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Banswara Syntex Ltd.

BSE: 503722 Sector: Industrials
NSE: BANSWRAS ISIN Code: INE629D01012
BSE 00:00 | 03 Aug 243.70 11.60
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243.70

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243.70

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236.10

NSE 00:00 | 03 Aug 244.40 11.60
(4.98%)
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243.90

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OPEN 243.70
PREVIOUS CLOSE 232.10
VOLUME 6490
52-Week high 243.70
52-Week low 60.05
P/E 36.21
Mkt Cap.(Rs cr) 417
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 243.70
CLOSE 232.10
VOLUME 6490
52-Week high 243.70
52-Week low 60.05
P/E 36.21
Mkt Cap.(Rs cr) 417
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Banswara Syntex Ltd. (BANSWRAS) - Auditors Report

Company auditors report

To

The Members of Banswara Syntex Ltd.

Report on the Audit of the Standalone Ind AS Financial Statements

Opinion

We have audited the Standalone Ind AS financial statements of Banswara Syntex Ltd ('thecompany") which comprise the balance sheet as at 31st March 2020 and the statementof Profit and Loss (including Other Comprehensive Income) Statement of Changes in Equityand Statement of Cash Flows for the year ended on that date and notes to the financialstatements including a summary of significant accounting policies and other explanatoryinformation.

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 Companies Act 2013 ("the Act") in the manner so required andgive a true and fair view in conformity with the Indian Accounting Standards prescribedunder section 133 of the Act read with the Companies (Indian Accounting Standards) Rules2015 as amended ("Ind AS") and other accounting principles generally acceptedin India of the state of affairs of the Company as at March 312020 the

profit and total comprehensive income changes in equity and its cash flows for theyear ended on that date.

Basis for Opinion

We conducted our audit of the Standalone Ind As Financial Statements in accordance withthe Standards on Auditing (SAs) specified under section 143(10) of the Companies Act2013. Our responsibilities under those Standards are further described in the Auditor'sResponsibilities for the Audit of the Financial Statements section of our report. We areindependent of the Company in accordance with the Code of Ethics issued by the Instituteof Chartered Accountants of India together with the ethical requirements that are relevantto our audit of the financial statements under the provisions of the Companies Act 2013and the Rules thereunder and we have fulfilled our other ethical responsibilities inaccordance with these requirements and the Code of Ethics. We believe that the auditevidence we have obtained is sufficient and appropriate to provide a basis for our opinionon the Standalone Ind As Financial Statements.

Emphasis of Matter

We draw attention to Note No. 52 of the standalone financial statements as regards tothe management evaluation of COVID - 19 impacts on the future performance of the Company.

Our opinion is not modified in respect of this matter

Key Audit Matters

Key audit matters are those matters that in our professional judgment were of mostsignificance in our audit of the Standalone Ind AS Financial Statements of the currentperiod. These matters were addressed in the context of our audit of the Standalone Ind ASFinancial Statements as a whole and in forming our opinion thereon and we do not providea separate opinion on these matters. We have determined the matters described below to bethe key audit matters to be communicated in our report.

Key Audit Matter How our audit addressed the matter
Lease Recognition in terms of Ind AS 116"Leases" Our audit procedures on adoption of Ind AS 116 include:
The Company has adopted Ind AS 116 "Leases" in the current year replaces Ind AS 17 "Leases". The application and transition to this • Assessed and tested new processes and controls in respect of the lease accounting standard (Ind AS 116).
accounting standard is complex and is an area of focus in our audit since the Company has a major amount of lease agreement with different contractual terms. • Assessed the Company's evaluation on the identification of leases based on the contractual agreements and our knowledge of the business.
Ind AS 116 introduces a new lease accounting model wherein lessees are required to recognize a right-of-use (ROU) asset and a • Involved our specialists to evaluate the reasonableness of the discount rates applied in determining the lease liabilities.
lease liability arising from a lease on the balance sheet. The lease • Upon transition as at 1 April 2019:
liabilities are initially measured by discounting future lease payments during the lease term as per the contract/ arrangement. • Evaluated the method of transition and related adjustments.
Adoption of the standard involves significant judgements and estimates including determination of the discount rates and the lease term. Additionally the standard mandates detailed disclosures in respect of transition. • Tested completeness of the lease data by reconciling the Company's operating lease commitments to data used in computing ROU asset and the lease liabilities.
Refer Note No.40 to the standalone financial statements. • Obtained separate report on impact of Ind AS 116 "Leases" from an independent external expert engaged by the Company.
• On a statistical sample we performed the following procedures:
• assessed the key terms and conditions of each lease with the underlying lease contracts; and
• evaluated computation of lease liabilities and challenged the key estimates such as discount rates and the lease term.
• Assessed and tested the accounting policy presentation and disclosures relating to Ind AS 116 including disclosures relating to transition.
Recoverability of Direct tax/ Indirect Tax Obtained details of completed tax assessments and demands for
The Company has material uncertain Income tax/indirect tax recoverability including matter under dispute which involves significant judgement to determine the possible outcome of these disputes the year ended March 31 2020 from management. We have discussed the possible outcome in respect of recovery of Direct tax and Indirect tax from the management & tax consultant of the company. We considered the effect of new information in respect of uncertain tax positions to evaluate whether any change was required to management's position on these uncertainties.

Information Other than the Standalone Ind As Financial Statements and Auditor's ReportThereon

The Company's Board of Directors is responsible for the preparation of the otherinformation. The other information comprises the information included in the Company'sannual report but does not include the Standalone Ind As financial statements and ourauditor's report thereon.

Our opinion on the Standalone Ind AS financial statements does not cover the otherinformation and we do not express any form of assurance conclusion thereon.

In connection with our audit of the Standalone Ind As financial statements ourresponsibility is to read the other information and in doing so consider whether theother information is materially inconsistent with the Standalone Ind As financialstatements or our knowledge obtained during the course of our audit or otherwise appearsto 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.

Responsibilities of Management and Those Charged with Governance for the Standalone IndAS 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 Standalone Ind AS financial statements that give a true and fair view of thefinancial position financial performance changes in equity and cash fiows of the companyin accordance with the accounting principles generally accepted in India including theIndian accounting Standards (Ind AS) specified under section 133 of the Act read with theCompanies (Indian Accounting Standards) Rules 2015 as amended from time to time.

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 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 Responsibilities for the Audit of the Standalone Ind AS Financial Statements

Our objectives are to obtain reasonable assurance about whether the financialstatements are free from material misstatement whether due to fraud or error and toissue an auditor's report that includes our opinion. Reasonable assurance is a high levelof assurance but is not a guarantee that an audit conducted in accordance with SAs willalways detect a material misstatement when it exists. Misstatements can arise from fraudor error and are considered material if individually or in the aggregate they couldreasonably be expected to influence the economic decisions of users taken on the basis ofthese 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 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 todesign audit procedures that are appropriate in the circumstances. Under section 143(3)(i)of the Companies Act 2013 we are also responsible for expressing our opinion on whetherthe company has adequate internal financial controls system in place and the operatingeffectiveness 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 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.

• 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.

Materiality is the magnitude of misstatements in the Standalone Ind AS financialstatements that individually or in aggregate makes it probable that the economicdecisions of a reasonably knowledgeable user of the financial statements may beinfluenced. We consider quantitative materiality and qualitative factors in (i) planningthe scope of our audit work and in evaluating the results of our work; and (ii) toevaluate the effect of any identified misstatements in the financial statements.

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 Standalone Ind As Financialstatements of the current period and are therefore the key audit matters. We describethese matters in our auditor's report unless law or regulation precludes public disclosureabout the matter or when in extremely rare circumstances we determine that a mattershould not be communicated in our report because the adverse consequences of doing sowould reasonably be expected to outweigh the public interest benefits of suchcommunication Report on Other Legal and Regulatory Requirements 1. As required by theCompanies (Auditor's Report) Order 2016

("the Order") issued by the Central Government of India in terms ofsub-section (11) of section 143 of the Companies Act 2013 we give in the Annexure A astatement on the matters specified in paragraphs 3 and 4 of the Order to the extentapplicable.

2. As required by Section 143(3) of the Act we report that:

(a) We have sought and obtained all the information and explanations which to the bestof our knowledge and belief were necessary for the purposes of our audit.

(b) In our opinion proper books of account as required by law have been kept by thecompany so far as it appears from our examination of those books.

(c) The standalone Balance Sheet the Statement of Profit and Loss (including othercomprehensive income) and the Cash Flow Statement and the Statement of Change in Equitydealt with by this Report are in agreement with the books of account.

(d) In our opinion the aforesaid Standalone Ind AS financial statements comply withthe Indian Accounting Standards (Ind AS) specified under Section 133 of the Act read withRule 7 of the Companies (Accounts) Rules 2014.

(e) On the basis of the written representations received from the directors as on 31stMarch 2020 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2020 from being appointed as a director in terms of Section164 (2) of the Act.

(f) The matter described in the Emphasis of matter Paragraph above in our opinion mayor may not have an adverse effect on the functioning of the company due to uncertainties.

(g) 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".

(h) 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 opinion and to the best of our information and according to the explanationsgiven to us the remuneration paid by the Company to its directors during the year is inaccordance with the provisions of section 197 of the Act.

(i) 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 45 to the Standalone I nd AS financialstatements.

ii. Provision has been made in the Consolidated Ind AS financial statements asrequired under the applicable law or accounting standards for material foreseeablelosses if any on long-term contracts including derivative contracts.

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

For K. G. Somani & Co.
Chartered Accountants
Firm Registration No: 06591N
(Kavita Goyal)
Partner
Membership No:063419
UDIN: 20063419AAAAAF1983
Place: New Delhi
Date: 27th June 2020

"Annexure A" to the Independent Auditors' Report

Referred to in paragraph 1 under the heading 'Report on Other

Legal & Regulatory Requirement' of our report of even date to

the Standalone Ind AS Financial Statements of the Company for

the year ended March 312020:

(i) a) The Company has maintained proper records showing

full particulars including quantitative details and situation of fixed assets;

b) According to the explanations given to us Company has made a plan to verify thefixed assets in phased manner some of the fixed assets have been physically verified bythe management at reasonable intervals having regard to the size of the Company and thenature of its assets. No material discrepancy was noticed on such verification as comparedto book records.

c) In our opinion and according to the information and explanations given to us duringthe course of audit the title deeds of immovable properties are held in the name of thecompany. Fourteen title deeds are mortgaged with the banks/ financial institutions forsecuring the long-term borrowings.

(ii) The inventory has been physically verified by the management at reasonableintervals during the year except inventory lying with the third parties. In our opinionthe frequency of verification is reasonable. The discrepancies noticed on comparison ofphysical verification with the book records were not material and have been properly dealtwith in the books of account.

(iii) According to the information and explanations given to us the Company has notgranted any loans secured or unsecured to companies firms Limited Liabilitypartnerships or other parties covered in the Register maintained under section 189 of theAct. Accordingly the provisions of paragraph 3 (iii) (a) to (c) of the Order are notapplicable to the Company.

(iv) In our opinion and according to the information and explanations given to usduring the course of audit the Company has complied with the provisions of Section 186 ofthe Companies Act 2013 in respect of investment of the company. Further the company hasnot granted any loans and has not given any guarantees and security under the provision ofsection 185 of the companies Act 2013; thereby the provision of the said section is notapplicable to the company.

(v) According to the information and explanations given to us the Company has accepteddeposits and complied with the directives issued by the Reserve Bank of India and theprovisions of the Companies Act 2013 and the rule frame there under. No order has beenpassed with respect to Section 73 to 76 by the Company Law Board or National Company LawTribunal or Reserve Bank of India or any court or any Tribunal.

(vi) The Company has maintained cost records under section 148(1) of the Companies Act2013 However we are neither required to carry out nor have carried out any detailedexamination of such accounts and records.

(vii) (a) According to information and explanations given to us and on the basis of ourexamination of the books of account and records the Company has been generally regular indepositing undisputed statutory dues including Provident Fund Employees State InsuranceIncome-Tax Sales tax Duty of Customs Duty of Excise Value added Tax Goods &Service Tax Cess and any other statutory dues with the appropriate authorities and therewere no outstanding at March 312020 for a period of more than six months from the datethey become payable except the following:

Particular Amount (Rs in Lakhs)
Entry Tax (Rajasthan tax on entry of goods into local area act 1999) 110.65 Lakhs

(b) According to the information and explanations given to us the dues of income taxsales tax wealth tax service tax duty of customs duty of excise value added taxGoods & Service Tax and cess which have not been deposited on account of a dispute andthe forum where the dispute is pending are as follows:

Name of Statue Nature of disputed dues Period to which amount relates Amount involved (Rs in Lakhs) Forum where dispute is pending
Income Tax Act 1961 IncomeTax AY 2010-11 2014-15 & 2015-16 1407.42 CIT(Appeals) Udaipur
Custom Act 1962 Custom Duty FY 2012-13 328.86

CESTAT Ahmedabad

(viii) In our opinion and according to the information and explanations given to usthe Company has not defaulted in the repayment of dues to banks. The Company has not takenany loan either from financial institutions or from the government and has not issued anydebentures.

(ix) According to the information and explanations given to us the company has notmade any public offer (including debt instruments) during the year. According to theinformation and explanation given to us the money raised by the company by way of termloan has been applied for the purpose for which they were obtained.

(x) During the course of our examination of the books of account carried out inaccordance with the generally accepted auditing practices in India and according to theinformation and explanations given to us we have neither come across any instance offraud by the company or any fraud on the company by its officers or employees noticed orreported during the year nor have we been informed of such case by the management.

(xi) In our opinion and according to the information and explanations given to usduring the course of audit the managerial remuneration has been paid or provided in

accordance with the requisite approvals mandated by the provisions of section 197 readwith Schedule V to the Companies Act.

(xii) In our opinion and according to the information and explanations given to usduring the course of audit the company is not a Nidhi Company. Therefore the provisionsof paragraph 3(xii) of the Order are not applicable to the Company.

(xiii) In terms of the information and explanations sought by us and given by thecompany and the books and records examined by us in the normal course of audit and to thebest of our knowledge and belief we state that transactions with the related parties arein compliance with sections 177 & 188 of the Act where applicable and details of suchtransactions have been disclosed in the financial statements as required by the applicableaccounting standards.

(xiv) According to the information and explanations given to us by the management andthe books and records examined by us in the normal course of audit and to the best of ourknowledge and belief we state that the company has not made any preferential allotment orprivate placements of shares or fully or partly convertible debentures during the year.

(xv) In our opinion and according to the information and explanations given to usduring the course of audit we state that the Company has not entered into non-cashtransaction with directors or persons connected with him. Therefore clause 3(xv) of theCompanies (Auditor's Report) Order 2016 is not applicable to the Company.

(xvi) The company is not required to be registered under section 45 IA of the ReserveBank of India Act 1934 and accordingly the provisions of clause 3(xvi) of the Order arenot applicable to the Company.

For K. G. Somani & Co.
Chartered Accountants
Firm Registration No: 06591N
(Kavita Goyal)
Partner
Membership No:063419
UDIN: 20063419AAAAAF1983
Place: New Delhi
Date: 27th June 2020

"Annexure B" to the Independent Auditor's Report of even date on theStandalone Ind AS Financial Statements of Banswara Syntex Limited the year ended 31stMarch2020

Report on the Internal Financial Controls under Clause (i) of Subsection 3 of Section143 of the Companies Act 2013 ("the Act")

We have audited the internal financial controls over financial reporting of BanswaraSyntex Limited ("the Company") as of March 31 2020 in conjunction with ouraudit of the Standalone Ind AS financial statements of the Company for the year ended onthat 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") issued by the Institute of Chartered Accountants of Indiaand the Standards on Auditing prescribed under section 143(10) of the Companies Act 2013to the extent applicable to an audit of internal financial controls. Those Standards andthe Guidance Note require that we comply with ethical requirements and plan and performthe audit to obtain reasonable assurance about whether adequate internal financialcontrols over financial reporting was established and maintained and if such controlsoperated 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.

Opinion

In our opinion to the best of our information and according to the explanations givento us the Company has in all material respects an adequate internal financial controlssystem over financial reporting and such internal financial controls over financialreporting were operating effectively as at March 312020 based on "the internalcontrol over financial reporting criteria established by the Company considering theessential components of internal control stated in the Guidance Note on Audit of InternalFinancial Controls Over Financial Reporting issued by the Institute of CharteredAccountants of India".

For K. G. Somani & Co.
Chartered Accountants
Firm Registration No: 06591N
(Kavita Goyal)
Partner
Membership No: 063419
UDIN: 20063419AAAAAF1983
Place: New Delhi
Date: 27th June 2020

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