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Commercial Syn Bags Ltd.

BSE: 539986 Sector: Industrials
NSE: N.A. ISIN Code: INE073V01015
BSE 15:59 | 19 Oct 150.85 0.20
(0.13%)
OPEN

148.05

HIGH

152.50

LOW

146.00

NSE 05:30 | 01 Jan Commercial Syn Bags Ltd
OPEN 148.05
PREVIOUS CLOSE 150.65
VOLUME 92343
52-Week high 164.00
52-Week low 54.10
P/E 12.37
Mkt Cap.(Rs cr) 178
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 148.05
CLOSE 150.65
VOLUME 92343
52-Week high 164.00
52-Week low 54.10
P/E 12.37
Mkt Cap.(Rs cr) 178
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Commercial Syn Bags Ltd. (COMMERLSYNBAGS) - Auditors Report

Company auditors report

To the Members of Commercial Syn Bags Limited.

OPINION

We have audited the accompanying standalone financial statements ofCommercial Syn Bags Limited (“the Company”) which comprise the balance sheet asat March 31 2020 and the statement of Profit and Loss (including other ComprehensiveIncome) the standalone statement of changes in equity and the standalone statement ofcash flows for the year then ended and notes to the standalone financial statementsincluding a summary of significant accounting policies and other explanatory information.

In our opinion and to the best of our information and according to theexplanations given to us the aforesaid financial statements give the information requiredby the Companies Act 2013 (“the Act”) in the manner so required and give a trueand fair view in conformity with the Accounting Standards prescribed under section 133 ofthe Act and other accounting principles generally accepted in India of the state ofaffairs of the Company as at March 31 2020 and its profits and other comprehensiveincome changes in equity and its cash flows for the year ended on that date.

BASIS FOR OPINION

We conducted our audit of the standalone financial statements inaccordance with the Standards on Auditing (SAs) specified under section 143(10) of theAct. Our responsibilities under those Standards are further described in theAuditor's Responsibilities for the Audit of the Standalone 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 (“ICAI”)together with the ethical requirements that are relevant to our audit of the standalonefinancial statements under the provisions of the Act and rules made thereunder and wehave fulfilled our other ethical responsibilities in accordance with these requirementsand the ICAI's Code of Ethics. We believe that the audit evidence we have obtained issufficient and appropriate to provide a basis for our audit opinion on the standalonefinancial statements.

KEY AUDIT MATTERS

Key audit matters are those matters that in our professional judgmentwere of most significance in our audit of the standalone financial statements of thecurrent period. These matters are addressed in the context of our audit of the financialstatements as a whole and in forming our opinion thereon and we do not provide aseparate opinion on these matters.

The key audit matter How the matter was addressed in our audit
Inventories lying as at year end and its valuation Our audit procedures included the following:
The Company has reported inventory of Rs. 3023.26 Lakh as at year end. It is forming substantial part of current assets of Company S Testing the design implementation and operating effectiveness of Company's general IT controls key manual and application controls over the Company's IT systems. They cover control over recording of inventories.
We have decided this item as a key audit matter because of-
S Understanding the Company's process and proceduresfor physical verification of inventories at year end.
1. The situation arising out of Covid-19 at year end and adoption of IND AS particularly IND AS 115 ‘Revenue from contracts with customers' during the year would have impacted the inventory levels
S Assessing the methods used to value inventoriesand ensuring ourselves of the consistency ofaccounting methods.
2. Significant inventory level and value S Inspecting the reported acquisition cost on asample basis.
S Analyzing of the Company's assessment of netrealizable value as well as reviewing of assumptionsand calculations for stock obsolescence.
3. Complexities involved in determining
i. quantities of inventory at year end at multiple locations
ii.Valuation of inventory because of multiple products and stages of processing. S Assessing of appropriateness of disclosuresprovided in the financial statements.

Other Information

The Company's management and Board of Directors are responsiblefor the other information. The other information comprises the information included in theCompany's annual report but does not include the standalone financial statements andour Auditors' Report thereon.

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

In connection with our audit of the standalone financial statementsour responsibility is to read the other information and in doing so consider whether theother information is materially inconsistent with the standalone financial statements orour knowledge obtained in the audit or otherwise appears to be materially misstated. Ifbased on the work we have performed we conclude that there is a material misstatement ofthis other information we are required to report that fact. We have nothing to report inthis regard.

Management's responsibilities for the Audit of the StandaloneFinancial Statements

The Company's Board of Directors is responsible for the mattersstated in section 134(5) of the Act with respect to the preparation of these standalonefinancial statements that give a true and fair view of the financial position financialperformance changes in equity and cash flows of the Company in accordance with theaccounting principles generally accepted in India including the Accounting Standardsspecified under section 133 of the Act. This responsibility also includes maintenance ofadequate accounting records in accordance with the provisions of the Act for safeguardingof assets of the Company and for preventing and detecting frauds and other irregularities;selection and application of appropriate accounting policies; making judgments andestimates that are reasonable and prudent; and design implementation and maintenance ofadequate internal financial controls that were operating effectively for ensuring theaccuracy and completeness of the accounting records relevant to the preparation andpresentation of the standalone financial statements that give a true and fair view and arefree material misstatement 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 asapplicable matters related to going concern and using the going concern basis ofaccounting unless management either intends to liquidate the company or to ceaseoperations or has not realistic alternative to do so.

The Board of Directors are responsible for over viewing theCompany's financial reporting process.

Auditor's Responsibilities for the Audit of the StandaloneFinancial Statements

Our objectives are to obtain reasonable assurance about whether thestandalone financial statements as a whole are free from material misstatement whetherdue to fraud or error and to issue an auditor's report that includes our opinion.Reasonable assurance is a high level of assurance but is not a guarantee that an auditconducted in accordance with the SAs will always detect material misstatement when itexists. Misstatements can arise from fraud or error and are considered material ifindividually or in aggregate they could reasonably be expected to influence the economicdecision ofthe users taken on the basis ofthese standalone 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 risk of material misstatement of thestandalone 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) of the Act we are also responsible for expressing ouropinion on whether the Company has adequate internal financial control system in place andthe operating effectiveness of such control.

• 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 thegoing concern basis of accounting and based on the audit evidence obtained whether amaterial uncertainty exists related to events or conditions that may cast significantdoubt on the Company's ability to continue as a going concern. If we conclude that amaterial uncertainty exists we are required to draw attention in our auditor'sreport to related disclosures in the standalone financial statements or if suchdisclosures are inadequate to modify our opinion. Our conclusions are based on the auditevidence obtained up to the date of our auditor's report. However future events orconditions may cause the Company to cease to continue as a going concern.

• Evaluate the overall presentation structure and content of thestandalone financial statements including the disclosures and whether the standalonefinancial statements represent the underlying transactions and events in a manner thatachieves fair presentation.

Materiality is the magnitude of misstatements in the standalonefinancial 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 qualitative factors in (i) planning thescope of our audit work and in evaluating the results of our work; and (ii) to evaluatethe 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 audit and significant audit findingsincluding any significant deficiencies in internal control that we identify during ouraudit.

We also provide those charge 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 though tobear 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 standalonefinancial statements of the current period and are therefore the key audit matters. Wedescribe these matters in our auditor's report unless law or regulation precludepublic disclosure about the matter or when in extremely rare circumstances we determinethat a matter should not be communicated in our report because the adverse consequences ofdoing so would reasonably be expected to outweigh the public interest benefits of suchcommunication.

Report on Other Legal and Regulatory Requirements

1. As required by section 143(3) of the Act based on our audit wereport that:

a) We have sought and obtained all the information and explanationswhich to the best of our knowledge and belief were necessary for the purposed of ouraudit

b) In our opinion proper books of accounts 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 standalone statement of Profit andLoss (including Other Comprehensive Income) the standalone statement of changes in equityand the standalone statements of Cash Flow dealt with by this report are in agreement withrelevant books of account

d) In our opinion the aforesaid standalone financial statements complywith the Accounting Standards specified under section 133 ofthe Act read with Rule 7ofthe Companies (Accounts) Rules 2014

e) On the basis of written representations received from the directorsas on March 312020 taken on record by the Board of Directors none of the directors isdisqualified as on March 31 2020 from being appointed as a director in terms of section164(2) ofthe Act.

f) With respect to adequacy of the internal financial controls overfinancial reporting of the Company and the operating effectiveness of such controls referto our separate report in “Annexure A”. Our report expresses an unmodifiedopinion on the adequacy and operating effectiveness ofthe Company's internalfinancial controls over financial reporting

g) With respect to the other matters to be included in theAuditor's Report in accordance with the requirements of section 197(16) of the Actin our opinion and to the best of our information and according to the explanations givento us the remuneration paid by the Company to its directors during the year is inaccordance with the provisions of section 197 of

the Act and

h) With respect to the other matters to be included in theAuditor's Report in accordance with Rule 11 of the Companies (Audit and Auditors)Rules 2014 in our opinion and to the best of our information and according to theexplanation given to us:

i. The Company has disclosed the impact of pending litigations on itsfinancial position in its standalone financial statements. (Refer Note 30 to thestandalone financial statements.)

ii. The Company has made provision as required under the applicablelaw or accounting standards for material foreseeable losses if any on long termcontracts including derivative contracts.

iii. There has been no amount required to be transferred to theInvestor Education and Protection Fund by the Company.

iv. The disclosures in the standalone financial statements regardingholdings as well as dealings in specified bank notes during the period from 8 November2016 to 30 December 2016 have not been made in these standalone financial statements sincethey do not pertain to the financial year ended 31 March 2020.

2. As required by the Companies (Auditor's Report) Order 2016(“the order”) issued by the Central Government in terms of

section 143 (11) of the Act we give in “Annexure B” astatement on the matters specified in paragraph 3 and 4 of the order to

the extent applicable.

For Avinash Agrawal & Co.
Chartered Accountants
Place: Indore (FR No. 022666C)
Date: 29th June 2020
UDIN:20410875AAAAAU3573
(CA Avinash Agrawal)
(Membership No. 410875)
Proprietor

ANNEXURE -A TO THE INDEPENDENT AUDITOR'S REPORT OF EVEN DATE

(Reference to in paragraph 1(f) under ‘Report on Other Legal andRegulatory Requirements section of our report to the members of

Commercial Syn Bags Limited)

Report on the Internal Financial Controls over financial reportingunder Clause (i) of Sub-section 3 of Section 143 of the Companies Act 2013 (“theAct”)

We have audited the internal financial controls over financialreporting of M/S Commercial Syn Bags Limited (“the Company”) as of 31 March 2020in conjunction with our audit of the standalone financial statements of the Company forthe year ended on that date.

Management's Responsibility for Internal Financial Controls

The Board of Directors of the Company is responsible for establishingand maintaining internal financial controls based on the internal control over financialreporting criteria established by the Company considering the essential components ofinternal control stated in the Guidance Note on Audit of Internal Financial Controls overFinancial Reporting issued by the Institute of Chartered Accountants of India(‘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 offrauds and errors the accuracy and completeness of the accounting records and the timelypreparation of reliable financial information as required under the Companies Act 2013.

Auditors' Responsibility

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 ICAI and the Standards on Auditingprescribed under section 143(10) of the Companies Act 2013 to the extent applicable toan audit of internal financial controls. Those Standards and the Guidance Note requirethat we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether adequate internal financial controls over financialreporting was established and maintained and if such controls operated effectively in allmaterial 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 internalfinancial controls 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 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 authorisations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorised 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.

Opinion

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 31 March 2020 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note on Audit ofInternal Financial Controls Over Financial Reporting issued by the Institute of CharteredAccountants of India.

For Avinash Agrawal & Co.
Chartered Accountants
Place: Indore (FR No. 022666C)
Date: 29th June 2020
UDIN:20410875AAAAAU3573 (CA Avinash Agrawal)
(Membership No. 410875)
Proprietor

ANNEXURE -B TO THE INDEPENDENT AUDITOR'S REPORT OF EVEN DATE

The Annexure referred to in paragraph 2 under “Report on OtherLegal and Regulatory Requirement's section of our Independent Auditors' Reportto the members of Commercial Syn-Bags Limited on the financial statements for the yearended 31 March 2020 we report that:

(i) (a) The company has maintained proper records showing fullparticulars including quantitative details and situation of fixed

assets.

(b) All these fixed assets have been physically verified by themanagement at reasonable intervals during the year. No material discrepancies were noticedon such verification.

(c) According to the information and explanations given to us therecords examined by us and based on our examination of the Conveyance deed/ registeredsale deed provided to us.The title deeds of immovable properties are held in the name ofthe company.

ii) (a) Physical verification of inventory at all locations except intransit (if any) and lying with third parties has been conducted at

reasonable intervals by the management. No material discrepancy wasnoticed during such verifications.

(iii) (a) According to the information and explanations given to usthe company has not granted any loan secured or unsecured to

companies firms and limited liability partnerships or other partiescovered in the register maintained under section 189 of the Companies Act. Thereforesub-clause (a) (b) and (c) of clause (iii) of paragraph 3 ofthe Order are not applicable.

(iv) In our opinion and according to explanations given to us theCompany has complied with the provisions of section185 and 186 of the Act with respect tothe loans and making investments and providing guarantees and securities as applicable.

(v) According to the information and explanations given to us and onthe basis of our checking during the course of audit the company has not accepted anydeposits.

(vi) The Central Government has specified maintenance of the costrecords under sub-section (1) of section 148 of the Companies Act 2013 for the businessactivities carried out by the Company. The Company has made and maintained such records.

(vii) (a) According to the information and explanation given to us thecompany is regular in depositing undisputed statutory dues including provident fundemployees state insurance income tax Goods and Service Tax duty ofcustom cess andother material statutory dues applicable to it with the appropriate authorities. There wasno such outstanding as at the last day of the financial year concerned for a period ofmore than six months from the date they became payable.

(b) According to information and explanations given to us there are nodues of income tax wealth tax service tax custom duty excise duty and cess which havenot been deposited on account of any dispute except demand under M.P. Value Added Tax Act2002 Central sales tax act 1956 and Entry Tax Act 1976 as follows:

Name of the Statue Nature of Amount Due Amount Amount paid in dispute Period to which the amount relates Forum where the dispute is pending
M.P. VAT Act 2002 Value Added Tax 235220 58850 Financial Year 2016-2017 Deputy Commissioner Commercial Tax Indore
M.P. VAT Act 2002 Value Added Tax 129463 33000 Financial Year 2015-2016 Assistant Commissioner Commercial Tax Indore
Central Sales Tax Act 1956 Central Sales Tax 304635 63327 Financial Year 2016-17 Assistant-Commissioner Commercial Tax Indore
Central Sales Tax Act 1956 Value Added Tax 15280 3850 Financial Year 2016-2017 Deputy Commissioner Commercial Tax Indore
Central Sales Tax Act 1956 Value Added Tax 415922 125880 Financial Year 2015-2016 Assistant-Commissioner Commercial Tax Indore
EntryTax Act 1976 Entry Tax 410473 102700 Financial Year 2016-2017 Deputy Commissioner Commercial Tax Indore

(viii) In our opinion and according to information and explanationsgiven to us the company has not defaulted in repayment of loans or borrowings to afinancial institution bank Government or dues of debenture holders.

(ix) The Company has not raised money by way of initial public offer.The Company has raised money by way of term loans. The moneys raised by the Company hasbeen applied for the purpose for which they are raised.

(x) Based upon audit procedures performed and according to theinformation and explanations given to us no fraud by the company or on the company by itsofficers or employees has been noticed or reported during the course of our audit.

(xi) According to information and explanations given to us and based onour examination of the records of the Company the Company has paid/ provided formanagerial remuneration in accordance with the requisite approvals mandated by theprovisions of section 197 read with Schedule V to the Act.

(xii) In our opinion and according to the information and explanationsgiven to us the Company is not a Nidhi company. Accordingly paragraph 3(xii) of theOrder is not applicable.

(xiii) According to information and explanations given to us and basedon our examination of the records of the Company transactions with the related partiesare in compliance with sections 177 and 188 of the Act where applicable and the detailshave been disclosed in the Financial Statements as required by the applicableIndianAccounting Standards.

(xiv) According to information and explanations given to us and basedon our examination of the records of the Company the company has not made anypreferential allotment or private placement of shares or fully or partly convertibledebentures during the year and hence reporting under clause 3(xiv) of the order is notapplicable to the Company.

(xv) According to information and explanations given to us and based onour examination of the records of the Companythe company has not entered into non-cashtransactions with directors or persons connected with them. Hence provisions of section192 of the Companies Act 2013 are not applicable to the Company.

(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 to the Company.

For Avinash Agrawal & Co.
Chartered Accountants
Place: Indore (FR No. 022666C)
Date: 29th June 2020 UDIN:20410875AAAAAU3573 (CA Avinash Agrawal)
(Membership No. 410875)
Proprietor

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