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Konark Synthetic Ltd.

BSE: 514128 Sector: Industrials
NSE: N.A. ISIN Code: INE517D01019
BSE 00:00 | 17 Dec 13.58 0
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NSE 05:30 | 01 Jan Konark Synthetic Ltd
OPEN 13.58
PREVIOUS CLOSE 13.58
VOLUME 399
52-Week high 25.65
52-Week low 10.40
P/E
Mkt Cap.(Rs cr) 8
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 13.58
CLOSE 13.58
VOLUME 399
52-Week high 25.65
52-Week low 10.40
P/E
Mkt Cap.(Rs cr) 8
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Konark Synthetic Ltd. (KONARKSYNTH) - Auditors Report

Company auditors report

To

The Members of

Konark Synthetic Limited

Report on the Standalone Financial Statements

We have audited the accompanying standalone financial statements of Konark SyntheticLimited (‘the Company') which comprise the Balance Sheet as at 31 March 2018 thestatement of profit and loss cash flow statement and the statement of changes in equityfor the year then ended and a summary of significant accounting policies and otherexplanatory information.

Management's Responsibility for the Standalone Financial Statements

The Company's Board of Directors is responsible for the matters stated in Section134(5) of the Companies Act 2013 ("the Act") with respect to the preparationand presentation of these standalone financial statements that give a true and fair viewof the financial position financial performance cash flows and changes in equity of theCompany in accordance with the accounting principles generally accepted in Indiaincluding the Accounting Standards specified under Section 133 of the Act read with Rule7 of the Companies (Accounts) Rules 2014. This responsibility also includes maintenanceof adequate accounting records in accordance with the provisions of the Act forsafeguarding the assets of the Company and for preventing and detecting frauds and otherirregularities; selection and application of appropriate accounting policies; makingjudgments and estimates that are reasonable and prudent; and design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the accuracy and completeness of the accounting records relevant to thepreparation and presentation of the financial statements that give a true and fair viewand are free from material misstatement whether due to fraud or error.

Auditor's Responsibility

Our responsibility is to express an opinion on these standalone financial statementsbased on our audit.

We have taken into account the provisions of the Act the accounting and auditingstandards and matters which are required to be included in the audit report under theprovisions of the Act and the Rules made there under.

We conducted our audit in accordance with the Standards on Auditing 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 whetherthe financial statements are free from material misstatement. An audit involves performingprocedures to obtain audit evidence about the amounts and the disclosures in the financialstatements. The procedures selected depend on the auditor's judgment including theassessment of the risks of material misstatement of the financial statements whether dueto fraud or error. In making those risk assessments the auditor considers internalfinancial control relevant to the Company's preparation of the financial statements thatgive a true and fair view in order to design audit procedures that are appropriate in thecircumstances. An audit also includes evaluating the appropriateness of the accountingpolicies used and the reasonableness of the accounting estimates made by the Company'sDirectors as well as evaluating the overall presentation of 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 standalone financial statements.

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid standalone financial statements give the information requiredby the Act in the manner so required and give a true and fair view in conformity with theaccounting principles generally accepted in India of the state of affairs of the Companyas at 31 March 2018 and its Loss its cash flows and the changes in equity for the yearended on that date.

Emphasis of Matters

We draw attention to the following matters:

(i) The audited standalone financial statements for the year ended 31 March 2017 wascarried out and reported by Bhuwania & Agrawal Associate vide their audit reportdated 30 May 2017 whose report has been furnished to us by the management and which hasbeen relied upon by us for the purpose of our audit of the standalone financialstatements. Our audit report is not qualified in respect of this matter.

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 subsection (11) of section 143 ofthe Act we give in the Annexure A a statement on the matters specified in theparagraph 3 and 4 of the order.

2. As required by Section 143 (3) of the Act 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 account as required by law have been kept by theCompany so far as it appears from our examination of those books;

c) The Balance Sheet the statement of profit and loss and the cash flow statementdealt with by this Report are in agreement with the 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 the written representations received from the directors as on 31March 2018 taken on record by the Board of Directors none of the directors isdisqualified as on 31 March 2018 from being appointed as a director in terms of Section164 (2) of the Act;

f) With respect to the adequacy of the internal financial controls over financialreporting of the Company and the operating effectiveness of such controls refer to ourseparate report in "Annexure B". Our report expresses an unmodifiedopinion on the adequacy and operative effectiveness of the company's internal financialcontrols over financial reporting.

g) 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 as has been informed and thereforeno impact or disclosure in relation to the same has been made in financial statement.

ii. The Company did not have any long-term contracts including derivative contracts forwhich there were any material foreseeable losses.

iii. There are no amounts which required to be transferred to investor education andprotection fund.

For B.P. Kabra & Associates
Chartered Accountants
Firm's Registration No. 124578W
Bankat P. Kabra
Place: Mumbai Proprietor
Date:30th May 2018 Membership no. 115966

Annexure - A to the Auditors' Report

The Annexure referred to in Independent Auditors' Report to the members of the Companyon the standalone financial statements for the year ended 31 March 2018 we report that:

(i) (a) According to the information and explanations given to us the company hasmaintained proper records showing full particulars including quantitative details andsituation of fixed assets.

(b) The company has a program of physical verification of it's fixed assets which inour opinion is reasonable having regard to the size of the company and the nature of it'sassets. Pursuant to the program certain fixed assets were physically verified by themanagement during the year . According to the information and explanations given to us .no material discrepancies were noticed on such verification.

(c) As informed and explained to us the title deeds of immovable property are held inthe name of the Company

(ii) According to the information and explanations given to us physical verificationof inventory has been conducted at reasonable intervals by the management and no materialdiscrepancies were noticed on physical verification.

(iii) According to the information and explanations given to us the company has grantedtwo unsecured loans to it's subsidiaries/Associates (with interest to associates andwithout interest to subsidiary) covered under the register maintained under section 189of the Companies Act in respect of which

(a) Interest wherever charged and other terms and conditions of the grant of such loansare in our opinion prima facie not prejudicial to the company's interest.

(b) The schedule of repayment of principal and payment of interest has not beenstipulated and in the absence of such schedule we are unable to comment on the regularityof the repayment of principal and payment of interest.

(c) The loan amount is not overdue as at the year end as the loans are repayable ondemand.

(iv) In our opinion and according to the information and explanations given to us thecompany has complied with the provisions of sections 185 and 186 of the Companies Act 2013in respect of grant of loans making investments and providing guarantees and securities as applicable except that in case of one such loan where the company has not chargedthe interest.

(v) The Company has not accepted any deposits during the year and therefore compliancewith the directives issued by the Reserve Bank of India and the provisions of sections 73to 76 or any other relevant provisions of the Companies Act 2013 and the rules framedthere under may not be applicable to the Company.

(vi) The Central Government has prescribed the maintenance of cost records underSection 148(1) of the Act for the Company. We have broadly reviewed the cost recordsmaintained by the Company pursuant to the Companies (Cost Accounting Records) Rules 2011prescribed by the Central Government under Section 209(1) (d) of the Companies Act 1956and are of the opinion that prima facie the prescribed cost records have been made andmaintained. We have however not made a detailed examination of the cost records with aview to determine whether they are accurate or complete.

(vii) (a) According to the records of the Company the Company is generally regular indepositing amounts deducted/ accrued in the books of account in respect of undisputedstatutory dues including Provident Fund Employee's State Insurance Income-taxSales-tax GST Service Tax Duty of customs Duty of excise Value Added Tax Cess andother material statutory dues except for some delays in payment in such payments . Therewas no undisputed outstanding statutory dues as at the year end for a period of more thansix months from the date they became payable.

(b) There were no undisputed amounts payable in respect statutory dues like ProvidentFund Employee's State Insurance Income-tax Sales-tax GST Service Tax Duty ofcustoms Duty of excise Value Added Tax Cess in arrears as at 31 st. March 2018 forperiod of more than 6 months from the date they became payable.

(c) According to the records of the Company there are no dues outstanding of SalesTax GST Income Tax Service Tax Custom duty Wealth Tax Excise duty and Cess onaccount of any dispute.

(viii) As per the information and explanations given to us and based on our audit theCompany has not defaulted in repayment of loans or borrowings to financial institutionsbanks and government and dues to debenture holders.

(ix) The Company has not raised any money by way of initial public offer or by furtherpublic offer (including debt instruments). Further in our opinion and according to theinformation and the explanations given to us term loan obtained by company during theyear were prima facie applied by the company for the purposes for which such loans wereobtained .

(x) According to the information and explanations given to us no fraud by the companyor no material fraud on the company by it's officers or employees has been noticed orreported during the year .

(xi) In our opinion and according to the information and explanations given to us theCompany has paid/provided managerial remuneration in accordance with the requisiteapprovals mandated by the provisions of Section 197 read with Schedule V to the Act..

(xii) As the Company is not "Nidhi Company" and hence reporting under clause3(xii) of the Order is not applicable to the Company.

(xiii) As per the information and explanation given to us transactions with relatedparties have been done in compliance with provisions of Section 177 and 188 of CompaniesAct 2013 and have been suitably disclosed in the Financial Statement as required by theAccounting standard 18.

(xiv) The Company has not made any preferential allotment or private placement ofshares or fully or partly paid convertible debentures and hence clause 3 (xiv) of theOrder is not applicable to the Company.

(xv) As per the information and explanation provided to us during the year the Companyhas not entered into any non-cash transactions with Directors or persons connected withDirectors and hence paragraph 3(xv) of the Order is 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.

For B.P. Kabra & Associates
Chartered Accountants
Firm's Registration No. 124578W
Bankat P. Kabra
Place: Mumbai Proprietor
Date:30th May 2018 Membership no. 115966

Annexure - B to the Auditors' Report

Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143 of the Companies Act 2013 ("the Act")

We have audited the internal financial controls over financial reporting of KonarkSynthetic Limited ("the Company") as of 31 March 2018 in conjunction withour audit of the standalone financial statements of the Company for the year ended on thatdate.

Management's Responsibility for Internal Financial Controls

The Company's management is responsible for establishing and maintaining internalfinancial controls based on the internal control over financial reporting criteriaestablished by the Company considering the essential components of internal control statedin the Guidance Note on Audit of Internal Financial Controls over Financial Reportingissued by the Institute of Chartered Accountants of India (‘ICAI'). Theseresponsibilities include the design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the orderly and efficientconduct of its business including adherence to company's policies the safeguarding ofits assets the prevention and detection of frauds and errors the accuracy andcompleteness of the accounting records and the timely preparation of reliable financialinformation 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") and the Standards on Auditing issued by ICAI and deemedto be prescribed under section 143(10) of the Companies Act 2013 to the extentapplicable to an audit of internal financial controls both applicable to an audit ofInternal Financial Controls and both issued by the Institute of Chartered Accountants ofIndia. 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 over financial reporting was established andmaintained and if such controls operated effectively in all material respects.

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 risks ofmaterial 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 ofrecords that 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 unauthorized acquisition use or disposition of thecompany's assets that could have a material effect on the financial statements.

Inherent Limitations of Internal Financial Controls over 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.

Opinion

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 March 312018 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".

For B.P. Kabra & Associates
Chartered Accountants
Firm's Registration No. 124578W
Bankat P. Kabra
Place: Mumbai Proprietor
Date:30th May 2018 Membership no. 115966