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Lesha Industries Ltd.

BSE: 533602 Sector: Others
NSE: N.A. ISIN Code: INE050L01048
BSE 13:54 | 24 May 20.00 0.95
(4.99%)
OPEN

19.99

HIGH

20.00

LOW

19.99

NSE 05:30 | 01 Jan Lesha Industries Ltd
OPEN 19.99
PREVIOUS CLOSE 19.05
VOLUME 2379380
52-Week high 20.00
52-Week low 1.85
P/E 500.00
Mkt Cap.(Rs cr) 220
Buy Price 19.99
Buy Qty 262620.00
Sell Price 20.00
Sell Qty 4193.00
OPEN 19.99
CLOSE 19.05
VOLUME 2379380
52-Week high 20.00
52-Week low 1.85
P/E 500.00
Mkt Cap.(Rs cr) 220
Buy Price 19.99
Buy Qty 262620.00
Sell Price 20.00
Sell Qty 4193.00

Lesha Industries Ltd. (LESHAINDUSTRIES) - Auditors Report

Company auditors report

To

The Board of Directors of

Lesha Industries Limited

OPINION

We have audited the accompanying financial statements of Lesha Industries Limited("the Company") which comprise the balance sheet as at March 31 2021 and theStatement of Profit and Loss and statement of cash flows for the year then ended andnotes to the financial statements including a summary of significant accounting policiesand other explanatory information.

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid financial statements give the information required by theCompanies Act 2013 (‘Act’) in the manner so required and give a true and fairview in conformity with the accounting principles generally accepted in India of thestate of affairs of the Company as at March 31 2021 its Profit and cash flows for theyear ended on that date.

BASIS FOR OPINION

We conducted our audit in accordance with the Standards on Auditing (SAs) specifiedunder section 143(10) of the Companies Act 2013 as amended ("the Act). Ourresponsibilities under those Standards are further described in the "Auditor’sResponsibilities for the Audit of the Standalone Financial Results" section of ourreport. We are independent of the Company in issued by the Institute of CharteredAccountants of India together with the ethical requirements that are relevant to our auditof the financial statements under the provisions of the Act and the Rules thereunder andwe have fulfilled our other ethical responsibilities in accordance with these requirementsand the Code of Ethics. We believe that the audit evidence obtained by us is sufficientand appropriate to provide a basis for our opinion.

EMPHASIS OF MATTER

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 non performing assets amounting to Rs.117.03 lacs. Due to non-provision in this regard the debit balance of profit & lossaccount is under stated and balance of loans and advances is overstated by the said sum.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 is notqualified in respect of this matter.

MANAGEMENT’S RESPONSIBILITIES FOR THE STANDALONE FINANCIAL RESULTS

The Statement has been prepared on the basis of the annual standalone financialstatements for the year ended March 31 2021. The Board of Directors of the Company areresponsible for the preparation and presentation of the Statement that give a true andfair view of the loss and other comprehensive income and with the applicable accountingstandards prescribed under Section other financial 133 of the Act read with relevant rulesissued there under and other accounting principles generally accepted in India and incompliance with Regulation 33 of the Listing Regulations This responsibility alsoincludes maintenance of adequate accounting records in accordance with the provisions ofthe Act for safeguarding of the assets of the Company and for preventing and detectingfrauds selection and other irregularities; application of appropriate accountingpolicies; making judgments and estimates that are reasonable and prudent; and the designimplementation and maintenance of adequate internal financial controls that were eff forensuring the accuracy and completeness of the accounting records relevant to theoperating preparation and presentation of the Statement that give a true and fair view andare free from material misstatement whether due to fraud or error.

In preparing Statement the Board of Directors are responsible for assessing theCompany’s ability to continue as a going concern disclosing as applicable mattersrelated to going concern and using the going concern basis of accounting unless the Boardof Directors either intends to liquidate the Company or to cease operations realisticalternative but to do so. or has no The Board of Directors are also responsible foroverseeing the Company’s financial reporting process

AUDITOR’S RESPONSIBILITIES FOR THE AUDIT OF THE STANDALONE FINANCIAL RESULTS

Our objectives are to obtain reasonable assurance about whether the Statement as awhole is free from material misstatement whether due to fraud or error and to issue anauditor’s report that includes our opinion. Reasonable assurance is a high level ofassurance 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 ofthis Statement.

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 Statement whether due tofraud or design and perform audit procedures responsive to those risks and obtain auditevidence that is sufficient and appropriate to provide a basis for our opinion. The riskof not detecting a material misstatement resulting from fraud is higher than for oneresulting from error as fraud may involve collusion forgery intentional omissionsmisrepresentations 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. Under Section143(3)(i) of theAct we are also responsible for expressing our opinion on whether the company hasadequate internal financial controls with reference to these financial results in placeand the operating effectiveness of such controls.

Evaluate the appropriateness of accounting policies used and the reasonableness ofaccounting and related disclosures made by the Board of Directors.

Conclude on the appropriateness of the Board of Directors’ use of the goingconcern basis of accounting and based on the audit evidence obtained whether a materialuncertainty exists related to events or conditions that may cast significant doubt on theability of the Company 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 Statement or if such disclosures are inadequate to modify ouropinion. Our conclusions are based on the audit evidence obtained up to the date of ourauditor’s report. However future events or conditions may cause the Group and of itsJoint Venture to cease to continue as a going concern.

Evaluate the overall presentation structure and content of the Statement includingthe disclosures and whether the financial results represent the underlying transactionsand events in a manner that achieves fair presentation.

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.

REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS

1. As required by the Companies (Auditor’s Report) Order 2016 ("theOrder") issued by the Central Government in terms of Section 143 (11) of the Act wegive in 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 March2021 taken on record by the Board of Directors none of the directors is disqualified ason 31st March 2021 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 ourbest of our information and according to the explanations given to us:

i. The Company does not have any pending litigations which would impact itsfinancialposition.

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 bythe Company.

For G M C A & Co
Chartered Accountants
(FRN No.109085W)
Mitt S. Patel
Partner
Date: 29/06/2021 Membership No.: 163940
Place: Ahmedabad UDIN : 21163940AAAAON6540

Reports under The Companies (Auditor’s Report) Order 2016 (CARO 2016) for theyear ended on 31st March 2021

To

The Members of LESHA INDUSTRIES LIMITED

(1) In Respect of Fixed Assets

(a) The company has maintained proper records showing full particulars includingquantitative details fi. andsituation of

(b) Fixed assets have been physically verified by the management at reasonableintervals; No material discrepancies were noticed on such verification.

(c) Yes The Title deeds of Immovable Properties are held in the name of the Company.

(2) In Respect of Inventories

As explained to us the inventories (excluding inventories with third parties) werephysically verified during the year by the Management at reasonable intervals.

(3) Compliance under section 189 of The Companies Act 2013

The Company has not granted any loan to the parties covered in the register maintainedu/s 189 of the companies Act 2013.

(a) As there is no such loan question of prejudicially does not arise.

(b) As there is no such loan question of repayment terms & conditions also doesnot arise.

(c) There is no overdue amount of loans granted to companies firms or other partieslisted in the Act 2013. register maintained under section 189 of the

(4) Compliance under section2013 185 and 186 of The Companies Act

While doing transaction for loans investments guarantees and security provisions ofsection 185 and 186 of the Companies Act 2013 have been complied with.

(5) Compliance under section 73 to 76 of The Companies Act 2013 and Rules framedthereunder while accepting Deposits

According to information and explanations given to us the Company has not accepted anydeposits from public during the year. In respect of unclaimed deposits the Company hascomplied with the provisions of sections 73 to 76 or any other relevant provisions of theCompanies Act 2013 and the rules made thereunder.

(6) Maintenance of cost records

The Company is not required to maintain cost Records pursuant to the Rules made by theCentral Government for the maintenance of cost records under sub-section (1) of section148 Act 2013.

(7) Deposit of Statutory Dues

(a) The Company has generally been regular in depositing undisputed statutory duesincluding Provident Fund Income-tax Sales Tax Wealth Tax Service Tax Duty of customsDuty of excise Value added tax Cess and any other material statutory dues with theappropriate authorities.

(b) According to the information and explanations given to us no undisputed amountpayable in respect of Income Tax Wealth Tax Service Tax Sales Tax Customs Duty andExcise Duty were in arrears as of 31st March 2021 for a period of more than six monthsfrom the date they became payable.

(8) Repayment of Loans and Borrowings

The company has not defaulted in repayment of dues to financial institution bank ordebenture holders during the year.

(9) Utilization of Money Raised by Public Offers and

The Company has not raised moneys by way of initial public offer or further publicoffer (including debt instruments) during the year. However money raised by way of termloans have been applied for the purposes for which they have been obtained.

(10) Reporting of Fraud During the Year

Based on our audit procedures and the information and explanation made available to usno such fraud noticed or reported during the year.

(11) Managerial Remuneration

Managerial Remuneration has not been provided by the Company

(12) Compliance by Nidhi Company Regarding Net Owned Fund to Deposits Ratio

As per information and records available with us The company is not Nidhi Company.

(13) Related party compliance with Section 177 and 188 of companies Act - 2013

Yes All transactions with the related parties are in compliance with section 177 and188 of Companies Act 2013 where applicable and the details have been disclosed in theFinancial Statements etc. as required by the applicable accounting standards.

(14) Compliance under section 42 of Companies Act - 2013 regarding Private placement ofShares orDebentures

According to the information and explanations give to us and based on our examinationof the records of the Company the Company has made allotment of convertible warrants onpreferential basis during the year also requirement of section 42 of Companies Act 2013have been complied with and the amount raised has been used for the purpose for which thefunds were raised .

(15) Compliance under section 192 of Companies Act 2013

The company has not entered into any non-cash transactions with directors or personsconnected with him.

(16) Requirement of Registration under 45-IA of Reserve Bank of India Act 1934

The company is not required to be registered under section 45-IA of the Reserve Bank oflndia Act.

For G M C A & Co
Chartered Accountants
(FRN No.109085W)
Mitt S. Patel
Partner
Date: 29/06/2021 Membership No.: 163940
Place: Ahmedabad UDIN : 21163940AAAAON6540

Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143 of the Companies Act 2013 ("the Act")

We have audited the internal financial controls over financial reporting ofM/S.LESHA INDUSTRIES LIMITED ("the Company") as of March 31 2021 inconjunctionwith our audit of the standalone financial statements of the Company for theyear ended on that date.

Management’s Responsibility for Internal Financial Controls

The Company’s management is responsible for establishing and maintaining internalfinancial controls. These responsibilities include the design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the orderly and efficient conduct of its business including adherence tocompany’s policies the safeguarding of its assets the prevention and detection offrauds and errors the accuracy and completeness of the accounting records and the timelypreparation of reliable financial information as required under the Companies Act 2013.

Auditors’ Responsibility

Our responsibility is to express an opinion on the Company’s internal financialcontrols over financial reporting based on our audit. We conducted our audit in accordancewith the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting(the "Guidance Note") and the Standards on Auditing issued by ICAI and deemedto be prescribed under section 143(10) of the Companies Act 2013 to the extentapplicable to an audit of internal financial controls both applicable to an audit ofInternal Financial Controls and both issued by the Institute of Chartered Accountants ofIndia. Those Standards and the Guidance Note require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetheradequate internal financial controls over financial reporting was established andmaintained and if such controls operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls system over financial reporting and their operatingeffectiveness. Our audit of internal financial controls over financial reporting includedobtaining an understanding of internal financial controls over financial reportingassessing the risk that a material weakness exists and testing and evaluating the designand operating effectiveness of internal control based on the assessed risk. The proceduresselected depend on the auditor’s judgement including the assessment of the risks ofmaterial misstatement of the financial statements whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Company’s internal financial controlssystem over financial reporting.

Meaning of Internal Financial Controls over Financial Reporting

A company’s internal financial control over financial reporting is a processdesigned to provide reasonable assurance regarding the reliability of financial reportingand the preparation of financial statements for external purposes in accordance withgenerally accepted accounting principles. A company’s internal financial control overfinancial reporting includes those policies and procedures that

(1) pertain to the maintenance of records that in reasonable detail accurately andfairly reflect the transactions and dispositions of the assets of the company;

(2) provide reasonable assurance that transactions are recorded as necessary to permitpreparation of financial statements in accordance with generally accepted accountingprinciples and that receipts and expenditures of the company are being made only inaccordance with authorisations of management and directors of the company; and

(3) provide reasonable assurance regarding prevention or timely detection ofunauthorised acquisition use or disposition material effect on the financial statements.

Inherent Limitations of Internal Financial Controls over Financial Reporting

Because of the inherent limitations of internal possibility of collusion or impropermanagement override of controls material misstatements due to error or fraud may occurand not be detected. Also projections of any evaluation of the internal financialcontrols over financial reporting to future periods are subject to the risk that theinternal financial control over financial reporting may become inadequate because ofchanges in conditions or that the degree of compliance with the policies or proceduresmay deteriorate.

Opinion

In our opinion the Company has in all material respects an adequate internalfinancial controls system over financial reporting and such internal financial controlsover financial reporting were operating at March 31 2021.

For G M C A & Co
Chartered Accountants
(FRN No.109085W)
Mitt S. Patel
Partner
Date: 29/06/2021 Membership No.: 163940
Place: Ahmedabad UDIN : 21163940AAAAON6540

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