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Vinyl Chemicals (I) Ltd.

BSE: 524129 Sector: Others
NSE: VINYLINDIA ISIN Code: INE250B01029
BSE 00:00 | 27 Sep 220.55 -2.20
(-0.99%)
OPEN

226.00

HIGH

226.00

LOW

220.00

NSE 00:00 | 27 Sep 220.80 -1.75
(-0.79%)
OPEN

223.95

HIGH

225.85

LOW

220.00

OPEN 226.00
PREVIOUS CLOSE 222.75
VOLUME 49035
52-Week high 244.25
52-Week low 92.95
P/E 24.56
Mkt Cap.(Rs cr) 404
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 226.00
CLOSE 222.75
VOLUME 49035
52-Week high 244.25
52-Week low 92.95
P/E 24.56
Mkt Cap.(Rs cr) 404
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Vinyl Chemicals (I) Ltd. (VINYLINDIA) - Auditors Report

Company auditors report

To the Members of

Vinyl Chemicals (India) Limited

Report on the Standalone Ind AS Financial Statements Opinion

We have audited the accompanying Standalone Ind AS Financial Statements of VinylChemicals (India) Limited ("the Company") which comprise the Balance Sheetas at 31st March 2021 the Statement of Profit and Loss (including OtherComprehensive Income) the Cash Flow Statement and the Statement of Changes in the Equityfor the year then ended and a summary of the significant accounting policies and otherexplanatory information.

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid Standalone Ind AS Financial Statements give the informationrequired by the Companies Act2013 ("the Act") in the manner so required andgive a true and fair view in conformity with the Indian Accounting Standards prescribedunder Section 133 of the Act read together with the Companies (Indian Accounting Standard)Rules 2015(Ind AS) and other accounting principles generally accepted in India of thestate of affairs of the Company as at 31st March 2021 and its Profit TotalComprehensive Income its Cash Flows and Changes in the Equity for the year ended on thatdate.

Basis for Opinion

We have conducted our audit of the Standalone Ind AS Financial Statements in accordancewith the Standards on Auditing specified under Section 143(10) of the Act (SAs). Ourresponsibilities under those Standards are further described in theAuditor’sResponsibilities for the Audit of the Standalone Ind AS Financial Statements sectionof our report. We are independent of the Company in accordance with the Code of Ethicsissued by the Institute of Chartered Accountants of India (ICAI) together with theindependence requirements that are relevant to our audit of the Standalone Ind ASFinancial Statements under the provisions of the Act and the Rules made thereunder and wehave fulfilled our other ethical responsibilities in accordance with these requirementsand the ICAI’s Code of Ethics. We believe that the audit evidence we have obtained issufficient and appropriate to provide a basis for our audit opinion on the StandaloneIndAS Financial Statements.

Key Audit Matters

Key audit matters are those matters that in our professional judgment were of mostsignificancein our audit of the financial statements of the current period. We havedetermined that there are no key audit matters to communicate in our report.

Information Other than the Standalone Ind AS Financial Statements and Auditor’sReport thereon

The Company’s Board of Directors is responsible for the preparation of the otherinformation. The other information comprises of the information included in the ManagementDiscussion and Analysis Report Directors’ Report including Annexures to theDirectors’ Report Corporate Governance Report and Information for Shareholders butdoes not include the Standalone Ind AS Financial Statements and Auditor’s Reportthereon.

Our opinion on the Standalone Ind AS Financial Statements does not cover the otherinformation and we do not express any form of assurance or conclusions thereon.

In connection with our audit of the Standalone Ind AS Financial Statements ourresponsibility is to read the other information and in doing so consider whether theother information is materially inconsistent with the Standalone

Ind AS financial statements or our knowledge obtained during the course of our audit orotherwise 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 Ind AS Financial Statements

The Company's Board of Directors is responsible for the matters stated in Section134(5) of the Act with respect to the preparation of these Standalone Ind AS FinancialStatements that give a true and fair view of the financial performance positionincluding Other Comprehensive Income Cash Flows and Changes in Equity of the Company inaccordance with the accounting principles generally accepted in India including Ind AS.This responsibility also includes maintenance of adequate accounting records in accordancewith the provisions of the Act for safeguarding of the assets of the Company and forpreventing and detecting frauds and other irregularities; selection and application ofappropriate accounting policies; making judgments 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 ofaccounting records relevant to the preparation and presentation of the Standalone Ind ASFinancial Statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.

In preparing the Standalone Ind AS Financial Statements Management is responsible forassessing the Company’s ability to continue as a going concern disclosing asapplicable matters related to going concern and using the going concern basis ofaccounting unless Management either intends to liquidate the Company or to ceaseoperations or has no realistic alternative but to do so.

The Board of Directors are responsible for overseeing the Company’s financialreporting process.

Auditor's Responsibility for the Audit of Standalone Ind AS Financial statements

Our objectives are to obtain reasonable assurance about whether the Standalone Ind ASFinancial 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. Reasonableassurance is a high level of assurance but is not a guarantee that an audit conducted inaccordance with SAs will always detect a material misstatement when it exists.Misstatements can arise from fraud or error and are considered material if individuallyor in the aggregate they could reasonably be expected to influence the economic decisionsof users taken on the basis of these Standalone Ind AS 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 therisks of material misstatement of the standalone Ind AS Financial Statements whether dueto fraud or error design and perform audit procedures responsive to those risks andobtain audit evidence that is sufficient and appropriate to provide a basis for ouropinion. The risk of not detecting a material misstatement resulting from fraud is higherthan for one resulting from error as fraud may involve collusion forgery intentionalomissions misrepresentations or the override of internal control.

Obtain an understanding of internal financial controls relevant to the audit in orderto design audit procedures that are appropriate in the circumstances. Under Section143(3)(i) of the Act we are also responsible for expressing our opinion on whether theCompany has adequate internal financial control system in place and the operatingeffectiveness of such controls.

Evaluate the appropriateness of accounting policies used and the reasonableness ofaccounting estimates and related disclosures made by Management.

Conclude on the appropriateness of Management’s use of the going concern basis ofaccounting and based on the audit evidence obtained whether a material uncertainty existsrelated to events or conditions that may cast the Company’s ability to continue as agoing concern. If we conclude that a material uncertainty significant exists we arerequired to draw attention in our Auditor’s Report to the related disclosures in theStandalone Ind AS Financial Statements or if such disclosures are inadequate to modifyour opinion. Our conclusions are based on the audit evidence obtained up to the date ofour auditor’s report. However future events or conditions may cause the Company tocease to continue as a going concern.

Evaluate the overall presentation structure and content of the Standalone Ind ASFinancial Statements including the disclosures and whether the Standalone Ind ASFinancial Statements represent the underlying transactions and events in a manner thatachieves fair presentation.

Materiality is the magnitude of misstatements in the standalone Ind AS FinancialStatements that individually or in aggregate makes it probable that the economicdecisions of a reasonably knowledgeable user of the financial statements may beinfluenced. We consider quantitative materiality and qualitative factors in

(i) planning the scope of our audit work and in evaluating the results of our work; and

(ii) to evaluate the effect of any identified misstatements in the financialstatements.

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 them allrelationships and other matters that may reasonably be thought to bear on ourindependence and where applicable related safeguards.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor's Report) Order 2016 ("the Order")issued by the Government of India in terms of Section 143(11) of the Act we give in theAnnexure "A" a statement on the matters specified in paragraphs 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 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 Statement of Profit and Loss including Other ComprehensiveIncome the Cash Flow Statement and Statement of Changes in Equity dealt with by thisReport are in agreement with the books of account.

(d) In our opinion the aforesaid Standalone Ind AS Financial Statements comply withthe Accounting Standards specified under Section 133 of the Act.

(e) On the basis of the written representations received from the Directors as on 31stMarch 2021 and taken on record by the Board of Directors none of the Directors aredisqualified as on 31 st March 2021 from being appointed as a Director interms of Section 164(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 unmodified opinion onthe adequacy and operating effectiveness of the Company’s internal financial controlover financial reporting.

(g) With respect to the other matters to be included in the Auditor’s Report inaccordance with the requirements of Section 197(16) of the Act as amended:

In our opinion and to the best of our information and according to the explanationsgiven to us the remuneration paid by the Company to its Directors during the year is inaccordance with the provisions of Section 197 of the Act.

(h) 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 Standalone Ind AS Financial Statements – Refer Note 30 to theStandalone Ind AS Financial Statements;

ii. The Company did not have any long-term contracts including derivative contracts; assuch the question of commenting on any material foreseeable losses thereon does not arise;

iii. There has been no delay in transferring amounts required to be transferred to theInvestor Education and Protection Fund.

For Khanna & Panchmia

Chartered Accountants

Firm Reg. No. 136041W

Devendra Khanna

Partner

Membership No. 038987

UDIN No. : 21038987AAAAFJ7925

Place : Mumbai

Date : 10th May 2021

Annexure "A" to the Independent Auditors' Report

(Referred to in Paragraph 1 under the heading of "Report on Other Legal andRegulatory Requirements" of our report of even date)

(i) a) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.

b) As explained to us the fixed assets have been physically verified by the Managementin accordance with the phased programme of verification which in our opinion isreasonable having regard to the size of the Company and the nature of its assets.According to information and explanations given to us no material discrepancies werenoticed on such verification.

c) Based on our audit procedures performed for the purpose of reporting the true andfair view of the Financial Statements and according to information and explanations givenby the Management the title deeds of immovable properties are held in the name of theCompany.

(ii) As explained to us the inventories were physically verified during the year bythe Management at reasonable intervals and no material discrepancies were noticed on suchphysical verification.

(iii) According to the information and explanations given to us the Company has notgranted any loans secured or unsecured to companies firms Limited LiabilityPartnership or other parties covered in the register maintained under Section 189 of theAct. Accordingly Clause 3(iii)(a) (b) and (c) of the Order are not applicable and hencenot commented upon.

(iv) According to the information and explanations given to us the Company has notgranted any loans made investment or provided guarantee which are covered by theprovisions of Sections 185 and 186 of the Companies Act 2013. Hence reporting underClause 3(iv) of the Order is not applicable.

(v) The Company has not accepted any deposits from the public. Accordingly Clause 3(v)of the Order is not applicable.

(vi) The cost records prescribed under Section 148(1) of the Act are not applicable tothe Company and hence Clause 3(vi) of the Order is not applicable.

(vii) a) According to the information and explanations given to us and the records ofthe Company examined by us in our opinion the Company has generally been regular indepositing undisputed statutory dues including Provident Fund Employees' State InsuranceIncome Tax Sales Tax Service tax Goods and Services Tax Customs Duty Excise DutyValue Added Tax Cess and other statutory dues as applicable with the appropriateauthorities. There were no undisputed amounts payable in respect of Provident FundEmployees’ State Insurance Income Tax Sales Tax Service Tax Goods and ServicesTax Customs Duty Excise Duty Value Added Tax Cess and other material statutory dues inarrears as at March 31 2021 for a period of more than six months from the date theybecame payable.

(b) According to information and explanations given to us and the records of theCompany examined by us in our opinion there were no dues which have not been depositedin respect of Income Tax Sales Tax Service Tax Goods and Services Tax Customs DutyExcise Duty and Value Added Tax on account of any dispute except as mentioned below -

Name of Statute Nature of Dues Amount in Rs. Period to which the amount relates Forum where dispute is pending
Sales Tax Act Sales Tax in Various States 64471632 2005-06 to 2007-08 2009-10 2010-11 Joint Commissioner (Appeals) Maharashtra Sales Tax Tribunal

(viii) In our opinion and according to information and explanations given to us theCompany has not defaulted in repayment of loans or borrowings to banks. The Company hasnot taken loans from any financial institutions and government nor issued any debentures.

(ix) The Company has not raised moneys by way of initial public offer or further publicoffer (including debt instruments) or term loans and hence reporting under Clause 3(ix) ofthe Order is not applicable.

(x) Based upon the audit procedures performed and according to the information andexplanations given to us no fraud by the Company or any fraud on the Company by itsofficers/employees has been noticed or reported during the year nor have we been informedabout any such case by the Management.

(xi) In our opinion and according to information and explanations given to us theCompany has paid/provided remuneration in accordance with requisite approvals mandated bythe provisions of Section 197 read with Schedule V of the Companies Act 2013.

(xii) As the Company is not Nidhi Company the reporting under Clause 3(xii) of theOrder is not applicable.

(xiii) In our opinion and according to the information and explanations given to usthe Company is in compliance with Sections 177 and 188 of the Companies Act 2013 whereapplicable for all transactions with the related parties and the details of related partytransactions have been disclosed in the financial statements etc. as required by theapplicable accounting standards.

(xiv) During the year the Company has not made any preferential allotment or privateplacement of shares or fully or partly convertible debentures and hence reporting underClause 3(xiv) of the order is not applicable to the Company.

( xv) In our opinion and according to the information and explanations given to usduring the year the Company has not entered into any non-cash transactions with itsDirectors or persons connected with them and hence provisions of Section 192 of theCompanies Act 2013 are not applicable.

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

For Khanna & Panchmia

Chartered Accountants

Firm Reg. No. 136041W

Devendra Khanna

Partner

Membership No. 038987

UDIN No. : 21038987AAAAFJ7925

Place : Mumbai

Date : 10th May 2021

Annexure "B" to the Independent Auditors' Report

(Referred to in Paragraph 2 (f) under the heading of "Report on Other Legal andRegulatory Requirements" of our report of even date)

Report on the Internal Financial Controls under Clause(i) of Sub-section 3 of Section143 of the Companies Act 2013 ("the Act") over financialWe have audited theinternal financial Vinyl Chemicals (India) Limited ("the Company") as ofMarch 31 2021 in conjunction with our audit of the financial statements of the Companyfor the year ended on that date.

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. These responsibilities includethe design implementation and maintenance of adequate internal financial controls thatwere operating effectively for ensuring the orderly and efficient conduct of its businessincluding adherence to company’s policies the safeguarding of its assets theprevention and detection of frauds and errors the accuracy and completeness of theaccounting records and the timely preparation of reliable financial information asrequired under the Companies Act 2013.

Auditors’ Responsibility

Our responsibility is to express an opinion on the Company's internal financialreporting based on our controls over audit. We conducted our audit in accordance withthe Guidance Note on Audit of Internal Financial Controls over Financial Reporting (the"Guidance Note") and the Standards on Auditing to the extent applicable to anaudit of internal financial controls both issued by the Institute of CharteredAccountants of India. Those Standards and the Guidance Note require that we comply withethical requirements and plan and perform the audit to obtain reasonable assurance aboutwhether adequate internal financial controls over financial reporting were 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 control system over financial reporting and their operatingeffectiveness. Our audit of internal financial reporting included controls overobtaining an understanding of internal financial reporting assessing the risk thata material weakness controls over exists and testing and evaluating the design andoperating effectiveness of internal control based on the assessed risk. The proceduresselected depend on the auditor’s judgement 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 toCompany’s internal financial control system over financial reporting.

Meaning of Internal Financial Controls over Financial Reporting is A company'sinternal financial control over financial a process designed to provide reasonableassurance regarding the reliability of financial statements for external purposesin accordance with generally reporting and the preparation of accepted accountingprinciples. A company's financial control over financial reporting includes those policiesand internal procedures that

(1) pertain to the maintenance of records that in reasonable detail accurately andfairly reflect the transactions and dispositions of the assets of the company;

(2) provide reasonable assurance that transactions are recorded as necessary to permitpreparation of financial statements in accordance with generally accepted accountingprinciples and that receipts and expenditures of the company are being made only inaccordance with authorisations of Management and Directors of the company; and

(3) provide reasonable assurance regarding prevention or timely detection ofunauthorised acquisition use or disposition of the company's assets that could have amaterial 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 financialcontrols overfinancialreporting to future periods are subject to the risk over financial reporting maybecome inadequate because of changes in conditions or that the thattheinternalfinancialdegree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion to the best of information and explanations given to us the Companyhas in all materials respects an adequate internal financial controlfinancialreportingand such financial controls over financial reporting are operating system over effectivelyas at March 31 2021 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.

For Khanna & Panchmia

Chartered Accountants

Firm Reg. No. 136041W

Devendra Khanna

Partner

Membership No. 038987

UDIN No. : 21038987AAAAFJ7925

Place : Mumbai

Date : 10th May 2021

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