| We have audited the accompanying financial statements of HIND SYNTEX
LIMITED ("the Company"), which comprise the Balance Sheet as at
31st March, 2015, the Statement of Profit and Loss and the Cash Flow
Statement for the year then ended, and a summary of significant
accounting policies and other explanatory information.
Management's Responsibility for the Financial Statements
The Company's Board of Directors is responsible for the matters
stated in Section 134(5) of the Companies Act, 2013 ("the Act")
with respect to the preparation and presentation of these financial
statements that give a true and fair view of the financial position,
financial performance and cash flows of the Company in accordance with
the accounting principles generally accepted in India, including the
Accounting Standards specified under Section 133 of the Act, read with
Rule 7 of the Companies (Accounts) Rules, 2014. This responsibility
also includes maintenance of adequate accounting records in accordance
with the provisions of the Act for safeguarding the assets of the
Company and for preventing and detecting frauds and other
irregularities; selection and application of appropriate accounting
policies; making judgments and estimates that are reasonable and
prudent; and design, implementation and maintenance of adequate
internal financial controls that were operating effectively for
ensuring the accuracy and completeness of the accounting records,
relevant to the preparation and presentation of the financial
statements that give a true and fair 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 our audit.
We have taken into account the provisions of the Act, the accounting
and auditing standards and matters which are required to be included in
the audit report under the provisions of the Act and the Rules made
there under.
We conducted our audit in accordance with the Standards on Auditing, as
specified under Section 143(10) of the Act. Those Standards require
that we comply with ethical requirements and plan and perform the audit
to obtain reasonable assurance about whether the financial statements
are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The
procedures selected depend on the auditor's judgment, including the
assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal financial control relevant
to the Company's preparation of the financial statements that give a
true and fair view in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing
an opinion on whether the Company has in place an adequate internal
financial controls system over financial reporting and the operating
effectiveness of such controls. An audit also incluues evaluating the
appropriateness of accounting policies used and the reasonableness of
the accounting estimates made by the Company's Directors, as well as
evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion on the financial
statements.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid financial statements give the
information required by the Act in the manner so required and give a
true and fair view in conformity with the accounting principles
generally accepted in India, of the state of affairs of the Company as
at 31 st March, 2015, 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, 2015
("the Order") issued by the Central Government of India in terms of
sub-section (11) of section 143 of the Act, we give in theAnnexure a
statement on the matters specified in paragraphs 3 and 4 of the Order.
2. As required by section 143(3) of the Act, we further report that:
a. ) we have sought and obtained all the information and explanations
which, to the best of our knowledge and belief, were necessary for the
purpose of our audit;
b. ) in our opinion, proper books of account as required by law have
been kept by the Company 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 Statement dealt with by this Report are in agreement with the
books of account;
d) in our opinion, the aforesaid financial statements comply with the
Accounting Standards specified under Section 133 of the Act, read with
Rule 7 ofthe Companies (Accounts) Rules, 2014;
e) on the basis ofthe written representations received from the
directors as on 31st March, 2015 and taken on record by the Board of
Directors, none ofthe directors is disqualified as on 31 st March, 2015
from being appointed as a director in terms of Section 164 (2) of the
Act; and
f) with respect to the other matters to be included in the Auditor's
Report in accordance with Rule 11 of the Companies (Audit and Auditors)
Rules, 2014, in our opinion and to the best of our information and
according to the explanations given to us:
i the Company does not have any pending litigations except as stated in
para vii(b) of the annexure to this report which would impact its
financial position.
ii. ) the Company did not have any long-term contracts including
derivative contracts for which there were any material foreseeable
losses, and
iii. ) there were no amounts due which were required to be transferred
to the Investor Education and Protection Fund by the Company.
Annexure to the Independent Auditor's Report
(Referred to in paragraph-1 on Other Legal and Regulatory Requirements
of our Report of even date to the members of Hind Syntex Limited on the
Financial Statements ofthe Company for the year ended 31 st March,
2015) On the basis of such checks, as we considered appropriate during
the course of our audit, we report that:
i. a) The Company is generally maintaining proper records to show full
particulars including quantitative details and situation of its Fixed
Assets.
b) As explained to us, Fixed Assets have been physically verified by
the management at regular intervals, and as informed to us no material
discrepancies were noticed on such verification.
ii. a) The inventories have been physically verified during the year at
reasonable intervals by the management. In our
opinion, the frequency of verification is reasonable.
b) In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventories
followed by the management are reasonable and adequate in relation to
the size of the Company and the nature of its business.
c) The Company is maintaining proper records of inventory. The
discrepancies noticed on verification between the
physical stocks and book records were not material in relation to the
operations of the Company and the same have been properly dealt with in
the books of account. >
iii. According to the information and explanations given to us, the
Company has not granted any loan, secured or unsecured, to companies,
firms or other parties covered in the register maintained under Section
189 of the Act. Accordingly, clause 3(iii)(a) and (b) ofthe Order are
not applicable.
iv. In our opinion and according to the information and explanations
given to us, there is an adequate internal control system commensurate
with the size of the Company and the nature of its business for the
purchase of inventories and fixed assets and for sale of products and
services. Further during the course of our audit, we have not observed
any weaknesses or continuous failure to correct any major weakness in
the aforesaid internal control system ofthe Company.
v. According to the information and explanations given to us, the
Company has not accepted any deposits from the public during the year
within the meaning of sections 73 to 76 of the Act and the rules framed
there under to the extent notified.
vi. We have broadly reviewed the books of account maintained by the
Company in respect of the products where, pursuant to the rules made by
the Central Government of India, the maintenance of cost records has
been prescribed u/s 148(1) of the Act and are ofthe opinion that prima
facie, the prescribed accounts and records have been maintained. We
have not, however, made a detailed examination ofthe records with a
view to determine whether the same are accurate or complete.
vii a) As per records of the Company and according to the information
and explanations given to us, the Company is generally
regular in depositing undisputed applicable statutory dues including
Provident Fund, Employees' State Insurance, Income Tax, Sales Tax,
Service Tax, Custom Duty, Wealth Tax, Value Added Tax, Cess and any
other statutory dues with the appropriate authorities and there are no
undisputed amount payable in respect of the same which were in arrear
as on 31 st March, 2015 for a period of more than six months from the
date the same became payable.
b) According to the information and explanations given to us, the
Company has not deposited the following dues on account of disputes
with the appropriate authorities:
Name of the statue Nature of the dues Amount in Rs.
Entry Tax Act,1976 Entry Tax 410,968
Employees' Provident
Fund and Miscellaneous Provident Fund 1,083,267
Provisions Act, 1952
CENVAT Credit Availing of and
Rules, 2004 and Central Utilisation of 76,028
Excise Act, 1944 CENVAT Credit
CENVAT Credit Rules, Availing of and 71,534
2004 and Central Excise Utilisation of
Act, 1944 CENVAT Credit
Name of the Statute Period to which Forum where dispute is
the amount relate pending
Entry Tax Act, 1976 1997-98 High Court, Indore
Employees' Provident April 2008 to Employees'Provident
Fund and Miscellaneous December 2010 Fund Appellate Tribunal,
Provisions Act, 1952 New Delhi
CENVAT Credit Rules, September 2010 Asstt. Commissioner of
2004 and Central to December 2012 Central Excise
Excise Act, 1944
CENVAT Credit Rules, January 2013 to Asstt. Commissioner of
2004 and Central November 2013 Central Excise
Excise Act, 1944
c) According to the information and explanations given to us, there
were no amount due which is required to be transferred to Investor
Education and Protection Fund in accordance with the relevant
provisions of the Companies Act, 1956 (1 of 1956) and rules made there
under.
viii. In our opinion, the accumulated losses of the Company as at the
end of the financial year have not exceeded fifty percent of its net
worth. The Company has not incurred cash losses during the financial
year covered by our audit but has incurred cash losses in the
immediately preceding financial year.
ix. In our opinion and according to the information and explanations
given to us, the Company has not obtained any loan from Bank or
Financial Institution or issued any debentures. Accordingly, clause
3(ix) of the Order is not applicable.
x. According to the information and explanations given to us, the
Company has given the corporate guarantees to banks for loans taken by
an associate company and terms and conditions of which are not prima
facie prejudicial to the interest of the Company. However, during the
year, the Company has exceeded the limit sanctioned by the shareholders
for giving corporate guarantee. As informed to us the Company is taking
necessary steps to ratify the same in the ensuing Annual General
Meeting of the shareholders.
xi. According to the information and explanations given to us and on an
overall examination of the Balance Sheet, we report that no term loan
was obtained by the Company during the year.
xii. During the course of our examination of the books of account
carried out in accordance with the generally accepted auditing
practices in India and according to the information and explanations
given to us, we have neither come across any instance of fraud on or by
the Company, noticed or reported during the year nor we have been
informed of such case by the management
For V. SINGHI & ASSOCIATES
Chartered Accountants
Firm Registration No. 311017E
(V.K.SINGHI)
Partner
Date: 30 th May, 2015 Membership No. 050051
Place; Kolkata |