| We have audited the accompanying financial statements of LESHA
INDUSTRIES LIMITED ("the company"),which comprise the Balance Sheet as
at 31 March 2015, the Statement of Profit and Loss, 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 in
section 134(5) of the Companies Act, 2013 ("the Act") with respect to
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 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 the maintenance of
adequate accounting records in accordance with the provision of the Act
for safeguarding of the assets of the Company and for preventing and
detecting the 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 internal financial control, 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
thereunder.
We conducted our audit in accordance with the Standards on Auditing
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 true and fair view 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 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.
Matter of Emphasis:
* The company has in past granted/renewed loans and advances to other
companies, which has been identified as non- performing asset.
Accordingly, company has not recognized any income from the same. In
the opinion of directors, the process of recovery is going on and the
same is not fully doubtful of recovery. However in our opinion company
needs to make provision for such long outstanding non- performing
assets amounting to Rs. 135.32 lacs. Due to non-provision in this
regard the debit balance of profit & loss account is under stated and
balance of loans and advances is overstated by the said sum. This
matter been already emphasized by previous auditor.
* The company is carrying "P & P Expenses and issue related expenses"of
Rs.11,15,232/- as "other current assets" which in our opinion needs to
be write off. And Due to the same profit & loss account is under stated
and the balance of Other Current Assets is over stated by the said sum.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, except for the effects of the matter
described in the matter of emphasis paragraph above, 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;
a) in the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2015;
b) in the case of the Statement of Profit and Loss, of the profit for
the year ended on that date; and
c) in the case of the Cash Flow Statement, of the 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 in terms of Section 143 (11) of
the Act, we give in the Annexure 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 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
purposes of our audit.
b) In our opinion proper books of account 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 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 of the Companies (Accounts) Rules, 2014), together with the
early adoption by the Company of Accounting Standard (AS) 30 Financial
Instruments, Recognition and Measurement, effective April 1, 2007, and
the consequential limited revisions as has been announced by the
Institute of Chartered Accountants of India to certain Accounting
Standards, as stated in Note 2 (a) and 38.
e) On the basis of written representations received from the directors
as on 31 March, 2015, taken on record by the Board of Directors, none
of the directors is disqualified as on 31 March, 2015, from being
appointed as a director in terms of Section 164(2) of the Act.
f) With respect to the other matters included in the Auditor's Report
and to our best of our information and according to the explanations
given to us :
i. The Company does not have any pending litigations which would
impact its financial position.
ii. The Company did not have any long-term contracts including
derivatives contracts for which there were any material foreseeable
losses.
iii. There is no amount required to be transferred, to the investor's
education and protection fund by the company.
ANNEXURE TO THE INDEPENDENT AUDITORS REPORT
The annexure referred to in our report to the members of LESHA
INDUSTRIES LIMITED ('the company'), for the year ended 31st March, 2015.
We report that,
(i) In respect of its fixed assets:
a. The Company has maintained proper records showing full particulars,
including quantitative details and situation of the fixed assets.
b. Some of the fixed assets were physically verified during the year
by the Management in accordance with a programme of verification, which
in our opinion provides for physical verification of all the fixed
assets at reasonable intervals. According to the information and
explanations given to us no material discrepancies were noticed on such
verification.
(ii) In respect of its inventories:
a. As explained to us, the inventories (excluding inventories with
third parties) were physically verified during the year by the
Management at reasonable intervals.
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 were reasonable and adequate in relation to
the size of the Company and the nature of its business.
c. In our opinion and according to the information and explanations
given to us, the Company has maintained proper records of its
inventories and no material discrepancies were noticed on physical
verification.
(iii) The Company has granted loan to one related party covered in the
register maintained u/s 189 of the companies Act, 2013. The amount
involved i.e the maximum amount outstanding during the year involved in
such transaction was Rs. 263.01 lacs and the yearend balance is Nil.
a) The said loans were interest free and repayable on demand
b) There is no outstanding dues in respect of the said loan
(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 fixed assets and for the sale of services. Further, on the
basis of our examination of the books and records of the Company and
according to the information and explanations given to us, no major
weakness has been noticed or reported.
(v) According to information and explanations given to us, the Company
has not accepted any deposits from public during the year. In respect
of unclaimed deposits, the Company has complied with the provisions of
sections 73 to 76 or any other relevant provisions of the Companies
Act, 2013 and the rules made thereunder.
(vi) As informed to us, the central government has not prescribed
maintenance of cost records under sub section (1) of the section 148 of
the Act.
(vii) According to the information and explanations given to us in
respect of statutory dues:
a. The Company has generally been regular in depositing undisputed
statutory dues, including Provident Fund, Income-tax, Sales Tax, Wealth
Tax, Service Tax, Duty of customs, Duty of excise, Value added tax,
Cess and any other material statutory dues with the appropriate
authorities.
b. According to the information and explanations given to us, no
undisputed amount payable in respect of Income Tax, Wealth Tax, Service
Tax, Sales Tax, Customs Duty and Excise Duty and were in arrears, as of
31st March, 2015 for a period of more than six months from the date
they became payable.
(viii) There is no amount 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
thereunder
(ix) The Company has accumulated losses of Rs. 168.35 lacs as at the
end of financial year which is less than 50 % of net worth of the
company. Further, company has incurred cash loss of Rs. 13.45lacs
during the financial year covered under audit and also incurred cash
losses of Rs. 3.56 lacs in the immediately preceding financial year.
(x) The Company has not taken any borrowings from banks, financial
institutions or by way of debentures. Accordingly, the provisions of
clause 3(ix) of the Order are not applicable to the Company.
(xi) According to the information and explanations given to us and the
records of the Company examined by us, the Company has not given any
guarantees for loans taken by others from banks or financial
institutions. Accordingly, the provisions of clause 3(x) of the Order
are not applicable to the Company.
(xii) The Company has not taken any term loans during the year.
Accordingly the provisions of clause 3(xi) of the Order are not
applicable to the Company.
(xiii) To the best of our knowledge and according to the information
and explanations given to us, no fraud by the Company and no material
fraud on the Company has been noticed or reported during the year.
For Pradip B. Gandhi & Co.
Chartered Accountants
Frn No. 118674W
CAPradip B. Gandhi
Place : Ahmedabad Partner
Date : 30-05-2015 Membership No. 102070
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