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Shree Rajasthan Syntex Ltd.

BSE: 503837 Sector: Industrials
NSE: SHRERAJSYN ISIN Code: INE796C01011
BSE LIVE 15:50 | 18 Aug 15.45 -0.45
(-2.83%)
OPEN

15.35

HIGH

15.45

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15.35

NSE 05:30 | 01 Jan Stock Is Not Traded.
OPEN 15.35
PREVIOUS CLOSE 15.90
VOLUME 600
52-Week high 18.50
52-Week low 9.85
P/E
Mkt Cap.(Rs cr) 20
Buy Price 15.50
Buy Qty 133.00
Sell Price 0.00
Sell Qty 0.00
OPEN 15.35
CLOSE 15.90
VOLUME 600
52-Week high 18.50
52-Week low 9.85
P/E
Mkt Cap.(Rs cr) 20
Buy Price 15.50
Buy Qty 133.00
Sell Price 0.00
Sell Qty 0.00

Shree Rajasthan Syntex Ltd. (SHRERAJSYN) - Auditors Report

Company auditors report

TO THE MEMBERS OF

SHREE RAJASTHAN SYNTEX LTD.

Report on the Financial Statements

We have audited the accompanying financial statements of Shree Rajasthan Syntex Ltd.which comprise the Balance Sheet as at March 31 2016 and the Statement of Profit andLoss and Cash Flow Statement for the year ended on 31st March 2016 and asummary of significant accounting policies and other explanatory information.

Management's Responsibility for the Financial Statements

The Company's Board of Directors are responsible for the matters in section 134(5) ofthe Companies Act 2013 ("the Act") with respect to the preparation andpresentation of these financial statements that give a true and fair view of the financialposition financial performance and cash flows of the Company in accordance with theAccounting Principles generally accepted in India including the Accounting Standardsspecified under Section 133 of the Act read with Rule 7 of the Companies (Accounts)Rules 2014. This responsibility also includes the maintenance of adequate accountingrecords in accordance with the provision of the Act for safeguarding of the assets of theCompany and for preventing and detecting the frauds and other irregularities; selectionand application of appropriate accounting policies; making judgments and estimates thatare reasonable and prudent; and design implementation and maintenance of internalfinancial control that were operating effectively for ensuing the accuracy andcompleteness of the accounting records relevant to the preparation and presentation ofthe financial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.

Auditor's Responsibility

Our responsibility is to express an opinion on these financial statements based on ouraudit. We have taken into account provisions of the Act the accounting and auditingstandards and matters 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 require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetherthe financial statements are free from material misstatement.

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 control relevant to the Company's preparation of the financialstatements that give true and fair view in order to design audit procedures that areappropriate in the circumstances An audit also includes evaluating the appropriateness ofaccounting policies used and the reasonableness of the accounting estimates made byCompany's Directors as well as evaluating the overall presentation of the financialstatements.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the financial statements.

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid Standalone financial statements give the information requiredby the Act in the manner so required and give a true and fair view in conformity with theaccounting principles generally accepted in India:

a) in the case of the Balance Sheet of the state of affairs of the Company as at March31 2016;

b) in the case of the Statement of Profit and Loss of the loss for the year ended onthat date; and

c) in the case of the Cash Flow Statement of the cash flows for the year ended on thatdate.

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 subsection (11) of section 143 ofthe Act we give in the Annexure "A" statement on the matters specified inparagraphs 3 and 4 of the 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 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 appears from our examination of those books

c) the Balance Sheet Statement of Profit and Loss and Cash Flow Statement dealt withby this Report are in agreement with the books of account.

d) in our opinion the aforesaid financial statement comply with the AccountingStandards specified under Section 133 of the Act read with Rule 7 of the Companies(Accounts) Rules 2014.

e) on the basis of written representations received from the directors as on March 312016 and taken on record by the Board of Directors none of the directors is disqualifiedas on March 31 2016 from being appointed as a director in terms of section 164(2) of theAct.

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 included in the Auditor's Report in accordancewith Rule 11 of the Companies (Audit and Auditors) Rule 2014 in our opinion and to bestof 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 29(e) & 32 to the financialstatements.

ii. The Company does not have any long-term contracts including derivatives contractsfor which there were any material foreseeable losses.

iii. There has been no delay in transferring amounts required to be transferred tothe Investor and Education and Protection Fund by the Company.

For M. C. BHANDARI & Co.
Chartered Accountants
FRN303002E
Place: Udaipur Sd/-
Date: May 30th 2016 CA V. Chaturvedi
Partner
Membership No. : 013296

ANNEXURE "A" REFERRED TO THE AUDITORS REPORT ( Referred to in our report ofeven date)

Annexure referred to in Point 1 of the Auditor's Report of even date to the members ofShree Rajasthan Syntex Ltd for the year ended as on March 31 2016.

On the basis of such checks as considered appropriate and in terms of the informationand explanations given to us we state as under:-

(i) a) The Company has maintained proper records showing full particulars includingquantitative details and situations of Fixed Assets.

b) As per the information and explanations given to us physical verification of fixedassets has been carried out in terms of the phased program of verification adopted by thecompany and no material discrepancies were noticed on such verification.

c) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company the title deeds of immovable properties areheld in the name of Company.

(ii) The company has conducted physical verification of its inventories (excludingmaterials in transit and stock lying with third parties) at reasonable intervals. Nomaterial discrepancies were noticed during physical verification.

(iii) The Company has granted loan to a party covered in the register maintained undersection 189 of the Companies Act 2013 ('the Act') in earlier years.

a) In our opinion the rate of interest and other terms and conditions on which theloan had been granted to the parties listed in the register maintained under Section 189of the Act was not prima facie prejudicial to the interest of the Company

b) In the case of loan granted to the party listed in the register maintained undersection 189 of the Act the borrower has been regular in the payment of the principal andinterest as stipulated.

(iv) In our opinion and according to the information and explanations given to us theCompany has complied with the provisions of section 185 and 186 of the Act with respectto the loans and investments made.

(v) The Company has accepted deposits to the best of our knowledge & belief thedirectives issued by the Reserve Bank of India and the provisions of sections 73 to 76 orany other relevant provisions of the Companies Act and the rules framed there under whereapplicable have been complied with.

(vi) The Central Government has prescribed maintenance of the cost records U/S 148(1)of the Companies Act 2013 in respect to the company's products. We have broadly reviewedthe books of account & records maintained by the company in this connection and are ofthe opinion that prima facie the prescribed accounts and records have been made &maintained. We have however not made a detailed examination of the records with a view todetermining whether they are accurate or complete.

(vii) a) According to the information and explanations given to us and on the basis ofour examination of the records of the Company amounts deducted / accrued in the books ofaccount in respect of undisputed statutory dues including provident fund ESI income-taxsales tax value added tax duty of customs service tax cess and other materialstatutory dues have been regularly deposited during the year by the Company with theappropriate authorities. According to the information and explanations given to us noundisputed amounts payable in respect of provident fund ESI income tax sales tax valueadded tax duty of customs service tax cess and other material statutory dues were inarrears as at 31 March 2016 for a period of more than six months from the date they becamepayable.

b) According to the information and explanations given to us there are not materialdues of duty of customs which have not been deposited with the appropriate authorities onaccount of any dispute. However according to information and explanations given to usthe following dues of income tax sales tax duty of excise sales tax and value added taxhave not been deposited by the Company on account of disputes:

S. No. Name of the Statue

Amount (Rs. In lacs)

Nature of the dues Gross Amount deposited under protest Period to which the amount relates (F.Y.) Forum where dispute is pending
1 Rajasthan Stamps Act Stamp Duty 2.70 0.90 2012-13 Ta x Board Ajmer
2 Rajasthan Tax into entry of goods into local area Act1999 Entry tax and interest 303.40 121.31 2006-07 to 2012-13 Supreme court of India
3 Central Excise Act 1994 Excise Duty and Custom Duty 0.27 0.27 1996-97 Dy Commissioner / Asst
4 Central Excise Act 1994 Excise Duty and Custom Duty 1.53 1.53 2007- 08 to 2008- 09 Dy Commissioner / Asst
5 Central Excise Act 1994 Exci se Duty and Custom Duty 29.69 5.87 1994-95 to 2007-08 Commissioner Appeals
6 Central Excise Act 1994 Excise Duty and Custom Duty 64.27 35.03 1995-96 to 2009-10 CESTAT
7 Service Tax Service Tax 30.86 5.88 2004-05 to 2009-10 CESTAT
8 Service Tax Service Tax 15.63 7.63 2004-05 to 2008-09 Commissioner (Appeals)
9 Rajashan Value Added Tax 2003 Value added tax with RIPS 451.79 60.85 2007-08 to 2012-13 Rajasthan Tax Board Ajmer

(viii) Except few minor delays Company has not defaulted repayment of loans orborrowings to financial institutions or banks.

(ix) The Company did not raise any money by way of initial public offer or furtherpublic offer (including debt instruments) and term loans during the year. Accordinglyparagraph 3 (ix) of the Order is not applicable.

(x) According to the information and explanations given to us no material fraud by theCompany or on the Company by its officers or employees has been noticed or reported duringthe course of our audit.

(xi) According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has paid / provided for managerialremuneration in accordance with the requisite approvals mandated by the provisions ofsection 197 read with Schedule V to the Act.

(xii) In our opinion and according to the information and explanations given to us theCompany is not a nidhi company. Accordingly paragraph 3(xii) of the Order is notapplicable.

(xiii) According to the information and explanations given to us and based on ourexamination of the records of the Company transactions with the related parties are incompliance with sections 177 and 188 of the Act where applicable and details of suchtransactions have been disclosed in the financial statements as required by the applicableaccounting standards.

(xiv) According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has not made any preferentialallotment or private placement of shares or fully or partly convertible debentures duringthe year.

(xv) According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has not entered into non-cashtransactions with directors or persons connected with him. Accordingly paragraph 3(xv) ofthe Order is not applicable.

(xvi) The Company is not required to be registered under section 45-IA of the ReserveBank of India Act 1934.

For M C Bhandari & Co.
Chartered Accountants
Firm Reg.no.303002E
Sd/-
Place : Udaipur CA V. CHATURVEDI
Date : 30th May 2016 Partner
Membership No. 13296

ANNEXURE - B TO THE AUDITOR'S 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 ShreeRajasthan Syntex Limited ("the Company") as of 31 March 2016 in conjunction withour audit of the standalone financial statements of the Company for the year 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 ('I CAI'). 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.

Auditors' Responsibility

Our responsibility is to express an opinion on the Company's internal financialcontrols over financial reporting based on our audit. We conduct 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 control 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 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 principles and that receipts and expenditures of thecompany are being made only in accordance with authorisations of management and directorsof the company; and (3) provide reasonable assurance regarding prevention or timelydetection of unauthorised acquisition use or disposition of the company's assets thatcould 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. Alsoprojections of any evaluation of the internal financial controls over financial reportingto future period are subject to the risk that the internal financial control overfinancial reporting may become inadequate because of changes in conditions or that thedegree of compliance with the policies or procedures may deteriorate.

Opinion

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 Match 2016 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 M C Bhandari & Co.
Chartered Accountants
Firm Reg.no.303002E
Sd/-
Place : Udaipur CA V. CHATURVEDI
Date : 30th May 2016 Partner
Membership No. 13296