To
The Members 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, 2023, and the
Statement of Profit and Loss and statement of cash flows for the year then ended, and
notes to the financial statements, including a summary of significant accounting policies
and other explanatory information.
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
Companies Act, 2013 (‘Act) in the manner so required and give a true and fair view
in conformity with the accounting principles generally accepted in India, of the state of
affairs of the Company as at March 31, 2023, its Profit and cash flows for the year ended
on that date.
Basis for opinion
We conducted our audit in accordance with the Standards on Auditing (SAs) specified
under Section 143(10) of the Companies Act, 2013, as amended ("the Act). Our
responsibilities under those Standards are further described in the "Auditors
Responsibilities for the Audit of the Standalone Financial Results" section of our
report. We are independent of the Company in accordance with the Code of Ethics issued by
the Institute of Chartered Accountants of India together with the ethical requirements
that are relevant to our audit of the financial statements under the provisions of the Act
and the Rules thereunder, and we have fulfilled our other ethical responsibilities in
accordance with these requirements and the Code of Ethics. We believe that the audit
evidence obtained by us is sufficient and appropriate to provide a basis for our opinion.
Key Audit Matters
Key Audit matters(‘KAM) are those matters that in our professional judgment were
of most significance in our audit of standalone financial statements of the current
period. These matters were addressed in the context of our audit of the standalone
financial statements as a whole, and in forming our opinion thereon, and we do not provide
a separate opinion on these matters. For each matter below, our description of how our
audit addressed the matter is provided in that context.
The Key Audit Matter |
How our audit addressed the key audit matter |
Transaction with related parties Transaction with related
parties as disclosed Note 27 of the Financial Statement. This was an area of focus for our
audit and the area where significant audit effort was directed. |
Our Audit procedures included updating our understanding
of the business processes employed by the Company for identifying from the concerned
related party with regard to existence of such transaction. We verified the statutory
records available with the Company with regard to transaction entered into by the Company
with related parties. Our audit procedure over the disclosures of related party
transaction included agreeing the disclosures as per statutory requirement. |
Other Information
The companys Board of Directors is responsible for the other information. The other
information comprises the information included in the Directors report including
annexures to Directors report but does not include the Standalone Financial Statements
and our auditors report thereon.
Our Opinion on the standalone Financial Statements does not cover the other information
and we do not express any form of assurance conclusion thereon.
In connection with our audit of the standalone Financial Statements, our responsibility
is to read the other information and in doing so, consider whether the other information
materially inconsistent with the standalone financial statements or our knowledge obtained
in the audit or otherwise appears to be materially misstated. If, based on the work we
have performed, we conclude that there is a material misstatement of this other
information, we required to report the fact.
Managements Responsibilities for the Standalone Financial Results
The Statement has been prepared on the basis of the annual standalone financial
statements for the year ended March 31, 2023. The Board of Directors of the Company are
responsible for the preparation and presentation of the Statement that give a true and
fair view of the loss and other comprehensive income and other financial information in
accordance with the applicable accounting standards prescribed under Section 133 of the
Act read with relevant rules issued thereunder and other accounting principles generally
accepted in India and in compliance with Regulation 33 of the Listing Regulations, This
responsibility also includes maintenance of adequate accounting records in accordance with
the provisions of the Act for safeguarding of the assets of the Company and for preventing
and detecting frauds and other irregularities; selection and application of appropriate
accounting policies; making judgments and estimates that are reasonable and prudent; and
the design, implementation and maintenance of adequate internal financial controls, that
were operating effectively for ensuring the accuracy and completeness of the accounting
records, relevant to the preparation and presentation of the Statement that give a true
and fair view and are free from material misstatement, whether due to fraud or error.
In preparing Statement, the Board of Directors are responsible for assessing the
Companys ability to continue as a going concern, disclosing, as applicable, matters
related to going concern and using the going concern basis of accounting unless the Board
of Directors either intends to liquidate the Company or to cease operations, or has no
realistic alternative but to do so.
The Board of Directors are also responsible for overseeing the Companys financial
reporting process.
Auditors Responsibilities for the Audit of the Standalone Financial Results
Our objectives are to obtain reasonable assurance about whether the Statement as a
whole is free from material misstatement, whether due to fraud or error, and to issue an
auditors report that includes our opinion. Reasonable assurance is a high level of
assurance but is not a guarantee that an audit conducted in accordance with SAs will
always detect a material misstatement when it exists. Misstatements can arise from fraud
or error and are considered material if, individually or in the aggregate, they could
reasonably be expected to influence the economic decisions of users taken on the basis of
this Statement.
As part of an audit in accordance with SAs, we exercise professional judgment and
maintain Professional skepticism throughout the audit. We also:
• Identify and assess the risks of material misstatement of the Statement, whether
due to fraud or error, design and perform audit procedures responsive to those risks, and
obtain audit evidence that is sufficient and appropriate to provide a basis for our
opinion. The risk of not detecting a material misstatement resulting from fraud is higher
than for one resulting from error, as fraud may involve collusion, forgery, intentional
omissions, misrepresentations, or the override of internal control.
• Obtain an understanding of internal control relevant to the audit in order to
design audit procedures that are appropriate in the circumstances. Under Section 143(3)(i)
of the Act, we are also responsible for expressing our opinion on whether the company has
adequate internal financial controls with reference to these financial results, in place
and the operating effectiveness of such controls.
• Evaluate the appropriateness of accounting policies used and the reasonableness
of accounting estimates and related disclosures made by the Board of Directors.
• Conclude on the appropriateness of the Board of Directors use of the going
concern basis of accounting and, based on the audit evidence obtained, whether a material
uncertainty exists related to events or conditions that may cast significant doubt on the
ability of the Company to continue as a going concern. If we conclude that a material
uncertainty exists, we are required to draw attention in our auditors report to the
related disclosures in the Statement or, if such disclosures are inadequate, to modify our
opinion. Our conclusions are based on the audit evidence obtained up to the date of our
auditors report. However, future events or conditions may cause the Group and of its
Joint Venture to cease to continue as a going concern.
• Evaluate the overall presentation, structure and content of the Statement,
including the disclosures, and whether the financial results represent the underlying
transactions and events in a manner that achieves fair presentation.
We communicate with those charged with governance regarding, among other matters, the
planned scope and timing of the audit and significant audit findings, including any
significant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied
with relevant ethical requirements regarding independence, and to communicate with them
all relationships and other matters that may reasonably be thought to bear on our
independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those
matters that were of most significance in the audit of the financial statements of the
current period and are therefore the key audit matters. We describe these matters in our
auditors report unless law or regulation precludes public disclosure about the matter or
when, in extremely rare circumstances, we determine that a matter should not be
communicated in our report because the adverse consequences of doing so would reasonably
be expected to outweigh the public interest benefits of such communication.
Report on other Legal and Regulatory Requirements
1. As required by the Companies (Auditors Report) Order, 2020 (‘the Order),
issued by the Central Government of India, in terms of sub section 11 of section 143 of
the companies Act, 2013 in Our opinion and according to the information and explanation
given to us, the details of the said Order specified in paragraph 3 and 4 of the order are
given to the extent applicable in Annexure A to this Report.
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 the
best 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 the
Company so far as appears from our examination of those books.
c) The Standalone Balance Sheet, the Standalone 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 of the Act, read with the Companies (Indian
Accounting Standard) Rules, 2015, as amended
e) On the basis of written representations received from the directors as on 31 March,
2023, taken on record by the Board of Directors, none of the directors is disqualified as
on 31st March, 2023, from being appointed as a director in terms of Section 164(2) of the
Act.
f) With respect to the adequacy of the internal financial controls over financial
reporting of the Company and the operating effectiveness of such controls, we give report
of the same in Annexure B to this Report.
g) As proviso to rule 3(1) of the Companies (Accounts) Rules, 2014 is applicable for
the company w.e.f. April 1, 2023, reporting under this clause is not applicable
h) With respect to the other matters to be included in the Auditors Report in
accordance with the requirements of Section 197(16) of the Act, as amended: In our opinion
and to the best of our information and according to the explanations given to us, the
remuneration paid by the Company to its directors during the year is in accordance with
the provisions of section 197 of the Act.
i) With respect to the other matters included in the Auditors Report and to our best
of our information and according to the explanations given to us:
i. The Company does not have any pending litigations which would impact its financial
position.
ii. The Company did not have any long-term contracts including derivatives contracts
for which there were any material foreseeable losses.
iii. There is no amount required to be transferred, to the investors education &
Protection Fund by the Company.
iv. a) The management has represented that to the best of its knowledge and belief, no
funds have been advanced or loaned invested (either from borrowed funds or share premium
or any other sources or kind of funds) by the Company to or in any other persons or
entities, including foreign entities ("Intermediaries") with the understanding.
Whether recorded in writing or otherwise. that the intermediary shall :
i) Directly or indirectly lend or invest in other persons or entities identified In any
manner whatsoever (‘Ultimate Beneficiaries) by or on behalf of the Company or ii)
Provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.
b) The management has represented that to the best of its knowledge and belief, no
Funds have been received by the Company from any persons or entities including foreign
entities (Funding Parties). With the understanding, whether recorded in writing or
otherwise that the Company shall:
i) Directly or indirectly lend or invest in other persons or entities identified in any
manner whatsoever (‘Ultimate Beneficiaries) by or on behalf of the Funding Party or
ii) Provide any guarantee, security or the like from or on behalf of the Ultimate
Beneficiaries and
c) Based on such audit procedures as considered reasonable and appropriate in the
circumstances. Nothing has come to our notice that has caused us to believe that the
representations made in sub clause 4(a) and 4(b) above contain any material misstatement.
d) According to the information and explanations given to us the Company has not
declared or paid dividend during the year.
|
For, KEYUR BAVISHI & CO. |
|
(Chartered Accountants) |
|
F.R.N. : 131191W |
|
(CA KEYUR D. BAVISHI) |
|
Proprietor |
| Date : 26/05/2023 |
M.No. : 136571 |
| Place : Ahmedabad |
UDIN: 23136571BGRSHA2144 |
Annexure – A to the Independent Auditors report on the standalone financial
statements of Lesha Industries Limited for the year ended 31st March, 2023
(Referred to in paragraph 1 under ‘Report on Other Legal and Regulatory
Requirements section of our report of even date)
i) (a) (A) The company has maintained proper records showing full particulars including
quantitative details and situation of Property, plant and equipment.
(B) According to the information and explanations given to us the Company do not have
any Intangible Assets.
(b) According to the information and explanations given to us and on the basis of our
examination of the records of the Company. In our opinion, this periodicity of physical
verification is reasonable having regard to size of the company and the nature of its
assets. No material discrepancies were noticed on such verification.
(c) According to the information and explanations given to us and on the basis of our
examination of the records of the Company. The title deeds of the immovable properties
(other than immovable properties where the company is the lessee and the lease agreements
are duly executed in favor of lessee) disclosed in the standalone financial statements are
held in the name of the Company.
(d) According to the information and explanations given to us and on the basis of our
examination of the records of the Company, the Company has not revalued its property plant
and Equipments during the year.
(e) According to the information and explanations given to us and on the basis of our
examination of the records of the Company, there are no proceedings initiated or pending
against Company for holding any benami property Transactions Act, 1988 and rules made
there under.
ii) (a) The inventory has been physically verified by the management during the year.
In our opinion the frequency of such verification is reasonable and procedures and
coverage as followed by management were appropriate. No discrepancies were noticed on
verification between physical stocks and the book records that were 10% or more in the
aggregate for each class of inventory.
(b) According to the information and explanations given to us on the basis of our
examination of the records of the Company. The Company is not in receipt of any working
capital loan during the reporting period hence reporting under the said clause is not
applicable.
iii) According to the information and explanations given to us and on the basis of our
examination of the records of the company. The Company has granted unsecured advances in
the nature of loans to other companies during the year.
(a) (A) According to the information and explanations given to us Company is not having
any Subsidiary, Joint Ventures and Associates.
(B) During the year the Company has granted Advances in the nature Loans to other
parties.
Details of loans and advances of the company during the period under audit:
(Rs. In Lakh)
Particulars |
Advance in nature of loans |
| Aggregate amount of Loans granted during the year under audit –
Others |
420.04 |
| Balance Outstanding as at 31st March, 2023-Others |
344.00 |
(b) According to information and explanations given to us and based on the audit
procedures conducted by us. We are of the opinion that the terms and conditions of the
interest free loans given are prima facie, not prejudicial to the interest of the Company.
(c) According to information and explanations given to us and on the basis of our
examination of the records of the Company. In the case of loans and advances given, the
repayment of interest free loans and advances has been stipulated On Demand.
(d) According to the information and explanations given to us and on the basis of our
examination of the records of the Company, the interest free loans and advances are
repayable on demand. Hence there is no question of overdue.
(e) According to information and explanations given to us and on the basis of our
examination of the records of the Company, there is no loan given falling due during the
year, which has been renewed or extended or fresh loans given to settle the overdues of
existing loans given to the same party.
(f) According to the information and explanations given to us and on the basis of our
examination of the records of the Company, the Company has not granted any loans or
advances either repayable on demand or without specifying any terms or period of
repayment.
iv) According to the information and explanations given to us and on the basis of our
examination of the records, the Company has not advanced loan as specified under Section
185 of the Companies Act, 2013 and the Company has advanced loan specified under Section
186 of the Companies Act, 2013. Further the Company has complied with the provision of
Section 186 of the Companies Act, 2013 in relation to loans given and investments made
subject to Section 186(7) of Companies Act, 2013.
v) The Company has not accepted any deposits or amounts which are deemed to be deposits
from the public.
Accordingly clause 3(v) of the order is not applicable.
vi) According to Information and explanations given to us the company is not required
to maintain the cost records as per the provision of the Companies (Cost Records and
Audit) Rules 2014, hence this clause is not applicable to the Company.
vii) (a) According to information and explanations given to us and based on our
examination of records of the Company has been Regular in depositing the undisputed
statutory dues including Goods and Service Tax, Provident Fund, Investor education fund ,
employee state insurance income tax and any other material statutory dues applicable to it
with the appropriate authorities.
According to information and explanation given to us no undisputed amounts payable in
respect of the aforesaid dues were outstanding as at March, 2023 for a period of more than
Six Months from the date of becoming payable.
(b) According to information and explanation given to us no disputed amounts payable in
respect of the aforesaid dues during the period under audit.
viii) In our opinion and according to information and explanations given to us and on
the basis of our examination of records of the Company. The Company has not surrendered or
disclosed any transactions, previously unrecorded as income in the books of account, in
the tax assessments under the Income Tax Act, 1961 as income during the year.
ix) (a) According to the information and explanations and on the basis of our
examination of the records of the Company, the Company has not defaulted from any loans or
borrowings from any lender during the year.
(b) According to the information and explanations given to us and on the basis of our
examination the records of the Company, the Company has not been declared wilful defaulter
by any bank of financial institution or government or government authority.
(c) According to the information and explanations given to us by the management, the
Company did not have any loans or borrowings from any lender during the year. Accordingly
clause 3(ix) (a) of the Order is not applicable.
(d) According to the information and explanations given to us and on an overall
examination of the balance sheet of the Company, we report that no funds have been raised
on short term basis by the Company. Accordingly clause 3(ix) (d) of the Order is not
applicable.
(e) According to the information and explanations given to us and on an overall
examination of the financial statements of the Company, we report that the Company has not
taken any funds from any entity or person on account of or to meet the obligations of its
subsidiaries as defined under the Companies Act, 2013. Accordingly, clause 3(ix) (e) of
the order is not applicable.
(f) According to the information and explanations given to us and procedures performed
by us, we report that the Company has not raised loans during the year on the pledge of
securities held in its subsidiaries as defined under the Companies Act, 2013. Accordingly
clause 3(ix) (f) of the Order is not applicable.
x) (a) The Company has not raised any moneys by way of initial public offer or further
public offer (including debt instruments). Accordingly clause 3(x) (a) of the Order is not
applicable.
(b) According to the information and explanations given to us and on the basis of our
examination of the records of the Company, the Company has not made any preferential
allotment or private placement of shares of fully or partly convertible debentures during
the year. Accordingly clause 3(x) (b) of the order is not applicable.
xi) (a) Based on examination of the books and records of the Company and according to
the information and explanations given to us, considering principles of materiality
outlined in the Standards on Auditing. We report that no fraud by the Company or on the
Company has been noticed or reported during the period under audit.
(b) According to the information and explanations given to us, no report under
subsection (12) of Section 143 of the Companies Act, 2013 has been filed by the auditors
in Form ADT-4 as prescribed under Rule 13 of Companies (Audit and Auditors) Rules, 2014
with the Central Government.
(c) In terms of section-177(9) of the act, it is mandatory for the said company to
establish vigil mechanism set in the company, however based upon audit procedure performed
and information and explanations given by the management of the company we have not come
across any whistle-blower complaints during the year.
xii) (a) According to the information and explanations given to us, the Company is not
a Nidhi Company. Accordingly, clause 3(xii) of the Order is not applicable.
xiii) In our opinion and according to the information and explanations given to us, the
transactions with the related parties are in compliance with the Section 177 and 188 of
the Companies Act, 2013 where applicable, and the details of the related party
transactions have been disclosed in the Standalone financial statements as required by the
applicable Indian Accounting Standards.
xiv) (a) Based on information and explanations provided to us and our audit procedures,
in our opinion, the Company has an internal audit system commensurate with the size and
nature of its business.
(b) We have considered the internal audit reports of the Company issued till date for
the period under audit.
xv) In our opinion and according the information and explanations given to us, the
Company has not entered into any non-cash transactions with its directors or persons
connected to its directors and hence provisions of Section 192 of the Companies Act, 2013
are not applicable to the Company.
xv) (a) The Company is not required to be registered under Section 45-IA of the Reserve
Bank of India Act,1934.
Accordingly clause 3(xv) (a) of the order is not applicable.
(b) The Company is not required to be registered under Section 45-IA of the Reserve
Bank of India Act, 1934. Accordingly clause 3(xvi) (b) of the Order is not applicable.
(c) The Company is not a Core Investment Company as defined in the regulations made by
the Reserve Bank of India. Accordingly clause 3(xvi) (c) of the Order is not applicable.
(d) According to the information and explanations provided to us during the course
audit, the Group does not have any CIC. Accordingly the requirements of the clause 3(xv)
(d) are not applicable.
xvii) The Company has not incurred any cash losses in the financial year and in the
immediately preceding financial year and there is no cash loss incurred during the year
and immediately preceding year.
xviii) There has been no resignation of the statutory auditors during the year.
Accordingly clause 3(xviii) of the order is not applicable.
xix) According to the information and explanations given to us and on the basis of the
financial ratios, aging and expected dates of realisation of financial assets and payment
of the financial liabilities, other information accompanying the financial statements, our
knowledge of the board of directors and managements plans and based on our examination of
the evidence supporting the assumptions, nothing has come to our attention, which causes
us to believe that any material uncertainty exists as on the date of audit report that the
Company is not capable of meeting its liabilities existing at the date of balance sheet as
and when they fall due within a period of one year from the balance sheet date. We,
however state that this is not an assurance as to the future viability of the Company. We
further state that our reporting is based on facts upto the date of the audit report and
we neither give any guarantee nor any assurance that all liabilities falling due within a
period of one year from the balance sheet date, will get discharged by the Company as and
when they fall due.
xx) A CSR activities are not mandatory to the company and company is not fulfilling any
criteria given in section 135(1) of the Act, this section is not applicable to the
company.
|
For, KEYUR BAVISHI & CO. |
|
(Chartered Accountants) |
|
F.R.N. : 131191W |
|
(CA KEYUR D. BAVISHI) |
|
Proprietor |
| Date : 26/05/2023 |
M.No. : 136571 |
| Place : Ahmedabad |
UDIN: 23136571BGRSHA2144 |
+91-9892691696
