Banswara Syntex Ltd.
|BSE: 503722||Sector: Industrials|
|NSE: BANSWRAS||ISIN Code: INE629D01020|
|BSE 00:00 | 07 Oct||103.60||
|NSE 00:00 | 07 Oct||103.85||
|Mkt Cap.(Rs cr)||355|
|Mkt Cap.(Rs cr)||354.73|
Banswara Syntex Ltd. (BANSWRAS) - Auditors Report
Company auditors report
The Members of Banswara Syntex Ltd.
Report on the Audit of the Standalone Ind AS Financial Statements
We have audited the Standalone Ind AS financial statements of BanswaraSyntex Ltd ('the company") which comprise the balance sheet as at March 31st2022and the statement of Profit and Loss (including Other Comprehensive Income) Statement ofChanges in Equity and Statement of Cash Flows for the year ended on that date and notesto the financial statements including a summary of significant accounting policies andother explanatory information.
In our opinion and to the best of our information and according to theexplanations given to us the aforesaid Standalone Ind AS financial statements give theinformation required by the Companies Act 2013 ("the Act") in the manner sorequired and give a true and fair view in conformity with the Indian Accounting Standardsprescribed under section 133 of the Act read with the Companies (Indian AccountingStandards) Rules 2015 as amended ("Ind AS") and other accounting principlesgenerally accepted in India of the state of affairs of the Company as at March 312022the 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 inaccordance with the Standards on Auditing (SAs) specified under section 143(10) of theCompanies Act 2013. Our responsibilities under those Standards are further described inthe Auditor's Responsibilities for the Audit of the Ind AS Financial Statements section ofour report. We are independent of the Company in accordance with the Code of Ethics issuedby the Institute of Chartered Accountants of India together with the ethical requirementsthat are relevant to our audit of the Ind AS financial statements under the provisions ofthe Companies Act 2013 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 on the Standalone Ind AS Financial Statements.
Key Audit Matters
Key audit matters are those matters that in our professional judgmentwere of most significance in our audit of the Standalone Ind AS Financial Statements ofthe current period. These matters were addressed in the context of our audit of theStandalone Ind AS Financial Statements as a whole and in forming our opinion thereon andwe do not provide a separate opinion on these matters. We have determined the mattersdescribed below to be the key audit matters to be communicated in our report.
Information Other than the Standalone Ind AS Financial Statements andAuditor's Report Thereon
The Company's Board of Directors is responsible for the preparation ofthe other information. The other information comprises the information included in theCompany's annual report but does not include the Standalone Ind AS financial statementsand our auditor's report thereon.
Our opinion on the Standalone Ind AS financial statements does notcover the other information and we do not express any form of assurance conclusionthereon.
In connection with our audit of the Standalone Ind AS financialstatements our responsibility is to read the other information and in doing so considerwhether the other information is materially inconsistent with the Standalone Ind ASfinancial statements or our knowledge obtained during the course of our audit or otherwiseappears to be materially misstated.
If based on the work we have performed we conclude that there is amaterial misstatement of this other information we are required to report that fact. Wehave nothing to report in this regard.
Responsibilities of Management and Those Charged with Governance forthe Standalone Ind AS Financial Statements
The Company's Board of Directors is responsible for the matters statedin section 134(5) of the Companies Act 2013 ("the Act") with respect to thepreparation of these Standalone Ind AS financial statements that give a true and fair viewof the financial position financial performance changes in equity and cash fiows of thecompany in accordance with the accounting principles generally accepted in Indiaincluding the Indian accounting Standards (Ind AS) specified under section 133 of the Actread with the Companies (Indian Accounting Standards) Rules 2015 as amended from time totime.
This responsibility also includes maintenance of adequate accountingrecords in accordance with the provisions of the Act for safeguarding of the assets of thecompany and 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.
In preparing the financial statements management is responsible forassessing the Company's ability to continue as a going concern disclosing as applicablematters related to going concern and using the going concern basis of accounting unlessmanagement either intends to liquidate the Company or to cease operations or has norealistic alternative but to do so.
Those Board of Directors are also responsible for overseeing theCompany's financial reporting process.
Auditor's Responsibilities for the Audit of the Standalone Ind ASFinancial Statements
Our objectives are to obtain reasonable assurance about whether the IndAS financial statements are free from material misstatement whether due to fraud orerror and to issue an auditor's report that includes our opinion. Reasonable assurance isa high level of assurance but is not a guarantee that an audit conducted in accordancewith SAs will always detect a material misstatement when it exists. Misstatements canarise from fraud or error and are considered material if individually or in theaggregate they could reasonably be expected to influence the economic decisions of userstaken on the basis of these I nd AS financial statements.
As part of an audit in accordance with SAs we exercise professionaljudgment and maintain professional skepticism throughout the audit. We also:
Identify and assess the risks of material misstatement of theInd AS financial statements whether due to fraud or error design and perform auditprocedures responsive to those risks and obtain audit evidence that is sufficient andappropriate to provide a basis for our opinion. The risk of not detecting a materialmisstatement resulting from fraud is higher than for one resulting from error as fraudmay involve collusion forgery intentional omissions misrepresentations or the overrideof internal control.
Obtain an understanding of internal financial controls relevantto the audit in order to design audit procedures that are appropriate in thecircumstances. Under section 143(3)(i) of the Companies Act 2013 we are also responsiblefor expressing our opinion on whether the company has adequate internal financial controlssystem in place and the operating effectiveness of such controls.
Evaluate the appropriateness of accounting policies used and thereasonableness of accounting estimates and related disclosures made by management.
Conclude on the appropriateness of management's use of the goingconcern basis of accounting and based on the audit evidence obtained whether a materialuncertainty exists related to events or conditions that may cast significant doubt on theCompany's ability to continue as a going concern. If we conclude that a materialuncertainty exists we are required to draw attention in our auditor's report to therelated disclosures in the financial statements or if such disclosures are inadequate tomodify our opinion. Our conclusions are based on the audit evidence obtained up to thedate of our auditor's report. However future events or conditions may cause the Companyto cease to continue as a going concern.
Evaluate the overall presentation structure and content of theInd AS financial statements including the disclosures and whether the Ind AS financialstatements represent the underlying transactions and events in a manner that achieves fairpresentation.
Materiality is the magnitude of misstatements in the Standalone Ind ASfinancial statements that individually or in aggregate makes it probable that theeconomic decisions 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 amongother matters the planned scope and timing of the audit and significant audit findingsincluding any significant deficiencies in internal control that we identify during ouraudit.
We also provide those charged with governance with a statement that wehave complied with relevant ethical requirements regarding independence and tocommunicate with them all relationships and other matters that may reasonably be thoughtto bear on our independence and where applicable related safeguards.
From the matters communicated with those charged with governance wedetermine those matters that were of most significance in the audit of the Standalone IndAS Financial statements of the current period 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
1. As required by the Companies (Auditor's Report) Order 2020("the Order") issued by the Central Government of India in terms of sub-section(11) of section 143 of the Companies Act 2013 we give in the "Annexure A"a statement 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 explanationswhich to the best of our knowledge and belief were necessary for the purposes of ouraudit.
(b) In our opinion proper books of account as required by law havebeen kept by the company so far as it appears from our examination of those books.
(c) The standalone Balance Sheet the Statement of Profit and Loss(including other comprehensive income) and the Cash Flow Statement and the Statement ofChange in Equity dealt with by this Report are in agreement with the books of account.
(d) In our opinion the aforesaid Standalone Ind AS financialstatements comply with the Indian Accounting Standards (Ind AS) specified under Section133 of the Act read with Rule 7 of the Companies (Accounts) Rules 2014.
(e) On the basis of the written representations received from thedirectors as on March 31st 2022 taken on record by the Board of Directorsnone of the directors is disqualified as on March 31st 2022 from beingappointed as a director in terms of Section 164 (2) of the Act.
(f) With respect to the adequacy of the internal financial controlsover financial reporting of the company and the operating effectiveness of such controlsrefer to our separate Report in "Annexure B".
(g) With respect to the other matters to be included in the Auditor'sReport in accordance 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 theexplanations given to us the remuneration paid by the Company to its directors during theyear is in accordance with the provisions of section 197 of the Act.
(h) With respect to the other matters to be included in the Auditor'sReport in accordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 inour opinion and to the best of our information and according to the explanations given tous:
i. The company has disclosed the impact of pending litigations on itsfinancial position in its financial statements refer Note 48 to the Standalone Ind ASfinancial statements.
ii. Provision has been made in the Standalone Ind AS financialstatements as required under the applicable law or accounting standards for materialforeseeable losses if any on long-term contracts including derivative contracts.
iii. There has been no delay in transferring amounts required to betransferred to the Investor Education and Protection Fund by the company read with Note27 to the Standalone Ind AS financial statement.
iv. (i) the management has represented that to the best of it'sknowledge and belief other than as disclosed in the notes to the accounts no funds havebeen advanced or loaned or invested (either from borrowed funds or share premium or anyother sources or kind of funds) by the company to or in any other person(s) orentity(ies) including foreign entities ("Intermediaries") with theunderstanding whether recorded in writing or otherwise that the Intermediary shallwhether directly or indirectly lend or invest in other persons or entities identified inany manner whatsoever by or on behalf of the company ("Ultimate Beneficiaries")or provide any guarantee security or the like on behalf of the Ultimate Beneficiaries.
(ii) the management has represented that to the best of it'sknowledge and belief other than as disclosed in the notes to the accounts no funds havebeen received by the company from any person(s) or entity(ies) including foreign entities
("Funding Parties") with the understanding that Company hadrecorded in writing or otherwise that the company shall whether directly or indirectlylend or invest in other persons or entities identified in any manner whatsoever by or onbehalf of the Funding Party ("Ultimate Beneficiaries") or provide any guaranteesecurity or the like on behalf of the Ultimate Beneficiaries; and
(iii) Based on such audit procedures that we have considered reasonableand appropriate in the circumstances nothing has come to their notice that has causedthem to believe that the representations under sub-clause (i) and (ii) contain anymaterial misstatement.
(ii) As stated in Note no. 57 to the Standalone Financial Statementsthe Board of Directors of the Company have proposed final dividend for the year which issubject to the approval of the members at the ensuing Annual General Meeting. The amountof dividend proposed is in accordance with Section 123 of the Act as applicable.
"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 ASFinancial Statements of the Company for the year ended March 31st 2022:
(i) a) (A) The Company has maintained proper records showing fullparticulars including quantitative details and situation of Property Plant andequipments;
(B) The company has maintained proper records showing full particularsof intangible assets;
b) According to the explanations given to us Company has made a planto verify the fixed assets in phased manner some of the fixed assets have been physicallyverified by the management at reasonable intervals having regard to the size of theCompany and the nature of its assets. No material discrepancy was noticed on suchverification as compared to book records.
c) In our opinion and according to the information and explanationsgiven to us during the course of audit the title deeds of immovable properties are heldin the name of the company. Fifteen title deeds are mortgaged with the banks/ financialinstitutions for securing the long-term borrowings.
d) The Company has not revalued its Property Plant and Equipment(including Right of Use assets) or intangible assets or both during the year.
e) There are no proceedings being initiated or are pending against theCompany for holding any benami property under the Benami Transactions (Prohibition) Act1988 (45 of 1988) and rules made thereunder.
(ii) a) The inventory has been physically verified by the management atreasonable intervals during the year except inventory lying with the third parties. In ouropinion the frequency of verification is reasonable. The discrepancies noticed oncomparison of physical verification with the book records were not material. Further nodiscrepancies of 10% or more in the aggregate for each class of inventory were noticed onphysical verification of inventories carried out at during the year.
b) The Company has been sanctioned working capital limits in excess offive crore rupees in aggregate from banks or financial institutions on the basis ofsecurity of current assets and the quarterly returns or statements filed with such banksor financial institutions are in agreement with the books of account of the Company.
(iii) According to the information and explanations given to us theCompany has made investment in one Joint Venture Company covered in the Registermaintained under section 189 of the Act. The investment made is not prejudicial to theinterest of the Company further Company has not granted any guarantee or security orgranted any loans or advances in the nature of loans secured or unsecured to companiesfirms Limited Liability Partnerships or any other parties. Accordingly the provisionsof paragraph 3 (iii) (a) to (f) except (b) of the Order are not applicable to theCompany.
(iv) In our opinion and according to the information and explanationsgiven to us during the course of audit the Company has complied with the provisions ofSection 186 of the Companies Act 2013 in respect of investment of the company. Furtherthe company has not granted any loans and has not given any guarantees and security underthe provision of section 185 of the companies Act 2013; thereby the provision of the saidsection is not applicable to the company.
(v) According to the information and explanations given to us theCompany has accepted deposits or amount which are deemed to be deposits and complied withthe directives issued by the Reserve Bank of India and the provisions of the Companies Act2013 and the rule frame there under. No order has been passed with respect to Section 73to 76 by the Company Law Board or National Company Law Tribunal or Reserve Bank of Indiaor any court or any Tribunal.
(vi) The Company has maintained cost records under section 148(1) ofthe Companies Act 2013 However we are neither required to carry out nor have carriedout any detailed examination of such accounts and records.
(vii) (a) According to information and explanations given to us and onthe basis of our examination of the books of account and records the Company has beengenerally regular in depositing undisputed statutory dues including Provident FundEmployees State Insurance Income-Tax Sales tax Duty of Customs Duty of Excise Valueadded Tax Goods & Service Tax Cess and any other statutory dues with the appropriateauthorities and there were no outstanding at March 312022 for a period of more than sixmonths from the date they become payable.
(b) According to the information and explanations given to us the duesof income tax sales tax wealth tax service tax duty of customs duty of excise valueadded tax Goods & Service Tax and Cess which have not been deposited on account of adispute and the forum where the dispute is pending are as follows:
(viii) According to the information and explanations given to us thereare no instances of any transaction not being recorded in the books of account that havebeen surrendered or disclosed as income during the year in the tax assessment under theIncome Tax Act 1961.
(ix) (a) According to the information and explanations given to us theCompany has not defaulted in repayment of loans or other borrowing or in the payment ofinterest thereon to any lender;
(b) According to the information and explanations given to us theCompany is not declared a wilful defaulter by any bank or financial institution or otherlender;
(c) According to the information and explanations given to us termloans were applied for the purpose for which the loans were obtained;
(d) According to the information and explanations given to us fundsraised on short Term basis have not been utilised for long term purposes;
(e) According to the information and explanations given to us theCompany has not taken any funds from any entity or person on account of or to meet theobligations of its subsidiaries associates or joint ventures;
(f) According to the information and explanations given to us theCompany has not raised loans during the year on the pledge of securities held in itssubsidiaries joint ventures or associate companies.
(x) According to the information and explanations given to us thecompany has not made any public offer (including debt instruments) during the year and theCompany has not made any private placement shares and convertible debentures therefore theprovision of clause 3(x)(a) and (b) of the order are not applicable.
(xi) a) During the course of our examination of the books and recordsof the Company carried out in accordance with the generally accepted auditing practicesin India and according to the information and explanations given to us no instances offraud by the Company or on the Company has been noticed or reported during the year;
b) No report under sub-section (12) of section 143 of the Companies Acthas been filed by the auditors in Form ADT-4 as prescribed under rule 13 of Companies(Audit and Auditors) Rules 2014 with the Central Government.
c) According to the information and explanation given to us we haveconsidered whistle-blower complaints if any received during the year by the Company.
(xii) In our opinion and according to the information and explanationsgiven to us during the course of audit the company is not a Nidhi Company. Therefore theprovisions of paragraph 3(xii) of the Order are not applicable to the Company.
(xiii) In terms of the information and explanations sought by us andgiven by the company and the books and records examined by us in the normal course ofaudit and to the best of our knowledge and belief we state that transactions with therelated parties are in compliance with sections 177 & 188 of the Act where applicableand details of such transactions have been disclosed in the financial statements asrequired by the applicable accounting standards.
(xiv) a) The Company has internal audit system commensurate to the sizeand nature of its business.
b) The reports of the Internal Auditors for the period under audit wereconsidered by us.
(xv) According to the information and explanations given to us andbased on our of the records the Company has not entered during the year into non cashtransactions with directors or persons connected with them. Accordingly paragraph 3(xv)of the Order is not applicable;
(xvi) The Company is not required to be registered under Section 45-IAof the Reserve Bank of India Act 1934. Accordingly paragraph 3(xvi) of the Order is notapplicable.
(xvii) The Company has not incurred cash losses in the currentfinancial year and in the immediately preceding financial year. Accordingly paragraph3(xvii) of the Order is not applicable;
(xviii) There has not been any resignation of Statutory auditor duringthe year.
(xix) On the basis of the financial ratios ageing and expected datesof realisation of financial assets and payment of financial liabilities other informationaccompanying the financial statements the auditor's knowledge of the Board of Directorsand management plans we are of the opinion that no material uncertaintyexists as on thedate of the audit report that Company is capable of meeting its liabilities existing atthe date of balance sheet as and when they fall due within a period of one year from thebalance sheet date.
(xx) During the year the company has transferred remaining unspentamount under sub section (5) of Section 135 of the Companies Act 2013 pursuant to anyongoing project to special account in compliance with provision of sub section (6) ofSection 135 of the said act.
(xxi) This report is in relation to standalone financial statement.This clause (xxi) is for consolidated financial statement hence it is not applicable.
"Annexure B" to the Independent Auditor's Report of even dateon the Standalone Ind AS Financial Statements of Banswara Syntex Limited the year endedMarch 31st2022
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act 2013 ("the Act")
We have audited the internal financial controls over financialreporting of Banswara Syntex Limited ("the Company") as of March 31st2022 in conjunction with our audit of the Standalone Ind AS financial statements ofthe Company for the year ended on that date.
Management's Responsibility for Internal Financial Controls
The Company's management is responsible for establishing andmaintaining internal financial controls based on "the internal control overfinancial reporting criteria established by the Company considering the essentialcomponents of internal control stated in the Guidance Note on Audit of Internal FinancialControls over Financial Reporting issued by the Institute of Chartered Accountants ofIndia (ICAI)". These responsibilities include the design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the orderly and efficient conduct of its business including adherence tocompany's policies the safeguarding of its assets the prevention and detection of fraudsand errors the accuracy and completeness of the accounting records and the timelypreparation of reliable financial information as required under the Companies Act 2013.
Our responsibility is to express an opinion on the Company's internalfinancial controls over financial reporting based on our audit. We conducted our audit inaccordance with the Guidance Note on Audit of Internal Financial Controls Over FinancialReporting (the "Guidance Note") issued by the Institute of Chartered Accountantsof India and the Standards on Auditing prescribed under section 143(10) of the CompaniesAct 2013 to the extent applicable to an audit of internal financial controls. ThoseStandards and the Guidance Note require that we comply with ethical requirements and planand perform the audit to obtain reasonable assurance about whether adequate internalfinancial controls over financial reporting was established and maintained and if suchcontrols operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence aboutthe adequacy of the internal financial controls system over financial reporting and theiroperating effectiveness. Our audit of internal financial controls over financial reportingincluded obtaining an understanding of internal financial controls over financialreporting assessing the risk that a material weakness exists and testing and evaluatingthe design and operating effectiveness of internal control based on the assessed risk. Theprocedures selected depend on the auditor's judgment including the assessment of therisks of material misstatement of the financial statements whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our audit opinion on the Company's internal financialcontrols system over financial reporting.
Meaning of Internal Financial Controls Over Financial Reporting
A company's internal financial control over financial reporting is aprocess designed to provide reasonable assurance regarding the reliability of financialreporting and the preparation of financial statements for external purposes in accordancewith generally accepted accounting principles. A company's internal financial control overfinancial reporting includes those policies and procedures that (1) pertain to themaintenance of records that in reasonable detail accurately and fairly reflect thetransactions and dispositions of the assets of the company; (2) provide reasonableassurance that transactions are recorded as necessary to permit preparation of financialstatements in accordance with generally accepted accounting principles and that receiptsand expenditures 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 FinancialReporting
Because of the inherent limitations of internal financial controls overfinancial reporting 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 overfinancial reporting to future periods are subject to the risk that the internal financialcontrol over financial reporting may become inadequate because of changes in conditionsor that the degree of compliance with the policies or procedures may deteriorate.
In our opinion to the best of our information and according to theexplanations given to us 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 31st 2022based on "the internal control over financial reporting criteria established by theCompany considering the essential components of internal control stated in the GuidanceNote on Audit of Internal Financial Controls Over Financial Reporting issued by theInstitute of Chartered Accountants of India"