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Sintex Plastics Technology Ltd.

BSE: 540653 Sector: Industrials
NSE: SPTL ISIN Code: INE501W01021
BSE 00:00 | 18 May 6.76 0.32
(4.97%)
OPEN

6.69

HIGH

6.76

LOW

6.44

NSE 00:00 | 18 May 6.75 0.30
(4.65%)
OPEN

6.70

HIGH

6.75

LOW

6.60

OPEN 6.69
PREVIOUS CLOSE 6.44
VOLUME 299586
52-Week high 16.06
52-Week low 3.59
P/E
Mkt Cap.(Rs cr) 430
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 6.69
CLOSE 6.44
VOLUME 299586
52-Week high 16.06
52-Week low 3.59
P/E
Mkt Cap.(Rs cr) 430
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Sintex Plastics Technology Ltd. (SPTL) - Auditors Report

Company auditors report

To the Members of

Sintex Plastics Technology Limited

Report on the Audit of the Standalone Financial Statements Opinion

We have audited the standalone financial statements of Sintex Plastics TechnologyLimited ("the Company") which comprise the standalone balance sheet as at 31March 2021 and the standalone statement of profit and loss (including other comprehensiveincome) standalone statement of changes in equity and standalone statement of cash flowsfor the year then ended and notes to the standalone financial statements including asummary of the significant accounting policies and other explanatory information(hereinafter referred to as "Standalone Financial Statements").

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 Companies Act 2013 ("Act") in the manner so required and give a true andfair view in conformity with the accounting principles generally accepted in India of thestate of affairs of the Company as at 31 March 2021 and loss and other comprehensiveincome changes in equity and its cash flows for the year ended on that date.

Basis for Opinion

We conducted our audit in accordance with the Standards on Auditing (SAs) specifiedunder Section 143(10) of the Act. Our responsibilities under those SAs are furtherdescribed in the Auditor's Responsibilities for the Audit of the standalone FinancialStatements section of our report. We are independent of the Company in accordance with theCode of Ethics issued by the Institute of Chartered Accountants of India together with theethical requirements that are relevant to our audit of the standalone financial statementsunder the provisions of the Act and the Rules thereunder and we have fulfilled our otherethical responsibilities in accordance with these requirements and the Code of Ethics. Webelieve that the audit evidence we have obtained is sufficient and appropriate to providea basis for our opinion.

Emphasis of matter

i) We draw attention to Note 31 to the standalone financial statements with respect todefaulted in payment of dues to RBL Bank in respect of its borrowings as on 31 March 2020and the default continues as on 31st March 2021 the default amount as on31.03.2021 is ^62.78 Cr.

ii) We draw attention to Note 32 to the standalone financial statements with respect tothe company had given an advance of ^ 130 Cr (i.e.in FY 2019-20) to Sintex IndustriesLimited ('SIL') which is recoverable. Petition for initiation of Corporate InsolvencyResolution Process under Section 7 of the Insolvency and Bankruptcy Code 2016 have beenadmitted against M/s. Sintex Industries Limited.

iii) We draw attention to Note 33 to the standalone financial statements with respectto assessment of the recoverability of certain assets the management has consideredinternal and external information up to the date of this report in respect of the currentand estimated future global including Indian economic indicators consequent to the globalhealth pandemic of Covid 19. The actual impact of the pandemic may be different from thatconsidered in assessing the recoverability of these assets.

Our Opinion is not modified in respect of above matters.

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 were addressed in the context of our audit of the standalone financialstatements as a whole and in forming our opinion thereon and we do not provide aseparate opinion on these matters.

The key audit matter How the matter was addressed in our audit
Recoverability of carrying value of investment in subsidiaries and loan given to subsidiaries Our key procedures include the below amongst others:
• Checking the net worth of the subsidiaries and its history of financial performance.
• The Company accounts for investments in subsidiaries at cost less accumulated impairment losses if any. Cost includes the purchase price and other costs directly attributable to the acquisition of investments. The Company has its investments in equity shares and preference shares of Sintex - BAPL Limited and equity shares of Sintex Prefab and Infra Limited. • Considering that investment in subsidiary company is recorded at cost checked whether subsidiary company has made any provision for impairment in its books in accordance with Ind AS 36.
The carrying value of investment in subsidiaries as at 31 March 2021 is of Rs 304.80 crores and Rs 177.75 crores to Sintex Prefab and Infra Limited and Sintex BAPL Limited respectively. The carrying value of loan given to subsidiary as at 31 March 2021 is Rs 13.42 crores. • In case where Company has obtained independent valuation report we have assessed the key assumptions for independent valuation obtained by management applied by comparing them with historical performance to assess the Company's ability to forecast accurately.
The assessment of recoverable amount of the Company's investment and loans receivable from subsidiaries involves significant judgement in respect of assumptions such as discount rates current work in hand future contract wins/ future business plan and the recoverability of certain receivables as well as economic assumption such as growth rate. • Performing sensitivity analysis on Key assumptions including discount rates and estimated future growth.
• Assessing the appropriateness of the relevant disclosures in the financial statements.
We focused on this area as a key audit matter due to judgement involved in forecasting future cash flows and the selection of assumptions.
Refer note 4 and 8 to the standalone Financial Statements.

We have determined that there are no other key audit matters to communicate in ourreport.

Information Other than the Consolidated Financial Statements and Auditors' ReportThereon

The Company's management and Board of Directors are responsible for the preparation ofthe other information. The other information comprises the information included in theManagement Discussion and Analysis Board's Report including Annexures to Board's ReportBusiness Responsibility Report Corporate Governance and Shareholder's Information butdoes not include the consolidated financial statements and our auditor's report thereon.

Our opinion on the consolidated financial statements does not cover the otherinformation and we do not express any form of assurance conclusion thereon. In connectionwith our audit of the consolidated financial statements our responsibility is to read theother information and in doing so consider whether the other information is materiallyinconsistent with the consolidated financial statements or our knowledge obtained duringthe course of our audit or otherwise appears to be materially misstated.

If based on the work we have performed we conclude that there is a materialmisstatement of this other information we are required to report that fact. We havenothing to report in this regard.

Management's Responsibility for the standalone Financial 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 state of affairs loss and othercomprehensive income changes in equity and cash flows of the Company in accordance withthe accounting principles generally accepted in India including the Indian AccountingStandards (Ind AS) specified under Section 133 of the Act. This responsibility alsoincludes maintenance of adequate accounting records in accordance with the provisions ofthe Act for safeguarding of the assets of the Company and for preventing and detectingfrauds and other irregularities; selection and application of appropriate accountingpolicies; making judgments and estimates that are reasonable and prudent; and designimplementation and maintenance of adequate internal financial controls that were operatingeffectively for ensuring the accuracy and completeness of the accounting records relevantto the preparation and presentation of the standalone financial statements that give atrue and fair view and are free from material misstatement whether due to fraud or error.

In preparing the standalone financial statements management and Board of Directors areresponsible for assessing the Company's ability to continue as a going concerndisclosing as applicable matters related to going concern and using the going concernbasis of accounting unless management either intends to liquidate the Company or to ceaseoperations or has no realistic alternative but to do so.

Board of Directors is also responsible for overseeing the Company's financial reportingprocess.

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 SAs will always detect a material misstatement when it exists. Misstatements canarise from fraud or error and are considered material if individually or in theaggregate they could reasonably be expected to influence the economic decisions of userstaken on the 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 risks 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 control relevant to the audit in order todesign audit procedures that are appropriate in the circumstances. Under Section 143(3)(i) of the Act we are also responsible for expressing our opinion on whether the Companyhas adequate internal financial controls with expressing our opinion on whether theCompany has adequate internal financial controls with reference to financial statements inplace and the operating effectiveness of such controls.

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

• Conclude on the appropriateness of management's use of the going concern basisof accounting and based on the audit evidence obtained whether a material uncertaintyexists related to events or conditions that may cast significant doubt on the Company'sability to continue as a going concern. If we conclude that a material uncertainty existswe are required to draw attention in our auditor's report to the related disclosures inthe standalone financial statements or if such disclosures are inadequate to modify ouropinion. Our conclusions are based on the audit evidence obtained up to the date of ourauditor's report. However future events or conditions may cause the Company to cease tocontinue 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 the audit and significant audit findings including anysignificant deficiencies in internal control that we identify during our audit.

We also provide those charged 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 thought 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 auditors' report unless law or regulation precludes 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 the Companies (Auditors' Report) Order 2016 ("the Order")issued by the Central Government in terms of Section 143 (11) of the Act we give in the"Annexure A" a statement on the matters specified in paragraphs 3 and 4 of theOrder to the extent applicable.

(A) 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 standalone balance sheet the standalone statement of profit and loss (includingother comprehensive income) the standalone statement of changes in equity and thestandalone statement of cash flows dealt with by this Report are in agreement with thebooks of account.

d) In our opinion the aforesaid standalone financial statements comply with the Ind ASspecified under Section 133 of the Act.

e) On the basis of the written representations received from the directors as on 31March 2021 taken on record by the Board of Directors none of the directors isdisqualified as on 31 March 2021 from being appointed as a director in terms of Section164(2) of the Act.

f) In our opinion and according to the information and explanations given to us theCompany has not paid any remuneration to its directors during the current year andaccordingly the compliance with the provisions of Section 197 of the Act read withSchedule V is not applicable to the Company.

g) With respect to the adequacy of the internal financial controls with reference tofinancial statements of the Company and the operating effectiveness of such controlsrefer to our separate Report in "Annexure B".

(B) With respect to the other matters to be included in the Auditors' 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 which would impact its financialposition.

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

iii. There were no amounts which were required to be transferred to the InvestorEducation and Protection Fund by the Company.

For M/s. Prakash Tekwani & Associates
Chartered Accountants
Firm's Registration No. 120253W
Prakash U. Tekwani
Proprietor
Place : Ahmedabad Membership No. 108681
Date : 28th June 2021 UDIN : 21108681AAAACO3926

ANNEXURE A - to the Independent Auditors' Report

for the period ended March 2021 (Referred to in our report of even date)

The Annexure referred to in Independent Auditor's Report to the members of the Companyon the standalone financial statements for the year ended 31 March 2021 we report thefollowing:

(i) The Company does not have any fixed assets hence paragraph 3(i) of the order isnot applicable to the company

(ii) The Company does not have any inventory. Accordingly the provisions of clause3(ii) of the Order are not applicable

(iii) The Company has granted unsecured loans to one subsidiary companies covered inthe register maintained under section 189 of the Act; and with respect to the same;

(a) In our opinion the terms and conditions of the grant of such loans are not primafacie prejudicial to the interest of the Company.

(b) There is no stipulation for the repayment of principal and payment of interest.

(c) Since the schedule of repayment has not been stipulated the provisions of clause3(iii) (c) of the Order are not applicable to the Company

The Company has not granted any loans to firms Limited Liability Partnership or otherparties covered in the register required to be maintained under section 189 of the Act.

(iv) In our opinion and according to the information and explanations given to us theCompany has complied with provision of section 185 and 186 of the Act with respect toloans guarantees and investments.

(v) In our opinion and according to the information and explanations given to us theCompany has not accepted deposits from public in accordance with the provisions ofSections 73 to 76 or any other relevant provisions of the Act and the rules framedthereunder. Accordingly paragraph 3 (v) of the Order is not applicable to the Company.

(vi) According to information and explanation given to us the Central government hasnot prescribed the maintenance of cost records under section 148(1) of the Act for any ofthe products manufactured or service rendered by the Company. Accordingly paragraph 3(vi)of the Order is not applicable to the Company.

(vii) (a) According to the information and explanations given to us and on the basis ofour According to the information and explanations given to us and on

the basis of our examination of the records of the Company amounts deducted / accruedin the books of account in respect of undisputed statutory dues including provident fundIncome tax Goods and Service tax and other material statutory dues as applicable havebeen regularly deposited during the year by the Company with the appropriate authorities.As explained to us the provisions relating to Employees' State Insurance is notapplicable to the Company

(b) According to the information and explanations given to us there are no dues ofIncome-tax Sales-tax Service tax and Goods and service tax which have not beendeposited with the appropriate authorities on account of any dispute.

(viii) The Company has defaulted in repayment of dues to banks. Lender wise details ofdefaults in repayment of Term Loan and interest are given below:

(^ (Rs in crores)

Name of lenders Principal Interest Period of Default since
RBL Bank 38.35 24.43 September 01 2019

(ix) According to information and explanations given to us money raised by way of termloans during the year under review were applied for the purpose for which those wereraised. The Company has not raised money by way of initial public offer or further publicoffer (including debt instrument) during the period under audit.

(x) During the course of our examination of the books and records of the Companycarried out in accordance with the generally accepted auditing practices in India andaccording to the information and explanations given to us we have neither come across anyinstance of fraud by the Company or on the Company by its officers or employees noticedor reported during the year nor have we been informed of any such case by the management.

(xi) According to the information and explanations give to us and based on ourexamination of the records of the Company the Company has not paid / provided formanagerial remuneration.

(xii) In our opinion and according to the information and explanations given to us theCompany is not a Nidhi company as prescribed under Section 406 of the Act. Accordinglyparagraph 3(xii) of the Order is not applicable.

(xiii) According to the 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 details of suchtransactions have been disclosed in the standalone financial statements as required by theapplicable accounting standards.

(xiv) According to the information and explanations give 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. Accordingly paragraph 3 (xiv) of the Order is not applicable to the Company.

(xv) According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has not entered into non-cashtransactions within the meaning of section 192 of the Act with directors or personsconnected with him. Accordingly paragraph 3(xv) of the Order is not applicable.

(xvi) According to the information and explanations given to us the Company is notrequired to be registered under Section 45-IA of the Reserve Bank of India Act 1934.Accordingly paragraph 3(xvi) of the Order is not applicable.

For M/s. Prakash Tekwani & Associates
Chartered Accountants
Firm's Registration No. 120253W
Prakash U. Tekwani
Proprietor
Place : Ahmedabad Membership No. 108681
Date : 28th June 2021 UDIN : 21108681AAAACO3926

ANNEXURE B - to the Independent Auditors' Report

on the standalone financial statements of Sintex Plastics Technology Limited for theperiod ended 31 March 2021.

Report on the internal financial controls with reference to the aforesaid standalonefinancial statements under Clause (i) of Sub-section 3 of Section 143 of the CompaniesAct 2013

(Referred to in paragraph "1(A)(f)" under 'Report on Other Legal andRegulatory Requirements' section of our report of even date)

We have audited the internal financial controls with reference to financial statementsof Sintex Plastics Technology Limited ("the Company") as of 31 March 2021 inconjunction with our audit of the standalone financial statements of the Company for theyear ended on that date.

Management's Responsibility for Internal Financial Controls

The Company's management and the Board of Directors are responsible for establishingand maintaining internal financial controls based on the internal financial controls withreference to financial statements criteria established by the Company considering theessential components of internal control stated in the Guidance Note. 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 (hereinafter referred to as"the Act").

Auditors' Responsibility

Our responsibility is to express an opinion on the Company's internal financialcontrols with reference to financial statements based on our audit. We conducted our auditin accordance with the Guidance Note and the Standards on Auditing prescribed undersection 143(10) of the Act to the extent applicable to an audit of internal financialcontrols with reference to financial statements. Those Standards and the Guidance Noterequire that we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether adequate internal financial controls with reference tofinancial statements were established and maintained and whether such controls operatedeffectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls with reference to financial statements and their operatingeffectiveness. Our audit of internal financial controls with reference to financialstatements included obtaining an understanding of such internal financial controlsassessing the risk that a material weakness exists and testing and evaluating the designand operating effectiveness of internal control based on the assessed risk. The proceduresdepend on the auditor's judgement including the assessment of the risks of materialmisstatement of the standalone 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 withreference to financial statements.

Meaning of Internal Financial controls with Reference to standalone financialstatements

A company's internal financial controls with reference to financial statements is aprocess designed to provide reasonable assurance regarding the reliability of financialreporting and the preparation of financial statements for external purposes in accordancewith generally accepted accounting principles. A company's internal financial controlswith reference to financial statements include those policies and procedures that (1)pertain to the maintenance of records that in reasonable detail accurately and fairlyreflect the transactions and dispositions of the assets of the company; (2) providereasonable assurance that transactions are recorded as necessary to permit preparation offinancial statements in accordance with generally accepted accounting principles and thatreceipts and expenditures of the company are being made only in accordance withauthorizations of management and directors of the company; and (3) provide reasonableassurance regarding prevention or timely detection of unauthorized acquisition use ordisposition of the company's assets that could have a material effect on the financialstatements.

Inherent Limitations of Internal Financial controls with Reference to standalonefinancial statements

Because of the inherent limitations of internal financial controls with reference tofinancial statements including the possibility of collusion or improper managementoverride of controls material misstatements due to error or fraud may occur and not bedetected. Also projections of any evaluation of the internal financial controls withreference to financial statements to future periods are subject to the risk that theinternal financial controls with reference to financial statements may become inadequatebecause of changes in conditions or that the degree of compliance with the policies orprocedures may deteriorate.

Opinion

In our opinion the Company has in all material respects adequate internal financialcontrols with reference to financial statements and such internal financial controls wereoperating effectively as at 31 March 2021 based on the internal financial controls withreference to financial statements criteria established by the Company considering theessential components of internal control stated in the Guidance Note on Audit of InternalFinancial Controls Over Financial Reporting issued by the Institute of CharteredAccountants of India (the "Guidance Note").

For M/s. Prakash Tekwani & Associates
Chartered Accountants
Firm's Registration No. 120253W
Prakash U. Tekwani
Proprietor
Place : Ahmedabad Membership No. 108681
Date : 28th June 2021 UDIN : 21108681AAAACO3926

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