Auditor Report of Lehar Footwears Ltd.
Mar 31, 2023
Lehar Footwears Limited
Report on the Audit of the Standalone Financial Statements
We have audited the Standalone Financial Statements of Lehar Footwears Limited ("the Company"), which comprise the balance sheet as at 31st March 2023, and the statement of Profit and Loss, and statement of cash flows for the year then ended, and notes to the standalone financial statements, including a summary of significant accounting policies and other explanatory information (hereinafter referred to as "Standalone Financials Statements")
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone financial statements give the information required by the Companies Act, 2013 ("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 31st March, 2023, and its profit (including other comprehensive income), changes in equity and its cash flows for the year ended on that date.
We conducted our audit in accordance with the Standards on Auditing (SAs) specified under section 143(10) of the Companies Act, 2013. Our responsibilities under
those Standards are further described in the Auditor''s Responsibilities for the Audit of the Financial Statements section of our report. We are independent of the Company in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India together with the ethical requirements that are relevant to our audit of the financial statements under the provisions of the Companies Act, 2013 and the Rules thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the Code of Ethics. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
The standalone financial statements of the Company for the year ended 31st March, 2022 were audited by the predecessor auditor, who have expressed an unmodified opinion on those standalone financial statements vide their audit report dated 30th May 2022.
Our Opinion is not modified in respect of above matters. KEY AUDIT MATTERS
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the standalone financial statements of the current period. These matters were addressed in the context of our audit of the standalone financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. We have determined the matter described below to be the key audit matter to be communicated in our report.
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Key Audit Matter |
Auditor''s Response |
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Revenue recognition |
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Revenue is one of the key profit drivers. Cut-off is the key assertion insofar as revenue recognition is concerned, since an inappropriate cut-off can result in material misstatement of results for the year. |
Our audit procedures with regard to revenue recognition included testing controls, around dispatches / deliveries, inventory reconciliations and substantive testing for cut-offs and analytical review procedures. |
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Discounts and Incentives: Discounts and incentives to dealers / customers are administered through various schemes including incentives. These are material items of business cost. The calculation of the amount of expense to be recognized is both voluminous, complex and involves significant judgement. There is a risk that such expense for discounts and incentives may be inaccurately recognized. |
Our audit procedures included assessment of the design and implementation of controls, in addition to testing the effectiveness of key controls in respect of recognition of the expenses for such discounts and incentives. We have considered each significant type of discount recognized and assessed the appropriateness of the judgement applied while recognizing the expenses including the methodology and inputs used in calculating the amount and in some cases, re-performed the calculation. Our audit procedures also included verification of appropriate authorization, analytical review and actual charge for the year and review of historical trends in respect |
INFORMATION OTHER THAN THE FINANCIAL STATEMENTS AND AUDITOR''S REPORT THEREON
The Company''s management and Board of Directors are responsible for the other information. The other information comprises the information included in the Management Discussion and Analysis, Board''s Report including Annexures to Board''s Report, Business Responsibility Report, Corporate Governance and Shareholder''s Information, but does not include the standalone financial statements and our auditor''s report thereon. These reports are expected to be made available to us after the date of this audit report.
Our opinion on the standalone financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.
In connection with our audit of the standalone financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the standalone financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.
RESPONSIBILITIES OF MANAGEMENT AND THOSE CHARGED WITH GOVERNANCE 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 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. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of 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.
In preparing the financial statements, the Board of Directors is responsible for assessing the Company''s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of
accounting unless the Board of Directors either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.
The Board of Directors are also responsible for overseeing the company''s financial reporting process.
AUDITOR''S RESPONSIBILITIES FOR THE AUDIT OF THE FINANCIAL STATEMENTS
Our objectives are to obtain reasonable assurance about whether the standalone financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor''s report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with SAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these standalone financial statements.
As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:
⢠Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
⢠Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances. Under Section 143(3) (i) of the Act, we are also responsible for expressing our opinion on whether the company has adequate internal financial controls with reference to standalone financial statements in place and the operating effectiveness of such controls.
⢠Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
⢠Conclude on the appropriateness of management''s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company''s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor''s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained
up to the date of our auditor''s report. However, future events or conditions may cause the Company to cease to continue as a going concern.
⢠Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
Materiality is the magnitude of misstatements in the standalone financial statements that, individually or in aggregate, makes it probable that the economic decisions of a reasonably knowledgeable user of the standalone financial statements may be influenced. 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 standalone financial statements.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.
REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS
1. As required by the Companies (Auditor''s Report) Order, 2020 ("the Order"), issued by the Central Government of India in terms of sub-section (11) of section 143 of the Companies Act, 2013, we give in the Annexure I statement on the matters specified in paragraphs 3 and 4 of the Order, 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 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 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 of the Companies (Accounts) Rules, 2014.
e) On the basis of the written representations received from the directors as on 31st March, 2023 taken on record by the Board of Directors, none of the directors is disqualified as on 31st March, 2023 from being appointed as a director in terms of Section 164(2) of the Act.
f) With respect to adequacy of Internal Financial Controls with reference to financial statements of the Company and the operating effectiveness of such controls, refer to our separate report in Annexure II. Our report expresses an Unmodified Opinion on the adequacy and operating effectiveness of the company internal financial controls over financial reporting.
g) With respect to the other matters to be included in the Auditor''s Report in accordance 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 explanations given to us, the remuneration paid by the Company to its directors during the year is in accordance with the provisions of section 197 of the Act.
h) 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 has disclosed the impact of pending litigations on its financial position in its financial statements - Refer Note No. 38 to the financial statements.
ii. The Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses.
iii. There were no amounts, which were required to be transferred to the Investor Education and Protection Fund by the Company.
iv. a) The management has represented
that Refer Note No. 42.5 to the financial statements, to the best of its knowledge and belief, no funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the company to or in any
other person(s) or entity(ies), including foreign entities ("Intermediaries"), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall, whether, directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the company ("Ultimate Beneficiaries") or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
b) The management has represented Refer Note No. 42.5 to the financial statements, that, to the best of its knowledge and belief, no funds have been received by the company from any person(s) or entity(ies), including foreign entities ("Funding Parties"), with the understanding, whether recorded in writing or otherwise, that the company shall, whether, directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party ("Ultimate Beneficiaries") or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
c) Based on the audit procedures that have been considered reasonable and appropriate in the circumstances, nothing has come to our notice that has caused us to believe that the representations under sub-clause (i) and (ii) of Rule 11 (e) as provided under (A) and (B) above contain any material misstatement.
v. Proviso to Rule 3(1) of the Companies
(Accounts) Rules, 2014 for maintaining books of account using accounting software which has a feature of recording audit trail (edit log) facility is applicable with effect from April 1st, 2023 to the Company, and accordingly, reporting under Rule 11(g) of Companies (Audit and Auditors) Rules, 2014 is not applicable for the financial year ended 31st March, 2023.
For A. Bafna & Co.
Chartered Accountants
FRN : 003660C
(CA Vivek Gupta)
Partner
M.No. 400543
UDIN : 23400543BGSOTW6621
Date: 23rd May 2023
Place: Jaipur
Mar 31, 2018
Report on the Standalone Indian Accounting Standards (Ind AS) Financial Statements
We have audited the accompanying Ind As Standalone Financial Statements of Lawreshwar Polymers Limited (âthe Companyâ), which comprise the Balance Sheet as at March 31, 2018, and the Statement of Profit and Loss, including the statement of Other Comprehensive Income, the cash flow statement and the statement of changes in equity for the year then ended, and a summary of significant accounting policies and other explanatory information (hereinafter referred to as âStandalone Financial Statementsâ).
Managementâs Responsibility for the standalone Ind AS Financial Statements
The Companyâs Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 (âthe Actâ) with respect to the preparation and presentation of these standalone Ind AS Financial Statements that give a true and fair view of the financial position, financial performance including Other Comprehensive Income, cash flows and the statement of changes in equity of the Company in accordance with the accounting principles generally accepted in India, including the Indian Accounting Standards (Ind AS) specified under section 133 of the Act, read with the Companies (Indian Accounting Standards) Rules,2015 as amended. 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 the 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 Standalone financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
Auditorâs Responsibility
Our responsibility is to express an opinion on these standalone Ind AS 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, issued by the Institute of Chartered Accountants of India, 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 standalone financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the standalone Ind AS Financial Statements. The procedures selected depend on the auditorâs judgment, including the assessment of the risks of material misstatement of the standalone financial statements, whether due to fraud or error. In making those risk assessments,the auditor considers internal financial control relevant to the Companyâs preparation of the financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Companyâs Directors, as well as evaluating the overall presentation of the Ind AS 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 standalone Ind AS Financial Statements.
Basis for Qualified Opinion
Refer Note No. 5 of Notes on standalone Ind AS Financial Statements regarding loss by fire & nonprovision of shortfall in insurance claim amounting to Rs. 1,11,74,521/-.
Qualified 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 Basis for Qualified Opinion paragraph above, the aforesaid standalone Ind AS 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 31st March,2018, and its profit (including other comprehensive income), change in equity and its cash flows for the year ended on that date.
Other Matters
The comparative financial information of the company for the year ended 31st March 2017 included in the statement, are based on the previously published Standalone financial results/statements for the said periods prepared in accordance with the Companies (Accounting Standards) Rules, 2006 and other accounting principles generally accepted in India audited by predecessor auditor and whose audit report for the year ended 31st March 2017 dated 27th May 2017 expressed an modified opinion, as adjusted for the differences in the accounting principles adopted by the company on transition to the Ind AS, which has not been audited by us.
Our Opinion is not modified in respect of above matters.
Report on Other Legal & Regulatory Requirement
1. As required by the Companies (Auditorâs Report) Order, 2016 (âthe Orderâ) issued by the Central Government of India in terms of sub-section (11) of section 143 of the Act, we give in the Annexure a statement on the matters specified in the paragraph 3 and 4 of the Order, 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 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 including Other Comprehensive Income, the cash flow statement and Statement of Changes in Equity dealt with by this Report are in agreement with the books of account;
d. In our opinion, the aforesaid standalone Ind AS Financial Statements comply with the Accounting Standards specified under Section 133 of the Act, read with Companies (Indian Accounting Standards) Rules, 2015, as amended;
e. On the basis of the written representations received from the directors as on 31 March 2018 taken on record by the Board of Directors, none of the directors is disqualified as on 31 March 2018 from being appointed as a director in terms of Section 164 (2) of the Act;
f. As required under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013, on the Internal Financial Control over Financial Reporting to the extent applicable, refer our separate report in Annexure II and
g. With respect to the other matters to be included in the Auditorâs 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 effect of pending litigations (if any) are disclosed by way of Note in the Ind AS Financial Statements. Refer Note 36 to the Ind AS financial statements;
ii. The Company did not have any long term contract including derivatives contracts for which there were any material foreseeable losses; and
iii. There were no amounts which were required to be transferred, to the Investor Education and Protection Fund by the Company.
Annexure I to the Independent Auditorsâ Report
The Annexure referred to in our Independent Auditorsâ Report to the members of the Company on the standalone Ind AS Financial Statements for the year ended 31 March 2018, we report that:
(i) a) The company has maintained proper records showing full particulars including quantitative details and situation of fixed assets.
b) All the assets have been physically verified by the management during the year and there is a regular program of verification 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 title deeds of immovable properties are held in the name of the company.
(ii) a) The inventory has been physically verified during the year by the management. In our opinion, the frequency of verification is reasonable.
b) The discrepancies noticed on physical verification of inventory as compared to book records were not material and have been properly dealt with in the books of accounts.
c) In our opinion and according to the information and explanation given to us and on the basis of our examination of the records of inventory, the company is maintaining proper records of inventory. The discrepancies noticed on physical verification of inventory as compared to book records were not material and have been properly dealt with in the books of accounts.
(iii) The Company has not granted loans to companies, firms or other parties covered in the register maintained under section 189 of the Companies Act, 2013 (âthe Actâ), hence clause (iii) (a), (b) & (c) of the order are not applicable.
(iv) In our opinion and according to the information and explanations given to us, the company has complied with the provisions of section 185 and I86 of the Companies Act, 2013 In respect of loans, investments, guarantees, and security,
(v) The Company has not accepted any deposits from the Public and hence the directives issued by the Reserve Bank of India and the provisions of Sections 73 to 76 or any other relevant provisions of the Act and the Companies (Acceptance of Deposit) Rules, 2015 with regard to the deposits accepted from the public are not applicable
(vi) According to the information & explanation given to us, the Central Government has not prescribed the maintenance of cost records under Section 148(1) of the Companies Act, 2013 in respect of manufacture of its products by the company.
(vii) In respect of statutory dues:
a) According to the records of the company, undisputed statutory dues including Provident Fund, Employeesâ State Insurance, Income Tax, Sales Tax, Service Tax, Duty of Customs, Value Added Tax, Cess and other material statutory dues have been regularly deposited during the year by the Company with the appropriate authorities except for a few delays. According to the information and explanations given to us, no disputed amount payable in respect of the aforesaid due were outstanding as at March 31, 2018for a period of more than six months from the date of becoming payable.
b) According to the information and explanation given to us, there are no pending dues of Income Tax, Sales Tax, Service Tax, Duty of Custom, Duty of Excise, Value Added Tax, Goods and service tax or Cess which are not deposited on account of dispute.
viii According to information and explanation given to us by the management, as on balance sheet date the company is not in default w.r.t. repayment of loans and borrowings to a financial institutions, banks or government, further the company has not issued any debentures.
(ix) Based upon the audit procedures performed and the information and explanations given by the management during the year under review, the company has not raised moneys by way of initial public offer or further public offer including debt instruments. To the best of our knowledge and belief and according to the Information and Explanation given to us, term loans availed by the company were prima facie applied by the company during the year for the purpose for which the loan were Obtained.
(x) Based upon the audit procedures performed and the information and explanations given by the management, we report that no fraud by the Company or on the company by its officers or employees has been noticed or reported during the year.
(xi) Based upon the audit procedures performed and the information and explanations given by the management, the managerial remuneration has been paid or provided in accordance with the requisite approvals mandated by the provisions of section 197 read with Schedule V to the Companies Act.
(xii) In our opinion, the Company is not a Nidhi Company. Therefore, the provisions of clause 4 (xii) of the Order are not applicable to the Company.
(xiii) In our opinion, all transactions with the related parties are in compliance with section 177 and 188 of Companies Act, 2013 and the details have been disclosed in the Financial Statements as required by the applicable accounting standards.
(xiv) Based upon the audit procedures performed and the information and explanations given by the management, the company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year under review. Accordingly, the provisions of clause 3 (xiv) of the Order are not applicable to the Company and hence not commented upon.
(xv) Based upon the audit procedures performed and the information and explanations given by the management, the company has not entered into any non-cash transactions with directors or persons connected with him. Accordingly, the provisions of clause 3 (xv) of the Order are not applicable to the Company and hence not commented upon.
(xvi) In our opinion, the company is not required to be registered under section 45 IA of the Reserve Bank of India Act, 1934 and accordingly, the provisions of clause 3 (xvi) of the Order are not applicable to the Company and hence not commented upon
Annexure II to the Independent Auditorsâ Report
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 (âthe Actâ)
In conjunction with our audit of the Standalone Ind AS Financial Statements of the Company as of and for the year ended March 31, 2018, We have audited the internal financial controls over financial reporting of Lawreshwar Polymers Limited (hereinafter referred to as âthe Companyâ), which is a company incorporated in India, as of that date.
Managementâs Responsibility for Internal Financial Controls
The Board of Directors of the company are responsible for establishing and maintaining internal financial controls based on the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India (ICAI). These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to the respective companyâs policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013.
Auditorsâ Responsibility
Our responsibility is to express an opinion on the Companyâs internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (the âGuidance Noteâ) and the Standards on Auditing, issued by ICAI and deemed to be prescribed under section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls, both applicable to an audit of internal financial controls and, both issued by the Institute of Chartered Accountants of India. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditorâs judgement, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Companyâs internal financial controls system over financial reporting.
Meaning of Internal Financial Controls Over Financial Reporting
A companyâs internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A companyâs internal financial control over financial reporting includes those policies and procedures that:
1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company;
2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorisations of management and directors of the company; and
3) provide reasonable assurance regarding prevention or timely detection of unauthorised acquisition, use, or disposition of the companyâs assets that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls Over Financial Reporting
Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Opinion
In our opinion, the Company has, in all material respects, an adequate internal financial control system over financial reporting and such internal financial controls over financial reporting were operating effectively as at March 31, 2018, based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India.
For Ravi Sharma & Company
Chartered Accountants
FRN: 015143C
Sd/- Date: 28th May 2018
Place: Jaipur
(CA Paras Bhatia)
Partner
M.No.: 418196
Mar 31, 2016
To
The Members of Lawreshwar Polymers Limited
Report on the Financial Statements
We have audited the accompanying standalone financial statements of Lawreshwar Polymers Limited (âthe Companyâ), which comprise the Balance Sheet as at March 31, 2016, and the Statement of Profit and Loss and Cash Flow Statement for the year then ended, and a summary of significant accounting policies and other explanatory information.
Management''s Responsibility for the standalone Financial Statements
The Company''s Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 (âthe Actâ) with respect to the preparation and presentation of these standalone 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 standalone 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 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 the 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. An audit also includes evaluating the appropriateness of the 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 standalone financial statements.
Basis for Qualified Opinion
Refer Note No. 15 of Notes on Financial Statements regarding loss by fire & no provision of shortfall in insurance claim amounting to Rs. 1,86,74,521/-.
Qualified 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 Basis for Qualified Opinion paragraph above, the aforesaid standalone 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 31st March,2015, and its profit/loss and its cash flows for the year ended on that date.
Report on Other Legal & Regulatory Requirement
1. As required by the Companies (Auditor''s Report) Order, 2016 (âthe Orderâ) issued by the Central Government of India in terms of sub-section (11) section 143 of the Act, we give in the Annexure a statement on the matters specified in the paragraph 3 and 4 of the Order, 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 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 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 standalone financial statements comply with the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014;
e. On the basis of the written representations received from the directors as on 31 March 2016 taken on record by the Board of Directors, none of the directors is disqualified as on 31 March 2016 from being appointed as a director in terms of Section 164 (2) of the Act;
f. As required under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013, on the Internal Financial Control over Financial Reporting to the extent applicable, refer our separate report in Annexure II and
g. 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 effect of pending litigations (if any) are disclosed by way of Note in the financial statements- Refer Note 34 to the financial statements;
ii. The Company did not have any long term contract including derivatives contracts for which there were any material foreseeable losses; and
iii There were no amounts which were required to be transferred, to the Investor Education and Protection Fund by the Company.
The Annexure referred to in our Independent Auditors'' Report to the members of the Company on the standalone financial statements for the year ended 31 March 2016, we report that:
(i) (a) The company has maintained proper records showing full particulars including quantitative details and situation of fixed assets.
(b) All the assets have been physically verified by the management during the year and there is a regular program of verification 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 title deeds of immovable properties are held in the name of the company.
(ii) (a) The inventory has been physically verified during the year by the management. In our opinion, the frequency of verification is reasonable
(b) The discrepancies noticed on physical verification of inventory as compared to book records were not material and have been properly dealt with in the books of accounts.
(c) In our opinion and according to the information and explanation given to us and on the basis of our examination of the records of inventory, the company is maintaining proper records of inventory. The discrepancies noticed on physical verification of inventory as compared to book records were not material and have been properly dealt with in the books of accounts.
(iii) The Company has not granted loans to companies, firms or other parties covered in the register maintained under section 189 of the Companies Act, 2013 (''the Act''), hence clause (iii) (a), (b) & (c) of the order are not applicable.
(iv) In our opinion and according to the information and explanations given to us, the company has complied with the provisions of section 185 and I86 of the Companies Act, 2013 In respect of loans, investments, guarantees, and security,
(v) The Company has not accepted any deposits from the Public and hence the directives issued by the Reserve Bank of India and the provisions of Sections 73 to 76 or any other relevant provisions of the Act and the Companies (Acceptance of Deposit) Rules, 2015 with regard to the deposits accepted from the public are not applicable
(vi) According to the information & explanation given to us the company has maintained cost accounts & records as prescribed by the central Government under Section 148(1) of the Companies Act, 2013, However we have not made a detailed of such accounts & records with a view to determine whether they are adequate or complete
(vii) (a) According to the information and explanations given to us and on the basis of
our examination of the records of the Company, amounts deducted/ accrued in the books of account in respect of undisputed statutory dues including provident fund, employees'' state insurance, income tax, sales tax, wealth tax, service tax, duty of customs, value added tax, cess and other material statutory dues to the extent applicable have been regularly deposited during the year by the Company with the appropriate authorities expert for a few delays.
According to the information and explanations given to us, no undisputed amounts payable in respect of provident fund, employee''s state insurance, income tax, sales tax, wealth tax, service tax, duty of customs, value added tax, cess and other material statutory dues were in arrears as at 31 March 2015 for a period of more than six months from the date they became payable.
(b) According to the information and explanation given to us, there are no pending dues of Income Tax, Sales Tax, Wealth Tax, Service Tax, duty of Custom, duty of Excise, Value Added Tax or Cess which are not deposited on account of dispute.
(viii) The Company have not defaulted in repayment of dues to a financial institutions, banks or debenture holders during the year.
(ix) Based upon the audit procedures performed and the information and explanations given by the management during the year under review, the company has not raised moneys by way of initial public offer or further public offer including debt instruments. To the best of our knowledge and belief and according to the information and explanation given to us, term loans availed by the company were prima facie applied by the company during the year for the purpose for which the loan were obtained.
(x) Based upon the audit procedures performed and the information and explanations given by the management, we report that no fraud by the Company or on the company by its officers or employees has been noticed or reported during the year.
(xi) Based upon the audit procedures performed and the information and explanations given by the management, the managerial remuneration has been paid or provided in accordance with the requisite approvals mandated by the provisions of section 197 read with Schedule V to the Companies Act.
(xii) In our opinion, the Company is not a Nidhi Company. Therefore, the provisions of clause 4 (xii) of the Order are not applicable to the Company.
(xii) In our opinion, all transactions with the related parties are in compliance with section 177 and 188 of Companies Act, 2013 and the details have been disclosed in the Financial Statements as required by the applicable accounting standards.
(xiv) Based upon the audit procedures performed and the information and explanations given by the management, the company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year under review. Accordingly, the provisions of clause 3 (xiv) of the Order are not applicable to the Company and hence not commented upon.
(xv) Based upon the audit procedures performed and the information and explanations given by the management, the company has not entered into any non-cash transactions with directors or persons connected with him. Accordingly, the provisions of clause 3 (xv) of the Order are not applicable to the Company and hence not commented upon.
(xvi) In our opinion, the company is not required to be registered under section 45 IA of the Reserve Bank of India Act, 1934 and accordingly, the provisions of clause 3 (xvi) of the Order are not applicable to the Company and hence not commented upon
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 (âthe Actâ)
In conjunction with our audit of the Standalone financial statements of the Company as of and for the year ended March 31, 2016, We have audited the internal financial controls over financial reporting of Lawreshwar Polymers Limited (hereinafter referred to as âthe Companyâ), which is a company incorporated in India, as of that date.
Management''s Responsibility for Internal Financial Controls
The respective Board of Directors of the company are responsible for establishing and maintaining internal financial controls based on the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India (ICAI). These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to the respective company''s policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013.
Auditors'' Responsibility
Our responsibility is to express an opinion on the Company''s internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (the âGuidance Noteâ) and the Standards on Auditing, issued by ICAI and deemed to be prescribed under section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls, both applicable to an audit of internal financial controls and, both issued by the Institute of Chartered Accountants of India. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. 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.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Company''s internal financial controls system over financial reporting.
Meaning of Internal Financial Controls Over Financial Reporting
A company''s internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company''s internal financial control over financial reporting includes those policies and procedures that:
1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company;
2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and
3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company''s assets that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls Over Financial Reporting
Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Opinion
In our opinion, the Company has, in all material respects, an adequate internal financial control system over financial reporting and such internal financial controls over financial reporting were operating effectively as at March 31, 2016, based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India.
For A.Bafna & Company
Chartered Accountants FRN: 003660C
Sd\-
(CA Vivek Gupta)
Date: 16th May 2016 Partner
Place: Jaipur M.No.: 400543
Mar 31, 2015
We have audited the accompanying standalone financial statements of
Lawreshwar Polymers Limited ("the Company"), which comprise the Balance
Sheet as at March 31,2015, and the Statement of Profit nd Loss and Cash
Flow Statement for the year then ended, and a summary of significant
accounting policies and other explanatory information.
Management's Responsibility for the standalone Financial Statements
The Company's Board of Directors is responsible for the matters stated
in Section 134(5) of the ompanies Act, 2013 ("the Act") with respect to
the preparation and presentation of these standalone 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, ncluding 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 ccounting 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 perating 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
ur responsibility is to express an opinion on these standalone
financial statements based on our audit. We have taken into account
the provisions of the Act, the accounting and auditing standards and
atters 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 isstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and the disclosures in the financial statements. The
procedures selected depend on the auditor's judgment, ncluding 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 includes valuating the
appropriateness of the 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 standalone
financial statements.
Basis for Qualified Opinion
Refer Note No. 15 of Notes on Financial Statements regarding loss by
fire & non-provision of shortfall in insurance claim amounting to Rs.
1,86,74,521/-.
Qualified 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 Basis for Qualified Opinion paragraph above, the
aforesaid standalone 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 31st March,2015, and its
profit/loss and its cash flows for the year ended on that date.
Report on Other Legal & Regulatory Requirement
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 the Annexure a
statement on the matters specified in the paragraph 3 and 4 of the
Order, 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 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 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 standalone financial statements
comply with the Accounting Standards specified under Section 133 of the
Act, read with Rule 7 of the Companies (Accounts) Rules, 2014;
e. On the basis of the 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; 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 has disclosed the impact of pending litigations on its
financial position in its financial statement - Refer Note 34 to the
financial statements;
ii. The Company did not have any long term contract including
derivatives contracts for which there were any material foreseeable
losses; and
iii. There were no amounts which were required to be transferred, to
the Investor Education and Protection Fund by the Company.
Annexure to the Independent Auditors' Report
The Annexure referred to in our Independent Auditors' Report to the
members of the Company on the standalone financial statements for the
year ended 31 March 2015, we report that:
(i) (a) The company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
(b) All the assets have been physically verified by the management
during the year and there is a regular program of verification 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.
(ii) (a) The inventory has been physically verified during the year by
the management. In our opinion, the frequency of verification is
reasonable.
(b) The procedure of physical verification of inventory followed by the
management is reasonable and adequate in relation to the size of the
company and nature of its business.
(c) In our opinion and according to the information and explanation
given to us and on the basis of our examination of the records of
inventory, the company is maintaining proper records of inventory. The
discrepancies noticed on physical verification of inventory as compared
to book records were not material and have been properly dealt with in
the books of accounts.
(iii) (a) The Company has not granted loans to companies, firms or other
parties covered in the register maintained under section 189 of the
Companies Act, 2013 ('the Act'), hence clause (iii) (a), (b) & (c) of
the 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 with regard
to purchases of inventory and fixed assets and with regard to the sale
of goods and services. During the course of our audit, we have not
observed any continuing failure to correct major weaknesses in internal
controls,
(v) The Company has not accepted any deposits from the Public.
(vi) According to the information & explanation given to us the company
has maintained cost accounts & records as prescribed by the Central
Government under Section 148(1) of the Companies Act, 2013. However we
have not made a detailed examination of such accounts & records with a
view to determine whether they are adequate or complete.
(vii) (a) According to the information and explanations given to us and
on the basis of our examination of the records of the Company, amounts
deducted/ accrued in the books of account in respect of undisputed
statutory dues including provident fund, employees' state insurance,
income tax, sales tax, wealth tax, service tax, duty of customs, value
added tax, cess and other material statutory dues to the extent
applicable have been regularly deposited during the year by the Company
with the appropriate authorities.
According to the information and explanations given to us, no
undisputed amounts payable in respect of provident fund, employee's
state insurance, income tax, sales tax, wealth tax, service tax, duty
of customs, value added tax, cess and other material statutory dues
were in arrears as at 31 March 2015 for a period of more than six
months from the date they became payable.
(b) According to the information and explanation given to us, there are
no pending dues of Income Tax, Sales Tax, Wealth Tax, Service Tax, duty
of Custom, duty of Excise, Value Added Tax or Cess which are not
deposited on account of dispute except following:
Particulars Year Amount Amount
of deposited
demand against
demand
Income Tax AY 2012- 82340/- Nil
13
Particulars Amount of Forum
demand to where
the extent appeal is
not pending
deposited
Rs.
Income Tax 82340/- CIT(Appe
als)ÂII,
Jaipur
(c) According to the information and explanations given to us, there
were no amounts which were required to be transferred to the investor
education and protection fund in accordance with the relevant
provisions of the Companies Act,and rules thereunder.
(viii) The Company does not have any accumulated losses at the end of
the financial year and has not incurred cash losses in the financial
year and in the immediately preceding financial year
(ix) The Company have not defaulted in repayment of dues to a financial
institutions, banks or debenture holders during the year
(x) In our opinion and according to the information and the
explanations given to us, the Company has not given any guarantee for
loans taken by others from banks or financial institutions.
(xi) To the best of knowledge and belief and according to the
information & explanation given to us, term loan availed by the Company
were prime facie applied by the company during the year for the purpose
for which the loan were obtained.
(xii) According to the information and explanations given to us, no
material fraud on or by the Company has been noticed or reported during
the course of our audit.
For A.Bafna & Co.
Chartered Accountants
FRN:003660C
(CA Vivek Gupta)
Date: 27 May 2015 Partner
Place: Jaipur M.No.: 400543
Mar 31, 2014
Report on the Financial Statements
We have audited the accompanying financial statements of Lawreshwar
Polymers Limited ("the Company"), which comprise the Balance Sheet as
at March 31,2014. and the Statement of Profit and Loss and 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
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 Compan/ in accordance with
the Accounting Standards referred to in sub-section (3C) of section 211
of the Companies Act, 1956 ("the Act") (which continue to be applicable
in respect of Section 133 of the Companies Act, 2013 in terms of
General Circular 15/2013 dated 13th Sept. 2013 of the Ministry of
Corporate Affairs) and in accordance with the accounting principles
generally accepted in India. 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 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 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 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 audit opinion.
Basis for Qualified Opinion
Refer Note No. 15 of Notes on Financial Statements regarding loss by
fire & non-provision of shortfall in insurance claim amounting to Rs.
1,86,74,521/-, subject to above, in our opinion and to the best of our
information and according to the explanations given to us, 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 the Balance Sheet, of the state of affairs of the
Company as at March 31,2014;
b) in the case of the Profit and Loss Account, 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 & Regulatory Requirement
1. As required by the Companies (Auditor''s Report) Order, 2003 ("the
Order") issued by the Central Government of India in terms of
sub-section (4 A) of section 227 of the Act, we give in the Annexure a
statement on the matters specified in 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 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, 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, except for the effects of matter described in Para 1
of the Basis for Qualified Opinion, the Balance Sheet, Statement of
Profit and Loss, and Cash Flow Statement comply with the Accounting
Standards referred to in subsection (3C) of section 211 of the
Companies Act. 1956.
e) on the basis of written representations received from the directors
as on March 31, 2014, and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31,2014, from being
appointed as a director in terms of clause (g) of sub-section (1) of
section 274 of the Companies Act, 1956.
Annexure to INDEPENDENT AUDITOR''S REPORT
Re: M/s Lawreshwar Polymers Limited
(i) In Respect of Its Fixed Assets:
(a) The company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets.
(b) As explained to us, all the assets have been physically verified by
the management in a phased periodical manner during the year and there
is a regular programme of verification 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 physical
verification.
(c) In our opinion, the company has not disposed off substantial part
of it''s fixed assets during the year and the going concern status of
the company is not affected.
(ii) In respect of its inventories:
(a) As explained to us, the inventory has been physically verified
during the year by the management. In our opinion, the frequency of
verification is reasonable.
(b) In our opinion and according to the information and explanation
given to us, the procedures of physical verification of inventory
followed by the management are reasonable and adequate in relation to
the size of the company and nature of its business.
(c) In our opinion and according to the information and explanation
given to us and on the basis of our examination of the records of
inventory, the company has maintained proper records of inventory. The
discrepancies noticed on physical verification of inventory as compared
to book records were not material and have been properly dealt with in
the books of accounts.
(iii) (a) According to the Information & Explanation given to us, the
company has granted loans and advances on current accounts to two
parties listed in the register maintained under Section 301 of the
Companies Act, 1956. The year ended balance of such loans as on
31.03.2014 is Rs. Nil. The maximum balance outstanding at a point of
time during the year was Rs. 4,73,81,464/-.
(b) In our opinion, the rate of interest and other terms & conditions
on which loans & deposits have been granted to the companies, firms or
other parties listed in the register maintained under Section 301 of
the Companies Act, 1956 are not prima facie prejudicial to the interest
of the company.
(c) According to information & explanations given to us, the receipt of
principal amount & interest thereon are regular.
(d) According to information & explanations given to us there is no
overdue amount in respect of such loans.
(e) The Company has not taken loans from any party covered in the
register maintained Under Section 301 of The Companies Act, 1956, hence
clauses (f) & (g) of the 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 with regard
to purchases of inventory and fixed assets and with regard to the sale
of goods and services. During the course of our audit, v/e have not
observed any continuing failure to correct major weaknesses in internal
control system.
(v) In respect of the contracts or arrangements referred to in Section
301 of The Companies Act, 1956:
(a) According to the information and explanation given to us. we are of
the opinion that the particulars of contracts or arrangements that need
to be entered in the register maintained u/s 301 of the companies act,
1956 have been so entered.
(b) In our opinion and according to the information and explanation
given to us, each of such transaction in respect of any party, listed
in the register maintained u/s 301 of The Companies Act, 1956 have been
made at prices which are prima facie reasonable having regard to the
prevailing market price at the relevanttime.
(vi) The Company has not accepted any deposits from the public during
the year and accordingly the provisions of Section 58A & Section 58AA
of the Companies (Acceptance of Deposit) rules,1975 are not applicable.
(vii) In our opinion, the company has an internal audit system
commensurate with the size and nature of its business.
(viii) The Central Government has prescribed maintenance of cost
records u/s 209(1) (d) of The Companies Act, 1956 in respect of certain
manufacturing activities of the company. We have broadly reviewed the
accounts and records of the company in this connection and are of the
opinion that prima facie, the prescribed accounts and records have been
made and maintained. We have, however not carried out a detailed
examination of such records with a view to determine whether they are
accurate or complete.
(ix) In respect of statutory dues:
(a) To the best of our knowledge and information obtained and
verifications made, we report that the company is regular in depositing
with appropriate authorities undisputed statutory dues including
provident fund, investor education protection fund, employees'' state
insurance, income tax, sales tax, wealth tax, service tax, custom duty,
excise duty, cess and other material statutory dues to the extent
applicable to it except few delays in deposition of TDS, Service Tax
and there are no undisputed amounts payable in respect of such dues
which have remained outstanding as at 31st March 2014 for a period
exceeding six months from the date of becoming payable.
(b) According to the information and explanation given to us, there are
no pending dues of Income tax, Sales tax, Wealth tax, Service tax,
Customs duty, Excise duty and cess, which are not deposited on account
of any dispute except following:
Name of the Nature of the Amount (Rs.) Period to Forum where
Statue Dues which it dispute is
relates pending
Income Tax Income Tax 104433/- 2005-2006 CIT(Appeals)-
Act,1961 Demand II, Jaipur
(x) The company does not have accumulated losses at the end of the
financial year. The company has not incurred cash losses during the
financial year covered by our audit and in the immediately preceding
financial year.
(xi) Based on our audit procedures and according to the information &
explanations given to us, we are of the opinion that the company has
not defaulted in repayment of dues to financial institutions, banks or
debenture holders.
(xii) In our opinion and according to the information and explanation
given to us & based on the information available, the company has not
granted loans and advances on the basis of security by way of pledge of
shares, debentures and other securities. Hence, the question of
maintenance of records or reporting on deficiencies does not arise.
(xiii) In our opinion, the company is not a chit fund or a Nidhi /
mutual benefit fund/ society. Therefore, the provisions of clause
4(xiii) of the Companies (Auditor''s Report) Order, 2003 are not
applicable to the company.
(xiv) In our opinion, during the year under audit, the company did not
engage in dealing or trading in shares, securities, debentures and
other investments other than disposal of some of its investments.
Accordingly, the provisions of clause 4(xiv) of the Companies
(Auditor''s Report) Order, 2003 are not applicable to the company.
(xv) According to the information and explanation given to us, the
company has not given any guarantee for loans taken by others from bank
or financial institution. Hence this clause of Companies (Auditor''s
Report) Order. 2003 is not applicable.
(xvi) In our opinion and according to the information and explanations
given to us and based on the information available, the term loan
availed by the company were, prima facie, applied by the company during
the year for the purpose for which the loans were obtained.
(xvii) According to the information and explanations given to us and on
an overall examination of the Balance Sheet of the company, we are of
the opinion that there are no funds raised on short term basis that
have been used for long-term investments.
(xviii) According to the information and explanations given to us, the
company has not made preferential allotment of shares to parties and
companies covered in the register maintained under section 301 of the
Companies Act, 1956, during the year and hence the question of whether
the price at which shares have been issued is prejudicial to the
interest of the company does not arise.
(xix) According to the information and explanations given to us. the
company has not issued any debentures during the year: hence the
question of creating security does not arise.
(xx) According to the information and explanation given to us the
company has allotted 82,50,705 equity shares of Rs. 10 each at a
premium of Rs. 6 on March 8, 2007 as Net Offer to the public during the
Financial Year 2006-2007. Management has given the details about
utilization of money raised by public issue in Notes on Financial
Statements.
(xxi) During the course of examination of the books and records of the
company, carried out in accordance with the generally accepted
accounting 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, nor we have been informed of such cases by
the management that causes the financial statements to be materially
misstated.
For A. Bafna & Company
Chartered Accountants
FRN : 003660C
(CA Vivek Gupta)
Place : Jaipur. Partner
Date: 24th May 2014 M. No. 400543
Mar 31, 2013
Report on theFinancial Statements
We have audited the accompanying financial statements of Lawreshwar
Polymers Limited ("the Company"), which comprise the Balance Sheet as
at March 31.2013. and the Statement of Profit and Loss and Cash Flow
Statement for the year then ended, and a summary of significant
accounting policies and other explanatory information.
Management''s Responsibilityfoahe 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 flaws of the Company in accordance with
the Accounting Standards referred to in sub-seclion (3C) of section 211
of Ihe 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 emar.
Auditor''s Responsibility
Our responsibility is to express an opinion on these financial
statements hased on our audit. We conducted our audit in accordance
with the Standards on Auditing issued hy 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 stalements are free
from material misstalement.
An audit involves performing procedures to obtain audit evidence about
Ihe 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 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 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 audit ?pinion.
Opinion
In our opinion and to the best of our information and according to the
expfanations given to us, the financial stalements give the information
required by the Act in the manner so required and give a true and fair
view subject to Note Mo. 15 of Notes on Financial Statements regarding
loss by fire in conformity with the accounting principles generally
accepted in India:
a} in the ca se of the Balance S heet. of the stale of affa irs of the
Company as at fvla rch 31,2013;
b) in the case of the Profit and Loss Account, of the profit for the
year ended on that date'' and
c) in the case of the Cash F low Statement, of the cash flows for the
year e nded on th a t date.
Report on Other Least & Regulatory Requirement
1. As required by the Companies {Auditor''s Report) Order. 2003 phe
Order*) issued by the Central Government of India in terms of
sub-section (4A) of section 227 of the Art, we give in the Annexure a
statement on (he matters specified in paragraphs 4 and 5 of me Order.
2. As nequi red 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 account as required by law have been
kept by the Company sq far as appears from our examination of those
books.
c) the Balance Sheet. Statement of Profit and Loss, and Cash Flow
Statement dealt with by this Re port are m agreement with the books of
account.
d} in our opinion, the Balance Sheet, Statement of Profit and Loss, and
Cash Ffow Statement comply with the Accounting Standards referred tc in
subsection (3C) of section 211 of the Companies Act, 1956. e} on the
basis of written representations received from the directors as on
March 31. 2013, and taken on record by the Board of Directors, none of
the directors is disqualified as an March 31. 2013, from being
appointed as a director in terms of cEause (g) of sub-section (1) of
section 274 of the Companies Act, 1956-
Ra: MJs Lawreshwar Polymers Limited
(i) I n Respect of Its Fixed Assets:
(a) The company has maintained proper records shewing full particulars
including quantitative detailsand situation of fixed assets.
(b) As explained to us, all the assets have been physically verified by
the management In a phased periodical manner during the year and there
is a regular programme of verification which, in our opinion is
reasonable having regard to the si2e of the company and the nature of
its assets. No material discrepancies were noticed on such physical
verification.
(c) In our opinion, the company has not disposed off substantia! part
of it''s fixed assets during the year and the going concern status of
(he company is not affected.
(ii) fn respect ofMs i nventories:
(a) As explained to us, the inventory has been physically verified
during the year by the management. In ouropinion. the frequency of
verification is reasonable.
{b) In our opinion gnd according to the information and explanation
given to us, the procedures of physical verification of inventory
followed by the management are reasonable and adequate in relation to
the size of the company and natu re of its business.
(c) In our opinion and according to the information and explanation
given to us and on the basis of our examination of the records of
inventory, the company has maintained proper records of inventory.
The discrepancies noticed on physicai verification of inventory as
compared to book records were not material and have been properly dealt
with in the books of accounts.
(a) According to the Information & Explanation given to us, the company
has granted bans and advances on current accounts to two parties listed
in the register maintained under Section 301 of the Companies Act,
19&6. The year end balance of such loans as on 31.03.2013 is Rs.
2,39,44,730V-. The maximum balance outstanding at a point of time
during the year was
Rs. 6,30,29,975/-.
(b) In our opinion, the rate of interest and olher terms & conditions
on which loans & deposits have been granted to the companies, firms or
other parties fisted in the register maintained under Section 301
oflheCompaniesAct.1956arenotprimafacieprejudicialtothein[erestofthecompany.
(c) According to information 8 explanations given to us, the receipt of
principal amount & interest thereon are regular.
(d) According to information & explanations given to us there is no
overdue amount in respect of such loans.
(e) The Company has not taken loans from any party cowered in the
register maintained Under Section 301 or The Companies Act, 1956. hence
clauses (f) & (g) of the order are not applicable.
vi 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 with regard
to purchases of inventory and fixed assets and with regard to the sale
of goods and services. During the course of our audit, we have not
observed any continuing failure to correct major weaknesses in infernal
control system.
[v) In respect of the contracts or arrangements referred to in Section
301 of The Companies Act, 1956; in) According to the information and
explanation gfven to us, we are of the opinion that the particulars of.
contracts or arrangements that need to be entered in the register
maintained u/s 301 of the companies act,: 1956 have been so entered.
(b) In our opinion and according to the information and explanation
given to us, each of such transaction in respect of any party, fisted
in the register maintained u/s 301 of The Companies Act, 1956 have been
made at prices which are prima facie reasonable having regard to the
prevailing madiet price at the relevant trme.
[vi) The Company has not accepted any deposits from the public during
the year and accordingly the provisions or Section 5BA& Section 58AAof
the Companies (Acceptance of Deposit) rules. 1975 are not applicable.
(vii) In cur opinion, the company has an internal audit system
commensurate with the size and nature of its business.
[viil) The Central Government has prescribed maintenance of cost record
s u/s 209( 1){d) of The Companies Act, 195S in respect of certain
manufacturing activities of the company. We have broadly reviewed the
accounts. and records of the company in this connection and are of the
opinion that prima facie, the prescribed! accounts and records have
been made and maintained. We have, however not carried out a detailed
examination of such records with a view to determine whether they are
accurate or complete.
(ix) In re sped of statutory dues:
To the best of our knowledge and information obtained and
verifications made, we report that the company is regular in depositing
with appropriate authorities undisputed statutory dues including
provident fund, investor education protection fund, employees1 state
insurance, income tax, sales tax, wealth tax, service- tax, custom
duty, excise duty, cess and other material statutory dues to the extent
applicable to it except; few delays in deposition of TDS. Service Tax
and there are no undisputed amounts payable in respect of such dues
which have remained outstanding as at 31 * March 2013 for a period
exceeding six months from lr-.e ca''.i u-f aetLVT-.ini] j; ay-able
(x) The company does not have accumulated losses at the end erf the
financial year. The company has not: incurred cash losses duhng the
financial year covered by our audit and in the immediately preceding.
financial year
(xi) Based on our audit procedures and according to the information &
explanations given to us, we are of the opinion that the company has
not defaulted in repayment of dues to financial institutions, banks or
debenture holders.
(xii) In our opinion and according to the information and explanation
given to us & based on the information avaiiable, the company has not
granted loans and advances on the basis of security by way of pledge of
shares, debentures and other securities. Hence, Hie question of
maintenance of records or reporting on; deficiencies does not arise,
(xiii) In our opinion, the company is not a chit fund or a Nidhi /
mutual benefit fund/ society. Therefore, the provisions of clause
4(xiii) of Ihe Companies (Auditor''s Report) Order, 2003 are not
applicable to the company.
(xiv} In our opinion, during the year under audit, the company did not
engage in dealing or trading in shares, securities, debentures and
other investments other than disposal of some of its investments.
Accordingly, the provisions of clause 4(xiv) of the Companies
{Auditor''s Report) Order, 2003 are not applicable to the company.
(xv) According to the information and explanation given to us, Ihe
company has not given any guarantee for loans taken by others from bank
or financial institution. Hence this clause of Companies (Auditor''s
Report) Order, 2003 is not applicable.
(xvi) In our opinion and according to the information and explanations
given to us and based on the information available, the term loan
availed by the company were, prima facie, applied by the company during
the year for the purpose for which the loans were obtained.
(xvii) According to the information and explanations given to us and on
an overall examination of the Balance Sheet of the company, we are of
ihe opinion that there are no funds raised on short term basis that
have been used for long-term investments.
(xviii) According to the information and explanations given to us, the
company has not made preferential allotment of shares to parties and
companies covered in the register maintained under section 301 of the
Companies Act. 1956, during the year and hence Ihe question of whether
the price at which shares have been issued is prejudicial to the
interest of the company does not anse.
(xix) According to the information and explanations given to us, the
company has not issued any debentures during the year; hence the
question of creating security does not arise.
(xx) Accordi ng to the information and explanation given to us the
compa n y has a Hotted 62,50,705 equity shares of Rs. 10 each at a pre
mi u m of Rs. 6 on March 6, 200 7 as Net Offer to the public during the
F i na ncia I Year 2006-2007 Management has given the details about
utilization of money raised by public issue in Notes on Financial
Slatements. However according to information & explanation given to us
the same is not yet fully utilized-
(xxi) During the course of examination of the books and records of the
company, carried out in accordance with the generally accepted
accounting practices in India and according to the information and
expfanations; given to us, we have neither come across any instance of
fraud on or by the company, nor we have been informed of such cases by
the management that causes the financial statements to be malerialty
misstated. Â _ _ _ a _
For A.Bdfna & Company
Chartered Accountants
FRN: 003660C
sd/-
(CA Vivek Gupla)
Place: Jaipur Partner
Date: 30th May 2013 M .No. 400543
Mar 31, 2010
We have audited the attached Balance Sheet of Mrs Lawreshwar Polymers
Limited as at 31st March, 2010 together with the Profits Loss A/c and
Cash Flow Statement of the Company for the year ending on that date
annexed thereto. These financial statements are the responsibility of
the Companys Management. Our responsibility is to express an opinion
on these financial statements based on out Audit.
1. We conducted our audit in accordance with Auditing Standards
generally accepted In India. Those standards require that we plan &
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosure in (he financial statements. An Audit also includes
assessing the accounting principles used and significant estimates made
by Management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
2. As required by the Companies (Auditors Report) order, 2003(as
amended), issued by the Central Government of India In terms of sub
section (4A) of section 227 of the Companies Act. 1956 and on the basis
of such checks of the books and records of the company as we considered
appropriate and according to the explanation given to us, we annex
hereto a statement on the metiers specified in paragraph 4 & 5 of the
said order.
3. Further to our comments referred to in paragraphs 1 & 2 above 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 purposes of our
audit, subject to Note No.16 of Notes On Accounts regarding loss by
fire.
(b) In our opinion, proper books of accounts as required by the law
have been kept by the company so far as appears from our examinaton of
those books
(c) The balance sheet, profit & loss account and cash flow statement
dealt with by this report are in agreement with the books of accounts.
(d) In our opinion, the balance sheet, profit & loss account and cash
flow statement dealt with by this report complince with the. Mandatory
accounting standards referred to in sub section (3C) of section 211 of
the Companies Act 1956.
(e) On the basis of Written representation received from all the
Director we report that none of the Directors of the company Is
disqualified as on march 31,2010 from being appointed as a director
under clause (g) of Sub-section (1)of Section 274 of the Companies Act,
1956;
(f) In our opinion and to the best of our Information and according to
the explanations given to us .the said accounts read together with the
significant Accounting Policies & Notes on Accounts, subject to Refer
Note No 16(a) regarding non provision against the balance amount of Rs.
186.74 lacs against shortfall in Insurance claim passed by the
Insurance Company on the plea that the company is contemplating further
action In this matter, henr* we are unable to express our opinion on
the recoverablllty of this matter and refer Note No. 16(c) regarding
loss by fire int. leased unit of the company, give the information
required by the Companies Act, 1956 in the manner so required and give
a true and fair view in conformity with the accounting principles
generally in India subject to Note No, 14 regarding Loss by Fire:
a) In the case of Balance Sheet, of the State of affairs of the Company
as at March 31,2010.
b) In case of Profit & Loss Accounts of the profit for the year ended
on that date.
c) Incase of Cash Flow statement. of the cash flows of the company for
the year ended on that date.
Annexure to AUDITORS REPORT
R.rM/.UwrMhw.rPolym.r.Ltmltrt (Referred to In Paragraph 2 thereof)
(i) in Respect of lts Fixed Assets:
(a) The company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets.
(b) As explained to us, alt the assets have been physically verified by
the management In a phased periodical manner during the year and there
to a regular programme of verification which. in our opinion is
reasonable having regard to the size of the company and the nature of
its assets. No material discrepancles were noticed on such physical
verification.
(c) In our opinion, the company has not disposed off substantial part
of its fixed assets during the year and the going concern status of
the company is not affected.
(ii) In respect of its inventories:
(a) As explained to us, the Inventory has been physically verified
during the year by the management. In our opinion, the frequency of
verification Is reasonable.
(b) in our opinion and according to the information and explanation
given to us. the procedures of physical verification of inventory
followed by the management are reasonable and adequate In relation to
the size of the company and nature of its business.
(c) In our opinion and according to the Information and explanation
given to us and on the basis of our examination of the records of
Inventory, the company has maintained proper records of inventory. The
discrepancies noticed on physical verification of inventory as compared
to book records were not material and have been properly dealt with in
the books of accounts.
(iii) (a) According to the Information 4 Explanation given to us, the
company has granted loans to one parties listed in the register
maintained under Section 301 of the Companies Act. 1956. The year end
balance of such deposits as on 31.03.2010 is Rs. 2,02,42,395/-. The
maximum balance outstanding at a point of time during the year was Rs.
2.11.59,395/-.
(b) In our opinion, the rate of interest and other terms & conditions
on which loans & deposits have been granted to the companies. firms or
other parties listed in the register maintained under Section 301 of
the Companies Act. 1956 are not prima facie prejudicial to the interest
of the company.
(c) According to information 4 explanations given to us, the receipt of
principal amount & interest thereon are regular.
(d) According to Information & explanations given to us there is no
overdue amount in respect of such loans.
(e) The Company has not taken loans from any party covered In the
register maintained Under Section 301 of The Companies Act,
1956. The Maximum balance outstanding at apoint of time during the year
was Rs. Nil & the year end balance of loans taken from such party was
NIL
(f) In our opinion, the rate of inlerest & other terms & conditions on
which loans have been taken from companies, firms or other parties
listed in the register maintained under Section 301 of The Companies
Act, 1956 are not prima fade prejudicial to the interest of the
company.
(g) According to the Information 8 explanation given to us the company
is regular in payment of principal amount A interest due on loans taken
by it.
(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 with regard
to purchases of inventory and fixed assets and with regard to the sale
of goods and services. During the course of our audit, we have not
observed any continuing failure to correct major weaknesses in internal
control system.
(v) In respect of the contracts of arrangements referred loin Section
(a) According to the Information and explanation given to us, we are of
the opinion that the particulars of contracts or arrangements that need
to be entered in the register maintained u/s 301 of the companies act.
19,56 have been so entered.
(b) In our opinion and according to the Information and explanation in
the register maintained u/s 301 of The Companies Act, 1956 have been
made at prices which are prima facie reasonable having regard to the
prevailing market price at the relevant time.
(vi) The Company has not accepted any deposits from the public during
the year and accordingty the provisions of Section 58A & Section 58AA
of the Companies (Acceptance of Deposit) rules, 1975 are not
applicable.
(vii) In our opinion, the company has an internal audit system
commensurate with the size and nature of its business.
(viii) The Central Government has prescribed maintenance of cost
records u/s 209(1) (d) of The Companies Act, 1956 in respect of certain
manufacturing activities of the company. We have broadly reviewed the
accounts and records of the company in this connection and are of the
opinion that prima facie, the prescribed accounts and records have been
made and maintained. We have, however not carried out a detailed
examination of such records with a view to determine whether they are
accurate or complete
(Ix) In respect of statutory dues:
(a) To the best of our knowledge and information obtained and with
appropriate authorities undisputed statutory dues including provident
fund, investor education protection fund, employees state insurance,
income tax, sales tax, wealth tax, service tax, custom duty, excise
duty, cess and other material statutory dues to the extent applicable
to 11 except few delays in deposition of TDS, Service Tax and (here are
no undisputed amounts payable In reaped of such dues which have
remained outstanding as at 31st March 2010 for a period exceeding six
months from the date of becoming payable.
(b) According to the lnformation and explanation given to us. tax,
Customs duty. Excise duty and cess.which are not deposited on acccount
of any dispute except following:
Name of the Nature of the Amount (Rs.) Pariod to Forum
statute dues which it where
relates dispute is
pending
Income Tax Income Tax 104433/- 2005-06 Cit
(Appeals)
Act,1961 Demand -II
Jaipur
(x) The company does not have accumulated losses at the end of the
financial year. The Company has not Incurred cash losses during the
financial year covered by our audit and in the immediately preceding
financial year,
(xi) Based on our audit procedures and according to the Information &
explanations given to us, we are of the opinion that the company has
not defaulted in repayment of dues to financial Institutions, banks or
debenture holders.
(xii) In our opinion and according to the Information and explanation
granted loans and advances on the basis of security by way of pledge of
shares, debentures and other securities. Hencs, the question of
maintenance of records or reporting on deficiencies does not arise.
(xiii) in our opinion, the company Is not a chit fund or a Nidhi mutual
benefit fund/ society. Therefore, the provisions of clause 4(xiii) of
the Companies (Auditors Report) Order. 2003 are not applicable to the
company.
(xiv) In our opinion, during the year under audit, the company did not
engage In dealing or trading in shares, securities, debentures and
other Investments other then disposal of some of Its Investments.
Accordingly, the provisions of clause 4(xiv) of the Companies
(Auditors Report) Order, 2003 are not applicable to the company.
(xv) According to the Information and explanation given to us. the
company has not given any guarantee for loans taken by others from bank
or financial Institution. Hence this clause of Companies (Auditors
Report) Order. 2003 is not applicable.
(xvi) In our opinion and according to the Information and explanations
given to us and based on the information available, the term Ban
availed by the company were, prima facie, applied by the company during
the year for the purpose for which the loans were obtained.
(xvii) According to the Information and explanations given to us and on
an overall examination of the Balance Sheet of the company, we are of
the opinion that there are no funds raised on short term basis that
have been used forlong-term investments.
(xviii)According to the information and explanations given to us, the
company has not made preferential allotment of shares to parties and
companies covered In the register maintained under section 301 of the
Companies Act, 1956. during the year and hence the question of whether
the price at which shares have been issued is prejudicial to the
Interest of the company does not arisa.
(xix) According to the information and explanations given to us. the
company has not issued any debentures during the year hence the
question of creating security does not arise.
(xx) According to the information and explanation given to us the
company has allotted 82,50,705 equity shares of Rs. 10 each at a
premium of Rs. 6 on March 8.2007 as Net Offer to the public during the
Financial Year 2006-2007. Management has given the details Ãbout
utilization of money raised by public issue in Notas of Accounts,
However according to Information & explanation given to us the same is
not yet fully utilized,
(xxi) During the course of examination of the books and records of the
company, carried out in accordance with the generally accepted
accounting practices in India end according to the information and
explanations given to us, we have neither come across any Instance of
fraud on or by the company, nor we have been Informed of such cases by
the management that causes the financial statements to be materially
misstated.
For K Bafna & Company
Chartetedd Accountants
FRN:03660C
Place: Jaipur (A J R S. Gupta)
Date: 30th May 2010 M.No.073515
Mar 31, 2009
We have audited the attached Balance Sheet of M/s Lawreshwar Polymers
Limited as at 31" March, 2009 together with the Profit & Loss A/c and
cash flow statement of the Company for the year ending on that date
annexed thereto. These financial statements are the responsibility of
the Companys Management. Our responsibility is to express an opinion
on these financial statements based on our Audit.
1. We conducted our audit in accordance with Auditing Standards
generally accepted in India. Those standards require that we plan &
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosure in the financial statements. An Audit also includes
assessing the accounting principles used and significant estimates made
by Management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis
for our opinion.
2. As required by the Companies (Auditors Report) order, 2003{as
amended), issued by the Central Government of India in terms of sub
section (4A) of section 227 of trie Companies Act. 1956 and on the
basis of such checks of the books and records of the company as we
considered appropriate and according to the explanation given to us, we
annex hereto a statement on the matters specified in paragraph 4 & 5 of
the said order.
3. Further to our comments referred to in paragraphs l &2 above 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 purposes of our
audit, subject to Note No.16 of Notes On Accounts regarding loss by
fire and non finalization of concerned Insurance claim;
(b) In our opinion, proper books of accounts as required by the law
have been kept by the company so far as appears from our examination of
those books
(c) The balance sheet, profit & loss account and cash flow statement
dealt with by this report are in agreement with the books of accounts.
(d) in our opinion, the balance sheet, profit & loss account and cash
flow statement dealt with by this report compliance with the Mandatory
accounting standards referred to in sub section (3C) of section 211 of
the Companies Act 1956.
(e) On the basis of Written representation received from all the
Director on March 31,2009 and taken on records by the board of
Directors, we report that none of the Directors of the company is
disqualified as on march 31, 2009 from being appointed as a director
under clause (g)of Sub-section (1) of Section 274 of the Companies Act,
1956;
(f) In our opinion and to the best of our information and according to
the explanations given to us, the said accounts read together with the
significant Accounting Policies & Notes on Accounts, subject to Note
No. 16 of Notes on Accounts regarding Loss by Fine, give the
information required by the Companies Act, 1956 in the manner so
required and give a true and fair view in conformity with the
accounting principles generally in India subject to Note No. 14
regarding Loss by Fire:
a) In the case of Balance Sheet, of the State of affairs of the Company
as at March 31,2009
b) In case of Profit & Loss Accounts of the profit for the year ended
on that date.
c) In case of Cash Flow statement, of the cash flows of the company for
the year ended on that date.
Annexure to AUDITORS REPORT
(Referred to in Paragraph 2 thereof)
Re: MPs Lawreshwar Polymers Limited
(i) In Respect of Its Fixed Assets:
(a) The company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets.
(b) As explained to us, all the assets have been physically verified by
the management in a phased periodical manner during the year and there
is a regular programme of verification 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 physical
verification.
(c) In our opinion, the company has not disposed off a substantial part
of its the fixed assets during the year and the going concern status
of the company not affected.
(ii) In respectof its inventories:
(a) As explained to us, the inventory has been physically verified
during the year by the management. In our opinion, the frequency of
verification is reasonable.
(b) In our opinion and according to the information and explanation
given to us, the procedures of physical verification of inventory
followed by the management are reasonable and adequate ir, relation to
the size of the company and nature of its business.
(c) In our opinion and according to the information and explanation
given to us and on the basis of our examination of the records of
inventory, the company has maintained proper records of inventory. The
discrepancies noticed on physical verification of inventory as compared
to book records were not material and have been properly dealt with in
the books of accounts.
iii) (a) According to the Information & Explanation given to us, the
company has granted loans to 2 parties and deposit 1 party listed in
the register maintained under Section 301 of the Companies Act, 1956.
The year end balance of such deposits as on 31.03.2009 is Rs.
60,00,000/-. The maximum balance outstanding at a pointof time during
the yearwas Rs. 2,15,80,953/-.
(b) In our opinion, the rate of interest and other terms & conditions
on which loans & deposits have been granted to the companies, firms or
other parties listed in the register maintained under Section 301 of
the Companies Act, 1956 are not prima facie prejudicial to the interest
of the company.
(c) According to information & explanations given to us, the receipt of
principal amount & interest thereon are regular..
(d) According to informations explanations given to us there is no
overdue amount in respectof such loans. æ
(e) The Company has taken loans from one party covered in the register
maintained Under Section 301 of The Companies Act, 1956. The Maximum
balance outstanding at j point of time during the year was Rs.
2,00,000/- & the year end balance of loans taken from such party was
NIL.
(f) In our opinion, the rate of interest & other terms & conditions on
which loans have been taken from companies, firms or other parties
listed in the register maintained under Section 301 of The Companies
Act,1956 are not prima facie prejudicial to the interest of the company
(g) According to the information & explanation given to us the company
is regular in payment of principal amount & interest due o loans taken
by it.
(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 with regard
to purchases of inventory and fixed assets and with regard to the sale
of goods and services. During the course of our audit, we have not
observed any continuing failure to correct major weaknesses in internal
control system.
(v) In respect of the contracts or arrangements referred to in Section
301 of The CompaniesAct,1956:
(a) According to the information and explanation given to us, we are of
the opinion that the particulars of contracts or arrangements that need
to be entered in the register maintained u/s 301 of the companies act,
1956 have been so entered.
(b) In our opinion and according to the information and explanation
given to us, each of such transaction in respect of any party, listed
in the register maintained u/s 301 of The Companies Act, 1956 have been
made at prices which are prima facie reasonable having regard to the
prevailing market price at the relevant time.
(vi The Company has not accepted any deposits from the public during
the year and accordingly the provisions of Section 58A & Section 58AAof
the Companies (Acceptance of Deposit) rules, 1975 are not applicable.
(vii) In our opinion, the company has an internal audit system
commensurate with the size and nature of its business.
(viii) The Central Government has prescribed maintenance of cost
records u/s 209(1) (d) of The Companies Act, 1956 in respectof certain
manufacturing activities of the company. We have broadly reviewed the
accounts and records of the company in this connection and are of the
opinion that prima facie, The prescribed accounts and records have been
made and maintained. We have, however not carried out a detailed
examination of such records with a view to determine whether they are
accurate or complete.
(ix) In respect of statutdrydues:
(a) To the best of our knowledge and information obtained and
verifications made, we report that the company is regular in depositing
with appropriate authorities undisputed statutory dues including
provident fund, investor education protection fund, employees state
insurance, income tax, sales tax, Wealth tax, service tax, custom duty,
excise duty, cess and other material statutory dues to the extent
applicable to it except for few delay in payment of Service Tax and
there are no undisputed amounts payable in respect ofsuch dues which
have remained outstanding as a! 31" March 2009 for a period exceeding
six months from the date of becoming payable. According to the
information and explanation given to us, there are no pending dues of
Income tax, Sales tax, Wealth tax, Service tax. Customs duty, Excise
duty and cess.which are not deposited on account of any dispute except
following:
Name of the
statute Nature of the dues Amount (Rs.) Period to which Forum where
it relates dispute i
pending
Income Tax Income fax 104433/- 2005-2006 ICIT (Appeals-ll
Act.1961 Demand Jaipur
(x) The company does not have accumulated losses at the end of the
financial year. The Company has not incurred cash losses during the
financial yearcovered by our audit and in the immediately preceding
financial year.
(xi) Based on our audit procedures and according to the information &
explanations given to us, we are of the opinion that the company has
not defaulted in repayment of dues to financial institutions, banks or
debenture holders.
(xii) In our opinion and according to the information and explanation
given to us & based on the information available, the company has not
granted loans and advances on the basis of security byway of pledge of
shares, debentures and other securities. Hence, the question of
maintenance of records or reporting on deficiencies does not arise.
(xiii) In our opinion, the company is not a chit fund or a Nidhi/mutual
benefit fund/ society. Therefore, the provisions of clause 4(xiii) of
the Companies (Auditors Report) Order, 2003 are not applicable to the
company.
(xiv) In our opinion, during the year under audit, the company did not
engage in dealing or trading in shares, securities, debentures and
other investments other than disposal of some of its investments.
Accordingly, the provisions of clause 4(xiv) of the Companies
(Auditors Report) Order, 2003 are not applicable to the company.
(xv) According to the information and explanation given to us, the
company has not given any guaranteefor loans taken by others from bank
or financial institution. Hence this clause of Companies (Auditors
Report) Order, 2003 is not applicable.
(xvi) In ouropinion and according to the information and explanations
given to us and based on the information available, the term loan
availed by the company were, prima facie, applied by the company during
the year for the purpose for which the loans were obtained.
(xvii) According to the information and explanations given to us and on
an overall examination of the Balance Sheet of the company, we are of
the opinion that there are no funds raised on short term basis that
have been used for long-term investments.
(xviii) According to the information and explanations given to us, the
company has not made preferential allotment of shares to parties and
companies covered in the register maintained under section 301 of the
Companies Act, 1956, during the year and hence the question of whether
the price at which Shares have been issued is prejudicial to the
interest of the company does not arise.
xix) According to the information and explanations given to us, the
company has not issued any debentures during the year; hence the
question of creating security does not arise.
(xx) According to the information and explanation given to us the
company has allotted 82,50,705 equity shares of Rs. 10 each at a
premium of Rs. 6 on March 3,2007 as Net Offer to the public during the
Financial Year 2006-2007. Management has disclosed
the end use of money raised by public issue in Notes of Accounts.
However according to information & explanation given to us the same is
not yet fully utilized.
(xxi) During the course of examination of the books and records of the
company, carried out in accordance with the generally accepted
accounting 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, nor we have been informed of such cases by
the management that causes the financial statements to be materially
misstated.
For A. BAFNA & CO.
Chartered Accountants
(CA M. K. GUPTA)
Place: Jaipur Partner
Date; 28th June 2009 Membership No. 73515
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