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Shree Rajasthan Syntex Ltd.

BSE: 503837 Sector: Industrials
NSE: SHRERAJSYN ISIN Code: INE796C01011
BSE 13:03 | 19 Jun 9.00 -0.17
(-1.85%)
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NSE 05:30 | 01 Jan Shree Rajasthan Syntex Ltd
OPEN 9.00
PREVIOUS CLOSE 9.17
VOLUME 9000
52-Week high 21.70
52-Week low 9.00
P/E
Mkt Cap.(Rs cr) 12
Buy Price 9.01
Buy Qty 205.00
Sell Price 0.00
Sell Qty 0.00
OPEN 9.00
CLOSE 9.17
VOLUME 9000
52-Week high 21.70
52-Week low 9.00
P/E
Mkt Cap.(Rs cr) 12
Buy Price 9.01
Buy Qty 205.00
Sell Price 0.00
Sell Qty 0.00

Shree Rajasthan Syntex Ltd. (SHRERAJSYN) - Auditors Report

Company auditors report

To the Members of Shree Rajasthan Syntex Ltd.

Report on the Financial Statements

We have audited the accompanying financial statements of Shree Rajasthan Syntex Ltd.which comprise the Balance Sheet as at March 31 2017 and the Statement of Pro t and Lossand Cash Flow Statement for the year ended on 31 March 2017 and a summary of significantaccounng policies and other explanatory informaon.

Management's Responsibility for the Financial Statements

The Company's Board of Directors are responsible for the ma=ers in secon 134(5) of theCompanies Act 2013 ("the Act") with respect to the preparaon and presentaon ofthese financial statements that give a true and fair view of the financial posionfinancial performance and cash flows of the Company in accordance with the AccounngPrinciples generally accepted in India including the Accounng Standards specified underSecon 133 of the Act read with Rule 7 of the Companies (Accounts) Rules 2014. Thisresponsibility also includes the maintenance of adequate accounng records in accordancewith the provision of the Act for safeguarding of the assets of the Company and forprevenng and detecng the frauds and other irregularies; selecon and applicaon ofappropriate accounng policies; making judgments and esmates that are reasonable andprudent; and design implementaon and maintenance of internal financial control that wereoperang the ecvely for ensuing the accuracy and completeness of the accounng recordsrelevant to the preparaon and presentaon of the financial statements that give a true andfair view and are free from material misstatement whether due to fraud or error.

Auditor's Responsibility

Our responsibility is to express an opinion on these financial statements based on ouraudit. We have taken into account provisions of the Act the accounng and auding standardsand ma=ers which are required to be included in the audit report under the provisions ofthe Act and the Rules made there under.

We conducted our audit in accordance with the Standards on Auding specified under secon143(10) of the Act. Those Standards require that we comply with ethical requirements andplan and perform the audit to obtain reasonable assurance about whether the financialstatements are free from 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 control relevant to the Company's preparaon of the financial statementsthat give true and fair view in order to design audit procedures that are appropriate inthe circumstances An audit also includes evaluang the appropriateness of accounngpolicies used and the reasonableness of the accounng esmates made by Company's Directorsas well as evaluang the overall presentaon of the financial statements.

We believe that the audit evidence we have obtained is su cient and appropriate toprovide a basis for our audit opinion on the nancial statements.

Opinion

In our opinion and to the best of our informaon and according to the explanaons givento us the aforesaid Standalone financial statements give the informaon required by theAct in the manner so required and give a true and fair view in conformity with theaccounng principles generally accepted in India:

a) in the case of the Balance Sheet of the state of a airs of the Company as at March31 2017; b) in the case of the Statement of Pro t and Loss of the loss for the year endedon that date; and c) in the case of the Cash Flow Statement of the cash flows for theyear ended on that date.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor's Report) Order 2017 ("the Order")issued by the Central Government of India in terms of sub-secon (11) of secon 143 of theAct we give in the Annexure "A" statement on the ma=ers specified in paragraphs3 and 4 of the Order to the extent applicable.

2. As required by secon 143(3) of the Act we report that:

a) we have sought and obtained all the informaon and explanaons which to the best ofour 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 appears from our examinaon of those books

c) the Balance Sheet Statement of Pro t and Loss and Cash Flow Statement dealt withby this Report are in agreement with the books of account.

d) in our opinion the aforesaid financial statement comply with the Accounng Standardsspecified under Secon 133 of the Act read with Rule 7 of the Companies (Accounts) Rules2014.

e) on the basis of wrien representaons received from the directors as on March 312017 and taken on record by the Board of Directors none of the directors is disquali edas on March 31 2017 from being appointed as a director in terms of secon 164(2) of theAct.

f) with respect to the adequacy of the internal financial controls over financialreporng of the company and the operang the ecveness of such controls refer to our separatereport in Annexure "B" and

g) with respect to the other ma=ers included in the Auditor's Report in accordance withRule 11 of the Companies (Audit and Auditors) Rule 2014 in our opinion and to best of ourinformaon and according to the explana ons given to us:

i. The Company has disclosed the impact of pending ligaons on its financial posion inits financial statements - Refer Note 29(e) & 32 to the financial statements.

ii. The Company does not have any long-term contracts including derivaves contracts forwhich there were any material foreseeable losses)

iii. There has been no delay in transferring amounts required to be transferred tothe Investor Educaon and Protecon Fund by the Company.

iv. The Company has provided requisite disclosures in the financial statements as toholdings as well as dealing in specified bank notes during the period from 8 November 2016to 30 December 2016. Based on audit procedures and relying on the management representaonwe report that the disclosures are in accordance with books of account maintained by theCompany and as produced to us by the management. refer note No.39.

For M. C. BHANDARI & Co.
Chartered Accountants
FRN303002E
CA V. Chaturvedi
Place: Udaipur
Partner
Date: May 30 2017
Membership No. : 013296

ANNEXURE "A" REFERRED TO THE AUDITORS REPORT

( Referred to in our report of even date)

Annexure referred to in Point 1 of the Auditor's Report of even date to the members of

Shree Rajasthan Syntex Ltd for the year ended as on March 31 2017.

On the basis of such checks as considered appropriate and in terms of the informaon andexplanaons given to us we state as under: -

(i) a) The Company has maintained proper records showing full parculars includingquantave details and situaons of Fixed Assets.

b) As per the informaon and explanaons given to us physical veri caon of fixed assetshas been carried out in terms of the phased program of veri caon adopted by the companyand no material discrepancies were noced on such veri caon.

c) According to the informaon and explanaons given to us and on the basis of ourexaminaon of the records of the Company the tle deeds of immovable properes are held inthe name of Company.

(ii) The company has conducted physical veri caon of its inventories (excludingmaterials in transit and stock lying with third pares) at reasonable intervals. Nomaterial discrepancies were noced during physical veri caon.

(iii) The Company has granted loan to a party covered in the register maintained undersecon 189 of the Companies Act 2013 ('the Act') in earlier years.

a) In our opinion the rate of interest and other terms and condions on which the loanhad been granted to the pares listed in the register maintained under Secon 189 of the Actwas not prima facie prejudicial to the interest of the Company

b) In the case of loan granted to the party listed in the register maintained undersecon 189 of the Act the borrower has been regular in the payment of the principal andinterest as spulated.

(iv) In our opinion and according to the informaon and explanaons given to us theCompany has complied with the provisions of secon 185 and 186 of the Act with respect tothe loans and investments made.

(v) The Company has accepted deposits. To the best of our knowledge & belief thedirecves issued by the Reserve Bank of India and the provisions of secons 73 to 76 or anyother relevant provisions of the Companies Act and the rules framed there under whereapplicable have been complied with.

(vi) The Central Government has prescribed maintenance of the cost records U/S 148(1)of the Companies Act 2013 in respect to the company's products. We have broadly reviewedthe books of account & records maintained by the company in this connecon and are ofthe opinion that prima facie the prescribed accounts and records have been made &maintained. We have however not made a detailed examinaon of the records with a view todetermining whether they are accurate or complete.

(vii) (a) According to the informaon and explanaons given to us and on the basis of ourexaminaon of the records of the Company amounts deducted / accrued in the books ofaccount in respect of undisputed statutory dues including provident fund ESI income-taxsales tax value added tax duty of customs service tax cess and other materialstatutory dues have been regularly deposited except few delays during the year by theCompany with the appropriate authories. According to the informaon and explanaons given tous no undisputed amounts payable in respect of provident fund ESI income tax salestax value added tax duty of customs service tax cess and other material statutory dueswere in arrears as at 31 March 2017 for a period of more than six months from the datethey became payable.

(b) According to the informaon and explanaons given t o us there are not material duesof duty of customs which have not been deposited with the appropriate authories on accountof any dispute. However according to informaon and explanaons given to us the followingdues of income tax sales tax duty of excise and value added tax have not been depositedby the Company on account of disputes:

S. No. Name of the Statue Nature ofthe dues Amount Gross. (Rs. In lacs) Amount deposited under protest Period to which the amount relates (F.Y.) Forum where dispute is pending
1 Rajasthan Stamps Act Stamp Duty 2.70 0.90 2012-13 Tax Board Ajmer
2 Rajasthan Tax into entry of Entry tax and interest 303.40 121.31 2006-07 to 2012-13 Supreme court of India
goods into local area
Act1999
3 Central Excise Act 1994 Excise Duty and Custom Duty 1.53 1.53 2007-08 to 2008-09 Dy Commissioner / Asst
4 Central Excise Act 1994 Excise Duty and Custom Duty 77.45 22.30 1995-96 to 2007-08 Commissioner Appeals
5 Central Excise Act 1994 Excise Duty and Custom Duty 16.96 3.59 1995-96 to 2009-10 CESTAT
6 Service Tax Service Tax 17.02 4.45 2004-05 to 2009-10 CESTAT
7 Service Tax Service Tax 35.27 15.00 2004-05 to 2008-09 Commissioner (Appeals)
8 Service Tax Service Tax 1.59 1.59 2008-09 High Court of Rajasthan
9 Rajashan Value Added Tax Value added tax with RIPS 723.68 60.85 2007-08 to 2014-15 Rajasthan Tax Board Ajmer
2003

(viii) Except few delays Company has not defaulted repayment of loans or borrowings tofinancial instuons or banks. There was no

overdue loans or borrowings on balance sheet date.

(ix) The Company did not raise any money by way of inial public o er or further publico er (including debt instruments) and term

loans during the year. Accordingly paragraph 3 (ix) of the Order is not applicable.

(x) According to the informaon and explanaons given to us no material fraud by theCompany or on the Company by its o cers or employees has been noced or reported during thecourse of our audit. (xi) According to the informaon and explanaons given to us and basedon our examinaon of the records of the Company the Company has paid / provided formanagerial remuneraon in accordance with the requisite approvals mandated by theprovisions of secon 197 read with Schedule V to the Act.

(xii) In our opinion and according to the informaon and explanaons given to us theCompany is not a nidhi company. Accordingly

paragraph 3(xii) of the Order is not applicable.

(xiii) According to the informaon and explanaons given to us and based on our examinaonof the records of the Company transacons with the related pares are in compliance withsecons 177 and 188 of the Act where applicable and details of such transacons have beendisclosed in the financial statements as required by the applicable acc ounng standards.

(xiv) According to the informaon and explanaons given to us and based on our examinaonof the records of the Company the Company has made preferenal allotment of warrantsconverble in equity shares during the year. The Company has complied with the requirementof secon 42 of Companies Act 2013 and the amount raised has been ulized for the purposesfor which the funds have been raised.

(xv) According to the informaon and explanaons given to us and based on our examinaonof the records of the Company the Company has not entered into non-cash transacons withdirectors or persons connected with him. Accordingly paragraph 3(xv) of the Order is notapplicable.

(xvi) The Company is not required to be registered under secon 45-IA of the ReserveBank of India Act 1934.

For and on behalf of
For M C Bhandari & Co.
Chartered Accountants
Firm Reg. No. 303002E
Place : Udaipur CA V. CHATURVEDI
Partner
Date : 30 May 2017
Membership No. 13296

ANNEXURE - B TO THE AUDITOR'S REPORT

Report on the Internal Financial Controls under Clause (i) of Sub-Secon 3 of Secon 143of the Companies Act 2013 ("the Act")

We have audited the internal financial controls over financial reporng of ShreeRajasthan Syntex Limited ("the Company") as of 31 March 2017 in conjuncon 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 reporng criteriaestablished by the Company considering the essenal components of internal control statedin the Guidance Note on Audit of Internal Financial Controls over Financial Reporng issuedby the Instute of Chartered Accountants of India ('ICAI'). These responsibilies includethe design implementaon and maintenance of adequate internal financial controls that wereoperang the ecvely for ensuring the orderly and the cient conduct of its businessincluding adherence to company's policies the safeguarding of its assets the prevenonand detecon of frauds and errors the accuracy and completeness of the accounng recordsand the mely preparaon of reliable financial informaon as required under the CompaniesAct 2013.

Auditors' Responsibility

Our responsibility is to express an opinion on the Company's internal financialcontrols over financial reporng based on our audit. We conduct our audit in accordancewith the Guidance Note on Audit of Internal Financial Controls over Financial Reporng (the"Guidance Note") and the Standards on Auding issued by ICAI and deemed to beprescribed under secon 143(10) of the Companies Act 2013 to the extent applicable to anaudit of internal financial controls both applicable to an audit of Internal FinancialControls and both issued by the Instute of Chartered Accountants of India. ThoseStandards and the Guidance Note require that we comply with ethical requirements and planand perform the audit to obtain reasonable assurance about whether adequate internalfinancial controls over financial reporng was established and maintained and if suchcontrols operated the ecvely in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls system over financial reporng and their operang theecveness. Our audit of internal financial control over financial reporng includedobtaining an understanding of internal financial controls over financial reporngassessing the risk that a material weakness exists and tesng and evaluang the design andoperang the ecveness 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 su cient and appropriate toprovide a basis for our audit opinion on the Company's

internal financial controls system over financial reporng.

Meaning of Internal Financial Controls over Financial Reporng

A Company's internal financial control over financial reporng is a process designed toprovide reasonable assurance regarding the reliability of financial reporng and thepreparaon of financial statements for external purposes in accordance with generallyaccepted accounng principles. A company's internal financial control over financialreporng includes those policies and procedures that (1) pertain to the maintenance ofrecords that in reasonable detail accurately and fairly reflect the transacons anddisposions of the assets of the company; (2) provide reasonable assurance that transaconsare recorded as necessary to permit preparaon of financial statements in accordance withgenerally accepted principles and that receipts and expenditures of the company are beingmade only in accordance with authorisaons of management and directors of the company; and(3) provide reasonable assurance regarding prevenon or mely detecon of unauthorisedacquision use or disposion of the company's assets that could have a material the ect onthe financial statements.

Inherent Limitaons of Internal Financial Controls Over Financial Reporng

Because of the inherent limitaons of internal financial controls over financialreporng including the possibility of collusion or improper management override ofcontrols material misstatements due to error or fraud may occur and not be detected. Alsoprojecons of any evaluaon of the internal financial controls over financial reporng tofuture period are subject to the risk that the internal financial control over financialreporng may become inadequate because of changes in condions or that the degree ofcompliance with the policies or procedures may deteriorate.

Opinion

In our opinion the Company has in all material respects an adequate internalfinancial controls system over financial reporng and such internal financial controls overfinancial reporng were operang the ecvely as at 31 March 2017 based on the internalcontrol over financial reporng criteria established by the Company considering the essenalcomponents of internal control stated in the Guidance Note on Audit of Internal FinancialControls Over Financial Reporng issued by the Instute of Chartered Accountants of India.

For and on behalf of
For M C Bhandari & Co.
Chartered Accountants
Firm Reg. No. 303002E
Place : Udaipur CA V. CHATURVEDI
Date : 30 May 2017 Partner
Membership No. 13296