To the Members of Lesha Industries Limited Report on the Financial Statements
We have audited the accompanying financialstatements ofLESHA INDUSTRIES LIMITED ("thecompany")which comprise the Balance Sheet as at 31stMarch 2019 theStatement of Profit and Loss the Cash Flow Statement for the year then ended and asummary of significant accounting 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 the Companies (Indian Accounting Standards) Rules 2015. 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.
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 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 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. An audit also includes evaluating theappropriateness of accounting policies used and the reasonableness of the accountingestimates made by Company's Directors as well as evaluating the overall presentation ofthe financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the financial statements.
Matter of Emphasis:
The company has in past granted/renewed loans and advances to other companieswhich has been identified as non- performing asset. Accordingly company has notrecognized any income from the same. In the opinion of directors the process of recoveryis going on and the same is not fully doubtful of recovery. However in our opinion companyneeds to make provision for such long outstanding nonperforming assets amounting to Rs.117.03 lacs. Due to non-provision in this regard the debit balance of profit &loss account is under stated and balance of loans and advances is overstated by the saidsum. This matter has been already emphasized by previous auditor.
The company is carrying "P & P Expenses and issue related expenses ofRs.959198/- as "other current assets" which in our opinion needs to be writtenoff. And Due to the same Profit &Loss account is under stated. So the amount of Rs.959198/- needs to be written off in the forthcoming financial years. Our opinion isnot qualified in respect of this matter.
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 matter of emphasisparagraph above the aforesaid financial statements give the information required by theAct in the manner so required and give a true and fair view in conformity with theaccounting principles generally accepted in India;
a) in the case of the Balance Sheet of the state of affairs of the Company as at March31 2019;
b) in the case of the Statement of Profit and Loss of the loss for the year ended onthat date; and
c) in the case of the Cash Flow Statement of the cash flows for the year ended on thatdate.
Report on other Legal and Regulatory Requirements
1. As required by the Companies (Auditor's Report) Order 2016 ("the Order")issued by the Central Government in terms of Section 143 (11) of the Act we give in theAnnexure a statement on the matters specified in paragraphs 3 and 4 of the Order.
2. As required by section 143(3) of the Act we report that:
a) We have sought and obtained all the information and an explanation which is to thebest of our knowledge and beliefs 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 appears from our examination of those books.
c) The Balance Sheet the 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 AccountingStandards specified under Section 133 of the Act read with the Companies (IndianAccounting Standard) Rules 2015 as amended
e) On the basis of written representations received from the directors as on 31 March2019 taken on record by the Board of Directors none of the directors is disqualified ason 31st March 2019 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 and to our bestof our information and according to the explanations given to us:
i. The Company does not have any pending litigations which would impact its financialposition.
ii. The Company did not have any long-term contracts including derivatives contractsfor which there were any material foreseeable losses.
iii. There is no amount required to be transferred to the investor's education &Protection Fund by the Company.
| ||For G M C A & Co. |
| ||Chartered Accountants |
| ||FRN: 109850W |
| ||CA. Mitt S. Patel |
|Place : Ahmedabad ||(Partner) |
|Date : 15/05/2019 ||Membership No. 163940 |