Lakhani India Ltd Share Price Auditors Report
LAKHANI INDIA LIMITED
ANNUAL REPORT 2010-2011
AUDITORS REPORT
To
The Members of
Lakhani India Limited
We have audited the attached Balance Sheet of Lakhani India Limited as at
March 31, 2011, and the Profit & Loss Account and Cash Flow Statement for
the period 01.04.2010 to 31.03.2011 annexed thereto. These financial
statements are the responsibility of the companys management. Our
responsibility is to express an opinion on these financial statements based
on our audit.
1. 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 misstatements. 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 the management, as well as evaluating the
overall financial statement presentation. We believe that our audit
provides a reasonable basis for our opinion.
2. As required by the Companies (Auditors Report) order, 2003, issued by
the Central Government of India in terms in Sub-section (4A) Section 227 of
the Companies Act, 1956, we enclose in the Annexure a statement on the
matters specified in paragraphs 4 &5 of the said order.
3. Further to our comments in the Annexure referred to above, we report
that:
(i) We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
(ii) In our opinion, proper Books of Account as required by law have been
Kept by the Company so far as appears from examinations of these books.
(iii) The Balance Sheet, Profit & Loss Account and Cash Flow Statement
dealt with by this report are in agreement with the books of account.
(iv) In our opinion, the Balance Sheet, Profit & Loss Account Cash Flow
Statement dealt with by this report comply with Accounting Standards
referred to in sub-section (3C), of Section 211 of the Companies Act, 1956,
(v) On the basis of the written representations received from the
directors, as on 31 March, 2011 and taken on record by the Board of
Directors, we report that none of the Directors is disqualified as on 31
March, 2011 from being appointed as a director in terms of clause (g) of
sub-section (1) of Section 274 of the Companies Act, 1956.
(vi) In our opinion and to the best of our information and according to the
explanations given to us, the said financial statement read with 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 the affairs of the
Company as at 31st March, 2011.
b) In the case of the Profit and Loss Account, of the Loss for the year
ended on that date; and
c) In the case of the Cash Flow Statement, of the cash flow for the year
ended on that date.
For RAKESH GUPTA & ASSOCIATES
Chartered Accountants
ICAI- Registration No. - 0571N
Rakesh Gupta
Place: Faridabad (Proprietor)
Dated: 15th November, 2011 M. No. 80126
ANNEXURE TO AUDITORS REPORT:
(Referred to in paragraph 2 of our Report of even date)
1. The nature of Companys activities during the year have been such that
clauses (xii),(xiii),(xiv) of the Companies (Auditors Report) Order, 2003
are not applicable to the Company for the year.
2. (a) The Company has maintained proper records showing full particulars,
including quantitative details and situation of fixed assets.
(b) As informed company has program of physical verification of Fixed
Assets in a phased manner. In accordance with the same, certain plants &
machineries were physically verified during the year. We are informed that
no material discrepancies were noticed by the management on such
verification.
(c) The company has not disposed off a substantial part of fixed assets
during the year.
(3) (a) Physical verification of inventory has been conducted during the
year by the management at reasonable intervals.
(b) The procedures of physical verification of inventory followed by the
management are reasonable and adequate in relation to the size of the
company and nature of its business.
(c) The company is maintaining proper records of inventory. As per
information and explanations given to us, no material discrepancies has
been noticed on physical verification.
4. The Company has not granted any loans, secured or unsecured, to
companies, firms or other parties covered in the register maintained under
Section 301 of the Companies Act, 1956. Therefore provisions of clauses
(iii)(b),(iii)(c),(iii)(d) of paragraph 4 of the Order are not applicable.
The Company has taken unsecured loans from its directors / parties covered
in the register maintained under Section 301 of the Companies Act, 1956.
The maximum amount involved during the year was Rs. 1175.78 lacs and the
year end balance of loans taken was Rs.1083.53 lacs.
In our opinion and according to the information and explanation given to
us, the rate of interest and other terms and conditions of such loans are
prima-facie not prejudicial to the interest of the Company.
In respect of unsecured loan taken by the Company, the loan amount is
payable on demand and is interest free.
(5) In our opinion and according to the information and explanations given
to us, there are adequate internal control procedures commensurate with the
size of the Company and the nature of its business for purchase of
inventory, fixed assets and for the sale of goods. During the course of
audit, we have not observed any other continuing failure to correct major
weaknesses in internal controls.
(6) In our opinion and according to the information and explanations given
to us, the transactions that need to be entered into register in pursuance
of Section 301 of the Act, have been so entered and the transactions have
been made at prices, which are reasonable having regard to prevailing
market prices at the relevant time.
(7) The Company has not accepted deposits from the public within the
meaning of Section 58A and 58AA of the Companies Act, 1956 and the Rules
framed there under.
(8) There is no formal Internal Audit System prevalent in the organization.
However we are informed that there are sufficient check systems
commensurate with the size of company and nature of its business.
(9) We have broadly reviewed the cost records of the Company under section
209 (1)(d) of the Companies Act, 1956 and are of the opinion that prime-
facie the records prescribed by the Central Government have been
maintained. We have not, however made detailed examination of the records.
(10) According to the information and explanation given to us in respect of
statutory and other dues:
(a) The Company has been generally regular in depositing with appropriate
authorities (subject to point no. 12 of schedule - P) undisputed
statutory dues including Provident Fund, Investor Education and Protection
Fund, E.S.I, Sales Tax, Customs Duty, Excise Duty, Income Tax, Wealth Tax,
Cess and any other statutory dues during the year.
(b) According to the information and explanation given to us, no undisputed
amounts payable in respect of income tax, wealth tax, sales tax, customs
duty, excise duty and cess were in arrears , as at 31st March 2011 for a
period of more than six months from the date they become payable.
(c) According to the information and explanations given to us, there are no
cases of non-deposit with the appropriate authorities of disputed dues of
sales tax / income tax / excise duty/ custom duty / wealth tax and cess
except as stated below:-
Nature of dues Period Amount (in Rs.) Forum of pending
Income Tax AY-2005-06 19,97,420/- Before ITAT
Income Tax AY-2006-07 13,20,595/- Before ITAT
Income Tax AY-2007-08 1,90,938/- Before CIT(A)
Income Tax AY-2008-09 5,36,307/- Before CIT(A)
Sales Tax FY 2006-07 28,65,435/- Appeal yet to filed
Sales Tax FY 2006-07 1,06,31,238/- Appeal yet to filed
(11) The Company does not have any accumulated losses as on 31st March,
2011. The Company has incurred cash losses during the financial year
covered by our audit and in the immediately preceding financial year to the
tune of Rs. 16.65 crores.
(12) In our opinion and according to the information and explanation given
to us, the Company has not defaulted in repayments of dues to financial
institution and banks.
(13) According to the information and explanations given to us, the company
has not given any guarantee for loans taken by others from banks or
financial institutions.
(14) In our opinion the term loans have been applied for the purpose for
which they were obtained.
(15) According to information and explanation given to us and on an overall
examination of the balance sheet of the company, we report that no funds
raised on short-term basis have been used for long- term investment.
(16) The Company has not made any preferential allotment of shares during
the year and hence we have no comments to offer in respect of clause
4(xvii) of the companies (Auditors Report) Order, 2003.
(17) No debentures have been issued by the company during the year as such
no securities for the purpose has been created.
(18) During the year, the Company has not raised money by public issue.
(19) According to the information and explanation given to us, no fraud on
or by the Company has been noticed or reported during the financial year.
For RAKESH GUPTA & ASSOCIATES
Chartered Accountants
ICAI- Registration No. - 0571N
Rakesh Gupta
Place: Faridabad (Proprietor)
Dated: 15th November, 2011 M. No. 80126