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Commercial Syn Bags Ltd.

BSE: 539986 Sector: Industrials
NSE: N.A. ISIN Code: INE073V01015
BSE 16:01 | 07 Dec 114.25 0.20
(0.18%)
OPEN

114.05

HIGH

115.95

LOW

114.00

NSE 05:30 | 01 Jan Commercial Syn Bags Ltd
OPEN 114.05
PREVIOUS CLOSE 114.05
VOLUME 8423
52-Week high 154.40
52-Week low 71.87
P/E 33.60
Mkt Cap.(Rs cr) 456
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 114.05
CLOSE 114.05
VOLUME 8423
52-Week high 154.40
52-Week low 71.87
P/E 33.60
Mkt Cap.(Rs cr) 456
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.

REPORT ON THE AUDIT OF THE STANDALONE FINANCIAL STATEMENTS OPINION

We have audited the accompanying standalone financial statements of Commercial Syn BagsLimited ("the Company") which comprise the balance sheet as at March 31 2021and the statement of Profit and Loss (including other Comprehensive Income) thestandalone statement of changes in equity and the standalone statement of cash flows forthe year then ended and notes to the standalone financial statements including a summaryof significant accounting policies and other explanatory information.

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid financial statements give the information required by theCompanies Act 2013 ("the Act") in the manner so required and give a true andfair view in conformity with the Accounting Standards prescribed under section 133 of theAct and other accounting principles generally accepted in India of the state of affairsof the Company as at March 31 2021 and its profits and other comprehensive incomechanges 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 in accordance with theStandards on Auditing (SAs) specified under section 143(10) of the Act. Ourresponsibilities under those Standards are further described in the Auditor'sResponsibilities for the Audit of the Standalone Financial Statements section of ourreport. We are independent of the Company in accordance with the Code of Ethics issued bythe Institute of Chartered Accountants of India ("ICAI") together with theethical requirements that are relevant to our audit of the standalone financial statementsunder the provisions of the Act and rules made there under and we have fulfilled ourother ethical responsibilities in accordance with these requirements and the ICAI's Codeof Ethics. We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our audit opinion on the standalone financialstatements.

KEY AUDIT MATTERS

Key audit matters are those matters that in our professional judgment were of mostsignificance in our audit of the standalone financial statements of the current period.These matters are addressed in the context of our audit of the financial statements as awhole and in forming our opinion thereon and we do not provide a separate opinion onthese matters.

The key audit matter How the matter was addressed in our audit
I. Inventories lying as at year end and its valuation ( See note 7 to the standalone financial statements) The Company has reported inventory of Rs. 5499.19 lakh as at year end. It is forming substantial part of current assets of Company We have decided this item as a key audit matter because of- 1. Significant inventory level and value 2. Complexities involved in determining Our audit procedures included the following:
I. quantities of inventory at year end at multiple locations Testing the design implementation and operating effectiveness of Company's general IT controls key manual and application controls over the Company's IT systems.
ii. Valuation of inventory because of multiple products and stages of processing. They cover control over recording of inventories. Understanding the Company's process and procedures for physical verification of inventories at year end.
Assessing the methods used to value inventories and ensuring ourselves of the consistency of accounting methods. Inspecting the reported acquisition cost on a sample basis.
Analyzing of the Company's assessment of net realizable value as well as reviewing of assumptions and calculations for stock obsolescence.
Assessing of appropriateness of disclosures provided in the financial statements.
II. Set up of new manufacturing facility (See note 3 to the standalone financial statements) Our audit procedures included the following: Testing the design implementation and operating effectiveness of Company's general IT controls key manual and application controls over the Company's IT systems.
Capitalization of costs of acquisition and construction of Property Plant and Equipment of Rs. 2310.10 lakhs forming part of the company's new manufacturing facility the setup of which was completed during the year. We have decided this item as a key audit matter because of I. substantial capital outlay and ii. a substantial increase in borrowed funds They cover control over recording of property plant and equipment. Understanding the Company's process and procedures for physical verification of property plant and equipment at year end.
Assessing the methods used to value property plant and equipment and ensuring ourselves of the consistency of accounting methods. Inspecting the reported acquisition cost on a sample basis. Assessing of appropriateness of disclosures provided in the financial statements.

Other Information

The Company's management and Board of Directors are responsible for the otherinformation. The other information comprises the information included in the Company'sannual report but does not include the standalone financial statements and our auditor'sreport thereon.

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

In connection with our audit of the standalone financial statements our responsibilityis to read the other information and in doing so consider whether the other informationis materially inconsistent with the standalone financial statements or our knowledgeobtained in the audit or otherwise appears to be materially misstated. If based on thework we have performed we conclude that there is a material misstatement of this otherinformation we are required to report that fact. We have nothing to report in thisregard.

Management's and Board of Directors' responsibilities for the Audit of the StandaloneFinancial Statements

The Company's management and Board of Directors are responsible for the matters statedin section 134(5) of the Act with respect to the preparation of these standalone financialstatements 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 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 not realisticalternative to do so.

The Board of Directors are responsible for over viewing the Company's financialreporting process.

Auditor's Responsibilities for the Audit of the Standalone Financial Statements

Our objectives are to obtain reasonable assurance about whether the standalonefinancial statements as a whole are free from material misstatement whether due to fraudor error and to issue an auditor's report that includes our opinion. Reasonable assuranceis a high level of assurance but is not a guarantee that an audit conducted in accordancewith the SAs will always detect material misstatement when it exists. Misstatements canarise from fraud or error and are considered material if individually or in aggregatethey could reasonably be expected to influence the economic decision of the users taken onthe basis of these standalone 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 risk of material misstatement of the standalonefinancial statements whether due to fraud or error design and perform audit proceduresresponsive to those risks and obtain audit evidence that is sufficient and appropriate toprovide a basis for our opinion. The risk of not detecting a material misstatementresulting from fraud is higher than for one resulting from error as fraud may involvecollusion forgery intentional omissions misrepresentations or the override of internalcontrol.

• Obtain an understanding of internal financial controls relevant to the audit inorder to design audit procedures that are appropriate in the circumstances. Under section143(3) of the Act we are also responsible for expressing our opinion on whether theCompany has adequate internal financial control system in place and the operatingeffectiveness of such control.

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

• Conclude on the appropriateness of management's and Board of Director's use ofthe going 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's report tothe related disclosures in the standalone financial statements or if such disclosures areinadequate to modify our opinion. Our conclusions are based on the audit evidenceobtained up to the date of our auditor's report. However future events or conditions maycause the Company to cease to continue as a going concern.

• Evaluate the overall presentation structure and content of the standalonefinancial statements including the disclosures and whether the standalone financialstatements represent the underlying transactions and events in a manner that achieves fairpresentation.

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

We also provide those charge 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 though 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 financial statementsof the current period and are therefore the key audit matters. We describe these mattersin our auditor's report unless law or regulation preclude public disclosure about thematter or 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

1. As required by section 143(3) of the Act based on our audit 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 accounts 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 standalone statement of Profit and Loss (includingOther Comprehensive Income) the standalone statement of changes in equity and thestandalone 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 comply with theAccounting Standards specified under section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014

e) On the basis of written representations received from the directors as on March 312021 taken on record by the Board of Directors none of the directors is disqualified ason March 31 2021 from being appointed as a director in terms of section 164(2) of theAct.

f) With respect to adequacy of the internal financial controls over financial reportingof the Company and the operating effectiveness of such controls refer to our separatereport in "Annexure A". Our report expresses an unmodified opinion on theadequacy and operating effectiveness of the Company's internal financial controls overfinancial reporting

g) With respect to the other matters to be included in the Auditor's Report inaccordance with the requirements of section 197(16) of the Act in our opinion and to thebest of our information and according to the explanations given to us the remunerationpaid by the Company to its directors during the year is in accordance with the provisionsof section 197 of the Act and

2. 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 explanation given to us:

i. The Company has disclosed the impact of pending litigations on its financialposition in its standalone financial statements. (Refer Note 33 to the standalonefinancial statements.)

ii. The Company did not have any long-term contracts for which there were any materialforeseeable losses. The Company has made provision as required under the applicable lawor accounting standards for material foreseeable losses on derivative contracts. (ReferNote 21 to the standalone financial statements.)

iii. There has been no amount required to be transferred to the Investor Education andProtection Fund by the Company.

iv. The disclosures in the standalone financial statements regarding holdings as wellas dealings in specified bank notes during the period from 8 November 2016 to 30 December2016 have not been made in these standalone financial statements since they do not pertainto the financial year ended 31 March 2021.

3. 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" a statement on the matters specified in paragraph 3 and 4 of theorder to the extent applicable.

For Avinash Agrawal & Co.

Chartered Accountants ICAI Reg. No.: 022666C

Avinash Agrawal
Proprietor
Place : Indore M.NO. 410875
Dated : 16th June 2021 UDIN : 21410875AAACE3798

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

(Reference to in paragraph 1(f) under ‘Report on Other Legal and RegulatoryRequirements section of our report to the members of Commercial Syn Bags Limited)

Report on the Internal Financial Controls over financial reporting under Clause (i) ofSub-section 3 of Section 143 of the Companies Act 2013 ("the Act")

Opinion

We have audited the internal financial controls over financial reporting of M/SCommercial Syn Bags Limited ("the Company") as of 31 March 2021 in conjunctionwith our audit of the standalone financial statements of the Company for the year ended onthat date.

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 31 March 2021 based on the internal controlover financial 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.

Management's Responsibility for Internal Financial Controls

The Company's management and Board of Directors of the Company are responsible forestablishing and maintaining internal financial controls based on the internal controlover financial 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.

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 ICAI and the Standards on Auditing prescribedunder section 143(10) of the Companies Act 2013 to the extent applicable to an audit ofinternal financial controls. 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 over financial reporting wasestablished and maintained and if such controls operated effectively in all materialrespects.

Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls system over financial reporting 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 risksofmaterial 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.

Meaning of Internal Financial Controls Over Financial Reporting

A company's internal financial control over financial reporting is a process designedto provide reasonable assurance regarding the reliability of financial reporting and thepreparation of financial statements for external purposes in accordance with generallyaccepted accounting principles. A company's internal financial control over financialreporting includes those policies and procedures that

(1) pertain to the maintenance of records in reasonable detail accurately and fairlyreflect the transactions and dispositions of the assets of the company;

(2) provide reasonable assurance that transactions are recorded as necessary to permitpreparation of financial statements in accordance with generally accepted accountingprinciples and that receipts and expenditures of the company are being made only inaccordance with authorisations of management and directors of the company; and

(3) provide reasonable assurance regarding prevention or timely detection ofunauthorised acquisition use or disposition of the company's assets that could have amaterial effect on the financial statements.

Inherent Limitations of Internal Financial Controls Over Financial Reporting

Because of the inherent limitations of internal financial controls over financialreporting including the possibility of collusion or improper management override ofcontrols material misstatements due to error or fraud may occur and not be detected.Also projections of any evaluation of the internal financial controls over financialreporting to future periods are subject to the risk that the internal financial controlover financial reporting may become inadequate because of changes in conditions or thatthe degree of compliance with the policies or procedures may deteriorate.

For Avinash Agrawal & Co.

Chartered Accountants ICAI Reg. No.: 022666C

Avinash Agrawal
Proprietor
Place : Indore M.NO. 410875
Dated : 16th June 2021 UDIN : 21410875AAACE3798

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

The Annexure referred to in paragraph 2 under "Report on Other Legal andRegulatory Requirement s section of our Independent Auditors ' Report to the members ofCommercial Syn Bags Limited on the financial statements for the year ended 31 March 2021we report that:

(i) (a) The company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.

(b) All these fixed assets have been physically verified by the management atreasonable intervals during the year. No material discrepancies were noticed on suchverification.

(c) According to the information and explanations given to us the records examined byus and based on our examination of the Conveyance deed/ registered sale deed provided tous the title deeds of immovable properties are held in the name of the company.

(ii) (a) Physical verification of inventory at all locations except those in transitand lying with third parties has been conducted at reasonable intervals by themanagement. No material discrepancy was noticed during such verifications.

(iii) (a) According to the information and explanations given to us the company hasnot granted any loan secured or unsecured to companies firms limited liabilitypartnerships or other parties covered in the register maintained under section 189 of theCompanies Act. Therefore sub-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 the Company has compliedwith the provisions of section 185 and 186 of the Act with respect to the loans andmaking investments and providing guarantees and securities as applicable.

(v) According to the information and explanations given to us and on the basis of ourchecking during the course of audit the company has not accepted any deposits.

(vi) The Central Government has specified maintenance of the cost records undersub-section (1) of section 148 of the Companies Act 2013 for the business activitiescarried out by the Company. The Company has made and maintained such records.

(vii) (a) According to the information and explanation given to us the company isregular in depositing undisputed statutory dues including provident fund employees stateinsurance income tax Goods and Service Tax duty of custom cess and other materialstatutory dues applicable to it with the appropriate authorities. There was no suchoutstanding as at the last day of the financial year concerned for a period of more thansix months from the date they became payable.

(b) According to information and explanations given to us there are no dues of incometax wealth tax service tax custom duty excise duty and cess which have not beendeposited on account of any dispute except demand under M.P. Value Added Tax Act 2002Central 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 Act2002 Value Added Tax 235220 58850 Financial Year 2016 -17 Divisional Deputy Commissioner Commercial Tax Indore
M.P. VAT Act20 02 Value Added Tax 129463 33000 Financial Year 2015 -16 Assistant - Commissioner Commercial Tax Indore
Central Sales Tax Act 1956 Central Sales Tax 304635 93492 Financial Year 2016 -17 Assistant - Commissioner Commercial Tax Indore
Central Sales Tax Act 19 56 Central Sales Tax 15280 3850 Financial Year 2016 -17 Divisional Deputy Commissioner Commercial Tax Indore
Central Sales Tax Act 1956 Central Sales Tax 415922 125880 Financial Year 2015 -16 Assistant - Commissioner Commercial Tax Indore
Entry Tax Act 1976 Entry Tax 410473 102700 Financial Year 2016 -17 Divisional Deputy Commissioner Commercial Tax Indore
M.P. VAT Act 2002 Value Added Tax 170280 0 Financial Year 2015 -16 Additional Commissioner Commercial Tax Indore

(viii) In our opinion and according to information and explanations given to us thecompany has not defaulted in repayment of loans or borrowings to a financial institutionbank Government or dues of debenture holders.

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

(x) Based upon audit procedures performed and according to the information andexplanations given to us no fraud by the company or on the company by its officers oremployees has been noticed or reported during the course of our audit.

(xi) According to information and explanations given to us and based on our examinationof the records of the Company the Company has paid/ provided for managerial remunerationin accordance with the requisite approvals mandated by the provisions of section 197 readwith Schedule V to the Act.

(xii) In our opinion and according to the information and explanations given to us theCompany is not a Nidhi company. Accordingly paragraph 3(xii) of the Order is notapplicable.

(xiii) According to information and explanations given to us and based on ourexamination of the records of the Company transactions with the related parties are incompliance with sections 177 and 188 of the Act where applicable and the details have beendisclosed in the Financial Statements as required by the applicable Indian AccountingStandards.

(xiv) According to information and explanations given to us and based on ourexamination of the records of the Company the company has not made any preferentialallotment or private placement of shares or fully or partly convertible debentures duringthe year and hence reporting under clause 3(xiv) of the order is not applicable to theCompany.

(xv) According to information and explanations given to us and based on our examinationof the records of the Company the company has not entered into non-cash transactions withdirectors or persons connected with them. Hence provisions of section 192 of the CompaniesAct 2013 are 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.Accordingly paragraph 3 (xvi) of the Order is not applicable tothe Company.

For Avinash Agrawal & Co.

Chartered Accountants ICAI Reg. No.: 022666C

Avinash Agrawal
Proprietor
Place : Indore M.NO. 410875
Dated : 16th June 2021 UDIN : 21410875AAACE3798

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