Report Of The Independent Auditors
To the Members of Synthiko Foils Ltd
Report on the Financial Statements
We have audited the accompanying financial statements of Synthiko Foils Ltd. ("theCompany") which comprise the Balance Sheet as at March 31 2014 the Statement ofProfit and Loss and Cash Flow Statement for the year then ended and a summary ofsignificant accounting policies and other explanatory information.
Management's Responsibility for the Financial Statements
Management is responsible for the preparation of these financial statements that give atrue and fair view of the financial position financial performance and cash flows of theCompany in accordance with the Accounting standards referred to in Section 211 (3C) of theCompanies Act 1956 ("the Act"). This responsibility includes the designimplementation and maintenance of internal control relevant to the preparation andpresentation of the financial statements that give a true and fair view and are free frommaterial misstatement whether due to fraud or error.
Our responsibility is to express an opinion on these financial statements based on ouraudit. We conducted our audit in accordance with the standards on Auditing issued by theInstitute of Chartered Accountants of India. Those Standards require that we comply withethical requirements and plan and perform the audit to obtain reasonable assurance aboutwhether the 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 international internal control relevant to the Company's preparation and fairpresentation of the financial statements 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 bymanagement as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion.
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;
(a) In the case of the Balance Sheet of the state of affairs of the Company as atMarch 312014;
(b) In the case of the Statement of Profit and Loss of the Profit for the year endedon that date; and
(c) In the case of the Cash Flow Statement of the cash flows for the year ended onthat date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor's Report) Order 2003 ("the Order")issued by the Central Government of India in terms of Section 227 (4A) of the Act we givein the Annexure a statement on the matters specified in paragraphs 4 and 5 of the order.
2. As required by Section 227(3) of the Act we report that;
a. We have obtained all the information and explanations which to the best of ourknowledge and belief were necessary for the purpose of our audit;
b. In our opinion proper books of accounts as required by law have been kept by theCompany so far as appears from our examination of those books.
c. The balance sheet the Statement of Profit and Loss and the Cash flow statementdealt with by this Report are in agreement with the books of account.
d. In our opinion the Balance Sheet the statement of Profit and loss & the CashFlow Statement comply with the Accounting Standards referred to in Section 211 (3C) of theAct;
e. On the basis of the written representations received from the directors as on March312014 taken on record by the board of directors none of directors is disqualified ason March 312014 from being appointed as a director in terms of Section 274(1) (g) of theAct.
For ARVIND & COMPANY
Firm Reg. No.l00569W
[Gaurang A. Patel]
M. No. 36700
Date : May 31 2014
ANNEXURE TO THE AUDITOR'S REPORT
Referred to in Paragraph (1) under the heading of "Report on Other Legaland Regulatory Requirements" of our report of even date
1. In respect of its Fixed Assets:
a. The Company has maintained proper records showing full particulars includingquantitative details & situation of 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. No material discrepancies werenoticed on such physical verification.
c. In our opinion the company has not disposed off a substantial part of its fixedassets during the year and the going concern status of the Company is not affected.
2. In response of its Inventories:
a. The inventories have been physically verified during the year by the management. Inour opinion the frequency of verification is reasonable.
b. In our opinion & according to the information & explanations given to usthe procedures of physical verification of inventories followed by the management arereasonable and adequate in relation to the size of the company and the nature of itsbusiness.
c. The company has maintained proper records of inventories. As explained to us therewere no material discrepancies noticed on physical verification of inventories as comparedto the book records.
3. In respect of the loans secured or unsecured granted or taken by the Company to/from companies firms or other parties covered in the register maintained under Section301 of the companies act 1956:
a. As informed the company has not granted any loans secured or unsecured tocompanies firms or other parties covered in the register maintained under Section 301 ofthe Companies Act 1956. Accordingly the provisions stated in paragraph 4 (iii) (b) (c)& (d) of the Order are not applicable.
b. In our opinion & according to the information and explanations given to us therate of interest and other terms and conditions of the loans given by the company are notprima facie prejudicial to the interest of the company.
c. The principal amounts are repayable over a period of three to five years while theinterest is payable annually at the discretion of the company.
d. In respect of the said loans and interest thereon there are no overdue amounts.
e. The company has not taken any loan during the year from companies firms or otherparties covered in the Registered maintained under Section 301 of the Companies Act 1956.Consequently the requirements of Clause (iii) (f) & (iii) (g) of paragraph 4 of theOrder are not applicable.
4. In our opinion & according to the information & explanations given to usthere is an adequate internal control system commensurate with the size of the company andthe nature of its business for the purchases of inventory and fixed assets and for thesale of goods and services. During the course of our audit we have not observed anycontinuing failure to correct major weaknesses in internal control system.
5. In respect of the contracts or arrangements referred to in Section 301 of theCompanies Act 1956:
a. In our opinion and according to the information and explanations given to us thetransactions made in pursuance of contracts or arrangements that need to be entered in theregister maintained under Section 301 of the Companies Act 1956 have been so entered.
b. In our opinion & according to the information & explanations given to usthe transactions made in pursuance of contracts/arrangements entered in the registermaintained under section 301 of the Companies Act 1956 have been so entered. Referred toin (a) above and exceeding the value of rupees five lakhs in respect of any party duringthe year have been made at price which are reasonable having regard to the prevailingmarket price at the relevant time.
6. According to the information and explanations given to us the Company has notaccepted any deposit from the public within the meaning of section 58A and 58AA of the Actand rules framed thereunder. Therefore the provision of Clause (vi) of paragraph-4 of theorder are not applicable to the company.
7. In our opinion the company has an internal audit system commensurate with the sizeand nature of its business.
8. We have broadly reviewed the cost records maintained by the Company pursuant to theCompanies (Cost Accounting Records) Rules 2011 prescribed by the Central Government underSection 209(1) (d) of the Companies Act 1956 and are of the opinion that prima facie theprescribed cost records have been maintained. We have however not made a detailedexamination of the cost records with a view to determine whether they are accurate orcomplete.
9. In respect of Statutory Dues:
a. The company is generally regular in depositing with appropriate authoritiesundisputed statutory dues including provident fund investor education & protectionfund employees' state insurance income tax sales-tax wealth tax service tax customduty excise duty cess & other material statutory dues applicable to it.
b. According to the information & explanations give to us no undisputed amountpayable in respect of provident fund investor education & protection fund employees'state insurance income-tax sales-tax wealth-tax service-tax custom duty excise dutycess & other undisputed statutory dues were outstanding at the year end for a periodof more than six months from the date they became payable.
10. The Company does not have accumulated losses at the end of the financial year. Thecompany has not incurred cash losses during the financial year covered by the audit &in the immediately preceding financial year.
11. Based on our audit procedures & according to the information and explanationsgiven to us we are of the opinion that the Company has not defaulted in repayment of duesto financial institutions banks and debenture holders.
12. In our opinion and according to the explanations given to us and based on theinformation available no loans and advances have been granted by the company on the basisof security by way of pledge of shares debentures and other securities.
13. In our opinion the company is not a chit fund/nidhi/ mutual benefit fund/ society.Therefore the provisions of clause (xiii) of paragraph 4 of the order are not applicableto the company.
14. The Company has maintained proper records of the transactions & contracts inrespect of dealing or trading in shares securities debentures & other investments& timely entries have been made therein. All shares securities debenture and otherinvestments have been held by the company in its own name.
15. The company has given guarantees for loans taken by firm in which company is apartner from banks. According to the information & explanations given to us we are ofthe opinion that the terms & conditions thereof are not prima facie prejudicial to theinterest of the company.
16. The company did not have any outstanding overdues of term loans during the year.
17. According to the information and explanations given to us and on an overallexamination of the balance sheet of the company we are of the opinion that there are nofunds raised on short-term basis that have used for long term investment.
18. The company has not made any preferential allotment of shares to parties andcompanies covered in the register maintained under Section 301 of the Companies Act 1956.
19. The Company has created securities/ charges in respect of secured debenturesissued.
20. The Company has not raised any monies by way of public issues during the year.
21. According to the information and explanations given to us no material fraud on orby the company has been noticed or reported during the year.
For ARVIND & COMPANY
Firm Reg. No.l00569W
[Gaurang A. Patel]
M. No. 36700
Date : May 31 2014