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Akshar Spintex Ltd.

BSE: 541303 Sector: Industrials
NSE: N.A. ISIN Code: INE256Z01017
BSE 00:00 | 18 May 65.40 3.00
(4.81%)
OPEN

61.25

HIGH

65.40

LOW

61.25

NSE 05:30 | 01 Jan Akshar Spintex Ltd
OPEN 61.25
PREVIOUS CLOSE 62.40
VOLUME 351000
52-Week high 69.90
52-Week low 8.00
P/E 130.80
Mkt Cap.(Rs cr) 164
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 61.25
CLOSE 62.40
VOLUME 351000
52-Week high 69.90
52-Week low 8.00
P/E 130.80
Mkt Cap.(Rs cr) 164
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Akshar Spintex Ltd. (AKSHARSPINTEX) - Auditors Report

Company auditors report

To the Members of

Akshar Spintex Limited

Report on the Financial Statements

Opinion

We have audited the accompanying financial statements of Akshar Spintex Limited("the Company") which comprises the Balance Sheet as at March 31 2021 theStatement of Profit and Loss and Statement of Cash Flows for the year then ended andnotes to the financial statements including a summary of significant accounting policiesand other explanatory information.

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 of the state of affairs of the Company as at March31 2021 and profit and its 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 theFinancial 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 financial statements of the current period. These matterswere addressed in the context of our audit of the financial statements as a whole and informing our opinion thereon and we do not provide a separate opinion on these matters.

We have determined that there are no key audit matters to communicate in our reportexcept as stated in the Emphasis of Matters para below.

Emphasis of Matter

We draw your attention to Note 2.6 of the section Summary of Significant AccountingPolicies where the Company has not complied with the provisions of AS 15 – EmployeeBenefits with respect to creating a provision for leave encashment expense payable to itsemployees. The Company determines the liability for defined benefit plans on actualpayment basis only.

The Company's management is responsible for carrying out the inspection of itsinventories on a regular basis. We have not independently verified the inventories of theCompany during the year under review. Any adjustment to the value of inventories asappearing in the balance sheet of the Company may have an effect on the profit and netassets of the Company for the period and year ended March 31 2021.

The Company's management is responsible for carrying out the balance confirmation andreconciliations with various debtors creditors and advances. These have not beenindependently verified by us during the year under review. Any adjustment to the value ofsuch balances as appearing in the balance sheet of the Company may have an effect on theprofits and net assets of the Company for the period and year ended March 31 2021.

Our opinion is not modified in respect of this matter.

Information Other than the Financial Statements and Auditor's Report Thereon

The Company's Board of Directors is responsible for the preparation of the otherinformation. The other information comprises the information included in the Board'sReport including Annexures to Board's Report but does not include the financialstatements and our auditor's report thereon.

Our opinion on the financial statements does not cover the other information and we donot express any form of assurance conclusion thereon.

In connection with our audit of the financial statements our responsibility is to readthe other information and in doing so consider whether the other information ismaterially inconsistent with the financial statements or our knowledge obtained during thecourse of our audit or otherwise appears to be materially misstated.

If based on the work we have performed we conclude that there is a materialmisstatement of this other information we are required to report that fact. We havenothing to report in this regard.

Responsibility of Management 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 a true and fair view of the financial positionfinancial performance and cash flows of the Company in accordance with the accountingprinciples generally accepted in India including the accounting Standards specified underSection 133 of the Act. This responsibility also includes maintenance of adequateaccounting records in accordance with the provisions of the Act for safeguarding of theassets of the Company and for preventing and detecting frauds and other irregularities;selection and application of appropriate implementation and maintenance of accountingpolicies; making judgments and estimates that are reasonable and prudent; and designimplementation and maintenance of adequate internal financial controls that wereoperating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the financial statement that givea true and fair view and are free from material misstatement whether due to fraud orerror.

In preparing the financial statements management is responsible for assessing theCompany'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.

Those Board of Directors are also responsible for overseeing the company's financialreporting process.

Auditor's Responsibility for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the 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 financial statements.

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

1. Identify and assess the risks of material misstatement of the financial statementswhether due to fraud or error design and perform audit procedures responsive to thoserisks and obtain audit evidence that is sufficient and appropriate to provide a basis forour opinion. The risk of not detecting a material misstatement resulting from fraud ishigher than for one resulting from error as fraud may involve collusion forgeryintentional omissions misrepresentations or the override of internal control.

2. Obtain an understanding of internal control relevant to the audit in order to designaudit procedures that are appropriate in the circumstances. Under Section 143(3)(i) of theCompanies Act 2013 we are also responsible for expressing our opinion on whether thecompany has adequate internal financial controls system in place and the operatingeffectiveness of such controls.

3. Evaluate the appropriateness of accounting policies used and the reasonableness ofaccounting estimates and related disclosures made by management.

4. Conclude on the appropriateness of management's use of the going concern basis ofaccounting and based on the audit evidence obtained whether a material uncertaintyexists related to events or conditions that may cast significant doubt on the Company'sability to continue as a going concern. If we conclude that a material uncertainty existswe are required to draw attention in our auditor's report to the related disclosures inthe financial statements or if such disclosures are inadequate to modify our opinion.Our conclusions are based on the audit evidence obtained up to the date of our auditor'sreport. However future events or conditions may cause the Company to cease to continue asa going concern.

5. Evaluate the overall presentation structure and content of the financialstatements including the disclosures and whether the financial statements represent theunderlying transactions 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 themall relationships 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 financial statements of thecurrent period and are therefore the key audit matters. We describe these matters in ourauditor's report unless law or regulation precludes public disclosure about the matter orwhen in extremely rare circumstances we determine that a matter should not becommunicated in our report because the adverse consequences of doing so would reasonablybe expected to outweigh the public interest benefits of such communication.

Report on Other Legal and Regulatory Requirements

As required by the Companies (Auditor's Report) Order 2016 ("the Order")issued by the Central

Government of India in terms of sub-section (11) of Section 143 of the Companies Act2013 we give in

"Annexure A" a statement on the matters specified in paragraphs 3 and4 of the Order to the extent applicable.

As required by Section 143(3) of the Act we report that: a. We have sought andobtained all the information and explanations which to the best of our knowledge andbelief 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 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 aforesaid financial statements 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 the written representations received from the directors as on March31 2021 taken on record by the Board of Directors none of the directors is disqualifiedas on March 31 2021 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".

g. With respect to the other matters to be included in the Auditor's Report inaccordance with the requirements of section 197(16) of the Act as amended In our opinionand to the best of our information and according to the explanations given to us theremuneration paid by the Company to its directors during the year is in accordance withthe provisions of section 197 of the Act.

h. 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. TheCompany does not have any pending litigations which would impact its financial position.

ii. The Company did not have any long-term contracts including derivative contracts forwhich there were any material foreseeable losses.

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

Place: Rajkot
Date: 28/06/2021 For
HB Kalaria and Associates
Firm Reg. No. 104571W
Chartered Accountants
(Hasmukh Kalaria)
Partner
Mem. No. 042002
UDIN: 21042002AAAAVS4093

Annexure A

Referred to in the section Report on Other Legal and Regulatory Requirements on of the

Independent Auditors' Report of even date to the members of Akshar Spintex Limited onthe financial statements as of and for the year ended March 31 2021

a) The Company is maintaining proper records showing full particulars includingquantitative details and situation of fixed assets.

b) The Company has a program of verification of fixed assets to cover all the items ina phased manner over a period of 1 year which in our opinion is reasonable having regardto the size of the Company and the nature of its assets. Pursuant to the program certainfixed assets were physically verified by the Management during the year. According to theinformation and explanation given to us no material discrepancies were noticed onphysical verification of fixed assets.

c) The title deeds of immovable properties as disclosed in the notes on fixed assetsto the financial statements are held in the name of the Company.

ii. The physical verification of inventory excluding stocks with third parties havebeen conducted as reasonable intervals by the Management during the year. In respect ofinventory lying with third parties if any have been substantially confirmed by them. Thediscrepancies noticed on physical verification of inventory as compared to book recordswere not material. We have relied mostly on the management representations in this matter.

iii. According to the information and explanation given to us the Company has notgranted any loans to any parties covered in the register maintained under section 189 ofthe Companies Act 2013.

iv. In our opinion and according to explanation and information give to us the Companyhas not granted any loans or made any investments or provided any guarantee or security tothe parties covered under Sections 185 and 186. Therefore the provisions of Clause 3(iv)of the said Order are not applicable to the Company.

v. In our opinion and according to explanation and information give to us the Companyhas not accepted any deposits from the public within the meaning of Sections 73 74 75and 76 of the Act and the Rules framed there under to the extent notified.

vi. Pursuant to the Rules made by the Central Government of India the Company isrequired to maintain cost records as specified under Section 148(1) of the Act in respectof the business activity carried out by the Company. We have broadly reviewed the sameand are of the opinion that prima facie the prescribed accounts and records have beenmade and maintained. We have not however made a detailed examination of the records witha view to determine whether they are accurate or complete.

vii. a) According to the information and explanations given to us and the records ofthe Company examined by us in our opinion the Company is generally regular in depositingundisputed statutory dues in respect of income-tax sales tax VAT GST and service taxand including provident fund employees' state insurance duty of customs duty of excisecess and any other material statutory dues as applicable with the appropriateauthorities . There are undisputed statutory dues outstanding as at 31st March 2021 forthe period of more than six months from the date they become payable.

Name of Statute Nature of dues Amount (in Rs.) Period to which the amount relates Due date of payment Date of payment Remarks if any
Gujarat Professional Tax Act Professional Tax 386090 F.Y. 2020-21 Monthly Not paid till date of report
Gujarat Professional Tax Act Professional Tax 1611230 Before F.Y. 2020-21 Monthly Not paid till date of report

b) According to the information and explanations given to us and the records of theCompany examined by us there are no dues of income-tax sales tax wealth tax VAT andany other material dues which have been disputed.

viii. According to the records of the Company examined by us and the information andexplanation given to us the Company has not defaulted in repayment of loans or borrowingsto any financial institution or bank or Government or dues to debenture holders as at thebalance sheet date

ix. The Company has raised moneys by way of term loans. Prima facie and as per therepresentations of the management of the Company in this regard we are of the opinionthat the moneys raised have been utilized for their stated purpose during the year.

x. During the course of our examination of the books and records of the Companycarried out in accordance with the generally accepted auditing practices in India andaccording to the information and explanations given to us we have neither come across anyinstances of material fraud on or by the Company noticed or reported during the year norhave we been informed of such case by the Management.

xi. The Company has paid managerial remuneration in accordance with the requisiteapprovals mandated by the provisions of Section 197 read with Schedule V of the Act.

xii. As the Company is not a Nidhi Company and the Nidhi Rules 2014 are not applicableto it the provisions of Clause 3(xii) of the Order are not applicable to the Company.

xiii. In our opinion and according to information and explanations given to us alltransactions with the related parties are in compliance with section 177 and 188 ofCompanies Act 2013 and the details have been disclosed in the financial statements asrequired by the applicable accounting standards.

xiv. The Company has not made any preferential allotment or private placement of sharesor fully or partly convertible debentures during the year under review. Accordingly theprovisions of Clause 3(xiv) of the Order are not applicable to the Company. xv. TheCompany has not entered into any non-cash transactions with its directors or personsconnected with him. Accordingly the provisions of Clause 3(xv) of the Order are notapplicable to the Company.

xvi. The Company is not required to be registered under Section 45-IA of the ReserveBank of India Act 1934. Accordingly the provisions of Clause 3(xvi) of the Order are notapplicable to the Company.

Place: Rajkot
Date: 28/06/2021 For
HB Kalaria and Associates
Firm Reg. No. 104571W
Chartered Accountants
(Hasmukh Kalaria)
Partner
Mem. No. 042002
UDIN: 21042002AAAAVS4093

Annexure B

Referred to in point f. of the section Report on Other Legal and RegulatoryRequirements of the

Independent Auditors' Report of even date to the members of Akshar Spintex Limited onthe financial statements for the year ended March 31 2021

Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143 of the Act

In conjunction with our audit of the financial statements of the Company as of and forthe year ended March 31 2021 we have audited the internal financial controls over thefinancial reporting of Akshar

Spintex Limited ("the Company") as of that date.

Management's Responsibility for Internal Financial Controls

The Company's management is responsible for establishing and maintaining internalfinancial controls based on internal control over financial reporting criteria establishedby the Company considering the essential components of internal control stated in theGuidance Note on Audit of Internal Financial

Controls over Financial Reporting issued by the Institute of Chartered Accountants ofIndia ("ICAI").

These responsibilities include the design implementation and maintenance of adequateinternal financial controls that were operating effectively for ensuring the orderly andefficient conduct of its business including adherence to the respective company'spolicies the safeguarding of its assets the prevention and detection of frauds anderrors the accuracy and completeness of the accounting records and the timelypreparation of reliable financial information as required under the Act.

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") issued by the ICAI and the Standards on Auditing deemed tobe prescribed under Section 143(10) of the Act to the extent applicable to an audit ofinternal financial controls both applicable to an audit of internal financial controlsand both issued by the ICAI. Those Standards and the Guidance Note require that we complywith the ethical requirements and plan and perform the audit to obtain reasonableassurance about whether adequate internal financial controls over financial reporting wasestablished and maintained and if such controls operated effectively in all materialrespects.

Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls system over financial reporting included obtaining anunderstanding of internal financial controls over financial reporting assessing the riskthat a material weakness exists and testing and evaluating the design and operatingeffectiveness of internal control based on assessed risk. The procedures selected dependon the auditors' judgement including the assessment of the risks of material misstatementof 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 unauthorized acquisition use or disposition of thecompany's assets that could have a material effect of 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 control 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 March 31 2021 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note issued by ICAI.

Place: Rajkot
Date: 28/06/2021 For
HB Kalaria and Associates
Firm Reg. No. 104571W
Chartered Accountants
(Hasmukh Kalaria)
Partner
Mem. No. 042002
UDIN: 21042002AAAAVS4093

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