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Fineotex Chemical Ltd.

BSE: 533333 Sector: Industrials
NSE: FCL ISIN Code: INE045J01026
BSE 00:00 | 27 Jan 159.95 -2.80
(-1.72%)
OPEN

161.30

HIGH

167.55

LOW

156.85

NSE 00:00 | 27 Jan 159.75 -3.05
(-1.87%)
OPEN

160.50

HIGH

167.55

LOW

156.70

OPEN 161.30
PREVIOUS CLOSE 162.75
VOLUME 153289
52-Week high 167.55
52-Week low 56.60
P/E 41.87
Mkt Cap.(Rs cr) 1,771
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 161.30
CLOSE 162.75
VOLUME 153289
52-Week high 167.55
52-Week low 56.60
P/E 41.87
Mkt Cap.(Rs cr) 1,771
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Fineotex Chemical Ltd. (FCL) - Auditors Report

Company auditors report

To the Members of

Fineotex Chemical Limited

Report on the Audit of the Standalone Financial Statements

Opinion

We have audited the accompanying standalone financial statements ofFINEOTEX CHEMICAL LIMITED ("the Company") which comprise the Balance Sheet asat 31st March 2021 the Statement of Profit and Loss (including Other ComprehensiveIncome) the Statement of Changes in Equity and the Statement of Cash Flows for the yearthen ended and notes to the financial statements including a summary of significantaccounting policies and other explanatory information.

In our opinion and to the best of our information and according to theexplanations given to us the aforesaid standalone 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 (financial position) of the Companyas at March 31 2021 and its Profit (financial performance including other comprehensiveincome) the 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 theethical requirements that are relevant to our audit of the standalone financial statementsunder the provisions of the Act and the Rules there under and we have fulfilled our otherethical responsibilities in accordance with these requirements and the ICAI's Code ofEthics. We believe that the audit evidence we have obtained is sufficient and appropriateto provide a basis for our opinion on the standalone financial statements.

Emphasis of Matter

We draw attention to Note No 39 (a) (iv) of the standalone financialstatements which explains the impact of COVID-19 pandemic on the Company's operationsand financial statements. The actual Impact is dependent on future developments which arehighly uncertain.

Our Opinion is not modified in respect of this matter.

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 were addressed in the context of our audit of the standalonefinancial statements as a whole and in forming our opinion thereon and we do not providea separate opinion on these matters.

We have determined that there are no key audit matters to becommunicated in our report.

Information Other than the Financial Statements and Auditor'sReport Thereon

The Company's Board of Directors is responsible for the otherinformation. The other information comprises the information included in the AnnualReport but does not include the consolidated financial statements the standalonefinancial statements and our 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 whethersuch other information is materially inconsistent with the standalone financial statementsor our knowledge obtained in the audit or otherwise appears 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 Financial Statements

The Company's management and Board of Directors are responsiblefor the matters stated in section 134(5) of the Act with respect to the preparation ofthese standalone financial statements that give a true and fair view of the state ofaffairs (financial position) profit or loss (financial performance including othercomprehensive income) changes in equity and cash flows of the Company in accordance withthe accounting principles generally accepted in India including the Ind AS. Thisresponsibility also includes maintenance of adequate accounting records in accordance withthe provisions of the Act for safeguarding of the assets of the Company and for preventingand detecting frauds and other irregularities; selection and application of appropriateaccounting policies; making judgments and estimates that are reasonable and prudent; anddesign implementation and maintenance of adequate internal financial controls that wereoperating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the standalone financialstatements that give a true and fair view and are free from material misstatement whetherdue to fraud or error.

In preparing the standalone financial statements the Board ofDirectors is responsible for assessing the Company's ability to continue as a goingconcern disclosing as applicable matters related to going concern and using the goingconcern basis of accounting unless the Board of Directors either intends to liquidate theCompany or to cease operations or has no realistic alternative but to do so.

The Board of Directors are also responsible for overseeing 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 SAs will always detect a material misstatement when itexists. Misstatements can arise from fraud or error and are considered material ifindividually or in the aggregate they could reasonably be expected to influence theeconomic decisions of users taken on the basis of these 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 risks 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 control relevant to theaudit in order to design audit procedures that are appropriate in the circumstances. Undersection 143(3)(i) of the Act we are also responsible for expressing our opinion onwhether the company has adequate internal financial controls system in place and theoperating 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 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 the 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.

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 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 precludespublic 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 the Companies (Auditor's Report) Order 2016("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" 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 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 financial statements dealt with by this Report arein agreement with the books of account;

(d) . In our opinion the aforesaid standalone financial statementscomply with the Ind AS specified under Section 133 of the Act;

(e) . On the basis of the written representations received from thedirectors as on 31st March 2021 taken on record by the Board of Directors none of thedirectors is disqualified as on 31st March 2021 from being appointed as a director interms of Section 164(2) of the Act;

(f) . With respect to the adequacy of the internal financial controlswith reference to the financial statements of the Company and the operating effectivenessof such controls refer to our separate Report in "Annexure B" to this report;

(g) . With respect to the other matters to be included in the

Auditors Report in accordance with the requirements of Section 197(16)of the Act as amended in our opinion and according to the information and explanationsgiven to us the remuneration paid / payable by the Company to its directors during thecurrent year is in accordance with the provisions of and not in excess of limits laid downunder Section 197 read with Schedule V to the Act. The Ministry of Corporate Affairs hasnot prescribed other details under section 197 (16) which are required to be commentedupon by us;

(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 theexplanations given to us:

i. the Company does not have any pending litigations which would impactits financial position.

ii. the Company did not have any long-term contracts includingderivative contracts for which there were any material foreseeable losses.

iii. there has been no delay in transferring amounts required to betransferred to the Investor Education and Protection Fund by the Company during the yearended 31st March 2021.

FOR ASL & CO.
Chartered Accountants
(Regn. No 101921 W)
(Manish Pansari)
Place: Mumbai Partner
Date: April 22 2021 Membership No. : 137974

ANNEXURE "A" REFERRED TO IN PARAGRAPH 1 UNDER THE HEADING"REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS" OF THE INDEPENDENTAUDITORS' REPORT OF EVEN DATE ON THE STANDALONE FINANCIAL STATEMENTS OF FINEOTEXCHEMICAL LIMITED FOR THE YEAR ENDED 31ST MARCH 2021.

On the basis of such checks as considered appropriate and in terms ofthe information and explanations given to us we state as under. Matters specified inclauses (v)(ix)(xii)(xiv)(xv) & (xvi) of paragraph 3 of the Companies(Auditor's Report) Order 2016 do not apply to the Company. Accordingly no commentshave been made on the matters not applicable to the company.

(i) (a) The company has maintained proper records showing fullparticulars including quantitative details and situation of property plant and equipment.

(b) As per the information and explanations given to us propertyplant and equipment have been physically verified by the management at the reasonableintervals having regards to the size of the company and nature of its assets. According tothe information and explanations given to us no material discrepancies were noticed onsuch verification.

(c) According to information and explanations given to us and on thebasis of our examination of the records of the Company the title deeds of immovableproperties are held in the name of the Company.

(ii) According to information and explanations given to us theinventory has been physically verified by the management during the year at reasonableintervals. In our opinion and according to the information and explanations given to usthe discrepancies noticed on verification between the physical stock and the book recordswere not material and the same have been properly dealt with in the books of account.

(iii) According to information and explanations given to us theCompany has granted Loans unsecured to one of its wholly owned subsidiary covered in theregister maintained under section 189 of the Act in respect of which:

(a) The terms and conditions of the grant of such loans are in ouropinion prima facie not prejudicial to the Company's interest.

(b) According to the information and explanations given to us and basedon the audit procedures conducted by us we are of the opinion that there is nostipulation of schedule of repayment of principal and payment of interest for the loansgiven by the Company. As such we are unable to make specific comment on regularity ofrepayment of principal and payment of interest.

(c) According to the information and explanations given to us and basedon the audit procedures conducted by us we are unable to make any specific comment on theoverdue outstanding as at year end as the loans are given by the company without anystipulation of schedule of repayment of principal and payment of interest.

(iv) In our opinion and according to the information and explanationsprovided to us the Company has not granted any loans or provided any guarantees orsecurity to the parties covered under Section 185 of the Act. The Company has compliedwith the provisions of Section 186 of the Act in respect of investments made or loans orguarantee or security provided to the parties covered under Section 186.

(v) The maintenance of cost records has been specified by the CentralGovernment under section 148(1) of the Companies Act 2013. We have broadly reviewed thecost records maintained by the Company pursuant to the Companies (Cost Records and Audit)Rules 2014 as amended prescribed by the Central Government under sub-section (1) ofSection 148 of the Companies Act 2013 and are of the opinion that prima facie theprescribed cost records have been made and maintained. We have however not made adetailed examination of the cost records with a view to determine whether they areaccurate or complete.

(vi) (a) As per the records of the Company and according to theinformation and explanations given to us the Company has generally been regular indepositing with appropriate authorities undisputed statutory dues including providentfund employee's state insurance income tax sales tax service tax goods andservice tax duty of custom duty of excise value added tax cess and other statutorydues to the extent applicable to it.

(b) According to the information and explanations given to us and therecords of the Company examined by us there are no dues of income tax sales taxservice tax Goods and service tax duty of customs and duty of excise duty value addedtax as at March 31 2021 which have not been deposited on account of any dispute.

(vii) In our opinion and according to the information and explanationsgiven to us the Company has not defaulted in the repayment of loans or borrowings tobanks. The Company has not taken any loans or borrowings from financial institutions andgovernment and has not issued any debentures.

(viii) To the best of our knowledge and as per information andexplanations given by the management no fraud by the company or on the Company by itsofficers or employees has been noticed or reported during the year under review.

(ix) According to the information and explanations given to us andbased on our examination of the records the Company has paid or provided for managerialremuneration in accordance with the requisite approvals mandated by the provisions ofsection 197 read with schedule V to the Act.

(x) According to the records of the Company and as per the informationand explanations given to us the transactions of the Company with the related parties arein compliance with Section 177 and 188 of Companies Act 2013 where applicable and thedetails of related party transactions have been disclosed in the Standalone FinancialStatements as required by the applicable Ind AS.

FOR ASL & CO.
Chartered Accountants
(Regn. No 101921 W)
(Manish Pansari)
Place: Mumbai Partner
Date: April 22 2021 Membership No. : 137974

ANNEXURE "B" REFERRED TO IN PARAGRAPH 2 (F) UNDER THE HEADING"REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS" OF THE INDEPENDENTAUDITORS' REPORT OF EVEN DATE ON THE STANDALONE FINANCIAL STATEMENTS OF FINEOTEXCHEMICAL LIMITED FOR THE YEAR ENDED 31ST MARCH 2021.

Report on the Internal Financial Controls under Clause (i) ofSubsection 3 of Section 143 of the Companies Act 2013 ("the Act").

We have audited the internal financial controls with reference to thefinancial statements of Fineotex Chemical Limited ("the Company") as of March31 2021 in conjunction with our audit of the standalone financial statements of theCompany 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 with reference tothe financial statements criteria established by the Company considering the essentialcomponents of internal control stated in the Guidance Note on Audit of Internal FinancialControls Over Financial Reporting (the "Guidance Note") issued by the Instituteof Chartered Accountants of India (ICAI). These responsibilities include the designimplementation and maintenance of adequate internal financial controls that were operatingeffectively for ensuring the orderly and efficient conduct of its business includingadherence to company's policies the safeguarding of its assets the prevention anddetection of frauds and errors the accuracy and completeness of the accounting recordsand the timely preparation of reliable financial information as required under theCompanies Act 2013.

Auditors' Responsibility

Our responsibility is to express an opinion on the Company'sinternal financial controls with reference to the financial statements based on our audit.

We conducted our audit in accordance with the Guidance Note and theStandards on Auditing issued by ICAI and deemed to be prescribed under section 143(10) ofthe Companies Act 2013 to the extent applicable to an audit of internal financialcontrols both applicable to an audit of Internal Financial Controls and both issued bythe ICAI. Those Standards and the Guidance Note require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetheradequate internal financial controls with reference to the financial statements wasestablished and maintained and if such controls operated effectively in all materialrespects.

Our audit involves performing procedures to obtain audit evidence aboutthe adequacy of the internal financial controls with reference to the financial statementsand their operating effectiveness.

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

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 with reference to the financial statements.

Meaning of Internal financial controls with reference to the financialstatements

A company's internal financial control with reference to thefinancial statements is a process designed to provide reasonable assurance regarding thereliability of financial reporting and the preparation of financial statements forexternal purposes in accordance with generally accepted accounting principles. Acompany's internal financial control with reference to the financial statementsincludes those policies and procedures that (1) pertain to the maintenance of recordsthat in reasonable detail accurately and fairly reflect the transactions anddispositions of the assets of the company; (2) provide reasonable assurance thattransactions are recorded as necessary to permit preparation of financial statements inaccordance with generally accepted accounting principles and that receipts andexpenditures 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 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 with reference tothe financial statements

Because of the inherent limitations of internal financial controls withreference to the financial statements including the possibility of collusion or impropermanagement override of controls material misstatements due to error or fraud may occurand not be detected. Also projections of any evaluation of the internal financialcontrols with reference to the financial statements to future periods are subject to therisk that the internal financial control with reference to the financial statements maybecome inadequate because of changes in conditions or that the degree of compliance withthe policies or procedures may deteriorate.

Opinion

In Our opinion to the best of our information and according to theexplanations given to us and matter described in "Emphasis of Matter" paragraphabove the Company has in all material respects an adequate internal financial controlssystem with reference to the financial statements and such internal financial controlswith reference to the financial statements were operating effectively as at March 312021 based on the internal control over financial reporting criteria established by theCompany considering the essential components of internal control stated in the GuidanceNote issued by the ICAI.

FOR ASL & CO.
Chartered Accountants
(Regn. No 101921 W)
(Manish Pansari)
Place: Mumbai Partner
Date: April 22 2021 Membership No. : 137974

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