To the Members of
Hind Syntex Limited
Report on the Financial Statements
We have audited the accompanyingfinancial statements of HIND SYNTEX LIMITED ("theCompany") which comprise the Balance Sheet as at 31st March 2015 the Statement ofProfit and Loss and the Cash Flow Statement for the year then ended and a summary ofsignificant accounting policies andother explanatory information.
Management's Responsibilityfor the FinancialStatements
The Company's Board of Directors is responsiblefor the matters stated in Section 134(5)of the CompaniesAct2013 ("theAct")with respect to the preparation andpresentation of these financial statements that give a true and fair view of the financialposition financial performance 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 read with Rule 7 of the Companies (Accounts)Rules 2014. This responsibility also includes maintenance of adequate accounting recordsin accordancewith the provisions of theAct for safeguarding the assets of the Company andfor preventing and detecting frauds and other irregularities; selection and application ofappropriate accounting policies; makingjudgments and estimates that are reasonable andprudent; and design implementation and maintenance of adequate internal financialcontrols that were operating effectively for ensuring the accuracy and completeness of theaccounting records relevant to the preparation and presentation of the financialstatements that give a true and fair view and arefree from material misstatementwhetherduetofraud or error.
Our responsibility isto express an opinion onthesefinancial statements based on ouraudit.
We have taken into account the provisions of the Actthe accounting and auditingstandards and matters which are required to be included in the audit report under theprovisions of theAct and the Rules made there under.
We conducted our audit in accordance with the Standards on Auditing as specified underSection 143(10) of the Act. Those Standards require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetherthefinancial statements are freefrom material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts anddisclosures in the financial statements. The procedures selected depend on the auditor'sjudgment including the assessment of the risks of material misstatement of the financialstatements whether due to fraud or error. In making those risk assessments the auditorconsiders internal financial control relevant to the Company's preparation of thefinancial statements that give a true and fair view in order to design audit proceduresthat are appropriate in the circumstances but not for the purpose of expressing anopinion on whether the Company has in place an adequate internalfinancial controls systemoverfinancial reporting andthe operating effectiveness of such controls. An audit alsoincluues evaluating the appropriateness of accounting policies used and the reasonablenessof the accounting estimates made bythe Company's Directors aswell asevaluatingthe overallpresentationof the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the financial statements.
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 the Actin the manner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India of the state of affairs of the Company as at 31 stMarch 2015 its'profit and its cash flows for the year endedonthat date.
Report on Other Legal and Regulatory Requirements
1. As required bythe Companies (Auditor's Report) Order 2015 ("the Order")issued bythe Central Government of India interms of sub-section (11) of section143oftheActwe give in theAnnexure a statement on the matters specified in paragraphs 3and4of the Order.
2. As required by section 143(3) of theActwefurther 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 purpose of our audit;
b.) in our opinion proper books of account as required by law have been kept by theCompany so far as it appears from our examination ofthose books;
c) The Balance Sheet the Statement of Profit and Loss and the Cash Flow Statementdealt with by this Report are in agreement withthe books of account;
d) in our opinion the aforesaid financial statements comply with the AccountingStandards specified under Section 133 of theAct read with Rule 7of the Companies(Accounts) Rules 2014;
e) on the basis of the written representations received from the directors as on31st March 2015 andtaken on record by the Board of Directors none of the directorsis disqualified as on 31 st March 2015 from being appointed as a director in termsof Section 164 (2) of theAct; and
f) with respect to the other matters to be included in the Auditor's Report inaccordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 in our opinionand to the best of our information and according to the explanations given to us:
i) the Company does not have any pending litigations except as stated in para vii(b) ofthe annexure to this report which would impact its financial position.
ii) the Company did not have any long-term contracts including derivative contracts forwhich there were any material foreseeable losses and
iii) there were no amounts due which were required to be transferred to the InvestorEducation and Protection Fund by the Company.
| ||For V. SINGHI & ASSOCIATES |
| ||Chartered Accountants |
| ||Firm Registration No. 311017E |
| ||(V.K.SINGHI) |
|Date: 30 th May 2015 ||Partner |
|Place: Kolkata ||Membershi p No. 050051 |
Annexure to the Independent Auditor's Report
(Referred to in paragraph-1 on Other Legal and Regulatory Requirements of our Report ofeven date to the members of Hind Syntex Limited on the Financial Statements of the Companyfor the year ended 31 st March 2015)
On the basis of such checks aswe considered appropriate during the course of ouraudit we report that:
i . a) The Company is generally maintaining proper records to show full particularsincluding quantitative details and situation of its FixedAssets
b) As explained to us FixedAssets have been physically verified by the management atregular intervals and as informed to us no material discrepancies were noticed on suchverification
ii. a) The inventories have been physically verified during the year at reasonableintervals by the management. In our opinion the frequency of verification is reasonable.
b) In our opinion and according to the information and explanations given to us theprocedures of physical verification of inventories followed by the management arereasonable and adequate in relation to the size of the Company and the nature of itsbusiness.
c) The Company is maintaining proper records of inventory. The discrepancies noticed onverification between the physical stocks and book records were not material in relation tothe operations of the Company and the same have been properly dealt with in the books ofaccount.
iii. According to the information and explanations given to us the Company has notgranted any loan secured or unsecured to companies firms or other parties covered inthe register maintained under Section 189 of the Act. Accordingly clause 3(iii)(a) and(b) of the Order are not applicable
iv. In our opinion and according to the information and explanations given to us thereis an adequate internal control system commensurate with the size of the Company and thenature of its business for the purchase of inventories and fixed assets and for sale ofproducts and services. Further during the course of our audit we have not observed anyweaknesses or continuous failure to correct any major weakness in the aforesaid internalcontrol system of the Company.
v. According to the information and explanations given to us the Company has notaccepted any deposits from the public during the year within the meaning of sections 73to76 of theAct and the rules framed there under to the extent notified.
vi. We have broadly reviewed the books of account maintained by the Company in respectof the products where pursuant to the rules made by the Central Government of India themaintenance of cost records has been prescribed u/s 148(1) of the Act and are of theopinion that prima facie the prescribed accounts and records have been maintained. Wehave not however made a detailed examination of the records with a view to determinewhether the same are accurate or complete.
a) As per records of the Company and according to the information and explanationsgiven to usthe Company is generally regular in depositing undisputed applicable statutorydues including Provident Fund Employees' State Insurance IncomeTax SalesTax ServiceTaxCustom Duty WealthTaxValueAddedTax Cess and anyother statutory dues with theappropriate authorities and there are no undisputed amount payable in respect of the samewhich were in arrear as on 31 st March 2015 for a period of more than six monthsfrom thedate the same became payable.
b) According to the information and explanations given to us the Company has notdeposited the following dues on account of disputes withthe appropriate authorities:
|Name of the statue ||Nature of the dues ||Amount in Rs. ||Periodto which the amount relate ||Forumwhere dispute is pending |
|Entry TaxAct 1976 Employees' Provident ||Entry Tax ||410968 ||1997-98 ||High Court Indore |
|Fund and Miscellaneous ProvisionsAct 1952 ||Provident Fund ||1083267 ||April 2008 to December 2010 ||Employees' Provident FundAppellate Tribunal New Delhi |
|CENVAT Credit ||Availing of and ||76028 || || |
|Rules 2004 and Central ExciseAct 1944 ||Utilisation of CENVAT Credit || ||September 2010 to December 201 2 ||Asstt. Commissioner of Central Excise |
|CENVAT Credit Rules 2004 and Central Excise Act 1944 ||Availing of and Utilisation of CENVAT Credit ||71534 ||January 2013 to November 201 3 ||Asstt. Commissioner of Central Excise |
c) According to the information and explanations given to us there were no amount duewhich is required to betransferred to Investor Education and Protection Fund in accordancewith the relevant provisions of the Companies Act 1956 (1 of 1956) and rules made thereunder.
viii. In our opinion the accumulated losses of the Company as at the end of thefinancial year have not exceeded fifty percent of its net worth. The Company has notincurred cash losses during the financial year covered by our audit but has incurred cashlosses inthe immediately precedingfinancial year.
ix. In our opinion and according to the information and explanations given to us theCompany has not obtained any loan from Bank or Financial Institution or issued anydebentures.Accordingly clause 3(ix) of the Order is not applicable.
x. According to the information and explanations given to us the Company has given thecorporate guarantees to banks for loans taken by an associate company and terms andconditions of which are not prima facie prejudicial to the interest of the Company.However duringthe year the Company hasexceeded the limit sanctioned bythe shareholdersforgivingcorporate guarantee.As informed to us the Company is taking necessary steps toratify the same in the ensuingAnnual General Meeting of the shareholders.
xi.According to the information and explanations given to us and on an overallexamination of the Balance Sheet we report that no term loanwas obtained by the Companyduring the year.
xii. During the course of our examination of the books of account carried out inaccordance with the generally accepted auditing practices in India and according to theinformation and explanations given to us we have neither come across any instance offraud on or by the Company noticed or reported during the year nor we have been informedof such case by the management
|Date: 30th March ||For V. SINGHI & ASSOCIATES |
|Place: Kolkata || |