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AYM Syntex Ltd.

BSE: 508933 Sector: Industrials
NSE: AYMSYNTEX ISIN Code: INE193B01039
BSE 00:00 | 31 Mar 16.20 0.30
(1.89%)
OPEN

17.00

HIGH

17.00

LOW

15.20

NSE 00:00 | 31 Mar 15.75 0.90
(6.06%)
OPEN

15.90

HIGH

15.95

LOW

15.20

OPEN 17.00
PREVIOUS CLOSE 15.90
VOLUME 232
52-Week high 43.00
52-Week low 12.90
P/E 4.94
Mkt Cap.(Rs cr) 81
Buy Price 15.20
Buy Qty 500.00
Sell Price 16.70
Sell Qty 495.00
OPEN 17.00
CLOSE 15.90
VOLUME 232
52-Week high 43.00
52-Week low 12.90
P/E 4.94
Mkt Cap.(Rs cr) 81
Buy Price 15.20
Buy Qty 500.00
Sell Price 16.70
Sell Qty 495.00

AYM Syntex Ltd. (AYMSYNTEX) - Auditors Report

Company auditors report

To the Members of AYM Syntex Limited

Report on audit of the financial statements

Opinion

1. We have audited the accompanying financial statements of AYM Syntex Limited {''theCompany") which comprise the balance sheet as at March 312019 the statement ofProfit and Loss (including Other Comprehensive Income) statement of changes in equity andstatement of cash flows for the year then ended and notes to the financial statementsincluding a summary of significant accounting policies and other explanatory information.

2. 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 theCompanies Act 2013 ("the Act") in the manner so required and give a true andfair view in conformity with the accounting principles generally accepted in India of thestate of affairs of the Company as at March 31 2019 and total comprehensive income(comprising of profit and other comprehensive income) changes in equity and its cashflows for the year ended on that date.

Basis for opinion

3. We conducted our audit in accordance with the Standards on Auditing (SAs) specifiedunder section 143(10) of the Act. Our responsibilities under those Standards are furtherdescribed in the Auditor's Responsibilities for the Audit of the Financial Statementssection of our report. We are independent of the Company in accordance with the Code ofEthics issued by the Institute of Chartered Accountants of India together with the ethicalrequirements that are relevant to our audit of the financial statements under theprovisions of the Act and the Rules thereunder and we have fulfilled our other ethicalresponsibilities in accordance with these requirements and the Code of Ethics. We believethat the audit evidence we have obtained is sufficient and appropriate to provide a basisfor our opinion.

Key audit matters

4. 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.

Key audit matter How our audit addressed the key audit matter
Assessment of realisability of Minimum Alternate Tax ('MAT') credit entitlement (Refer note 7 of the financial statements) To evaluate the realisability of MAT Credit entitlement our procedures included the following :
Minimum Alternate Tax ('MAT') credit entitlement of Rs. 4895.74 is recognized as an asset by crediting the Statement of Profit and Loss and is classified under Deferred Tax Assets (net) in the balance sheet. • Understanding and evaluating the design and testing the operating effectiveness of the Company's controls over preparation of forecasts.
Entitlement of MAT credit is recognised to the extent there is convincing evidence that the Company will be able to utilise the said credit against normal tax payable during the period of fifteen years succeeding the year of filing of return of Income tax. • Assessing the historical accuracy of the Company's Board approved forecasts by comparing the forecast approved in the previous year with the actual performance in the current year.
We considered the realisability of MAT credit entitlement to be a key audit matter as the amount is material to the financial statements and there is significant management judgement involved while applying various assumptions in preparation of forecasts for future taxable profits. • Testing the mathematical accuracy of the underlying calculations and comparing the forecasts with the budgets approved by the Board of Directors.
• Assessing the reasonableness of assumptions used in the preparation of forecasts with external and internal factors including industry growth rates and Company's past performance.
• Applying sensitivity to the forecasts to assess whether the MAT credit carried as an asset would be utilised within the specified time period of fifteen years as stated earlier.
Based on the above procedures we noted that the management's judgement in preparation of forecasts of future taxable profits for the assessment of realisability of the MAT credit was considered to be reasonable.

Other Information

5. The Company's Board of Directors is responsible for the other information. The otherinformation comprises the information included in the 'Management discussion andanalysis" and "Director'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 in theaudit or otherwise appears to be materially misstated. If based on the work we haveperformed we conclude that there is a material misstatement of this other information weare required to report that fact.

We have nothing to report in this regard.

Responsibilities of management and those charged with governance for the financialstatements

6. The Company's Board of Directors is responsible for the matters stated in section134(5) of the Act with respect to the preparation of these financial statements that givea true and fair view of the financial position financial performance changes in equityand cash flows of the Company in accordance with the accounting principles generallyaccepted in India including the Accounting Standards specified under section 133 of theAct. This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding of the assets of the Companyand for preventing and detecting frauds and other irregularities; selection andapplication of appropriate accounting policies; making judgments and estimates that arereasonable and prudent; and design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring 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.

7. 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 realistic alternative but to do so. ThoseBoard of Directors are also responsible for overseeing the Company's financial reportingprocess.

Auditor's responsibilities for the audit of the financial statements

8. 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.

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

• Identify and assess the risks of material misstatement of the financialstatements whether due to fraud or error design and perform audit procedures responsiveto those risks and obtain audit evidence that is stiff icient and appropriate to providea basis 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 todesign audit procedures that are appropriate in the circumstances. Under Section 143(3)(i)of the Act we are also responsible for expressing our opinion on whether the company hasadequate internal financial controls with reference to financial statements in place andthe operating effectiveness of such controls.

• Evaluate the appropriateness of accounting policies used and the reasonablenessof accounting estimates and related disclosures made by management.

• Conclude on the appropriateness of management's use of the going concern basisof accounting 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 drawattention in our auditor's report to the related disclosures in thefinancial statements or if such disclosures are inadequate to modify our opinion. Ourconclusions 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.

• 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.

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

11. We also provide those charged with governance with a statement that we havecomplied with relevant ethical requirements regarding independence and to communicatewith them all relationships and other matters that may reasonably be thought to bear onour independence and where applicable related safeguards.

12. From the matters communicated with those charged with governance we determinethose matters that were of most significance in the audit of the financial statements ofthe current period and are therefore the key audit matters. We describe these matters inour auditor's report unless law or regulation precludes public disclosure about the matteror when 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

13. As required by the Companies (Auditor's Report) Order 2016 ("theOrder") issued by the Central Government of India in terms of sub-section (11) ofsection 143 of the Act we give in the Annexure B statement on the matters specified inparagraphs 3 and 4 of the Order to the extent applicable.

14. 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 it appears from our examination of those books.

(c) The Balance Sheet the Statement of Profit and Loss (including other comprehensiveincome) the Statement of Changes in Equity and Cash Flow Statement dealt with by thisReport 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.

(e) On the basis of the written representations received from the directors as on March31 2019 taken on record by the Board of Directors none of the directors is disqualifiedas on March 31 2019 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 with reference tofinancial statements of the Company and the operating effectiveness of such controlsrefer to our separate Report in "Annexure A"

(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 financial statements - Refer Note 38 to the financial statements;

ii. The Company has long-term contracts as at March 31 2019 for which there were nomaterial foreseeable losses. The Company did not have any long term derivative contractsas at March 31 2019.

iii. There were no amounts which were required to be transferred to the InvestorEducation and Protection Fund by the Company during the year ended March 312019.

iv. The reporting on disclosures relating to Specified Bank Notes is not applicable tothe Company for the year ended March 312019

For Price Waterhouse Chartered Accountants LLP
Firm Registration Number: 012754N/N500016
Mehul Desai
Date: April 302019 Partner
Mumbai Membership Number: 103211

ANNEXURE "A" TO INDEPENDENT AUDITORS' REPORT

Referred to in paragraph 14(f) of the Independent Auditors' Report of even date to themembers of AYM Syntex Limited on the financial statements for the year ended March 312019

Report on the Internal Financial Controls with reference to financial statements underClause (i) of Sub-section 3 of Section 143 of the Act

1. We have audited the internal financial controls with reference to financialstatements of AYM Syntex Limited ("the Company") as of March 31 r2019 in conjunction with our audit of the financial statements of the Company for the yearended on that date.

Management's Responsibility for Internal Financial Controls

2. 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). 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 underthe Act.

Auditors' Responsibility

3. Our responsibility is to express an opinion on the Company's internal financialcontrols with reference to financial statements based on our audit. We conducted our auditin accordance with the Guidance Note on Audit of Internal Financial Controls OverFinancial Reporting (the "Guidance Note") and the Standards on Auditing deemedto be 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 ethical requirements and plan and perform the audit to obtain reasonable assuranceabout whether adequate internal financial controls with reference to financial statementswas established and maintained and if such controls operated effectively in all materialrespects.

4. Our audit involves performing procedures to obtain audit evidence about the adequacyof the internal financial controls system with reference to financial statements and theiroperating effectiveness. Our audit of internal financial controls with reference tofinancial statements included obtaining an understanding of internal financial controlswith reference to financial statements assessing the risk that a material weaknessexists and testing and evaluating the design and operating effectiveness of internalcontrol based on the assessed risk. The procedures selected depend on the auditor'sjudgement including the assessment of the risks of material misstatement of the financialstatements whether due to fraud or error.

5. 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 systemwith reference to financial statements.

Meaning of Internal Financial Controls with reference to financial statements

6. A company's internal financial controls with reference to financial statements is aprocess designed to provide reasonable assurance regarding the reliability of financialreporting end the preparation of financial statements for external purposes in accordancewith generally accepted accounting principles. A company's internal financial controlswith reference to financial statements includes those policies and procedures that (1)pertain to the maintenance of records that in reasonable detail accurately and fairlyreflect the transactions and dispositions of the assets of the company; (2) providereasonable assurance that transactions are recorded as necessary to permit preparation offinancial statements in accordance with generally accepted accounting principles and thatreceipts and expenditures of the company are being made only in accordance withauthorisations of management and directors of the company; and (3) provide reasonableassurance regarding prevention or timely detection of unauthorised acquisition use ordisposition of the company's assets that could have a material effect on the financialstatements.

Inherent Limitations of Internal Financial Controls with reference to financialstatements

7. Because of the inherent limitations of internal financial controls with reference tofinancial statements including the possibility of collusion or improper managementoverride of controls material misstatements due to error or fraud may occur and not bedetected. Also projections of any evaluation of the internal financial controls withreference to financial statements to future periods are subject to the risk that theinternal financial control controls with reference to financial statements may becomeinadequate because of changes in conditions or that the degree of compliance with thepolicies or procedures may deteriorate.

Opinion

8. In our opinion the Company has in all material respects an adequate internalfinancial controls system with reference to financial statements and such internalfinancial controls with reference to financial statements were operating effectively as atMarch 31 2019 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.

For Price Waterhouse Chartered Accountants LLP
Firm Registration Number: 012754N/N500016
Mehul Desai
Place: Mumbai Partner
Date: April 30 2019 Membership Number: 103211

ANNEXURE "B" TO INDEPENDENT AUDITORS' REPORT

Referred to in paragraph 13 of the Independent Auditors' Report of even date to themembers of AYM Syntex Limited on the financial statements as of and for the year endedMarch 31 2019

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

(b) The fixed assets of the Company have been physically verified by the Managementduring the year. The discrepancies noticed on such verification were not material and havebeen properly dealt with in the books of account. In our opinion the frequency ofverification is reasonable.

(c) The title deeds of immovable properties as disclosed in Note 3 on fixed assets tothe financial statements are held in the name of the Company except for the followingimmovable properties whose title deeds are not held in the Company's name:

Nature of immovable property Number of cases

Amount as at March 31. 2019 (Rs in Lakhs)

Remarks
Gross black Net black
Freehold Isrmrl 2 45.22 20.04 Title is not transferred in the name of the Company
Residential Flats 6 14.06 9.95 Documents of title deeds not available with the Company

ii. The physical verification of inventory (excluding goods in transit) have beenconducted at reasonable intervals by the Management during the year. The discrepanciesnoticed on physical verification of inventory by Management as compared to book recordswere not material.

iii. The Company has not granted any loans secured or unsecured to companies firmsLimited Liability Partnerships or other parties covered in the register maintained underSection 189 of the Act. Therefore the provisions of Clause 3(iii] (iii)(a) (iii)(b) and(iii)(c) of the said Order are not applicable to the Company.

iv. The Company has not granted any loans or made any investments or provided anyguarantees or security to the parties covered under Section 185 and 186. Therefore theprovisions of Clause 3(iv) of the said Order are not applicable to the Company.

v. The Company has not accepted any deposits from the public within the meaning ofSections 73 74 75 and 76 of the Act and the Rules framed there under to the extentnotified.

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 its products.

We have broadly reviewed the same and are of the opinion that prima facie theprescribed accounts and records have been made and maintained. We have not however madea detailed examination of the records with a view to determine whether they are accurateor 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 goods and service tax and employees' stateinsurance though there has been a slight delay in a few cases and is regular indepositing undisputed statutory dues including provident fund income tax duty ofcustoms and other material statutory due as applicable with the appropriate authorities.Also refer note 38 to the financial statements regarding management's assessment oncertain matters relating to provident fund.

(b) According to the information and explanations given to us and the records of theCompany examined by us there are no dues of sales- tax value added tax and goods andservice tax which have not been deposited on account of any dispute. The particulars ofdues of income tax service tax duty of customs and duty of excise as at March 312019which have not been deposited on account of a dispute are as follows:

Name of the statute Nature ot dues Amount (Rs in Lakhs)* Period to which the amount relates Forum where the dispute is pending
The Income tax Act 1961

Income tax

5.33 Assessment Years 2013-14 to 2014-15 Commissioner of Income Tax (Appeals) Mumbai
20.00 Assessment Years 2011-12 Commissioner of Income Tax (Appeals) Mumbai
The Finance Act 1994

Service Tax

1.95 Financial Years 2005-06 and 2006-07 Deputy Commissioner CGST ft CE Vapi
55.96 Financial Year 2006-07 Commissioner CGST & CE Vapi
103.86 Financial Years 2007-08 to 2012-13 Commissioner CGST & CE Vapi
8661 Financial Years 2013-14 to 2014-15 Commissioner CGST & CE Vapi
221.71 Financial Year 2014-15 Central Excise and Service Tax Appellate Tribunal Ahmedabad
56.44 Financial Year 2015-16 Commissioner CGST & CE Vapi
15.02 Financial Year 2015-16 to 2017-18 Commissioner (Appeal) CGST b CE Surat
16-61 Financial Year 2015-16 to 2016-17 Central Excise and Service Tax Appellate T ri bunal A h medabad* *
The Customs Act 1962

Duty of Customs

72.55 Financial Years 1996-97 and 1997-98 Commissioner of Customs Mumbai
168.36 Financial Year 2006-07 Commissioner of Customs (Imports) Navi Mumbai
3 78 Financial Years 2006-07 to 2008-09 Deputy Commissioner CGST & CE Vapi
25.00 Financial Year 2013-14 Commissioner of Customs (Appeals] Mumbai
64.26 Financial Year 2014-15 Commissioner of Customs (Appeal) Raigad
The Central Excise Act 1944

Duty of excise

30.37 Financial Year 2006-07 Commissioner CGST & CE Vapi
41.42 Financial Year 2007-08 Joint Commissioner CGST & CE Vapi
626.68 Financial Years 2015-16 to 2017-18 Customs Excise and Service Tax Appellate Tribunal Ahmedabad**

* Net of amount paid under protest

**The Company is in the process of filing appeal with the relevant statutoryauthorities.

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. As the Company has not issued anydebentures as at Balance Sheet date the provisions of Clause 3(viii) of the Order tothat extent are not applicable to the Company.

ix.In our opinion and according to the information and explanations given to us themoney raised by way of term loans have been applied for the purposes for which they wereobtained. As the Company has not raised any moneys by way of initial public offer andfurther public offer (including debt instruments) the provisions of Clause 3(ix) of theOrder to that extent are not applicable to the Company.

x.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 explanations given to us we have neither come across any instanceof material fraud by the Company or on the Company by its officers or employees noticedor reported during the year nor have we been informed of any such case by the Management.

xi.The Company has paid/ provided for managerial remuneration in accordance with therequisite approvals mandated by the provisions of Section 197 read with Schedule V to theAct.

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. he Company has entered into transactions with related parties in compliance withthe provisions of Sections 177 and 188 of the Act. The details of such related partytransactions have been disclosed in the financial statements as required under IndianAccounting Standard (Ind AS) 24 Related Party Disclosures specified under Section 133 ofthe Act.

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. he Company has not entered into any non cash transactions with its directors orpersons connected with him. Accordingly the provisions of Clause 3(xv) of the Order arenot applicable to the Company.

xvi. he Company is not required to be registered under Section 45-IAof the Reserve Bankof India Act 1934. Accordingly the provisions of Clause 3(xvi) of the Order are notapplicable to the Company.

For Price Waterhouse Chartered Accountants LLP
Firm Registration Number: 012754N/N500016 Mehul Desai
Place: Mumbai Partner
Date: April 30 2019 Membership Number: 103211