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LN Industries India Ltd.

BSE: 530745 Sector: Industrials
NSE: N.A. ISIN Code: INE366C01013
BSE LIVE 11:12 | 07 Aug Stock Is Not Traded.
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OPEN 2.19
PREVIOUS CLOSE 2.19
VOLUME 4510
52-Week high 5.44
52-Week low 2.19
P/E
Mkt Cap.(Rs cr) 22
Buy Price 0.00
Buy Qty 0.00
Sell Price 2.19
Sell Qty 56412.00
OPEN 2.19
CLOSE 2.19
VOLUME 4510
52-Week high 5.44
52-Week low 2.19
P/E
Mkt Cap.(Rs cr) 22
Buy Price 0.00
Buy Qty 0.00
Sell Price 2.19
Sell Qty 56412.00

LN Industries India Ltd. (LNINDUSTRIES) - Auditors Report

Company auditors report

To

The Members of

LN INDUSTRIES INDIA LIMITED

Hyderabad - 500 033.

Report on the Financial Statements

We have audited the accompanying financial statements of LN INDUSTRIES INDIA LIMITEDwhich comprise the Balance Sheet as at March 31 2015 and the Statement of Profit andLoss and Cash Flow Statement for the year then ended and a summary of significantaccounting policies and other explanatory information.

Management's Responsibility for the Financial Statements

The Company's Board of Directors is responsible for the matters in section 134(5) ofthe Companies Act 2013 ("the Act") with respect to the preparation of thesefinancial statements that give a true and fair view of the financial position financialperformance and cash flows of the Company in accordance with the accounting principlesgenerally accepted in India including the Accounting Standards specified under Section133 of the Act read with Rule 7 of the Companies (Accounts) Rules 2014. Thisresponsibility also includes the maintenance of adequate accounting records in accordancewith the provision of the Act for safeguarding of the assets of the Company and forpreventing and detecting the frauds and other irregularities; selection and application ofappropriate accounting policies; making judgments and estimates that are reasonable andprudent; and design implementation and maintenance of internal financial control thatwere operating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the financial statements thatgive a true and fair view and are free from material misstatement whether due to fraud orerror.

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 that 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 accordance with the Standards on Auditing issued by theInstitute of Chartered Accountants of India as specified under section 143(10) of theAct. Those Standards require that we comply with ethical requirements and plan and performthe audit to obtain reasonable assurance about whether the financial statements are freefrom material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts anddisclosures in the financial statements. The procedures selected depend on the auditor'sjudgment including the assessment of the risks of material misstatement of the financialstatements whether due to fraud or error. In making those risk assessments the auditorconsiders internal financial control relevant to the Company's preparation of thefinancial statements that give true and fair view in order to design audit procedures thatare appropriate in the circumstances but not for the purpose of expressing an opinion onwhether the Company has in place an adequate internal financial controls system overfinancial reporting and the effectiveness of such controls. An audit also includesevaluating the appropriateness of accounting policies used and the reasonableness of theaccounting estimates made by Company's Directors as well as evaluating the overallpresentation of the financial statements.

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

Our comments on the accounts are as under:

(a) Reference in invited to Note No.23.4 under Notes to Accounts regarding confirmationand / or reconciliation of balances.

(b) According to the information and the explanations given to us the Company does nothave any over - dues to SSI units and hence o provision for interest is made in accounts.

(c) The Credit facilities of the Company are categorized as Non Performing Asses (NPA)by State Bank of Hyderabad (SBH) during the year and Bank has recalled the Loan sanctionedto the Company. The same has impact on the ability of the Company to carry out itsbusiness.

Opinion

Subject to our comments in the above paragraphs we report that. In our opinion and tothe best of our information and according to the explanations given to us the financialstatements give the information required by the Act in the manner so required and give atrue and fair view in conformity with the accounting principles generally accepted inIndia:

(a) in the case of the Balance Sheet of the state of affairs of the Company as atMarch 31 2015;

(b) in the case of the Statement of Profit and Loss Account of the loss incurred bythe Company 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 onthat date.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor's Report) Order 2015 ("the Order")issued by the Central Government 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 paragraphs 4 and5 of the Order to the extent applicable.

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

a) we have obtained all the information and explanations which to the best of ourknowledge 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 dealt withby this Report are in agreement with the books of account;

d) in our opinion the Balance Sheet Statement of Profit and Loss and Cash FlowStatement comply with the Accounting Standards specified under Section 133 of the Actread with Rule 7 of the Companies (Accounts) Rules 2014;

e) on the basis of written representations received from the directors as on March 312015 and taken on record by the Board of Directors none of the directors is disqualifiedas on March 31 2015 from being appointed as a director in terms of Section 164(2) of theAct.

f) With respect to the other matters included in the Auditor's Report in accordancewith Rule 11 of the Companies (Audit & Auditors) Rules 2014 in our opinion and tothe best of our information and according to the explanations given to us;

i. The Company does not have any pending litigations which would impact its financialposition in its financial statements for the year ended March 31 2015.

ii. The Company did not have any long-term contracts including derivatives contractsfor which there were any aterial foreseeable losses.

iii. There were no amounts that were required to be transferred to Investor Educationand Protection Fund by the Company.

For M/s.KUMAR & GIRI

Chartered Accountants

FRN 01584 S

J.BHADRA KUMAR

Partner

M.No.025480

Place: Hyderabad

Date: 15th May ' 2015.

ANNEXURE TO THE AUDITORS' REPORT REFERRED TO IN OUR REPORT OF EVEV DATE TO THE MEMBERSOF LN INDUSTRIES INDIA LIMITED

Re: LN INDUSTRIES INDIA LIMITED ("the Company")

(Referred to in Paragraph 1 under the heading of "report on other legal andregulatory requirements" of our report of even date)

(i) (a) The Company has maintained proper records showing full particulars includingQuantitative details and situation of Fixed Assets. However the Company have to update therecords to the disposal of various assets made during the period.

(b) The Company has not conducted physical verification of the fixed assets at itsmanufacturing location.

(ii) (a) As explained to us the inventories have been physically verified atreasonable interval by the management. In our opinion the frequency of such verificationis not reasonable.

(b) According to the information and explanations provided to us the inventories arequantified and the value estimated and certified by the respective manufacturing locationsin charges. In our opinion considering the period since which inventories are held asnon-moving we are unable to comment on the realisability of value of inventory.

(c) The Company is not maintaining proper records of inventory. The discrepanciesnoticed on verification between the physical stocks and the book records were notmaterial.

(iii) According to the information and explanations given to us the Company has notgranted unsecured loans to Companies or other parties covered in the register maintainedunder section 189 of the Companies Act 2013. Accordingly the provision of clause3(iii)(a) to (b) of the order are not applicable to the Company.

(a) The Company has outstanding loans from a party. The maximum amount outstandingduring the year in relation to the loans taken aggregate to Rs.882.35 Lakhs.

(b) In our opinion and according to the information and explanations given to us norates of interests are specified for the loans taken. The other terms and conditions forthese loans are not prima facie prejudicial to the interest of the Company.

(c) The loan taken from Director (one party) are interest free and subordinate to thedebts of the Financial Institutions so as to the repayment of principal.

(d) The loan taken by the Company from JMF ARC has been restructured and no dues arefor repayment during the year. There are no other overdue amounts in respect of loanstaken by the Company and also in relation to the loans given by the Company.

(iv) In our opinion and according to the information and explanations given to us theinternal control procedures in the Company needs to be strengthened so as to becommensurate with the size of the Company and the nature of its business with regard toPurchases of Inventory Fixed Assets and with regard to the Sale of Goods.

(v) According to the information and explanations given to us the Company has notaccepted any deposits during the year from public within the meaning of the provisions ofSection 73 to 76 or any relevant provisions of the Companies Act 2013 and rules madethereunder.

(vi) We have broadly reviewed the books of account maintained by the Company pursuantto the rules made by the Central Government for the maintenance of Cost Records undersub-section (1) of section 148 of the Companies Act 2013 in respect of the manufacturingactivities and are of the opinion that prima facie the prescribed accounts and recordshave been made and maintained.

(vii) (a) According to the information and explanations given to us the Company isgenerally regular in depositing with appropriate authorities undisputed statutory duesincluding provident fund investor education protection fund employees' state insurancesales tax wealth tax custom duty excise duty cess and other material statutory duesapplicable to it.

(b) According to the information and explanations given to us no undisputed amountspayable in respect of wealth tax sales tax customs duty excise duty and cess were inarrears as at 31st March ' 2015 for a period of more than six months from the date theybecame payable excepting the following.

Particulars Amount Remarks
1. Deferred Sales Tax 118.63 Which has become due on account of the Unit being shifted from Andhra Pradesh
2 Sales Tax 9.44 Assessment Tax of Vapi Sales Tax
Tax Deducted At Source:: 3.96

(c) According to the information and explanation given to us there are no dues of saletax income tax customs duty wealth tax excise duty and cess which have not beendeposited on account of any dispute except the following.

Particulars Amount Remarks
(Rs. in Lacs)
1. Income Tax - A.Y.2011-2012 - Demand raised by the Department 272.96 Appeal filed with CIT Appeals - V Hyderabad pending disposal.

(viii) The Company has no accumulated losses as on 31st March ' 2015 and Company hasincurred Cash Loss during the year and the immediate preceding year.

(ix) According to the records of the Company examined by us and the information andexplanation given to us the company has defaulted in repayment of dues to financialinstitution or bank as at the Balance Sheet date and the amount of default could not bequantified. The Credit facilities of the Company with State Bank of Hyderabad are declaredas Non Performing Assets (NPA) during the year. Further during the year the company hasnot issued any debentures so there is no question of repayment of dues to debentureholders.

(x) As per the information and explanations given to us the Company has not given anyguarantee for loans taken by others from banks for financial institutions. Accordinglythe provisions of clause 3(x) of the Order are not applicable to the Company.

(xi) According to the information and explanations given to us and in our opinion nonew term loans have been availed by the Company during the year.

(xii) Based upon the audit procedures performed for the purpose of reporting the trueand fair view of the financial statement and as per the information and explanations givenby the management we report that no material fraud on or by the Company has been noticedor reported during the course of our audit nor have we been informed of such cases by themanagement.

For M/S.KUMAR & GIRI.

CHARTERED ACCOUNTANTS.

FRN 01584 S

J.BHADRA KUMAR

Partner.

M.No.025480

Place: Hyderabad.

Date: 15th May ' 2015.