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Advance Syntex Ltd.

BSE: 539982 Sector: Industrials
NSE: N.A. ISIN Code: INE184U01012
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OPEN 8.11
CLOSE 8.11
VOLUME 15
52-Week high 15.11
52-Week low 7.87
P/E
Mkt Cap.(Rs cr) 9
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Advance Syntex Ltd. (ADVANCESYNTEX) - Auditors Report

Company auditors report

TO THE SHARE HOLDERS'

ADVANCE SYNTEX LIMITED (Earlier Known As Advance Syntex Private Limited) REPORT ON THEIND AS FINANCIAL STATEMENTS

Opinion

We have audited the Ind AS financial statements of ADVANCE SYNTEX LIMITED (EarlierKnown As Advance Syntex Private Limited) which comprise the balance sheet as at 31stMarch 2021 and the Statement of Profit and Loss (including other comprehensive income)changes in equity and statement of cash flows for the year then ended and notes to the IndAS financial statements including a summary of significant accounting policies and otherexplanatory information.

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid standalone Ind AS financial statements give the informationrequired by the Act in the manner so required and give a true and fair view in conformitywith the accounting principles generally accepted in India of the state of affairs of theCompany as at March 31 2021 and its profit and other comprehensive income change inequity and cash flows for the year ended on that date.

Basis for Opinion

We conducted our audit in accordance with the Standards on Auditing (SAs) specifiedunder section 143(10) of the Companies Act 2013. Our responsibilities under thoseStandards are further described in the Auditor's Responsibilities for the Audit of the IndAs Financial Statements section of our report. We are independent of the Company inaccordance with the Code of Ethics issued by the Institute of Chartered Accountants ofIndia together with the ethical requirements that are relevant to our audit of thefinancial statements under the provisions of the Companies Act 2013 and the Rulesthereunder and we have fulfilled our other ethical responsibilities in accordance withthese requirements and the Code of Ethics. We believe that the audit evidence we haveobtained is sufficient and appropriate to provide a basis for our opinion.

Key Audit Matters

Key audit matters are those matters that in our professional judgment were of mostsignificance in our audit of the Ind AS financial statements of the current period. Thesematters were addressed in the context of our audit of the Ind AS financial statements as awhole and in forming our opinion thereon and we do not provide a separate opinion onthese matters.

Emphasis of Matter

We invite attention to Note No 2(t)(iii) to the financial results regarding theuncertainties arising out of the outbreak of COVID-19 pandemic and the assessment made bythe management on its business and financials including valuation of assets policyliabilities and solvency for the year ended March 31 2021. This assessment and theoutcome of the pandemic is as made by the management and is highly dependent on thecircumstances as they evolve in the subsequent periods. Our Opinion is not modified on theabove matter.

Other Matters

Due to the COVID-19 pandemic and the lockdown and other restrictions imposed by theGovernment and local administration the audit processes were carried out based on theremote access to the extent available/feasible and necessary records made available by themanagement through digital medium. Our opinion is not modified in respect of the abovematter.

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 positionfinancial performance (including other comprehensive income) change in equity and cashflow of the company in accordance with the accounting principles generally accepted inIndia including the Indian Accounting Standards (Ind AS) specified under section 133 ofthe Act read with the companies (Indian accounting standards) Rule 2015. Thisresponsibility also includes maintenance of adequate accounting records in accordance withprovisions of the Act for safeguarding the assets of the Company and for preventing anddetecting frauds and other irregularities; selection and application of appropriateaccounting policies; making judgments and estimates that are reasonable and prudent; anddesign implementation and maintenance of adequate internal financial controls that wereoperating effective for ensuring the accuracy and completeness of the accounting recordsrelevant to the preparation and presentation of the financial statements that give a trueand fair view and are free from material misstatement whether due to fraud or error.

In preparing the Ind AS financial statements management is responsible for assessingthe Company's ability to continue as a going concern disclosing as applicable mattersrelated to going concern and using the going concern basis of accounting unless managementeither intends to liquidate the Company or to cease operations or has no realisticalternative but to do so.

The Board of Directors are also responsible for overseeing the Company's financialreporting process.

Auditor's Responsibilities for the Audit of the Ind AS Financial Statements

Our objectives are to obtain reasonable assurance about whether the Ind AS financialstatements as a whole are free from material misstatement whether due to fraud or errorand to issue an auditor's report that includes our opinion. Reasonable assurance is a highlevel of assurance but is not a guarantee that an audit conducted in accordance with SAswill always detect a material misstatement when it exists. Misstatements can arise fromfraud or error and are considered material if individually or in the aggregate theycould reasonably be expected to influence the economic decisions of users taken on thebasis of these Ind AS financial statements.

As part of an audit in accordance with SAs we exercise professional judgment andmaintain professional skepticism throughout the audit. We also:

Identify and assess the risks of material misstatement of the Ind AS financialstatements whether due to fraud or error design and perform audit procedures responsiveto those risks and obtain audit evidence that is sufficient and appropriate to provide abasis for our opinion. The risk of not detecting a material misstatement resulting fromfraud is higher than for one resulting from error as fraud may involve collusionforgery intentional omissions misrepresentations or the override of internal control.Obtain an understanding of internal control relevant to the audit in order to design auditprocedures that are appropriate in the circumstances.Under section 143(3)(i) of the Actwe are also responsible for expressing our opinion on whether the Company has adequateinternal financial controls system in place and the operating effectiveness of suchcontrols. Evaluate the appropriateness of accounting policies used and the reasonablenessof accounting estimates and related disclosures made by management. Conclude on theappropriateness of management's use of the going concern basis of accounting and based onthe audit evidence obtained whether a material uncertainty exists related to events orconditions that may cast significant doubt on the Company's ability to continue as a goingconcern. If we conclude that a material uncertainty exists we are required to drawattention in our auditor's report to the related disclosures in the financial statementsor if such disclosures are inadequate to modify our opinion. Our conclusions are based onthe audit evidence obtained up to the date of our auditor's report. However future eventsor conditions may cause the company to cease to continue as a going concern. Evaluate theoverall presentation structure and content of the Ind AS financial statements includingthe disclosures and whether the Ind AS financial statements represent the underlyingtransactions and events in a manner that achieves fair presentation.

We communicate with those charged with governance regarding among other matters theplanned scope and timing of the audit and significant audit findings including anysignificant deficiencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have compliedwith relevant ethical requirements regarding independence and to communicate with them allrelationships and other matters that may reasonably be thought to bear on ourindependence and where applicable related safeguards.

From the matters communicated with those charged with governance we determine thosematters that were of most significance in the audit of the Ind AS financial statements forthe financial year ended March 31 2021 and are therefore the key audit matters. Wedescribe these matters in our auditor's report unless law or regulation precludes publicdisclosure about the matter or when in extremely rare circumstances we determine that amatter should not be communicated in our report because the adverse consequences of doingso would reasonably be expected to outweigh the public interest benefits of suchcommunication.

Report on Other Legal and Regulatory Requirements;

As required by the Companies (Auditor Report) Order 2016 ("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 (including other comprehensive income)statement of changes in equity and Cash Flow statement dealt with by this Report are inagreement with the books of account.

d) In our opinion the aforesaid Ind AS financial statements comply with the IndianAccounting Standards (Ind AS) specified under Section 133 of the Act read with Companies(Indian Accounting Standards) Rules 2015;

e) On the basis of the written representations received from the directors as on March31st 2021 taken on record by the Board of Directors none of the directors aredisqualified as on March 31st 2021 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 Ind AS financial statements - Refer Note (vii) (c) of "Annexure– A" to the Auditor's Report.

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 V. J. Amin & Co.
Chartered Accountants
Firm Reg.No.100335W
Date: 30/07/2021
Place: Vadodara
(CA. Chintankumar J. Patel)
Partner.
Membership No.134028
UDIN: 21134028AAAABB3990

ANNEXURE A to the Auditor's Report

Referred to in paragraph 1 under the heading "Report on other Legal and RegulatoryRequirements" of our report on even date

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 recordsshowing full particulars including quantitative details and situation of property plantand equipment and capital work in progress.

b) As explained to us all property plant and equipment have been physically verifiedby the management in a phased periodical manner which in our opinion is reasonablehaving regard to the size of the company and nature of its assets. As informed to us nomaterial discrepancies were noticed on such physical verification.

c) As explained to us no substantial part of property plant and equipment has beendisposed-off during the year and it has not affected the going concern.

d) The title deed of all the immovable properties (Which are included under the head" Property plant and equipment") are held in the name of the company.

e) 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 except goods in transit andgoods in inspection have been physically verified during the year at reasonable intervalsby the management and no material discrepancies were noticed on physical verification.

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 otherparties covered in the register maintained under section 189 of the Companies Act 2013.Hence no reporting is given on this 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 allother terms and conditions for such loans are not prima facie prejudicial to the interestof the company. iv. In respect of loan to Directors/ Company in which director isinterested under section 185 of the

Companies Act 2013.

In our opinion and according to the information and explanations given to us theCompany has not advanced loans to Directors/ company in which a director is interested towhich the provisions of Section 185 of the Companies Act apply and the Company has alsonot given any loans or advances has not made investments and has not given guarantees /securities to the company to which the provisions of Section 186 of the Companies Actapply hence not commented upon. 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 theOrder 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 Companyundisputed statutory dues including Employees' State Insurance Sales Tax Wealth TaxDuty of Customs Duty of Excise Value Added Tax Income Tax Service Tax Provident Fundand Professional Tax Cess and other material statutory dues have been generally regularlydeposited with appropriate authorities.

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 Service Tax Provident Fund and Professional Tax Cess and othermaterial statutory dues were outstanding as at 31st March 2021 for a period more than sixmonths from the date of becoming payable except Interest on Income Tax of following years:

Sr. No. Financial Year Amount in (Rs.)
1 2016-17 30449
2 2017-18 622370
3 2018-19 921340

c) The disputed Statutory dues are as listed below;

Related To Authority Where Case is Pending Financial Year Disputed Amount Rs. Remarks
VAT Sales Tax Appellate Tribunal Ahemdabad 2009-10 588725 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.230000/-.
CST Sales Tax Appellate Tribunal Ahemdabad 2009-10 359779 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.65000/-
VAT Dy. Comm. Of Commercial Tax Vadodara 2010-11 562575 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 2010-11 3053188 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/-
VAT Dy. Comm. Of Commercial Tax Vadodara 2011-12 278146 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. 56000/-
CST Dy. Comm. Of Commercial Tax Vadodara 2011-12 1175942 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.240000/-
CST Dy. Comm. Of Commercial Tax Vadodara. 2012-13 2388714 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.478000/-
VAT Dy. Comm. Of Commercial Tax Vadodara 2013-14 3134951 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.424000/-
CST Dy. Comm. Of Commercial Tax Vadodara 2013-14 9242226 Due to non-submission of C forms and disallowance of deduction U/s.6 (2) of the CST Act. The Company has paid under protest Rs.345000/-
CST Dy. Comm. Of Commercial Tax Vadodara 2015-16 1782637 Due to non-submission of C forms and disallowance of deduction U/s.6 (2) of the CST Act. The company has paid amount under protest Rs. 175000/-
VAT Dy. Comm. Of Commercial Tax Vadodara 2015-16 5860085 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._423000/-
VAT Dy. Comm. Of Commercial Tax Vadodara 2016-17 5504419 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. 587500/-
CST Dy. Comm. Of Commercial Tax Vadodara 2016-17 1577890 Due to non-submission of C forms and disallowance of deduction U/s.6 (2) of the CST Act. The company has paid amount under protest Rs. 188500/-
VAT Dy. Comm. Of Commercial Tax Vadodara 2017-18 5075048 Input credit claimed is disallowed during assessment due to Input used in manufacturing and sales of exempted goods. The company has paid amount under protest Rs. 560000/-
CST Dy. Comm. Of Commercial 2017-18 1045523 Due to non-submission of C forms and disallowance of deduction U/s.6 (2) of the CST Act. The company has paid amount under protest Rs. 115000/-

viii. 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. However the banks / financial institutions have restructured /rescheduled the repayment due to Covid -19 pandemic as per guidelines and notificationsissued by the Central Government from time to time.

ix. In respect of money raised by way of initial public offer or further public offer

(a) The Company has not raised any money by way of initial public offer or furtherpublic offer (including debt instruments) during the year.

(b) The company has taken term loans from banks or other financial institutions duringthe year and has applied for the purpose for which they were raised.

x. 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.

xi. In respect of managerial remuneration.

Managerial remuneration has been paid and provided by the Company in accordance withthe requisite approvals mandated by the provisions of Section 197 of the Act read withSchedule V to the Act.

xii. In respect of Nidhi Company

In our opinion the Company is not a Nidhi Company. Accordingly provisions of clause3(xii) of the Order are not applicable.

xiii. In respect of related party transactions.

In our opinion all transactions with the related parties are in compliance withSections 177 and 188 of Act where applicable and the requisite details have beendisclosed in the financial statements etc. as required by the applicable Ind AS.

xiv. In respect of preferential allotment of shares.

According to information and explanations given to us and based on our examination ofthe balance sheet of the Company the Company has not made any preferential allotment orprivate placement of shares or fully or partly convertible debentures during the year.

xv. In respect of Non Cash transactions with directors or persons connected withdirectors.

According to information and explanations given to us and based on our examination ofthe records of the Company the Company has not entered into non-cash transactions withdirectors or persons connected with him as referred to in section 192 of Act. Accordinglyparagraph 3(xv) of the Order is not applicable.

xvi. 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.

xvii. In respect of Internal Audit of the company.

The company has appointed an Internal Auditor and there is not any adverse observationfound in the internal audit report. We have considered the internal audit report beforefinalizations of our report.

xviii. In respect of accumulated losses and cash losses.

The company does not have any accumulated losses at the end of the financial year andin the immediately preceding financial year. The company has incurred cash losses of Rs.104.65 Lakh in the financial year.

xix. 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. xx. In respect of registration under RBI Act 1934

The Company is not required to be registered under Section 45-IA of the Reserve Bank ofIndia Act 1934.

For V. J. Amin & Co.
Chartered Accountants
FRNo.100335W
(CA Chintankumar J Patel)
Partner
Membership No.134028
Place: Vadodara
Date: 30/07/2021
UDIN: 21134028AAAABB3990

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 2021 in conjunctionwith our audit of the financial statements of for the period ended on 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 (‘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.

Auditors' Responsibility

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 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 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.

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 31st March 2020 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 V. J. Amin & Co.
Chartered Accountants
FRNo.100335W
(CA Chintankumar J Patel)
Partner
Membership No.134028
Place: Vadodara
Date: 30/07/2021
UDIN: 21134028AAAABB3990

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