Kiran Syntex Ltd.
|BSE: 530443||Sector: Industrials|
|NSE: N.A.||ISIN Code: INE293D01017|
|BSE 13:48 | 15 Nov||Stock Is Not Traded.|
|NSE 05:30 | 01 Jan||Stock Is Not Traded.|
|BSE: 530443||Sector: Industrials|
|NSE: N.A.||ISIN Code: INE293D01017|
|BSE 13:48 | 15 Nov||Stock Is Not Traded.|
|NSE 05:30 | 01 Jan||Stock Is Not Traded.|
The Members of
KIRAN SYNTEX LTD.
CIN NO.: L17110GJ1986PLC009099
Report on the Financial Statements
We have audited the accompanying standalone financial statements of KIRANSYNTEX LTD. ("the Company1') which comprise the Balance Sheet as atMarch 31 2016 and the Statement of Profit and Loss and Cash Flow Statement forthe year then ended and a summary of significant accounting policies and otherexplanatory information.
Management's Responsibility for the Standalone Financial Statements
The Company's Board of Directors are responsible for the matters stated in section134(5) of the Companies Act 2013 ("the act') with respect to preparation of thesestandalone financial statements that give True and fair view of the financial positionfinancial performance and cash flow of the company in accordance with Fairview of the financial position financial performance and cash flow ofthe company in accordance with accounting principles genarally acceptable in Indiaincluding the accounting standards specified under section 133 of the act readwith Rule 7 of the Companies (Accounts) Rules 2014. This responsibility also includesmaintanance of adequate accounting records in accordance with provisions of the act forsafeguarding assets of the company and for preventing and detecting frauds and otherirregularities selection and applications of appropriate accoutning policies makingjudgments and estimates that are reasonable and prudent and design implementation andmaintenance of adeqaute financial internal controls that were operatingeffectively for ensuring the accuracy and completeness of accounting recordsrelevant forpreparation and presentation of the financial statements that give a true and fairview and are free from any material misstatement whether due to fraud or error.
Our responsibility is to express an opinion on these standalone financial statementsbased on our audit. We have taken into consideration the provisions of the act theaccouning and auditing standards and matters which are required to be included in theauditors report under the provisions of the act and rules made thereunder. We conductedaudit in accordance with the standards on audits specified under section 143(10) ofthe act. Those standards require that we comply with ethical requirement and plan andperform audit to obtain reasonable assurance whether the financial statements arefree from any material misstatement
An audit involves performing procedures to obtain audit evidence about the amounts anddisclosures in the financial statements. The procedures selected depend on theauditor's judgment including the assessment of the risks of material misstatement of the financialstatements whether due to fraud or error. In making those risk assessmentsthe auditor considers internal control relevant to the Company's preparation of the financialstatements that give a true and fair view in order to design audit procedures that areappropriate in the financial circumstances but not for the purpose of expressing anopinion on effectiveness of the company's internal control. An audit also includesevaluating the appropriateness of accounting policies used and the reasonableness of theaccounting estimates made by management as well as evaluating the overall presentationof the financial statements.
We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our audit opinion on the standalone financialstatements
In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid standalone financial statements five theinformation required by the Act in the manner so required and give a true and fair view inconformity with the accounting principles generally accepted in India of the State ofaffairs of the company as at 31st March 2016 and its loss and its cash flow for theyear ended on that date
Emphasis of Matters
We draw attention to Note29 to the financial statements which discribes(l) Aboutthehuge demands by way of duty and penalty raised by the excise department on the company Thecompany has challenged thesaiddemand andpenalty and has preferred an appeal before theCentral Excise and Service Tax Tribunal (CESTAT) Ahmedabad. & (2) About the demands byway of damages & interest raised by the Employees Provident Fund Organisation on thecompany The company has challenged the said damage & interest and has preferred anappeal before the Employees Provident Fund Appellate Tribunal Delhi.
Our opinion is not qualified in respect of this matter.
Report on Other Legal and Regulatory Requirements
1 As required by the Companies (Auditors Report) Order 2016('the order') issued by theCentral Government of terms of section 143 (11) of the companies act 2013. We encloseAnnexure "A" statement on the matters specified in paragraph 3 & 4 ofthe said order to the extent possible.
2 As required by section 143 (3) of the Act we report that:
a. We have sought and obtained all the information & explanation which tothe 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 theCompany so far as appears from our examination of the books ;
c. the Balance Sheet Statement of Profit and Loss and Cash Flow Statementdealt with by this report are in agreement with the books of account;
d. In our opinion the aforesaid standalone financial statements comply with theAccounting Standards specified under section133 of the act read with Rule 7Companies (accounts) Rule 2014
e. On the basis of written representations received from the directors as on 31st March2016 and taken on record by the Board of Directors none of the directors is disqualifiedas on 31st March 2016 from being appointed as a director in terms of section 164(2) ofthe act.
f. 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 ouropinion and to the best of our information and according to the explanations given to us:
i) The company has disclosed the impact of pending litigations in on its financialposition in its financial statements. Refer note no.27 to the financial statements.
ii) The company did not have any long term contracts including derrivative contractsfor which there were any forseable losses
iii) There were no amounts which were required to be transferred to the InvestorEducation and Protection. Fund by the company
ANNEXURE TO THE INDEPENDENT AUDITOR'S REPORT
The Annexure referred to our Independent Auditor's Report to the members of the companyon the standalone financial statements for the year ended on 31st March 2016 we reportthat-
(i) (a) The Company has maintained proper records showing full particularsquantitative details and situation of fixed assets.
(b) As explained to us the Management has carried out physical verification of theseassets at reasonable intervals and no major discrepancies are noticed.on suchverification. In our opinion the periodicity of physical verification is reasonable havingregard to the size of the company and nature of its assets.
(c) There is no immovable property owned by the company which requires title deedshence not applicable
(ii) As per information & explanation given to usduring the year physicalverification of inventory has been carried out by the management at reasonable intervalsand as explained to us no material discrepancies were noticed on physical verification ofinventory as compared to the books records.
(iii) The company has granted unsecured loans to one body corporate covered in theregister maintained under section 189 of the Companies Act 2013 (the act)
(a) There is no stipulation for payment of interest and principal amount. The amount isrepayable on demand.
(b) Though the loan is outstanding since a long period however there is no stipulationfor repayment therefore is not considered as overdue.
(iv) In our opinion and according to the information and explanations given to us thecompany has complied with the provisions of section 185 and I86 of the Companies Act 2013In respect of loans investments guarantees and security.
(v) The Company has not accepted any deposits from the public and hence the directivesissued by the Reserve Bank of India and the provisions of Sections 73 to 76 or any otherrelevant provisions of the Act and the Companies (Acceptance of Deposit) Rules 2015 withregard 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 theCentral Government under sub-section (1) of Section 148 of the Act in respect of theactivities carried on by the company.
(vii) (a) According to the informations & explanations given to us and as per ourverification the Company has been regular in depositing undisputed statutory dues likeProvident Fund ESICSales Tax Income-Tax with appropriate authorities. No undisputedstatutory dues were outstanding at the end of the year for a period of more than sixmonths from the date they became payable.
(b) According to information and explanations given to us the company has not depositedthe following dues by way of demands raised by the excise Dept. & Provident Fund Depton account of disputes
(viii) As per information & explanations given to us and as per analysis of theBalance Sheet the Company has not defaulted in repayment of dues to banks and financialinstitutions. The Company has not issued any debentures.
(ix) Based upon the audit procedures performed and the information and explanationsgiven by the management the company has not raised moneys by way of initial public offeror further public offer including debt instruments and term Loans.
(x) Based upon the audit procedures performed and the information and explanationsgiven by the management we report that no fraud by the Company or on the company by itsofficers or employees has been noticed or reported during the year.
(xi) The company has not given any managerial remuneration during the year.
(xii) The Company is not a Nidhi Company. Therefore the provisions of Net owned Fundto be Deposit Ratio is not applicable.
(xill) In our opinion all transactions with the related parties are in compliance withsection 177 and 188 of Companies Act 2013 and the details have been disclosed in theFinancial Statements as required by the applicable accounting standards.
(xiv) Based upon the audit procedures performed and the information and explanationsgiven by the management the company has not made any preferential allotment or privateplacement of shares or fully or partly convertible debentures during the year under review.Accordingly the provisions of section 42 of the Companies Act 2013 are notapplicable to the Company and hence not commented upon.
(xv) Based upon the audit procedures performed and the information and explanationsgiven by the management the company has not entered into any non-cash transactions withdirectors or persons connected with him. Accordingly Provisions of section 192 are notapplicable hence not commented upon.
(xvi) in our opinion the company is not required to be registered under section 45 IAof the Reserve Bank of India Act 1934.
"Annexure B" to the Independent Auditor's Report of even date on theStandalone Financial Statements of KIRAN SYNTEX LTD.
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 reportingof KIRAN SYNTEX LTD. ("the Company'') as of March 31 2016 in conjunction withour audit of the standalone financial statements of the Company for the year endedon that date.
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". These responsibilitiesinclude the design implementation and maintenance of adequate internal financial controlsthat were operating effectively for ensuring the orderly and efficient conduct of itsbusiness including adherence to company's policies the safeguarding of its assets theprevention and detection of frauds and errors the accuracy and completeness of theaccounting records and the timely preparation of reliable financial information asrequired 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 judgement 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 Financial Reporting
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 authorisations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorised 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 March 312016 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.