The Members of Lawreshwar Polymers Limited
Report on the Financial Statements
We have audited the accompanying standalone financial statements of Lawreshwar PolymersLimited (the Company) which comprise the Balance Sheet as at March 312015and the Statement of Profit and Loss and Cash Flow Statement for the year then ended anda 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 Section134(5) of the Companies Act 2013 (the Act) with respect to the preparationand presentation of these standalone financial statements that give a true and fair viewof the financial position financial performance and cash flows of the Company inaccordance with the accounting principles generally accepted in India ncluding theAccounting Standards specified under Section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014. This responsibility also includes maintenance ofadequate accounting records in accordance with the provisions of the Act for safeguardingthe assets of the Company and for preventing and detecting frauds and otherirregularities; selection and application of appropriate accounting policies; makingjudgments and estimates that are reasonable and prudent; and design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the accuracy and completeness of the accounting records relevant tc thepreparation and presentation of the financial statements that give a true and fair viewand are free from material misstatement whether due to fraud or error.
Our responsibility is to express an opinion on these standalone financial statementsbased on our audit. We have taken into account the provisions of the Act the accountingand auditing standards and matters which are required to be included in the audit reportunder the provisions of the Act and the Rules made thereunder.
We conducted our audit in accordance with the Standards on Auditing specified underSection 143(10) of the Act. Those Standards require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetherthe financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the financial statements. The procedures selected depend on theauditor's judgment ncluding the assessment of the risks of material misstatement of thefinancial statements whether due to fraud or error. In making those risk assessments theauditor considers internal financial control relevant to the Company's preparation of thefinancial statements that give a true and fair view in order' to design audit proceduresthat are appropriate in the circumstances but not for the purpose of axpressing anopinion on whether the Company has in place an adequate internal financial controls systemover financial reporting and the operating effectiveness of such controls. An audit alsoincludes avaluating the appropriateness of the accounting policies used and thereasonableness of the accounting estimates made by the Company's Directors as well asevaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate toprovide 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. 18674521/-.
In our opinion and to the best of our information and according to the explanationsgiven to us except for the effects of the matter described in the Basis for QualifiedOpinion paragraph above the aforesaid standalone financial statements give theinformation required by the Act in the manner so required and give a true and fair view inconformity with the accounting principles generally accepted in India of the state ofaffairs of the Company as at 31st March2015 and its profit/loss and its cash flows forthe 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 ofthe Act we give in the Annexure a statement on the matters specified in the paragraph 3and 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 bestof 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 theCompany 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 statementdealt with by this Report are in agreement with the books of account;
d. In our opinion the aforesaid standalone financial statements comply with theAccounting Standards specified under Section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014;
e. On the basis of the written representations received from the directors as on 31March 2015 taken on record by the Board of Directors none of the directors isdisqualified as on 31 March 2015 from being appointed as a director in terms of Section164 (2) of the Act; and
f. With respect to the other matters to be included in the Auditor's Report inaccordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 in our opinionand 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 financialposition in its financial statement - Refer Note 34 to the financial statements;
ii. The Company did not have any long term contract including derivatives contracts forwhich there were any material foreseeable losses; and
iii. There were no amounts which were required to be transferred to the InvestorEducation and Protection Fund by the Company.
| ||For A.Bafna & Company |
| ||Chartered Accountants |
| ||FRN: 003660C |
| ||(CA Vivek Gupta) |
|Date: 27th May 2015 ||Partner |
|Place: Jaipur ||M.No.: 400543 |
Annexure to the Independent Auditors' Report
The Annexure referred to in our Independent Auditors' Report to the members of theCompany on the standalone financial statements for the year ended 31 March 2015 we reportthat:
(i) (a) The company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.
(b) All the assets have been physically verified by the management during the year andthere is a regular program of verification which in our opinion is reasonable havingregard to the size of the company and the nature of its assets No material discrepancieswere 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 isreasonable 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 onthe basis of our examination of the records of inventory the company is maintainingproper records of inventory. The discrepancies noticed on physical verification ofinventory as compared to book records were not material and have been properly dealt within the books of accounts.
(iii) (a) The Company has not granted loans to companies firms or other partiescovered in the register maintained under section 189 of the Companies Act 2013 ('theAct') 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 usthere is an adequate internal control system commensurate with the size of the company andthe nature of its business with regard to purchases of inventory and fixed assets and withregard to the sale of goods and services. During the course of our audit we have notobserved 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 hasmaintained cost accounts & records as prescribed by the Central Government underSection 148(1) of the Companies Act 2013. However we have not made a detailed examinationof such accounts & records with a view to determine whether they are adequate orcomplete.
(vii) (a) According to the information and explanations given to us and on the basis ofour examination of the records of the Company amounts deducted/ accrued in the books ofaccount in respect of undisputed statutory dues including provident fund employees' stateinsurance income tax sales tax wealth tax service tax duty of customs value addedtax cess and other material statutory dues to the extent applicable have been regularlydeposited during the year by the Company with the appropriate authorities.
According to the information and explanations given to us no undisputed amountspayable in respect of provident fund employee's state insurance income tax sales taxwealth tax service tax duty of customs value added tax cess and other materialstatutory dues were in arrears as at 31 March 2015 for a period of more than six monthsfrom the date they became payable.
(b) According to the information and explanation given to us there are no pending duesof Income Tax Sales Tax Wealth Tax Service Tax duty of Custom duty of Excise ValueAdded Tax or Cess which are not deposited on account of dispute except following:
|Particulars ||Year ||Amount of demand ||Amount deposited against demand ||Amount of demand to the extent not deposited (Rs.) ||Forum where appeal is pending |
|Income Tax ||AY 201213 ||82340/- ||Nil ||82340/- ||CIT(Appe als)II Jaipur |
(c) According to the information and explanations given to us there were no amountswhich were required to be transferred to the investor education and protection fund inaccordance with the relevant provisions of the Companies Actand rules thereunder.
(viii) The Company does not have any accumulated losses at the end of the financialyear and has not incurred cash losses in the financial year and in the immediatelypreceding financial year
(ix) The Company have not defaulted in repayment of dues to a financial institutionsbanks or debenture holders during the year
(x) In our opinion and according to the information and the explanations given to usthe Company has not given any guarantee for loans taken by others from banks or financialinstitutions.
(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 thecompany 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 onor 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: 27th May 2015 ||Partner |
|Place: Jaipur ||M.No.: 400543 |