The Members of
Synthiko Foils Limited
We have audited the accompanying financial statements of Synthiko Foils Limited ('theCompany') which comprise the balance sheet as at 31 March 2017 the statement of profitand loss and the cash flow statement for the year then ended and a summary of significantaccounting policies and other explanatory information.
Management's Responsibility for the Financial Statement
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 financial statements that give a true and fair view of thefinancial position financial performance and cash flows of the Company in accordance withthe accounting 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 accordance with the provisions of the Act for safeguarding the assets of the Companyand for preventing and detecting frauds and other irregularities; selection andapplication of appropriate accounting policies; making judgments and estimates that arereasonable and prudent; and design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the accuracy andcompleteness of the accounting records relevant to the preparation and presentation ofthe financial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.
Our responsibility is to express an opinion on these financial statements based on ouraudit.
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 performing procedures to obtain audit evidence about the amounts andthe disclosures in the financial statements. The procedures selected depend on theauditor's judgment including the assessment of the risks of material misstatement of thefinancial statements whether due to fraud or error. In making those risk assessments theauditor considers 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 internal financial controls systemover financial reporting and the operating effectiveness of such controls. An audit alsoincludes evaluating the appropriateness of the accounting policies used and thereasonableness of the accounting estimates made by the Company's Directors as well asevaluating 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 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 31March 2017 and its profit and its cash flows for the year ended on that date.
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 ofthe Act and on the basis of such checks of the books and records of the Company as weconsider appropriate an according to the information and explanation given to us. We givein the Annexure 'A' a statement on the matters specified in the paragraph 3 and 4 of theOrder to the extent applicable.
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 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 financial statements comply with the AccountingStandards specified under Section 133 of the Act read with Rule 7 of the Companies(Accounts) Rules 2014;
(e) on the basis of the written representations received from the directors as on 31March 2017 taken on record by the Board of Directors none of the directors isdisqualified as on 31 March 2017 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'; and
(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 has disclosed the impact of pending litigations on its financialposition in its financial statement - Income Tax Demand of Rs.4.44 Lakhs disputed by theCompany.
ii. The Company did not have any long-term contracts including derivative contracts forwhich there were any material foreseeable losses.
iii. As there is no dividend payable by the Company. Therefore transfer amountrequired to be transferred to the Investor Education and Protection Fund is notapplicable to the Company.
For ARVIND & COMPANY
Firm Reg. No.100569W
[Arvind I. Patel]
M. No. 03259
Place : Mumbai
Date : 30/05/2017
ANNEXURE 'A' TO THE INDEPENDENT AUDITOR'S REPORT
Referred to in paragraph of the Independent Auditors' Report of even date to themembers of Synthiko Foils Limited on the financial statements for the period ended 31March 2017 we report that:
i. a) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.
b) The Company has regular programme of physical verification of its fixed assets bywhich all the assets are verified in a phased manner during the year. In our opinion thisperiodicity of physical verification is reasonable having regard to the size of theCompany and the nature of its assets. We are informed that no material discrepancies werenoticed in respect of the assets physically verified during the year.
c) According to the information and explanation given to us on the basis of ourexamination of the records of the Company the title deeds of the immovable properties areheld in the name of company
ii. The physical verification of inventory has been conducted at reasonable interval bythe management during the year and the discrepancies noticed on physical verification ofinventory as compared to book records were not material and have been appropriately dealtwith in the books of accounts.
iii. The Company has not granted any loans secured or unsecured to Companies firmsLimited Liability Partnerships (LLP) or other parties covered in the register maintainedunder section 189 of the Companies Act 2013. Accordingly the provisions stated inparagraph 3 (iii) (a) to (c) of the order are not applicable to the Company.
iv. The Company has taken loans from directors covered in the Register maintained underSection 301 of the Companies Act 1956. In our opinion other terms and conditions onwhich these loans have been taken are not prima facie prejudicial to the interest of theCompany. The maximum amount involved during the year and year- end balance in respect ofthese loans was Rs.1.10 Cr.& Rs.55.85 Lakhs Companies under the same managementrespectively.
v. The Company has not accepted any deposits from public in accordance with theprovisions of section 73 to 76 of the Companies Act 2013 and Rules framed there under tothe extent notified.
vi. Pursuant to the rules made by the Central Government of India the Company is notrequired to maintain cost records as specified under provisions of sub-section (1) ofsection 148 of the Act in respect of its products.
vii. a) According to the records of the Company and as per the information andexplanations given to us the Company has been generally regular in depositing withappropriate authorities undisputed statutory dues including provident fund income-taxsales-tax wealth tax service tax duty of customs duty of excise value added tax cessand any other statutory dues applicable with the appropriate amount.
According to the information and explanation given to us no undisputed amounts arepayable in respect of provident fund employees' state insurance income-tax sales-taxwealth tax service tax duty of customs duty of excise value added tax cess and anyother statutory dues which were applicable to it were in arrears as at 31stMarch 2017 for a period of more than six months from the date they became payable.
(b) According to the information and explanation given to us the following dues havenot been deposited by the Company on account of disputes with appropriate authorities
|Name of the Statute ||Nature of the Dues ||Financial Year ||Amount (Rs. in Lacs) ||Rectification u/s. 154 of the Income Tax Act 1961 ||Forum where dispute is pending |
|The Income Tax Act 1961 ||Assessment Dues ||2010-11 ||1.74 ||19/04/2016 ||I.T.O.13(2)(4) of the Income Tax Act |
| || ||2012-13 ||2.70 ||19/04/2016 ||I.T.O.13(2)(4) of the Income Tax Act |
|The Sales Tax Act ||Assessment Dues ||2011-12 ||51428.00 || ||DCIT (Sales Tax) |
| || ||2012-13 ||73789.00 || ||DCIT (Sales Tax) |
viii. The Company does have any loans or borrowings from any financial institutiongovernment or debenture holders during the year. Accordingly paragraph 3(viii) of theOrder is not applicable.
ix. The Company did not raise any money by way of initial public offer or furtherpublic offer (including debt instruments) and term loans during the year. Accordinglyparagraph 3 (ix) of the Order is not applicable.
x. According to the information and explanations given to us no material fraud by theCompany or on the Company by its officers or employees has been noticed or reported duringthe year nor have been informed of any such case by the management.
xi. Based on our audit procedures and as per the information and explanation given bythe management we are of the opinion that the Company has not defaulted in repayment ofdues to a bank. The Company did not have any outstanding debentures or dues to financialinstitution or government during the year.
xii. In our opinion and according to the information and explanations given to us theCompany is not a nidhi company. Accordingly paragraph 3(xii) of the Order is notapplicable.
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 financial statements as required by the applicableaccounting standards.
xiv. According to the information and explanations given 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 the provisions of clause 3 (xiv) of the Order are not applicable tothe Company.
According to the information and explanations given by the management the company hasnot raised any money by way of initial public offer / further public offer / debtinstruments and term loans hence reporting clause (ix) is not applicable to the Companyand hence not commented upon.
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 with directors or persons connected with him. Accordingly paragraph 3(xv) ofthe Order is not applicable.
xvi. In our opinion the Company is not required to be registered under section 45 IAof the Reserve Bank of India Act 1934 and accordingly the provisions of clause 3 (xvi)of the Order are not applicable to the Company.
For ARVIND & COMPANY
Firm Reg. No.100569W
[Arvind I. Patel]
M. No. 03259
Place : Mumbai
Date : 30/05/2017