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Yarn Syndicate Ltd.

BSE: 514378 Sector: Others
NSE: N.A. ISIN Code: INE564C01013
BSE 00:00 | 22 Oct 6.58 0.28
(4.44%)
OPEN

6.61

HIGH

6.61

LOW

5.99

NSE 05:30 | 01 Jan Yarn Syndicate Ltd
OPEN 6.61
PREVIOUS CLOSE 6.30
VOLUME 30242
52-Week high 6.61
52-Week low 1.72
P/E
Mkt Cap.(Rs cr) 2
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 6.61
CLOSE 6.30
VOLUME 30242
52-Week high 6.61
52-Week low 1.72
P/E
Mkt Cap.(Rs cr) 2
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Yarn Syndicate Ltd. (YARNSYNDICATE) - Auditors Report

Company auditors report

TO THE MEMBERS OF YARN SYNDICATE LIMITED

Report on the Audit of the Standalone Financial Statements Opinion

We have audited the accompanying standalone financial statements of (‘1heCompany') which comprise the Balance Sheet as at March 31 2019 the Statement of Profitand Loss (including Other Comprehensive income) the Statement of Changes in Equity andthe Statement of Cash Flows for the year ended on that date and a summary of thesignificant accounting policies and other explanatory Information (hereinafter referred toas 'the 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 ('the Act) in the manner sd required and give a true and fasview in comformity with the Indian Accounting Standards prescribed under section 133 ofthe Act read with the Companies (Indian Accounting Standards) Rules 2015 ad amendedfind AS') and other accounting principles generally accepted in India of (he stale ofaffaire of the Company as at March 31 2019 the profit and total comprehensive incomechanges in equity and its cash flows for the year ended on that date

Basis for Opinion

We conducted our audit of the standalone financial statements in accordance with theStandards on Auditing specified under section 143(10) of the Ad (SAs) Ourresponsibilities under those standards are further described it the Auditor'sResponsibilities fa the Audit of the Standalone Financial Statements section of ourreport. We are independent of the Company in accordance with the Code of Ethics- issued bythe institute of Chartered Accountants of India (ICAI) together with the independencerequirements that are relevant to our audit of the standalone financial statements underthe provisions of the Act and the Rules made there under and we have fulfiled our otherethical responsibilities in accordance with these requirements and the ICATs Code ofEthics. We believe that the audit evidence we have obtained is sufficient and appropriateto provide a basis lor our audit opinion on the standalone financial statements.

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 are addressed in the context of our audit of the standalone financialstatements as a whole and in forming our opinion (hereon and we do not provide aseparate opinion on these matters. We have determined the matters described below to bethe key audit matters to be communicated in our report.

Key Audit Matters Auditor's Response
f. Going Concern assumption As per our observation of the Financial Statements of the Company if is seen that they Company has accumulated fosses and its net worth has become almost negative as on the Balance Sheet date. These conditions along with other matters indicate the existence of a material uncertainty that may cast significant doubt about the Company's ability to continue as a going concern. However the financial statements of the Company have been prepared on a going concern basis as the management is exploring new business opportunities to sustain the Company and is of the view that the promoters have agreed to infuse funds as and when required in the foreseeable

Information other than the Standalone Financial Statements and Auditor's Report Thereon

The Company's Board of Directors is responsible for the preparation of the otherinformation. The other information comprises the information included in the ManagementDiscussion and Analysis Board's Report including Annexure to Board's Report BusinessResponsibility Report Corporate Governance and Shareholder's Information but does notinclude the standalone financial statements and our auditor's report thereon.

Our opinion on the standalone financial statements does net cover the other informationand we do net express any form of assurance conclusion thereon

In connection with our audit of the standalone financial statements our responsibilityis to read the other information and in doing so consider whether the oilier informationis materially inconsistent with the standalone financial statements or our knowledgeobtained during the 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 Board of Directors is responsible for the matters stated in section134(5) of the Act with respect to the preparation of these standalone financial statementsthat give a true and fair view of the financial position financial performance totalcomprehensive income changes in equity and cash flows of the Company in accordance withthe lnd AS and other accounting principles generally accepted in India. This responsiblyalso includes maintenance of adequate accounting records in accordance with the provisionof the Act for safeguarding up the assets of the Company and for preventing and detectingfrauds and other irregularities: selection and application of appropriate accountingpolicies' making judgements and estimates that are reasonable and prudent; and designimplementation and maintenance of adequate internal financial controls that wereoperating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the Standalone financialstatements that give a true and fair view and are free from material misstatement whetherdue to fraud or error.

In preparing the standalone financial statement management is responsible forassessing the Company's ability to continue as a going concern disclosing as applicablematters related to going concern and using the going concern basis of accounting unlessmanagerial either intends to liquidate the Company or to cease operations or has norealistic alternative but to do so.

The Board of Directors is 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 tree 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. Misstatement can arisefrom fraud or error and are considered material if individually or in the aggregate theycould reasonably be expected to influence the economic decisions of users taken on thebasis 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 standalone financialstatements whether due to fraud or error design and perform audit procedures responsiveto those risks and obtain audit evidence that is sufficient and approrpriate to provide abasis for our opinion. The risk of not detecting a material misstatement resulting fromfraud is higher than for one resulting from error as fraud may involve collusionforgery intentional omissions us misrepresentation 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 controls 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 significant doubt on the Company's abilityto continue as a going concern. If we conclude that a material uncertainty exits we arerequired to draw attention our auditor's report to the related disclosures in thestandalone financial statements or if such disclosures are inadequate lo 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 os a going concern.

• Evaluate the overall presentation structure and content of the standalonefinancial statements including the disclosures and whether the standalone financialstatements represent live underlying transactions and events in a manner that achievesfair presentation.

Materiality is the magnitude of misstatements in the standalone financial statementsthat individually or in aggregate makes it probable that the economic decisions of areasonably knowledgeable user of the financial statements may be influenced. We considerquantitative materiality and qualitative factors in (i) planning the scope of our auditwork and in evaluating the results of our work; and (ii) to evaluate the effect of anyidentified misstatements in the financial statements.

We communicate with those charged with governance regarding among other matters theplanned scope and timing of the audit significant audit findings including any significantdeficiencies 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 relaitionships 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 wo determine thesematters 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 auditor's 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 end Regulatory Requirements

1. As required by Section 143(3) of the Act based on our audit 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 cur examination of those books

c) The Balance Sheet the Statement of Profit and Loss including Other ComprehensiveIncome Statement of Changes in Equity and the Statement of Cash Flow dealt with by thisReport are in agreement with the relevant books of account.

d) In our opinion the aforesaid standalone financial statements comply with the Ind ASspecified under Section 133 of the Act read with Rule 7 of the Companies (Accounts) Rules2014

e) On the basis of the written representation received from the directors as on March31 2019 taken on record by the Board of Directors none of the directors is disqualifiedas on March 31 2019 from being appointed as a director in terms of Section 154 (2) of theAct.

I) With respect to the adequency of the internal financial controls over financialreporting of the Company and the operating effectiveness of such controls refer to ourseparate Report in ' Annexure A". Our report expresses an unmodified opinion on theadequacy and operating effectiveness of the Company's internal financial controls overfinancial 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 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 as amended inour opinion and to the best of our information and according to the explanations given tous :

i) The Company has no pending litigations as on the Balance Sheet date

ii) The Company has no material foreseeable losses on any long-term contracts includingderivative contracts.

iii) No amount was required to be transferred to the investor Education and ProtectionFund by the Company.

2. As required by the Companies [Auditor's Report] Order 2016 ["The Order")issued by the Central Government in terms of Section of the Act we give in "AnnexureB' a statement on the matters specified in paragraphs 3 and 4 of the Order

For S P Sarda & Co
Chartered Accountants
Firm's registration No. 323054E
Ankit Agarwal
Partner
Membership No. 305132
Place: Kolkata
Dated : 20th May 2019

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