LS INDUSTRIES LIMITED
(FORMERLY KNOWN AS LIFESTYLE FABRICS LIMITED)
ANNUAL REPORT 2010-2011
The Members of
LS Industries Limited
(formerly known as Lifestyle Fabrics Limited)
1. We have audited the attached balance sheet of LS Industries Limited
(formerly known as Lifestyle Fabrics Limited), as at March 31, 2011, the
profit and loss account and the Cash Flow Statement for the year ended on
that date annexed thereto. These financial statements are the
responsibility of the Company's management. Our responsibility is to
express an opinion on these financial statements based on our audit.
2. We conducted our audit in accordance with the Auditing Standards
Generally Accepted in India. Those standards require that we plan and
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 disclosures
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 statements presentation. We
believe that our audit provides a reasonable basis for our opinion.
3. As required by the Companies (Auditor's Report) Order, 2003 are amended
by Companies (Auditor Report) (Amendment) Order 2004 (together the 'order')
issued by the Central Government of India in terms of sub-section (4A) of
section 227 of the Companies Act, 1956, we enclose in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the said Order.
4. Further to our comment in the annexure referred to above, we report
(i) 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
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) In our opinion, the balance sheet, profit and loss account and cash flow
statement dealt with by this report comply with the Accounting Standards
referred to in sub-section (3C) of section 211 of the Companies Act, 1956;
(ii) The Balance Sheet, Profit and Loss Account and Cash Flow Statement
dealt with by this report are in agreement with the books of account;
(iii) On the basis of written representations received from the directors,
as on March 31, 2011 and taken on record by the board of directors, we
report that none of the director is disqualified as on March 31, 2011 from
being appointed as a director in terms of clause (g) of sub-section (1) of
section 274 of the Companies Act, 1956;
5. In our opinion and to the best of our information and according to the
explanation given to us, the said accounts read together with the
significant accounting policies and other notes thereon 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 Accepted in India:
(a) In the case of the balance sheet, of the state of affairs of the
Company as at March 31, 2011;
(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 of the
company for the year ended on that date.
For Doogar & Associates
(Reg. No. 000561N)
M. No. 505603
ANNEXURE TO THE AUDITORS' REPORT
Annexure to the Auditor's Report of even date to the members of LS
Industries Limited (formerly known as Lifestyle Fabrics Limited) on the
Financial Statements for the year ended 31st March 2011
(i) (a) The Company has maintained proper records showing full particulars,
including quantitative details and situation of fixed assets.
(b) The fixed assets have been physically verified by the management at
reasonable intervals, which in our opinion, is considered 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 Company has not disposed off substantial part of fixed assets
during the year, and accordingly, going concern is not affected.
(ii) (a) The inventories have been physically verified during the year by
the management. In our opinion, frequency of verification is reasonable.
(b) The procedures of physical verification of inventories followed by the
management are reasonable and adequate in relation to the size of the
company and the nature of its business.
(c) The company is maintaining proper records of inventory. As explained to
us, there were no material discrepancies noticed on physical verification
of inventory as compared to the book records.
(iii) As informed, the company has not granted / taken any loan to / from
any party which is covered in the register maintained under section 301 of
the Companies Act. 1956. Therefore, the provisions of clause 4(iii) of the
Companies (Auditors Report) Order, 2003 are not applicable in the case of
(iv) In our opinion and according to the Information and explanation given
to us, there are adequate internal control systems commensurate with the
size of the company and the nature of its business with regard to purchase
of inventory, fixed assets and with regard to the sale of goods and
services. Further, on the basis of our examination of the books & records
of the company, carried out in accordance with the generally accepted
auditing practices in India, we have neither come across nor have we been
informed of any instance of major weaknesses in the aforesaid internal
(v) In our opinion and according to the information and explanations given
to us, the Company has not entered into any transaction which needs to be
entered into the register required to be maintained in pursuance of section
301 of The Companies Act, 1956. Therefore, the provisions of clause 4iv) of
the Companies (Auditors Report) Order, 2003 are not applicable in the case
of the Company.
(vi) The Company has not accepted any deposits from the public hence the
provisions of sections 58A, 58AA or any other relevant provisions of the
Companies Act, 1956 including the Companies (Acceptance of Deposits) Rules,
1975 are not applicable to the company.
(vii) The Company has an internal audit system which in our opinion is
commensurate with the size of the Company and the nature of its business.
(viii) We have broadly reviewed the records including the Books of Accounts
made and maintained by the Company pursuant to the Rules made by the
Central Government for maintenance of cost records under Section 209 (1)
(d) of the Companies Act, 1956, and are of the opinion that prima-facie the
prescribed accounts and records have been made and maintained.
(ix) (a) According to the records of the company and other information and
explanation given to us, the company is generally regular in depositing
statutory dues such as provident fund, Employee's State Insurance, income
tax, sales tax, vat, service tax, custom duty aid other material undisputed
statutory dues with the appropriate authorities. Further there are no
arrears of outstanding statutory dues as at the last date of the financial
year concerned, for a period of more than six months from the date they
(b) In our opinion and according to the information and explanations given
to us, there are no statutory dues outstanding as at 31st March, 2011 which
have not been deposited on account of any dispute.
(x) The company has no accumulated losses at the end of the financial year.
Further the company has not incurred cash losses in the current financial
year. In the immediately preceding financial year the company had incurred
(xi) In our opinion and according to the information and explanations given
to us, the Company has not taken any loan or borrowing from any financial
institution or bank or has not issued any debentures therefore comment on
any default on repayment of any dues is not applicable.
(xii) In our opinion and according to the information and explanations
given to us, no leans and advances have been granted by the Company on the
basis of security by way of pledge of shares, debentures and other
(xiii) The Company is not a chit fund or nidhi/mutual benefit fund /
society. Accordingly, the provisions of clause 4(xiii) of the Companies
(Auditors Report) Order, 2003 are not applicable to the Company.
(xiv) The Company is not dealing in or trading in shares, securities,
debentures and other investments. Accordingly, the provisions o: clause
4(xiv) of the Companies (Auditors Report) Order, 2003 are not applicable to
(xv) According to the information and explanations given to us, the Company
has given guarantees for loans, taken by others from bank or financial
institutions, the terms and conditions whereof in our opinion are not prima
facie prejudicial to the interest of the company.
(xvi) According to the information and explanation given to us and records
examined by us, the company has not taken any term loan, therefore comment
on application of term loan is not applicable.
(xvii) According to the information and explanations given to us and on an
overall examination of the Cash Flow Statement of the Company for the year,
we report that no funds raised on short-term basis have been used for long
(xviii) The Company has not made preferential allotment of shares to the
parties covered in register maintained under section 301 of the Companies
(xix) The Company has not issued any debentures during the year.
(xx) The Company has not raised money by way of public issue during the
(xxi) During the course of the audit carried and according to the
information and explanations given to us, we have neither come across any
instance of fraud on or by the Company, noticed or reported during the year
nor we have been informed of such case by the management.
For Doogar & Associates
(Reg. No. 000561N)
M. No. 505603