecting frauds andother irregularities; selection and application of appropriate accounting policies; makingjudgments and estimates that are reasonable and prudent; and design implementation andmaintenance of adequate internal financial controls that were operating effective forensuring the accuracy and completeness of the accounting records relevant to thepreparation and presentation of the financial statements that give a true and fair viewand are free from material misstatement whether due to fraud or error.
Our responsibility is to express an opinion on these financial statements based on ouraudit.
We have taken into account the provision of the Act the accounting and auditingstandards and matter which are required to be included in the audit report under theprovisions of the Act and the Rules made there-under.
We conducted our audit in accordance with the standards on auditing specified undersection 143(10) of the Act. Those standards required that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetherthe financial statements are free from material misstatements.
An audit involves performing procedures to obtain audit evidence about the amounts anddisclosures in the financial statements. The procedures selected depend on the auditor'sjudgment including the assessment of the risks of material misstatement of the financialstatements whether due to fraud or error. In making those risk assessments the auditorconsiders internal financial control relevant to the Company's preparation of thefinancial statement that give a true and fair view in order to design audit proceduresthat are appropriate in the circumstances but not for the purpose of expressing anopinion on whether the Company has in place an adequate internal financial controls systemover financial reporting and the operating effectiveness of such controls. An audit alsoincludes evaluating the appropriateness of accounting policies used and the reasonablenessof the accounting estimates made by the Company's directors as well as evaluating theoverall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our opinion on the financial statements.
In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid financial statements give the information required by the Actin the manner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India.
REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENT;
As required by the Companies (Auditor Report) Order 2015 ("the Order")issued by the Central Government of India in terms of sub section (11) of Section 143 ofthe act we give in the Annexure A - a statement on the matter specified in paragraph 3and 4 of the order.
We report that:
a) We have sought and obtained all the information and explanations which to the bestof 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 theCompany so far as it appears from our examination of those books.
c) The Balance Sheet Profit and Loss Statement and Cash Flow dealt with by this Reportare in agreement with the books of account.
d) In our opinion the aforesaid financial statements comply with the AccountingStandards specified under Section 133 of the Act read Rule 7 of the Companies (Accounts)Rules 2014;
e) On the basis of the written representations received from the directors as on March31st 2016 taken on record by the Board of Directors none of the directors isdisqualified as on March 31st 2016 from being appointed as a director in terms ofSection 164(2) of the Act.
f) With respect to the adequacy of the internal financial controls over financialreporting of the Company and the operating effectiveness of such controls refer to ourseparate report in Annexure - B and
g) With respect to the other matters to be included in the Auditor's Report inaccordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 in our opinionand to the best of our information and according to the explanations given to us:
i. The Company has disclosed the impact of pending litigations on its financialposition in its financial statements - Refer Note (vii) (c) to the financial statements
ii. The Company did not have any long-term contracts including derivative contract forwhich there were any material foreseeable losses.
iii. There were no amounts which were required to be transferred to the InvestorEducation and Protection Fund by the Company.
| ||For C. J. Patel & Co. |
| ||Chartered Accountants |
| ||Firm Reg.No.130418W |
|Date: 06/09/2016 || |
|Place: Vadodara ||Sd/- |
| ||(Chintankumar J. Patel) |
| ||Proprietor. |
| ||Membership No.134028 |
ANNEXURE A to the Auditor's Report
CARO 2015 Report on the financial statement of ADVANCE SYNTEX LIMITED (Earlier Known asAdvance Syntex Private Limited) for the period ended March 31st 2016.
To Members of Advance Syntex Limited. (Earlier Known as Advance Syntex Private Limited)
On the basis of records produced before us for our verification/ examination as weconsidered appropriate and in terms of information and explanations given to us for ourenquiries we state that;
i. In respect of its fixed assets:
a) The Company has maintained proper records showing full particulars includingquantitative details and situation of the fixed assets on the basis of availableinformation.
b) As explained to us all the fixed assets have been physically verified by themanagement in a phased periodical manner which in our opinion is reasonable havingregard to the size of the company and nature of its assets. As informed to us no materialdiscrepancies were noticed on such physical verification.
c) As explained to us no substantial part of fixed assets has been disposed off duringthe year and it has not affected the going concern.
d) In the opinion of the Management fixed assets should be clubbed into a single groupfor the assets which are having useful life as prescribed in the Schedule II to theCompanies Act 2013. Accordingly they have clubbed the same based on useful life.
ii. In respect of its inventories:
a) The inventories have been physically verified during the year by the management.
b) According to the information and explanation given to us the procedures of physicalverification of inventories followed by the management are reasonable and adequate inrelation 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 opinionthat the company has maintained proper records of inventories. As per the information andexplanation given to us no material discrepancies were noticed on physical verification.
iii. In respect of the loans secured or unsecured granted by the company tocompanies firms or other parties covered in the register maintained under Section 189 ofthe Companies Act 2013.
a) The Company has not granted loan to firms and other parties covered in the registermaintained under section 189 of the Companies Act 2013. Hence no reporting is given onthis clause.
b) According to the sub clause a) above applicability of all other terms and conditionsfor such loans and about prejudicial to the interest of the company reporting since notrequired not given.
c) The Company has taken loan under section 189 of companies act 2013 & it'srepayable on demand.
d) According to the information and explanations given to us all other terms andconditions for such loans are not prima facie prejudicial to the interest of the company.
iv. In respect of internal control.
In our opinion and according to the information and explanation given to us theCompany has an adequate internal control system commensurate with its size and the natureof its business for the purchase of inventory and fixed assets and for the sale of goodsand services. During the course of our audit we have not observed any continuing failureto correct major weaknesses in such internal control system.
v. In respect of deposits from public
According to the information and explanation given to us the Company has not acceptedany deposit from the public. Therefore the provisions of Clause (v) of paragraph 3 of theCARO 2015 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 thecentral Government under Section 148 (1) of the Companies Act 2013. is not applicable tothe company.
vii. In respect of statutory dues:
a) According to the records of the Company undisputed statutory dues includingEmployees' State Insurance Sales Tax Wealth Tax Duty of Customs Duty of Excise ValueAdded Tax Income Tax Service Tax Provident Fund and Professional Tax Cess and othermaterial statutory dues have been generally regularly deposited with appropriateauthorities.
b) According to the information and explanation given to us no undisputed statutorydues including Employees' State Insurance Sales Tax Wealth Tax Duty of Customs Duty ofExcise Value Added Tax Income Tax Service Tax Provident Fund and Professional TaxCess and other material statutory dues were outstanding as at December 30 2015 for aperiod more than six months from the date of becoming payable.
c) The disputed Statutory dues are as listed below;
|Related To ||Authority Where Case is Pending || |
Disputed Amount Rs.
|VAT ||Sales Tax Appellate Tribunal Ahemdabad || |
|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.205000/-. |
|CST ||Sales Tax Appellate Tribunal Ahemdabad || |
|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.40000/- |
|VAT ||Dy. Comm. Of Commercial Tax Vadodara || |
|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. 35000/- |
|CST ||Dy. Comm. Of Commercial Tax Vadodara || |
|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. 200000/- |
Against above demand of FY 2009-10 the Company had provided bank guarantee ofRs.390662/.
viii. In respect of accumulated losses and cash losses.
The company does not have any accumulated losses at the end of the financial year andhas not incurred cash losses in the financial year and in the immediately precedingfinancial year.
ix. In respect of dues to financial institution /banks/debentures
According to the information and explanations given to us and as per the books andrecords examined by us the Company has not defaulted in repayment of dues to financialinstitutions or bank.
x. In respect of Loans and advances granted on the basis of security.
According to information and explanations given to us the company has not granted loansand advances on the basis of security by way of pledge of shares debentures and othersecurities.
xi. In respect of application of Term loans.
The Company has raised loans during the year from the banks and financial institutions.According to information and explanation given to us the company has applied such loanfund for purpose for which the loan was obtained.
xii. In respect of Fraud
During the course of our examination of the books and records of the company carriedout in accordance with the generally accepted auditing practices in India and accordingto the information and explanation given to us we have neither come across any instanceof material fraud on or by the Company noticed or reported during the year nor have webeen informed of any such case by the Management.
For C J Patel & Co.
(Chintankumar J Patel)
Annexure - B to the Auditors' Report
Report on the Internal Financial Controls under Clause (i) of Sub Section 3 of Section143 of the Companies Act 2013 ("the Act")
We have audited the internal financial controls over financial reporting of "ADVANCESYNTEX LIMITED" "the Company" as of 31st March 2016 inconjunction with our audit of the financial statements of for the period ended on thatdate.
Management's Responsibility for Internal Financial Controls
The Company's management is responsible for establishing and maintaining internalfinancial controls based on the internal control over financial reporting criteriaestablished by the Company considering the essential components of internal control statedin the Guidance Note on Audit of Internal Financial Controls over Financial Reportingissued by the Institute of Chartered Accountants of India (ICAI'). Theseresponsibilities include the design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the orderly and efficientconduct of its business including adherence to company's policies the safeguarding ofits assets the prevention and detection of frauds and errors the accuracy andcompleteness of the accounting records and the timely preparation of reliable financialinformation as required under the Companies Act 2013.
Our responsibility is to express an opinion on the Company's internal financialcontrols over financial reporting based on our audit. We conducted our audit in accordancewith the Guidance Note on Audit of Internal Financial Controls over Financial Reporting(the "Guidance Note") and the Standards on Auditing issued by ICAI and deemedto be prescribed under section 143(10) of the Companies Act 2013 to the extentapplicable to an audit of internal financial controls both applicable to an audit ofInternal Financial Controls and both issued by the Institute of Chartered Accountants ofIndia. Those Standards and the Guidance Note require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetheradequate internal financial controls over financial reporting was established andmaintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls system over financial reporting and their operatingeffectiveness. Our audit of internal financial controls over financial reporting includedobtaining an understanding of internal financial controls over financial reportingassessing the risk that a material weakness exists and testing and evaluating the designand operating effectiveness of internal control based on the assessed risk. The proceduresselected depend on the auditor's judgment including the assessment of the risks ofmaterial misstatement of the financial statements whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Company's internal financial controls systemover financial reporting Meaning of Internal Financial Controls over FinancialReporting
A company's internal financial control over financial reporting is a process designedto provide reasonable assurance regarding the reliability of financial reporting and thepreparation of financial statements for external purposes in accordance with generallyaccepted accounting principles. A company's internal financial control over financialreporting includes those policies and procedures that (1) pertain to the maintenance ofrecords that in reasonable detail accurately and fairly reflect the transactions anddispositions of the assets of the company; (2) provide reasonable assurance thattransactions are recorded as necessary to permit preparation of financial statements inaccordance with generally accepted accounting principles and that receipts andexpenditures of the company are being made only in accordance with authorizations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorized acquisition use or disposition of thecompany's 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 financialreporting including the possibility of collusion or improper management override ofcontrols material misstatements due to error or fraud may occur and not be detected.
Also projections of any evaluation of the internal financial controls over financialreporting to future periods are subject to the risk that the internal financial controlover financial reporting may become inadequate because of changes in conditions or thatthe degree of compliance with the policies or procedures may deteriorate.
In our opinion the Company has in all material respects an adequate internalfinancial controls system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at 31 December 2015 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note on Audit ofInternal Financial Controls Over Financial Reporting issued by the Institute of CharteredAccountants of India
For C J Patel & Co.
(Chintankumar J Patel)