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Lakhotia Polyesters (India) Ltd.

BSE: 535387 Sector: Industrials
NSE: N.A. ISIN Code: INE191O01010
BSE LIVE 14:00 | 24 Nov 8.26 0.16
(1.98%)
OPEN

8.10

HIGH

8.26

LOW

8.10

NSE 05:30 | 01 Jan Stock Is Not Traded.
OPEN 8.10
PREVIOUS CLOSE 8.10
VOLUME 71
52-Week high 8.26
52-Week low 7.50
P/E 206.50
Mkt Cap.(Rs cr) 9
Buy Price 0.00
Buy Qty 0.00
Sell Price 8.26
Sell Qty 119.00
OPEN 8.10
CLOSE 8.10
VOLUME 71
52-Week high 8.26
52-Week low 7.50
P/E 206.50
Mkt Cap.(Rs cr) 9
Buy Price 0.00
Buy Qty 0.00
Sell Price 8.26
Sell Qty 119.00

Lakhotia Polyesters (India) Ltd. (LAKHOTIAPOLY) - Auditors Report

Company auditors report

To

The Members of

Lakhotia Polyesters India Ltd.

1. Report on the Financial Statements

We have audited the accompanying financial statements of Lakhotia Polyesters IndiaLimited ("the Company") which comprise the Balance Sheet as at March 312016 the Statement of Profit and Loss and Cash Flow Statement for the year then endedand a summary of significant accounting policies and other explanatory information.

2. Management’s Responsibility for the Financial Statements

The management and Board of Directors of the Company are responsible for the mattersstated in Section 134(5) of the Companies Act 2013 (‘the act’) with respect tothe preparation of these financial statements that give a true and fair view of thefinancial position financial performance and cash flows of the Company in accordance withthe accounting principles generally accepted in India including the Accounting Standardsspecified under Section 133 of the Act read with rule 7 of Companies (Accounts) Rules2014. This responsibility includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding the assets of the Company andfor preventing and detecting frauds and other irregularities; selection and application ofappropriate accounting policies; making judgments and estimates that are reasonable andprudent; design implementation and maintenance of adequate internal financial controlsthat are operating effectively for ensuring the accuracy and completeness of theaccounting records relevant to the preparation and presentation of the financialstatements that give a true and fair view and are free from material misstatement whetherdue to fraud or error.

3. Auditor’s Responsibility

Our responsibility is to express an opinion on these financial statements based on ouraudit. We have taken into account the provisions of the Act the accounting and auditingstandards and matters which are required to be included in the audit report under theprovisions of the Act and the Rules made there under. We conducted our audit in accordancewith the Standards on Auditing specified under Section 143(10) of the Act. Those Standardsrequire that we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether the financial statements are free from materialmisstatement.

An audit involves performing procedures to obtain audit evidence about the amounts anddisclosures in the financial statements. The procedures selected depend on theauditor’s judgment including the assessment of the risks of material misstatement ofthe financial statements whether due to fraud or error. In making those risk assessmentsthe auditor considers internal financial control relevant to the Company’spreparation of the financial statements that give a true and fair view in order todesign audit procedures that are appropriate in the circumstances but not for the purposeof expressing an opinion on whether the Company has in place an adequate internalfinancial controls system over financial reporting and the operating effectiveness of suchcontrols An audit also includes evaluating the appropriateness of accounting policies usedand the reasonableness of the accounting estimates made by the Company’s managementand Board of Directors as well as evaluating the overall presentation of the financialstatements.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion.

4. Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid financial statements give the information required by the Actin the manner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India of the state of affairs of the Company as at 31stMarch 2016 its profit and its cash flows for the year ended on that date.

5. Report on Other Legal and Regulatory Requirements

As required by the Companies (Auditor’s Report) Order 2015 ("theOrder") issued by the Central Government of India in terms of sub-section (11) ofsection143 of the Act we give in the Annexure a statement on the matters Specified inparagraphs 3 and 4 of the Order.

6. As required by section 143(3) of the Act we further report that:

a. we have sought and obtained all the information and explanations which to thebest 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 theCompany so far as appears from our examination of those books;

c. the Balance Sheet Statement of Profit and Loss and Cash Flow Statement dealtwith by this

Report are in agreement with the books of account;

d. in our opinion the aforesaid financial statements comply with the applicableAccounting

Standards specified under Section 133 of the Act read with Rule 7 of the Companies(Accounts) Rules 2014;

e. on the basis of written representations received from the directors as on March31 2016 and taken on record by the Board of Directors none of the directors isdisqualified as on March 31 2016 from being appointed as a director in terms of Section164(2) of the Act;

f. In our opinion and to the best of our information and according to theexplanations given to us we report as under with respect to other matters to be includedin the Auditor’s Report in accordance with Rule 11 of the Companies (Audit andAuditors) Rules 2014:

(i) The Company has following pending litigations which would impact its financialposition.

The company promoters directors and certain group promoted entities are a party tolitigation with the customs departments for import of certain materials based upon alleged"misleading information". The matter is pending in Appeal before the CentralExcise and Customs Appellate Tribunal Mumbai and before the High Court Mumbai. The totaldemand in the matter raised by the adjudicating authorities is to the tune of Rs. 220.91Lakhs against company and Rs. 42.00 Lakhs against Shri M.S. Lakhotia the ManagingDirector of the company. The amounts as stated are ex interest thereon.

(ii) The Company did not have any long-term contracts including derivativecontracts; as such the question of commenting on any material foreseeable losses thereondoes not arise.

(iii) There has not been an occasion in case of the Company during the year underreport to transfer any sums to the Investor Education and Protection Fund. The question ofdelay in transferring such sums does not arise.

For SABADRA & SABADRA
CHARTERED ACCOUNTANTS
Firm Registration No 108921W
Sd/-
Place: Nashik ANANT B SABADRA FCA
Date: 27.05.2016 Membership No. 033683
(Partner)

ANNEXURE TO AUDITOR’S REPORT

Annexure referred to in paragraph 7 Our Report of even date to the members of LakhotiaPolyesters India Limited on the accounts of the company for the year ended 31st March2016.

On the basis of such checks as we considered appropriate and according to theinformation and explanations given to us during the course of our audit we report that-

(i) (a) The Company is maintaining proper records showing full particulars includingquantitative details and situation of fixed assets;

(b) As explained to us fixed assets have been physically verified by the management atregular intervals; as informed to us no material discrepancies were noticed on suchverification;

(c) The title deeds of the immovable properties are held in the name of the company.

(ii) The inventories at all business places have been physically verified by themanagement from time to time. In our opinion the frequency of verification is reasonable.As explained to us there were no material discrepancies noticed on physical verificationof inventories as compared to the books of accounts.

(iii) (a) The company has granted loans to the other parties covered in the registermaintained under section 189 of the Companies Act 2013. Based upon the managementrepresentations as made to us we report that these advances are towards businesstransactions and in the normal course of business activity of the company.

(b) These loans are repayable on demand and hence no schedule of repayment isprepared. Interest has been charged on these loans regularly.

(c) The loan amount is not overdue.

(iv) The company has complied with the provisions of section 185 and 186 of the Act.

(v) The Company has accepted deposits from its members and has complied with theprovisions of the Companies Act 2013.

(vi) As informed to us the Central Government has not prescribed maintenance of costrecords under sub-section (1) of Section 148 of the Act.

(vii) (a) According to the information and explanations given to us and based on therecords of the company examined by us the company is regular in depositing the undisputedstatutory dues including Provident Fund Employees’ State Insurance Income-taxSales-tax Wealth Tax Service Tax Custom Duty Excise Duty and other material statutorydues as applicable with the appropriate authorities in India except Profession Taxamounting to D 61100/-which is due for more than six months as on Balance Sheet date;

(b) According to the information and explanations given to us and based on the recordsof the company examined by us there are following disputed unpaid amounts –

Particulars Amount in Lacs Forum where dispute is pending
Customs Duty 220.91 CESTAT Mumbai
M VAT 8.80 Joint Commissioner of Sales Tax (Appeals) Nashik

(viii) According to the records of the company examined by us and as per theinformation and explanations given to us the company has not defaulted in repayment ofdues to financial institutions or banks. Similarly no debentures have been issued by thecompany and hence compliance with the said clause is not applicable.

(ix) In our opinion and according to the information and explanations given to us thecompany has neither raised any term loan nor collected money by way of initial or furtherpublic offer during the financial year.

(x) During the course of our examination of the books and records of the companycarried in accordance with the auditing standards generally accepted in India we haveneither come across any instance of fraud on or by the Company noticed or reported duringthe course of our audit nor have we been informed of any such instance by the Management.

(xi) The company has paid managerial remuneration in accordance with the provisions ofsection 197 of the Act.

(xii) The company is not a nidhi company.

(xiii) All transactions with the related parties are in compliance with sections 177and 178 of the Act and the details have been disclosed in the Financial Statements asrequired by the applicable Accounting Standards.

(xiv) The company has not made any preferential allotment or private placement ofshares or fully or partly convertible debentures during the year under review.

(xv) The company has not entered into non - cash transactions with directors or personsrelatedto them in the nature prescribed under section 192 of the Act.

(xvi) The company is not required to be registered under section 45 – IA of theReserve Bank of India Act 1934.

For SABADRA & SABADRA
CHARTERED ACCOUNTANTS
Firm Registration No 108921W
Sd/-
Place: Nashik ANANT B SABADRA FCA
Date: 27.05.2016 Membership No. 033683
(Partner)