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Hind Syntex Ltd.

BSE: 503881 | NSE: HINDSYNTEX | Series: NA | ISIN: INE155B01012 | SECTOR: Textiles - Spinning - Synthetic Blended

BSE Live

Mar 11, 16:00
1.66 0.00 (0.00%)
Volume
AVERAGE VOLUME
5-Day
595
10-Day
491
30-Day
541
938
  • Prev. Close

    1.66

  • Open Price

    1.66

  • Bid Price (Qty.)

    0.00 (0)

  • Offer Price (Qty.)

    1.66 (1022)

Hind Syntex is not traded on BSE in the last 30 days

NSE Live

Mar 11, 15:32
1.45 0.00 (0.00%)
Volume
AVERAGE VOLUME
5-Day
484
10-Day
454
30-Day
318
1,356
  • Prev. Close

    1.45

  • Open Price

    1.50

  • Bid Price (Qty.)

    0.00 (0)

  • Offer Price (Qty.)

    0.00 (0)

Hind Syntex is not traded on NSE in the last 30 days

Annual Report

For Year :
2015 2014 2013 2012 2011 2010 2009 2008 2006

Auditor's Report

Report on the Financial Statements We have audited the accompanying financial statements of HIND SYNTEX LIMITED (the Company), which comprise the Balance Sheet as at September 30, 2013, and the Statement of Profit and Loss and the Cash Flow Statement for the period ended, and a summary of significant accounting policies and other explanatory information. Management''s Responsibility forthe Financial Statements Management is responsible for the preparation 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 standards referred to in sub-section (3C) of section 211 of the Companies Act, 1956 (the Act). This responsibility includes the design, implementation and maintenance of internal control 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 conducted our audit in accordance with the Standards on Auditing issued by the Institute of Chartered Accountants of India. 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 judgement, 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 control relevant to the Company''s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by the management, 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 qualified audit opinion. Basis for Qualified Opinion (a) During the period ended on September 30, 2013, the Company has charged to the Statement of Profit and Loss of t 4,562,725 in respect Of Gratuity and oft 1,738,402 in respect of Compensated Absences. In the absence of detailed information from an Independent Actuary, interalia, as to the present value of obligation and employee benefits cost to be recognised respectively in the Balance Sheet and Statement of Profit & Loss, we are unable to ascertain the adjustment and the charges which should have been made to the Statement of Profit & Loss, respectively, in respect of Gratuity and Compensated Absences, as contemplated by the Accounting Standard-15 (AS-15) on- Employees Benefits [AS-15 (Revised)] and accordingly, we are unable to comment on the effect thereof on the Profit for the period and the consequential effect on the Statement of Profit & Loss, and Current Liabilities and Provisions carried forward for the period end.fRefer note No.25 of notes forming part of the financial statements) Further, in view of the absence of the information as aforesaid, the Company has not made disclosures of reconciliation of obligation, fairvalue of plan assets, Actuarial assumptions, etc. as required by AS-15 (Revised). (b) Based on a technical opinion, the Company has provided depreciation on all plant and machinery (including Power Plant) as continuous process plants at the rate pursuant to notification in GSR No.756E dated 16.12.1993 on straight line method. On the basis of the Guidance Note issued by the Institute of Chartered Accountants of India on Some Important Issues Arising From The Amendments To Schedule XIV to the Companies Act, 1956, in our opinion, depreciation should have been providedatthe rate otherthan that provided for continuous process plant Schedule XlVof the Companies Act, 1956. Had depreciation been provided at the rate other than that provided for continuous process plant, depreciation for the period would have been t 12,293,997 (instead off 47,056,590), Profit for the period (Net of Deferred Tax Assets off 11,278,723 for such depreciation) would have beent 226,346,083 (instead oft 180,304,767) and for the period end, Net Block of Fixed Assets would have been t 49,002,269 (instead off 172,109,870), Debit Balance in the Statement of Profit and Loss, after adjusting balances in Reserves and Surplus (except to the extent oft 183,744,615 on account of Capital Reserves), (Net of Deferred Tax Asset of t 39,942,261 for such depreciation) would ha ve been f 129,750,812 [instead of Debit Balance in the Statement of Profit and Loss, after adjusting balances in Reserves and Surplus (except to the extent oft 183,744,615 on account of Capital Reserves), oft 46,585,472] and there would have been Deferred Tax Asset (Net) of Rs. Nil (instead of Deferred Tax Assets (Net) oft Nil). (c) During the period ended on September 30,2013, the Company has arrived at an One Time Settlement (OTS) of dues with its lenders, the cut-off date being September 30,2012; as a result, the lenders have agreed to waive the principal amount of f174,826,7 56/-'' and such amount is credited to Capital Reserve which is not in accordance with the Accounting Standard (AS) 5 on Net Profit or Loss for the Period, Prior Period Items and Changes in Accounting Policies as notified under the Companies (Accounting Standards) Rules, 2006. In fact, the said treatment is not in line with the opinion of the Expert Advisory Committee (EAC) ofthe ICAI on Accounting treatment ofwaiver ofloan. Had the said waiver of principal amount of loan been credited to the Statement of Profit and Loss instead of the Credit reflected in Capital Reserve account, the profit for the period and the carried forward balances in Surplus under the head ''Reserves & Surplus''would have been higher by f 174,826,756. Qualified Opinion In our opinion and to the best of our information and according to the explanations given to us, except for the effects for the matter described in Basis for Qualified Opinion paragraph, the 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: a) in the case of Balance Sheet, of the state of affairs of the Company as at September 30,2013; b) in the case of Statement of Profit and Loss, of the profit forthe period ended on that date; and c) in the case of Cash Flow Statement, of the Cash Flows forthe period ended on that date. Report on Other Legal and Regulatory Requirements 1. As required by the Companies (Auditor''s Report) Order, 2003 (the Order), as amended by the Companies (Auditor''s Report) (Amendment) Order, 2004, issued by the Central Government in terms of Section 227(4A) of the Act, we give in the Annexure a statement on the matters specified in the paragraphs 4 and 5 of the Order. 2. As required by Section 227(3) of the Act, we report that: (a) We have 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 accounts as required by law have been kept by the Company so far as 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 accounts; (d) In our opinion, the Balance Sheet, the Statement of Profit and Loss and the Cash Flow Statement comply with the Accounting Standards referred to''in sub-section (3C) of Section 211 of the Companies Act, 1956; (e) On the basis of the written representations received from the Directors as on September 30, 2013, taken on record by the Board of Directors, we repdrt that none of the directors is disqualified as on September 30,2013 from being appointed as a director in terms of clause (g) of sub-section (1) of section 274 of the Companies Act, 1956. Annexure referred to in paragraph 1 under the heading of Report on Other Legal and Regulatory Requirements of our Report of even date to the members of HIND SYNTEX LIMITED on the accounts for the period ended September 30,2013 On the basis of such checks as we considered appropriate and in terms of information and explanations given to us, we state that: (i) (a) The Company is generally maintaining proper records to show full particulars, including quantitative details and situation of fixed assets. (b) As explained to us, the Company has a phased programme of physical verification of fixed assets which, in our opinion, is reasonable having regard to the size of the Company and the nature of its assets. No material discrepancies were noticed on such verification. (c) The Company has not disposed off any substantial part of its fixed assets during the period so as to affect its going concern, subject to Note 24 to the Accounts relating to assets transferred to Pillukhedi Unit from Birgod Unit. (ii) (a) The inventories have been physically verified by the management during the period. 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 physical inventories 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 accounts. (iii) (a) As per the information furnished, the Company has not granted any loans, secured or unsecured, to companies, firms or other parties covered in the register maintained under Section 301 of the Companies Act, 1956. (b) As the Company has not granted any loans, secured or unsecured to Companies, firms or other parties covered in the (c) register maintained under Section 301 of the Companies Act, 1956, Clause (iii) (b) of the Order relating to the rate of & interest and terms and conditions being prima facie prejudicial to the Company, Clause (iii) (c) relating to regularity of (d) receipt of principal amount and interest and Clause (iii) (d) relating to steps taken for recovery of overdue principal and interest of more than rupees one lakh, are not applicable. (e) During the period, the Company has not taken any loans, secured or unsecured from companies, firms or other parties covered in the register maintained under section 301 of the Act. (f) As the Company has not taken any loans, secured or unsecured from companies, firms or other parties covered in & Register maintained under Section 301 of the Act, Clause (iii) (f) of the Order relating to rate of interest and terms and (g) conditions being prima facie prejudicial to the interest of Company, Clause (iii) (g) relating to regularity in repayment of principal amount and interest, are not applicable. (iv) In our opinion and according to the information and explanations given to us, there is adequate internal control system commensurate with the size of the Company and the nature of its business for the purchase of inventory and fixed assets and for the sale of goods. As informed to us, the Company is not engaged in the sale of any services. During the course of our audit, no major weakness has been noticed in these internal control systems. (v) (a) According to the information and explanations given to us and the records of the Company examined by us, we are of the opinion that the particulars of all contracts or arrangements that need to be entered into the register maintained under section 301 of Act have been so entered; and (b) In our opinion and according to the information and explanations given to us, the transactions made in pursuance of contracts or arrangements (including purchase of services) entered into the register in pursuance of Section 301 of the Act and exceeding the value of Rup Five Lakhs in respect of any party during the year, have been made at prices which are reasonable, having regard to prevailing market prices at the relevant time, wherever applicable. (vi) In our opinion and according to the information and explanations given to us, the Company has not accepted any deposits from the public during the period. Hence, the question of complying with the directives issued by the Reserve Bank of India and provisions of Section 58A and 58AA or any relevant provision of the Act, and the rules framed there under, does not arise. Accordingly clause 4(vi) of the order is not applicable. (vii) In our opinion, the Company has an internal audit system commensurate with its size and nature of its business. (viii) We have broadly reviewed the books of accounts maintained by the Company pursuant to the rules made by the Central Government for the maintenance of Cost Records under Section 209(1 )(d) of the Companies Act, 1956, in respect of the manufacturing activities of the Company to which the said rules are applicable and are of the opinion that prima facie the prescribed accounts and records have been made and maintained. We have, however, not made a detailed examination of the records with a view to determine whether they are accurate or complete. (ix) (a) According to the information and explanations given to us and the records examined by us, the Company has been regular in depositing undisputed statutory dues including Provident Fund, Investor Education and Protection Fund, Employees'' State Insurance, Income-tax, Sales-tax, Wealth-tax, Service-tax, Customs Duty, Excise-duty, Cess and other material Statutory dues, applicable to it and there were no arrears of such statutory dues as on September 30,2013 for a period of more than six months from the date they became payable. (x) In our opinion, the accumulated losses of the Company as at the end of the financial period are more than fifty percent of its net worth. But the Company has not incurred cash losses during the period under audit. However in the immediately preceding financial period there were cash losses. (xi) In view of the sanction of CDR package and related extension of the due dates, the Company has defaulted in following repayment of dues to Banks are institutions: I. Principal Amount in X * The Company and the secured lenders had mutually agreed to arrive at consensus in respect of settlement of all the claims by the secured lenders on the Company and as a result, in pursuance to the scheme of One Time Settlement (OTS), with the cutoff date of September 30,2012, the secured lenders had agreed to settle the total outstanding (principal and interest thereon) crores (Refer Note No. 23 of notes farming part of financial statements)) (xii) Based on our examination of the records and the information and explanations given to us, the Company has not granted any loans and / or advances on the basis of security by way of pledge of shares, debentures and other securities. (xiii) As the Company is not a chit fund, Nidhi, mutual benefit fund or society the provisions of Clause 4 (xiii) of the Order are not applicable to the Company. (xiv) According to the information and explanations given to us, in our opinion the Company is not dealing or trading in shares, securities, debentures and other investments and hence, the requirements of Clause 4(xiv) of the Order are not applicable to the Company. (xv) As the Company has not given any guarantee for loans taken by others from banks or financial institutions, clause 4(xv) of the Order is not applicable to the Company. (xvi) In our opinion, the term loans availed by the Company were prima facie, applied for the purpose for which the loans were btained. (xvii)According to the information and explanations given to us and on an overall examination of the balance sheet of the Company, we report that the funds raised on short term basis have not been utilised for long term investment. (xviii)According to the information and explanations given to us, as the Company has not made any preferential allotment of shares during the period, Clause 4 (xviii) of the Order is not applicable. (xix) According to the information and explanations given to us, as the Company has not issued any debentures and hence, the question of creating security or charges in respect thereof does not arise, Clause 4 (xix) of the Order is not applicable. (xx) As the Company has not raised any money by public issues during the period, Clause4 (xx) of the Order is not applicable. (xxi) Based on the audit procedures performed and information and explanations given to us by the management, we report that no fraud on or by the Company has been noticed or reported during the course of our audit. For BANSI S. MEHTA & CO. Chartered Accountants Firm Registration No. 100991W PLACE :KOLKATA DIVYESH I. SHAH DATED :October 28,2013 Partner Membership No:37326