Lalit Polymers & Electronics Ltd.की ऑडीटर रिपोर्ट

Mar 31, 2015

We have audited the accompanying financial statements of LALIT POLYMERS & ELECTRONICS LIMITED ("the company"), which comprise the Balance Sheet as at 31 March 2015, the Statement of Profit and Loss, the Cash Flow Statement for the year then ended, and a summary 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 stated in section 134(5) of the Companies Act, 2013 ("the Act") with respect to the preparation and presentation of these financial statements that give a true and fair view of the financial position, financial performance and cash flows of the Company in accordance with the accounting principles generally accepted in India, including the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014. This responsibility also includes the maintenance of adequate accounting records in accordance with the provision of the Act for safeguarding of the assets of the Company and for preventing and detecting the frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial control, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

Auditor's Responsibility

Our responsibility is to express an opinion on these financial statements based on our audit.

We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made thereunder.

We conducted our audit in accordance with the Standards on Auditing specified under section 143(10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Company's preparation of the financial statements that give true and fair view, in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on whether the Company has in place an adequate internal financial controls system over financial reporting and operating effectiveness of such controls. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by Company's Directors, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the financial statements.

Opinion

In our opinion and to the best of our information and according to the explanations given to us, the aforesaid financial statements give the information required by the Act in the manner so required and give a true and fair view.

Subject to Note on Depreciation(Note No. 1.4)and Valuation of Inventory by the management (Note No. 1.8), Without qualifying our report, attention is drawn on Note No 1.8, valuation of Inventories. We have relied on the valuation of the inventories assessed by the Management at Rs 34 Lakhs. As explained by the Management that said valuation is based on market enquiry conducted by the Management, but no written communications for these enquiries were made available to us.

in conformity with the accounting principles generally accepted in India of the state of affairs of the Company as at 3lst March 2015,its loss and its cash flows for the year ended on that 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 of the Act, we give in the Annexure a statement on the matters Specified in paragraphs 3 and 4 of the Order, to the extent applicable.

2. As required by section 143(3) ofthe Act, we report that:

a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit.

b) In our opinion proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books.

c) The Balance Sheet, the Statement of Profit and Loss, and Cash Flow Statement dealt with by this Report are in agreement with the books of account.

d) In our opinion, the aforesaid financial statements comply with the Accounting Standards specified under Section 133 ofthe Act, read with Rule 7 of the Companies (Accounts) Rules, 2014.

e) On the basis of written representations received from the directors as on 31 March, 2015, taken on record by the Board of Directors, none ofthe directors is disqualified as on 31 March, 2015, from being appointed as a director in terms of Section 164(2) ofthe Act.

f) In our opinion and to the best of our information and according to the explanations given to us, we report as under with respect to other matters to be included in the Auditor's Report in accordance with Rule 11 ofthe Companies (Audit and Auditors) Rules, 2014:

I. The Company does not have any pending litigations which would impact its financial position.

ii. The Company has not made provision, as required under the applicable law or accounting standards, for material foreseeable losses, on sale of idle stock lying with the company since long and Sale of Plant & Machinery, Refer Note No. 35 to the financial statements;

iii. There were no amounts which required to be transferred by the Company to the Investor Education and Protection Fund.

Annexure to the Auditors' Report

(Referred to in paragraph 1 under 'Report on Other Legal and Regulatory Requirements' of our Report of even date to the members of Lalit polymers & Electronics Limited on the accounts of the company for the year ended 31st March, 2015)

On the basis of such checks as we considered appropriate and according to the information and Explanations given to us during the course of our audit, we report that:

(i) In respect of its fixed assets:

(a) The Company has maintained proper records showing full particulars, including quantitative details and situation of the fixed assets.

(b) As explained to us, fixed assets have been physically verified by the management during the year in accordance with the phased programme of verification adopted by the management which, in our opinion, provides for physical verification of all the fixed assets at reasonable intervals. According to the information and explanations given to us, no material discrepancies were noticed on such verification.

(ii) In respect of its inventory:

a) As explained to us, the inventories of finished goods, semi-finished goods, stores, spare parts and raw materials were physically verified at regular intervals by the Management.

b) In our opinion and according to the information and explanation given to us, the procedures of physical verification of inventories followed by the Management were reasonable and adequate in relation to the size of the Company and the nature of its business.

c) In our opinion and according to the information and explanations given to us, the Company has maintained proper records of its inventories and no material discrepancies were noticed on physical verification of stocks as compared to book records.

(iii) In respect of loans, secured or unsecured, granted to the parties covered in register maintained under section 189 of the Companies Act 2013:

According to the information and explanations given to us,the Company has granted loans to companies, firms or other parties covered in the Register maintained under Section 189 of the Companies Act, 2013 amounting rs. 621788/- and The terms on which the loans are given are not prejudicial to the interest of the company.

(iv) On the basis of such checks carried out during the course of Audit and according to the information and explanations given to us, we are of the opinion that there is an adequate internal control procedure commensurate with the size of the Company and the nature of its business with regard to the purchase of stores, raw materials including components, plant and machinery, equipment and other assets and for the sale of goods.

(v) The company has not received any public deposits during the year

(vi) As informed to us, the Central Government has not prescribed maintenance of cost records under sub section (1) of Section 148 of the Act, in respect of the activities carried on by the Company

(vii) In respect of statutory dues:

(a) According to the records of the company and information and explanations given to us, the Company has generally been regular in depositing undisputed statutory dues, including Provident Fund, employees state insurance (ESI), Investor Education and Protection Fund, Income-tax, Tax deducted at sources, Tax collected at source. Professional Tax, Sales Tax, value added tax (VAT), Wealth Tax, Service Tax, Custom Duty, Excise Duty, Cess and other material statutory dues applicable to it, with the appropriate authorities.

(b) According to the information and explanations given to us,there were no undisputed amounts payable in respect of Income-tax, Wealth Tax, Custom Duty, Excise Duty, sales tax, VAT, Cess and other material statutory dues in arrears /were outstanding as at 31 March, 2015 for a period of more than six months from the date they became payable. except in the case of Sales Tax (Karnataka) amounting to Rs. 41,144/-

(c) There were no amounts which required to be transferred by the Company to the Investor Education and Protection Fund.

(viii) The Company has become a sick industrial Company with in the meaning of Section 3 (l)(o) of the Sick Industrial Companies (Special Provisions) Act, 1985 as its accumulated losses exceeded its net worth at the end of the financial year and has also suffered cash loss during the last year, however the company has not made any reference to the BIFR.

(ix) In our opinion and according to the information and explanations given to us, the Company has not defaulted in the repayment of dues to financial institutions, banks and debenture holders.

(x) In our opinion, and according to the information and the explanation given to us, the company has not given any guarantee for loans taken by others from banks or financial institutions during the year;

(xi) The company has not obtained any term loan during the year, so this Para of order is not applicable.

(xii) To the best of our knowledge and according to the information and explanations given to us, no fraud by the Company and no material fraud on the Company has been noticed or reported during the year.

For M S GOYAL & ASSOCIATES Chartered Accountants (Firm Registration No. 011372N)

sd/- (M. S. Goyal) Partner Membership No. 74042

Place: New Delhi Date: 30/05/2015

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Mar 31, 2010

We have audited the attached Balance Sheet of M/s Lalit Polymers & Electronics Ltd as at St* March 2010 and also the Profit & Loss Account for the year ended on that date annexed thereto. These financial statements are the responsibility of the Company's managements. Our responsibility is to express an opinion on these financial statements based on audit.

We conducted our audit in accordance with 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 mis- statement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believed that our audit provides a reasonable basis for our opinion. Further we report that:

1. We have obtained all the information and explanation .which, to the best of our Knowledge and belief, were necessary for the purposes of our audit.

2. In our opinion proper books of account, as required by the Companies Act, 1956 (as amended) have been kept by the company, so far as appears from our examination of those books.

3. The balance sheet, Profit & Loss Account and cash flow statement, dealt with by the Report, are in agreement with the books of account of the Company.

4. In our opinion, the Balance Sheet and Profit & Loss Account, dealt with by this Report, comply with the Accounting Standards, referred to in Section 211(3C) of the Companies Act 1956 so far as applicable.

5. On the basis of declarations from the Directors of the company, as on March 31,2010 no Director is disqualified as on March 31,.2010 from being appointed as a Director of the Company, in terms of section 274(l)(g) of the Companies Act. 1956.

6. In our opinion and to the best of our information and according to the explanation given to us, Subject to our note no 02 non provision of Depreciation read with the notes thereon, give the information required by the Companies Act, 1956, in the manner so required and give a conformity with the accounting principles, generally accepted in India:

(i) In the case of the Balance Sheet, of the state of the Company's affairs, as at March 31,2010; and

(ii) In the case of profit and Loss Account, of the Profit for the financial year ended on that date.

(iii) In the case of the cash flow statement of the cash flow of the company for the year ended on that date.

As required by the companies (Auditor's Report) Order, 2003 issued by the Government of India, in terms of section 227(4A) of the Companies Act, 1956 and according to the information and explanation given to us during the course of the Audit and on thebasis of such checks of the books and the records of the company as we considered appropriate we report that in our opinion:-

I) The Company has maintained proper records showing full particulars including quantitative details and situation of fixed assets.

(II) (a) The Stocks of finished goods, raw materials and store & spare parts have been physically verified during the year by the management and is reasonable in view of the nature of the products of the Company

(b) As explained to us, the procedure of physical verification of the above stocks followed by the management is in out opinion reasonable and adequate in relation to the size of the company and nature of its business

(c) The Company has maintained proper records of the inventories and the discrepancies noticed between the physical stock and book stock were not significant and the same have been properly dealt with in the books of account

(III) (a) The Company has taken interest free unsecured loans from Company, firm or other party listed in the register maintained under section 301 of the Companies Act, 1956. Rs. 1,08,89,939/- was taken from Two parties. The terms on which the loans are taken are not prejudicial to the interest of the company.

(b) The Company has not granted any loans secured or unsecured to any company firm or other party listed in the register maintained under Section 301 of the Companies Act, 1956.

(IV) On the basis of such checks carried out during the course ofAudit and according to the information and explanations given to us, we are of the opinion that there is an adequate internal control procedure commensurate with the size of the Company and the nature of its business with regard to the purchase of stores raw mater materials including eomponents, plant and machinery, equipment and other assets and for the sale of goods.

(V) According to the information and explanation given to us, purchases of goods and materials and sale of goods, materials and services aggregating during the year to Rs.5,00,000/- or more, if any, in respect of each party in pursuance of contract or arrangement entered into the register maintained under section 301 of the companies Act, 1956 have been properly entered and the same have been made at prices which are reasonable having regard to prevailing market prices for such goods, materials or services or the prices at which transactions for similar goods, materials or services have been made with other parties.

(VI) The company has not; accepted any deposits from the public to which the provisions of section 58A of the Companies Act, 1956 and the rules framed there under apply.

(VII) In our opinion , the company has an Internal audit system, commensurate with the size and nature of its business.

(VIII) The Central Government has not prescribed the maintenance of cost record under Section 209 (d) of the companies Act, 1956 for any of the products of the company

(IX) According to the information and explanation given to us, there were no undisputed amounts payable in respect of Income tax, Sales Tax, Excise Duty and other duty which have remained outstanding as on 31st March,2010 for a period of more than six months , except in the case of Sales Tax deferment amounting to Rs.26,28,210/- and Sales Tax (Karnataka) amounting to Rs. 41,144/-

(X) The Company has not incurred cash losses during the current financial year. However cash losses in the immediately preceding financial year and its accumulated losses are more than 50% at the end of current financial year.

(XI) According to information and explanations given to us and the books and records examined by us, the Company has no borrowing from any Financial Institutions, Banks and debenture holders:

(XII) The Company has not granted any loans and advances to any party on the basis of security by way of pledge of shares, debentures and other securities,

(XIII) The Company has not given-any-guarantee for loans taken by other parties from Banks and Financial Institutions.

(XIV) The Company has not taken any term loan during the year.

(XV) The Company has not raised any funds on short term basis during the year.

(XVI) The Company has not made preferential allotment of shares to parties and Companies covered in the register maintained under Section 301 of the Companies Act, 1956.

(XVII) The Company has not issued any debentures.

(XVIII) The Company has not made any public issue during the year

(XIX) According to information and explanations given to us, no fraud on or by the Company has been noticed or reported during the year.

(XX) Other provisions of the said Order are either Nil or Not Applicable to the Company.

For M S GOYAL & ASSOCIATES

CHARTERED ACCOUNTANTS Firm Registration No. 011372N

(MS GOYAL)

PARTNER M.NO. 74042

Place: New Delhi Date : 13th August 2010