TO THE BOARD OF DIRECTORS OF LERTHAI FINANCE LIMITED (FORMERLY KNOWN AS MARATHWADAREFRACTORIES LIMITED)
Report on the audit of the Financial Results
We have audited the accompanying quarterly financial results of Lerthai Finance Limited(Formerly known as Marathwada Refractories Limited) ("the Company") for thequarter ended March 312021 and the year to date results for the period from April 012020 to March 31 2021 ("the financial results") attached herewith beingsubmitted by the Company pursuant to the requirement of Regulation 33 of the SEBI (ListingObligations and Disclosure Requirements) Regulations2015 as amended ("ListingRegulations").
In our opinion and to the best of our information and according to the explanationsgiven to us these financial results:
i. are presented in accordance with the requirements of Regulation 33 of the ListingRegulations in this regard ;and
ii. give a true and fair view in conformity with the recognition and measurementprinciples laid down in the applicable accounting standards and other accountingprinciples generally accepted in India of the net loss and other comprehensive loss andother financial information for the quarter ended March 31 2021 as well as the year todate results for the period from April 01 2020 to March 31 2021.
Basis for Opinion
We conducted our audit in accordance with the Standards on Auditing (SAs) specifiedunder section 143(10) of the Companies Act 2013("the Act"). Ourresponsibilities under those Standards are further described in the Auditor'sResponsibilities for the Audit of the Financial Results section of our report. We areindependent of the Company in accordance with the Code of Ethics issued by the Instituteof Chartered Accountants of India together with the ethical requirements that are relevantto our audit of the financial results under the provisions of the Act and the Rulesthereunder and we have fulfilled our other ethical responsibilities in accordance withthese requirements and the Code of Ethics. We believe that the audit evidence we haveobtained is sufficient and appropriate to provide a basis for our opinion.
Emphasis of Matter
We draw attention to Note 6 of the financial results which describes the effects offair valuation of investment.
Our opinion is not modified in respect of this matter.
Management's Responsibilities for the Financial Results
These financial results have been prepared on the basis of the annual financialstatements. The Company's Board of Directors are responsible for the preparation of thesefinancial results that give a true and fair view of the net loss and other comprehensiveloss and other financial information in accordance with the recognition and measurementprinciples laid down in Indian Accounting Standard prescribed under Section 133 of theAct read with relevant rules issued thereunder and other accounting principles generallyaccepted in India and in compliance with Regulation 33 of the Listing Regulations. Thisresponsibility also includes maintenance of adequate accounting records in accordance withthe provisions of the Act for safeguarding of the assets of the Company and for preventingand detecting frauds and other irregularities; selection and application of appropriateaccounting policies; making judgments and estimates that are reasonable and prudent; anddesign implementation and maintenance of adequate internal financial controls that wereoperating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the financial results that give atrue and fair view and are free from material misstatement whether due to fraud or error.
In preparing the financial results the Board of Directors are responsible forassessing the Company's ability to continue as a going concern disclosing as applicablematters related to going concern and using the going concern basis of accounting unlessthe Board of Directors either intends to liquidate the Company or to cease operations orhas no realistic alternative but to do so.
The Board of Directors are also responsible for overseeing the Company's financialreporting process.
Auditors Responsibilities for the Audit of the Financial Results
Our objectives are to obtain reasonable assurance about whether the financial resultsas a whole are free from material misstatement whether due to fraud or error and toissue an auditor's report that includes our opinion. Reasonable assurance is a high levelof assurance but is not a guarantee that an audit conducted in accordance with SAs willalways detect a material misstatement when it exists. Misstatements can arise from fraudor error and are considered material if individually or in the aggregate they couldreasonably be expected to influence the economic decisions of users taken on the basis ofthese financial results.
As part of an audit in accordance with SAs we exercise professional judgment andmaintain professional skepticism throughout the audit. We also:
Identify and assess the risks of material misstatement of the financial resultswhether due to fraud or error design and perform audit procedures responsive to thoserisks and obtain audit evidence that is sufficient and appropriate to provide a basis forour opinion. The risk of not detecting a material misstatement resulting from fraud ishigher than for one resulting from error as fraud may involve collusion forgeryintentional omissions misrepresentations or the override of internal control.
Obtain an understanding of internal control relevant to the audit in order to designaudit procedures that are appropriate in the circumstances but not for the purpose ofexpressing an opinion on the effectiveness of the Company's internal control.
Evaluate the appropriateness of accounting policies used and the reasonableness ofaccounting estimates and related disclosures made by the Board of Directors.
Conclude on the appropriateness of the Board of Directors' use of the going concernbasis of accounting and based on the audit evidence obtained whether a materialuncertainty exists related to events or conditions that may cast significant doubt on theCompany's ability to continue as a going concern. If we conclude that a materialuncertainty exists we are required to draw attention in our auditor's report to therelated disclosures in the financial results or if such disclosures are inadequate tomodify our opinion. Our conclusions are based on the audit evidence obtained up to thedate of our auditor's report. However future events or conditions may cause the Companyto cease to continue as a going concern.
Evaluate the overall presentation structure and content of the financial resultsincluding the disclosures and whether the financial results represent the underlyingtransactions and events in a manner that achieves fair presentation.
Materiality is the magnitude of misstatements in the financial results thatindividually or in aggregate makes it probable that the economic decisions of areasonably knowledgeable user of the financial results may be influenced. We considerquantitative materiality and qualitative factors in (i) planning the scope of our auditwork and in evaluating the results of our work; and (ii) to evaluate the effect of anyidentified misstatements in the financial results.
We communicate with those charged with governance regarding among other matters theplanned scope and timing of the audit and significant audit findings including anysignificant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have compliedwith relevant ethical requirements regarding independence and to communicate with themall relationships and other matters that may reasonably be thought to bear on ourindependence and where applicable related safeguards.
i. Attention is drawn to the fact that the financial results includes the result forthe quarter ended
31st March 2021 being the balancing figure between audited figures inrespect of full financial year and published unaudited period end figures up to the thirdquarter of the current financial yearwhich were subject to limited review by us.
Our opinion is not modified in respect of above matters.
|For B. D. Jokhakar &Co. || |
|Chartered Accountants || |
|Firm Registration Number:104345W || |
|RAMAN ||Digitally signed by |
| ||RAMAN HAREN |
|HAREN ||JOKHAKAR |
|JOKHAKAR ||Date: 2021.06.29 |
| ||16:02:18 +05'30' |
Dated:29th June 2021.