Mar 31, 2015
Report on the Financial Statements :
We have audited the accompanying financial statements of LAKSHMI
FINANCE & INDUSTRIAL CORPORATION LIMITED, ("the Company"), which
comprise the Balance Sheet as at 31st March, 2015, the Statement of
Profit and Loss, the Cash Flow Statement for the year then ended, and a
summary of the 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 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
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 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 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 the 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 a
true and fair view in order to design audit procedures that are
appropriate in the circumstances. An audit also includes evaluating the
appropriateness of the accounting policies used and the reasonableness
of the accounting estimates made by the 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 in conformity with the accounting principles
generally accepted in India, of the state of affairs of the Company as
at 31st March, 2015, and its Profit 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.
2. As required by Section 143 (3) of the 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 the 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
Rule 7 of the Companies (Accounts) Rules, 2014.
(e) On the basis of the written representations received from the
directors as on 31st March, 2015 taken on record by the Board of
Directors, none of the directors is disqualified as on 31st March, 2015
from being appointed as a director in terms of Section 164 (2) of the
Act.
(f) With respect to the other matters to be included in the Auditor's
Report in accordance with Rule 11 of the Companies (Audit and Auditors)
Rules, 2014, in our opinion and to the 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
derivative contracts for which there were any material foreseeable
losses.
iii. There has been no delay in transferring amounts, required to be
transferred, to the Investor Education and Protection Fund by the
Company.
Annexure to the Auditor's Report:
The Annexure referred to in Para 1 under the heading of "Report on
Other Legal and Regulatory Requirements" of our report of even date, to
the members of LAKSHMI FINANCE & INDUSTRIAL CORPORATION LIMITED,
HYDERABAD, for the year ended March 31,2015.
1. a. The Company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets.
b. As explained to us, the management has physically verified the
fixed assets during the year and there is a regular programme of
verification which, in our opinion, is reasonable having regard to the
size of the Company and the nature of the assets. No discrepancies were
noticed on such verification.
2. The Company does not carry any inventory during the year.
Therefore, the provisions of clause (ii) (a), (b) and (c) of paragraph
3 of the of the Companies (Auditor's Report) Order 2015 are not
applicable to the Company.
3. a. During the year, the Company has not granted any loans, secured
or unsecured to Companies, firms or other parties covered in the
register maintained under Section 189 of the Companies Act, 2013.
b. In view of our comment in paragraph (a) above, Clause (III) (a) and
(b) of paragraph 3 of the aforesaid order are not applicable to the
Company.
4. In our opinion and according to the information and explanations
given to us, there are adequate internal control systems commensurate
with the size of the Company and the nature of its business with regard
to purchase of fixed assets and investments and with regard to sale of
investments and services. During the course of our audit, we have not
observed any continuing failure to correct major weaknesses in internal
control system.
5. The Company has not accepted any deposits from the public. Hence
the provisions of Sections 73 to 76 or any other relevant provisions of
the Companies Act, 2013, and the rules framed there under, do not apply
to this Company.
6. The Central Government has not prescribed the maintenance of cost
records under sub-section (1) of 148 section of the Companies Act, 2013
for the activities of the Company.
7. a. According to the records of the Company, the company regular in
depositing undisputed statutory dues including provident fund,
employees 'state insurance, income-tax, sales-tax, wealth tax, service
tax, duty of customs, duty of excise, value added tax, cess and any
other statutory dues with the appropriate authorities.
b. According to the records of the Company, no un disputed statutory
dues including provident fund, employees 'state insurance, income-tax,
sales-tax, wealth tax, service tax, duty of customs, duty of excise,
value added tax, cess and any other statutory dues were in arrears as
at March 31, 2015 for a period of more than six months from the date
they became payable.
c. According to the records of the Company and the information and
explanations given to us, there were no dues of income tax or sales tax
or wealth tax or service tax or duty of customs or duty of excise or
value added tax or cess have not been deposited on account of any
dispute except the following;
Name Nature Amount Period Forum
of the of the Rs. to which where
Statute dues the amount dispute is
relates pending
APGST Sales 1,61,394 1993-94 Sales Tax
Act., Tax and Appellate
1997-98 Tribunal,
Hyderabad
d. According to the records of the Company and the information and
explanations given to us, the amount required to be transferred to
investor education and protection fund in accordance with the relevant
provisions of the Companies Act, 1956 (1 of 1956) and rules made there
under has been transferred to such fund within time.
8. The Company has no accumulated losses as at the end of the
financial year. The Company has not incurred cash losses during the
year covered by our audit and also in the immediately preceding
financial year.
9. As the Company has no borrowings, the provisions of clause 3(ix) of
the Companies (Auditor's Report) Order, 2015 are not applicable to the
Company.
10. The Company has not given any guarantee for the loans taken by
others from banks and financial institutions.
11. During the year the Company has not obtained any term loans.
Therefore, the provisions of clause 3 (xi) of the Companies (Auditor's
Report) Order, 2015 are not applicable to the Company.
12. Based upon the audit procedures performed and according to the
information and explanations given to us, we report that no fraud on or
by the Company has been noticed or reported during the year.
for M.ANANDAM & CO for BRAHMAYYA & CO
Chartered Accountants Chartered Accountants
Firms' Registration Firms' Registration
Number: 000125S Number: 000513S
Sd/- Sd/-
(M.V.RANGANATH) (P. CHANDRAMOULI)
Partner Partner
Membership Membership
Number:028031 Number:025211
Place : Hyderabad Place : Hyderabad
Date : 25.05.2015 Date : 25.05.2015
Mar 31, 2011
1. We have audited the attached Balance Sheet of LAKSHMI FINANCE &
INDUSTRIAL CORPORATION LIMITED, HYDERABAD (A.P) as at 31st March, 2011
the Profit and Loss Account and also the Cash Flow Statement for the year
ended on that date annexed thereto. These financial statements are the
responsibility of the Company's Management. Our responsibility is to
express an opinion on these financial statements based on our audit.
2. We conducted our audit in accordance with the 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 misstatement. 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 management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
3. As required by the Companies (Auditors' Report) Order, 2003 (as
amended), issued by the Central Government of India in terms of
sub-section (4A) of Section 227 of the Companies Act, 1956, we enclose
in the Annexure a statement on the matters specified in paragraphs 4
and 5 of the said Order.
4. 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 purposes 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 our examination of
those books.
iii) The Balance Sheet, Profit and 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 and Loss account and Cash
Flow Statement dealt with by this report comply with the accounting
standards referred to in sub-section (3C) of Section 211 of the
Companies Act, 1956.
v) On the basis of written representations received from the Directors,
as on 31st March, 2011 and taken on record by the Board of Directors,
we report that, none of the Directors is disqualified as on 31st 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 accounts read in conjunction
with the Schedules annexed therewith 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 affairs of the
Company as at 31st March, 2011;
b) in the case of the profit and loss account, of the Profit of the
Company for the year ended on that date; and
c) In the case of cash flow statement, of the cash flows for the year
ended on that date.
Annexure to the Auditor's Report: referred to in paragraph 3 of our
report of even date,
Re: LAKSHMI FINANCE & INDUSTRIAL
CORPORATION LIMITED, HYDERABAD.
1. a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets.
b) As explained to us, the management has physically verified most of
the fixed assets during the year and there is a regular programme of
verification which, in our opinion, is reasonable having regard to the
size of the Company and the nature of the assets. No material
discrepancies were noticed on such verification. In case of assets
leased out the Company follows the procedures of obtaining
confirmations from the lessees and the management has still to obtain
such confirmations.
c) As per the information and explanations given to us, during the year
the Company has not disposed off any substantial part of fixed assets
that would affect the going concern status of the Company.
2. In view of the nature of business carried on by the Company, the
provisions of Clause (ii) of the Companies (Auditor's Report) Order
2003 are not applicable to the Company for the time being.
3. a) During the year, the Company has neither granted nor taken any
loans, secured or unsecured to/ from Companies, firms or other parties
covered in the register maintained under Section 301 of the Companies
Act, 1956.
b) In view of our comment in paragraph 3(a) above, (III) (b), (c), (d),
(e), (f) and (g) of paragraph 4 of the aforesaid order are not
applicable to the Company.
4. In our opinion and according to the information and explanations
given to us, there are adequate internal control systems commensurate
with the size of the Company and the nature of its business with regard
to purchase of fixed assets and investments and with regard to sale of
investments and services. During the course of our audit, we have not
observed any continuing failure to correct major weaknesses in internal
control system.
5. a) On the basis of our examination of the books of account and
according to the information and explanations given to us, the Company
has not entered into any transaction that needs to be entered in the
Register maintained under Section 301 of the Companies Act, 1956. b)
In view of our comment in paragraph 5(a) above, clause V (b) of
aforesaid Order in our opinion is not applicable.
6. The Company has not accepted deposits from the public. Hence the
provisions of Section 58A, 58AA and other relevant provisions of the
Companies Act, 1956 and the Companies (Acceptance of Deposits) Rules,
1975 are not applicable to the Company for the time being.
7. In our opinion, the Company has an internal audit system
commensurate with its size and nature of its business.
8. Owing to the nature of business carried on by the company, the
provisions of clause 4(viii) of the Companies (Auditor's Report) Order,
2003 are not applicable to the Company.
9. a) According to the records, the Company is regular in depositing
with appropriate authorities undisputed statutory dues including
Provident Fund, Investor Education and Protection Fund, Employees'
State Insurance, Income-tax, Sales Tax, Wealth Tax, Service Tax, Custom
Duty, Excise Duty, Cess and other material statutory dues applicable to
it.
b) According to the information and explanations 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 March 31,
2011 for a period of more than six months from the date they became
payable.
c) According to the records of the Company and the information and
explanations given to us, there are no dues of Sales Tax, Income Tax,
Custom Duty, Wealth Tax, Service Tax, Excise Duty and Cess, which have
not been deposited on account of any dispute except the following:
Name of Nature of Amount Period to which the Forum where
the Statute
the dues Rs. amount relates dispute is
pending
APGST Sales Tax 1,61,394 1993-94 and Sales Tax
Act., 1997-98 Appellate
Tribunal,
Hyderabad
10. The Company has no accumulated losses as at the end of the
financial year. The Company has not incurred any cash losses during the
financial year covered by our audit and the immediately preceding
financial year.
11. In our opinion and according to the information and explanations
given to us, the Company has not defaulted in repayment of dues to any
financial institutions and Banks.
12. The Company has not granted any loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
13. The Company is not a chit fund or a nidhi/mutual benefit fund/
society. Therefore, the provisions of clause 4(xiii) of the Companies
(Auditor's Report) Order, 2003 are not applicable to the Company.
14. The Company has maintained proper records for transactions and
contracts relating to dealing or trading in shares, securities,
debentures and other investments. As explained to us timely entries
have been made therein. Shares, debentures and other investments have
been held by the Company in its own name to the extent applicable.
15. According to the information and explanations given to us, the
Company has not given any guarantee for loans taken by others from bank
or financial institutions.
16. According to the information and explanations given to us the
Company has not obtained any term loans during the year.
17. In our opinion and according to the information and explanations
given to us the funds raised on short-term basis have not been used for
long-term investment.
18. During the year, the Company has not made any preferential
allotment of shares to parties and Companies covered in the Register
maintained under section 301 of the Companies Act, 1956.
19. During the year, the Company has not issued any debentures,
therefore the question of creating security or charge in respect
thereof does not arise
20. During the year, the Company has not made any public issue and
therefore the question of disclosing the end use of money raised by
public issue does not arise.
21. Based upon the audit procedures performed and according to the
information and explanations given to us, we report that no fraud on or
by the Company has been noticed or reported during the year.
for M.ANANDAM & CO for BRAHMAYYA & CO
Chartered Accountants Chartered Accountants
Firms' Registration
Number: 000125S Firms' Registration
Number: 000513S
Sd/- Sd/-
(M.V.RANGANATH) (P. CHANDRAMOULI)
Partner Partner
Membership Number:028031 Membership Number:025211
Place : Hyderabad Place : Hyderabad
Date : May 28, 2011 Date : May 28, 2011
Mar 31, 2008
1. We have audited the attached Balance Sheet of LAKSHMI FINANCE &
INDUSTRIAL CORPORATION LIMITED, HYDERABAD (A.P) as at 31st March, 2008
the Profit and Loss Account and also the Cash Flow Statement for the
year ended on that date 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.
2. We conducted our audit in accordance with the 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 misstatement. 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 management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
3. As required by the Companies (Auditors Report) Order, 2003 (as
amended), issued by the Central Government of India in terms of
sub-section (4A) of Section 227 of the Companies Act, 1956, we enclose
in the Annexure a statement on the matters specified in paragraphs 4
and 5 of the said order.
4. 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 purposes 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 our examination of
those books.
iii) The Balance Sheet, Profit and 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 and Loss account and Cash
Flow Statement dealt with by this report comply with the accounting
standards referred to in sub-section (3C) of Section 211 of the
Companies Act, 1956.
v) On the basis of written representations received from the Directors,
as on 31st March, 2008 and taken on record by the Board of Directors,
we report that, none of the Directors is disqualified as on 31st March,
2008 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 accounts read in conjunction
with the Schedules annexed therewith 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 affairs of the
Company as at 31st March, 2008;
b) in the case of the profit and loss account, of the Profit of the
Company for the year ended on that date; and
c) In the case of cash flow statement, of the cash flows for the year
ended on that date.
Annexure to the Auditors Report: referred to in paragraph 3 of our
report of even date,
Re: LAKSHMI FINANCE & INDUSTRIAL CORPORATION LIMITED, HYDERABAD.
1. a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets.
b) As explained to us, the management has physically verified most of
the fixed assets during the year and there is a regular programme of
verification which, in our opinion, is reasonable having regard to the
size of the Company and the nature of the assets. No material
discrepancies were noticed on such verification. In case of assets
leased out the Company follows the procedures of obtaining
confirmations from the lessees and the management has still to obtain
such confirmations.
c) As per the information and explanations given to us, during the year
the Company has not disposed off any substantial part of fixed assets
that would affect the going concern status of the Company.
2. In view of the nature of business carried on by the Company, the
provisions of Clause (ii) of the Companies (Auditors Report) Order
2003 are not applicable to the Company for the time being.
3. a) During the year, the Company has neither granted nor taken any
loans, secured or unsecured to/from Companies, firms or other parties
covered in the register maintained under Section 301 of the Companies
Act, 1956.
b) In view of our comment in paragraph 3(a) above, (III) (b), (c), (d),
(e), (f) and (g) of paragraph 4 of the aforesaid order are not
applicable to the Company.
4. In our opinion and according to the information and explanations
given to us, there are adequate internal control systems commensurate
with the size of the Company and the nature of its business with regard
to purchase of fixed assets and investments and with regard to sale of
investments and services. During the course of our audit, we have not
observed any continuing failure to correct major weaknesses in internal
control system.
5. a) On the basis of our examination of the books of account and
according to the information and explanations given to us, the Company
has not entered into any transaction that needs to be entered in the
Register maintained under Section 301 of the Companies Act, 1956.
b) In view of our comment in paragraph 5(a) above, clause V (b) of
aforesaid Order in our opinion is not applicable.
6. The Company has not accepted deposits from the public. Hence the
provisions of Section 58A, 58AA and other relevant provisions of the
Companies Act, 1956 and the Companies (Acceptance of Deposits) Rules,
1975 are not applicable to the Company for the time being.
7. In our opinion, the Company has an internal audit system
commensurate with its size and nature of its business.
8. Owing to the nature of business carried on by the company, the
provisions of clause 4(viii) of the Companies (Auditors Report) Order,
2003 are not applicable to the Company.
9. a) According to the records, the Company is regular in depositing
with appropriate authorities undisputed statutory dues including
Provident Fund, Investor Education and Protection Fund, Employees
State Insurance, Income-tax, Sales Tax, Wealth Tax, Service Tax, Custom
Duty, Excise Duty, Cess and other material statutory dues applicable to
it.
b) According to the information and explanations 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 March 31.
2008 for a period of more than six months from the date they became
payable.
c) According to the records of the Company and the information and
explanations given to us, there are no dues of Sales Tax, Income Tax,
Custom Duty, Wealth Tax, Service Tax, Excise Duty and Cess, which have
not been deposited on account of any dispute except the following:
Name of Nature of Amount
the Statute the dues Rs.
APGST Sales
Act., Tax 1,61,394
Period to Forum where
which the dispute is
amount pending
relates
1 993-94 Sales Tax
& 1997-98 Appellate
Tribunal,
Hyderabad
10. The Company has no accumulated losses as at the end of the
financial year. The Company has not incurred any cash losses during the
financial year covered by our audit and the immediately preceding
financial year.
11. In our opinion and according to the information and explanations
given to us, the Company has not defaulted in repayment of dues to any
financial institutions and Banks.
12. The Company has not granted any loans and advances on the basis of
security by way of pledge of shares, debenture and other securities.
13. The Company is not a chit fund or a nidhi/mutual benefit fund/
society. Therefore, the provisions of clause 4(xiii) of the Companies
(Auditors Report) Order 2003 are not applicable to the Company.
14. The Company has maintained proper records for transactions and
contracts relating to dealing or trading in shares, securities,
debentures and other investments. As explained to us timely entries
have been made therein. Shares, debentures and other investments have
been held by the Company in its own name to the extent applicable.
15. According to the information and explanations given to us, the
Company has not given any guarantee for loans taken by others from bank
or financial institutions.
16. In our opinion and according to the information and explanations
given to us the Company has not obtained any term loans during the
year.
17. In our opinion and according to the information and explanations
given to us the funds raised on short-term basis have not been used for
long-term investment.
18. During the year, the Company has not made any preferential
allotment of shares to parties and Companies covered in the Register
maintained under section 301 of the Companies Act, 1956.
19. During the year, the Company has not issued any debentures ,
therefore the question of creating security or charge in respect
thereof does not arise
20. During the year, the Company has not made any public issue and
therefore the question of disclosing the end use of money raised by
public issue does not arise.
21. Based upon the audit procedures performed and according to the
information and explanations given to us, we report that no fraud on or
by the Company has been noticed or reported during the year.
For M.ANANDAM & CO., For BRAHMAYYA & CO.,
Chartered Accountants. Chartered Accountants.
M.V.RANGANATH P.CHANDRAMOULI
Partner Partner
Membership No.28031 Membership No.25211
Place : Hyderabad Place : Hyderabad
Date : 29th July, 2008 Date : 29th July, 2008
Mar 31, 2006
1. We have audited the attached Balance Sheet of LAKSHMI FINANCE &
INDUSTRIAL CORPORATION LIMITED, HYDERABAD (A.P) as at 31st March, 2006
and also the Profit and Loss Account and the Cash Flow Statement for
the year ended on that date 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.
2. We conducted our audit in accordance with the 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 misstatement. 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 management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
3. As required by the Companies (Auditors Report) Order, 2003, issued
by the Central Government of India in terms of sub-section (4A) of
Section 227 of the Companies Act, 1956, we enclose in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the said
Order.
4. 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 purposes of our
audit.
iii) 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.
iii) The Balance Sheet, Profit and 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 and Loss account and Cash
Flow statement dealt with by this report comply with the accounting
standards referred to in sub-section (3C) of Section 211 of the
Companies Act, 1956;
v) On the basis of written representations received from the directors,
as on 31st March, 2006 and taken on record by the Board of Directors,
we report that, none of the directors is disqualified as on 31st March,
2006 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 accounts read in conjunction
with the Schedules annexed therewith, and subject to Note No.6
regarding "confirmation of balances" and read with the other notes
thereon as per
Schedule "0", 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 affairs of the
Company as at 31st March, 2006;
b) in the case of the profit and loss account, of the Profit for the
year ended on that date; and
c) in the case of cash flow statement, of the cash flows for the year
ended on that date.
ANNEXURE LAKSHMI FINANCE & INDUSTRIAL CORPORATION LIMITED, HYDERABAD.
Referred to in paragraph 3 of our report of even date,
1) a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets.
b) As explained to us, the management has physically verified most of
the fixed assets other than the assets given on lease, during the year
and there is a regular programme of verification which, in our opinion,
is reasonable having regard to the size of the Company and the nature
of its assets. No material discrepancies were noticed on such
verification. In case of assets leased out the Company follows the
procedures of obtaining confirmations from the lessees and the
management has still to obtain such confirmations.
c) As per the information and explanations given to us, during the year
the Company has not disposed off any substantial part of fixed assets
that would affect the going concern status of the Company.
2 a) The inventory has been physically verified during the year by the
management, ln our opinion, the frequency of verification is
reasonable.
b) In our opinion, the procedures of physical verification of
inventories followed by the management are 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 is maintaining proper records of inventory.
The discrepancies noticed on physical verification between the physical
stocks and book records were not material.
3. a) The Company has neither granted nor taken any loans, secured or
unsecured to/from Companies, firms or other parties covered in the
register maintained under Section 301 of the Companies Act, 1956.
b) In view of our comment in paragraph 3(a) aboye,(lll) (b), (c),
(d),(e),(f) and (g) of paragraph 4 of the aforesaid order are not
applicable to the Company.
4. In our opinion and according to the information and explanations
given to us, there are adequate internal control systems commensurate
with the size of the Company and the nature of its business with regard
to purchase of inventory, fixed assets and investments and with regard
to sale of goods and services. During the course of our audit, we have
not observed any continuing failure to correct major weaknesses in
internal control system.
5. a) On the basis of our examination of the books of account and
according to the information and explanations given to us, the Company
has not entered into any transaction that needs to be entered in the
Register maintained under Section 301 of the Companies Act, 1956.
b) In view of our comment in paragraph 5(a) above, clause V(b) of
aforesaid Order in our opinion is not applicable.
6. The Company has not accepted deposits from the public. Hence the
provisions of Section 58A, 58AA and other relevant provisions of the
Companies Act, 1956 and the Companies (Acceptance of Deposits) Rules,
1975 are not applicable to the Company for the time being.
7. In our opinion, the Company has an internal audit system
commensurate with its size and nature of its business.
Nature of the Amount Period to which Forum where dispute
dues Rs. the amount relates is pending
Income-tax 12,81,829 Assessment year 2000-01
Commissioner of Income-tax
(Appeals), Hyderabad
Sales-tax 1,61394 1993-94 and Sales Tax Appellate
1997-98 Tribunal, Hyderabad
10. The Company has no accumulated losses as at the end of the
financial year. The Company has not incurred any cash losses during the
financial year covered by our audit and in the immediately preceding
financial year.
11. In our opinion and according to the information and explanations
given to us, the Company has not defaulted in repayment of dues to any
financial institutions and banks.
12. The Company has not granted any loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
13. The Company is not achit fund or a nidhi/mutual benefit fund/
society. Therefore, the provisions of clause 4(xiii) of the Companies
(Auditors Report) Order, 2003 are not applicable to the Company.
14. The Company has maintained proper records for transactions and
contracts relating to dealing or trading in shares, securities,
debentures and other investments. As explained to us timely entries
have been made therein. Shares, debentures and other investments have
been held by the Company in its own name to the extent applicable.
15. 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.
16. According to the information and explanations given to us the
Company has not obtained any term loans during the year.
8. The Central Government has not prescribed the maintenance of cost
records under section 209( 1 )(d) of the Companies Act, 1936 for the
Company.
9. a) According to the records, the Company is regular in depositing
with appropriate authorities undisputed statutory dues including
Provident fund, Investor Education and Protection Fund, Employees State
Insurance, Income-tax, Sales tax, Wealth Tax, Service Tax, Custom Duty,
Excise Duty, Cess and other material statutory dues applicable to it.
b) According to the information and explanations given to us, no
undisputed amounts payable in respect of Wealth Tax, Service Tax, Sales
Tax, Customs Duty, Excise Duty and Cess were in arrears, as at 31st
March, 2006 for a period of more than six months from the date they
became payable. However, the Company has to pay an amount of
Rs.3,74,170/-on account of Income-tax dues.
c) According to the records of the Company and the information and
explanations given to us, the dues of Sales Tax/Income Tax/Custom
Duty/Wealth Tax/Service Tax/Excise Duty/Cess, which have not been
deposited on account of any dispute are as follows.
17. In our opinion and according to the information and explanations
given to us the funds raised on short-term basis have not been used for
long-term investment.
18. During the year, the Company has not made any preferential
allotment of shares to parties and companies covered in the Register
maintained under section 301 of the Companies Act, 1956.
19. During the year, the Company has not issued any debentures and
therefore the question of creating security or charge in respect there
of does not arise.
20. During the year, the Company has not made any public issue and
therefore the question of disclosing the end use of money raised by
public issue does not arise.
21. Based upon the audit procedures performed and according to the
information and explanations given to us, we report that no fraud on or
by the Company has been noticed or reported during the year.
For M ANANDAM & CO. For BRAHMAYYA & CO.
Chartered Accountants Chartered Accountants
M. V. RANGANATH P. CHANDRAMOULI
Partner Partner
MembershipNo.28031 Membership No.25211
Place : Hyderabad
Date : 18thJuly,2006
Mar 31, 2005
1. We have audited the attached Balance Sheet of LAKSHMI FINANCE &
INDUSTRIAL CORPORATION LIMITED, HYDERABAD (A.P) as at 31st March, 2005
and also the Profit and Loss Account and the Cash Flow Statement for
the year ended on that date 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.
2. We conducted our audit in accordance with the 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 misstatement. 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 management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis
for our opinion.
3. As required by the Companies (Auditors Report) Order, 2003, issued
by the Central Government of India in terms of sub-section (4A) of
Section 227 of the Companies Act, 1956, we enclose in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the said
Order.
4. 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 purposes 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 our examination of
those books.
iii) The Balance Sheet, Profit and 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 and Loss account and Cash
Flow statement dealt with by this report comply with the accounting
standards referred to in sub-section (3C) of Section 211 of the
Companies Act, 1956;
v) On the basis of written representations received from the directors,
as on 31st March, 2005 and taken on record by the Board of Directors,
we report that, none of the directors is disqualified as on 31st March,
2005 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 accounts read in conjunction
with the Schedules annexed therewith, and subject to Note No.4
regarding "non provision for disputed income tax liability" and Note
No.6 regarding "confirmation of balances" and read with the other notes
thereon as per Schedule "O", 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 affairs of the
Company as at 31st March, 2005;
b) in the case of the profit and loss account, of the Profit for the
year ended on that date; and
c) in the case of cash flow statement, of the cash flows for the year
ended on that date.
ANNEXURE - LAKSHMI FINANCE & INDUSTRIAL CORPORATION LIMITED, HYDERABAD.
Referred to in paragraph 3 of our report of even date,
1) a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets.
b) As explained to us, the management has physically verified most of
the fixed assets other than the assets given on lease, during the.year
and there is a regular programme of verification which, in our opinion,
is reasonable having regard to the size of the Company and the nature
of its assets. No material discrepancies were noticed on such
verification. In case of assets leased out the Company follows the
procedures of obtaining confirmations from the lessees arid the
management has still to obtain such confirmations.
c) As per the information and explanations given to us, during the year
the Company has not disposed off any substantial part of fixed assets
that would affect the going concern status of the Company.
2. a) The inventory has been physically verified during the year by the
management. In our opinion, the frequency of verification is
reasonable.
b) In our opinion, the procedures of physical verification of
inventories followed by the management are 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 is maintaining proper records of inventory.
The discrepancies noticed on physical verification between the physical
stocks and book records were not material.
3. a) The Company has neither granted nor taken any loans, secured or
unsecured to/from Companies, firms or other parties covered in the
register maintained under Section 301 of the Companies Act, 1956.
b) In view of our comment in paragraph 3(a) above, (III) (b), (c), (d),
(e), (f) and (g) of paragraph 4 of the aforesaid order are not
applicable to the Company.
4. In our opinion and according to the information and explanations
given to us, there are adequate internal control systems commensurate
with the size of the Company and the nature of its business with regard
to purchase of inventory, fixed assets and investments and with regard
to sale of goods and services. During the course of our audit, we have
not observed any continuing failure to correct major weaknesses in
internal control system.
5. a) On the basis of our examination of the books of account
and according to the information and explanations given to us, the
Company has not entered into any transaction that needs to be entered
in the Register maintained under Section 301 of the Companies Act,
1956.
b) In view of our comment in paragraph 5(a) above, clause V(b) of
aforesaid Order in our opinion is not applicable.
6. The Company has not accepted deposits from the public. Hence the
provisions of Section 58A, 58AA and other relevant provisions of the
Companies Act, 1956 and the Companies (Acceptance of Deposits) Rules,
1975 are not applicable to the Company for the time being.
7. In our opinion, the Company has, an internal audit system
commensurate with its size and nature of its business.
8. The Central Government has not prescribed the maintenance of cost
records under section 209(1 )(d) of the Companies Act, 1956 for the
Company.
9. a) According to the records, the Company is regular in depositing
with appropriate authorities undisputed statutory dues including
Provident fund, Investor Education and Protection Fund, Employees State
Insurance, Income-tax, Sales tax, Wealth Tax, Service Tax, Custom Duty,
Excise Duty, Cess and other material statutory dues applicable to it.
b) According to the information and explanations given to us, no
undisputed amounts payable in respect of Wealth Tax, Service Tax, Sales
Tax, Customs Duty, Excise Duty and Cess were in arrears, as at 31st
March, 2005 for a period of more than six months from the date they
became payable. However, the Company has to pay an amount of Rs.
3,74,170/- on account of Income-tax dues.
c) In our opinion and according to the information and explanations
given to us, there are no dues of Sales Tax, Income-tax, Customs Duty,
Wealth Tax, Excise Duty, Service Tax and Cess which have not been
deposited on account of any dispute other than the disputed Income- tax
demand relating to the Block period 01.01.1986 to 17.10.1996 amounting
to Rs. 202,49,233/- and the dispute is pending with Income-tax
Appellate Tribunal, Hyderabad.
10. The Company has no accumulated losses as at the end of the
financial year. The Company has not incurred any cash losses during the
financial year covered by our audit and the immediately preceding
financial year.
11. In our opinion and according to the information and explanations
given to us, the Company has not defaulted in repayment of dues to any
financial institutions and banks.
12. The Company has not granted any loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
13. The Company is not a chit fund or a nidhi/mutual benefit
fund/society. Therefore, the provisions of clause 4(xiii) of the
Companies (Auditors Report) Order, 2003 are not applicable to the
Company.
14. The Company has maintained proper records for transactions and
contracts relating to dealing or trading in shares, securities,
debentures and other investments. As explained to us timely entries
have been made therein. Shares, debentures and other investments have
been held by the Company in its own name to the extent applicable.
15. 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.
16. According to the information and explanations given to us the
Company has not obtained any term loans during the year.
17. In our opinion and according to the information and explanations
given to us the funds raised on short-term basis have not been used for
long-term investment.
18. During the year, the Company has not made any preferential
allotment of shares to parties and companies covered in the Register
maintained under section 301 of the Companies Act, 1956.
19. During the year, the Company has not issued any debentures and
therefore the question of creating security or charge in respect
thereof does not arise.
20. During the year, the Company has not made any public issue and
therefore the question of disclosing the end use of money raised by
public issue does not arise.
21. Based upon the audit procedures performed and according to the
information and explanations given to us, we report that no fraud on or
by the Company has been noticed or reported during the year.
For M. ANANDAM & CO. For BRAHMAYYA & CO.
Chartered Accountants Chartered Accountants
M.V.RANGANATH P. CHANDRAMOULI
Partner Partner
Membership No.28031 Membership No.25211
Place : Hyderabad
Date : 20th July, 2005
Mar 31, 2000
We have audited the attached Balance Sheet of LAKSHMI FINANCE &
INDUSTRIAL CORPORATION LIMITED, as at 31st March, 2000 and the Profit &
Loss Account for the year ended on that date annexed there to, and
report that:
1. We have obtained all the information and explanations 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 law have
been kept by the Company so far as appears from our examination of such
books.
3. The Balance Sheet and the Profit and Loss Account referred to in
this report are in agreement with the Books of Account.
4. In our opinion, the Balance Sheet and Profit and Loss Account
comply with Accounting Standards referred to in Sub-section (3c) of
Section 211 of the Companies Act, 1956.
5. In our opinion and to the best of our information and according to
the explanations furnished to us, subject to Note No.6 regarding
"Non-provision for disputed incoÃie tax liability", and Note No.9
regarding "confirmation of balances in business related accounts" and
read with the other notes thereon as per Schedule "S", the said Balance
Sheet and the Profit and Loss Account read in conjunction with the
schedules annexed therewith and the "Significant Accounting Policies",
give the information required by the Companies Act, 1956, in the manner
so required and give a true and fair view:
i. insofar as it relates .to the Balance Sheet of the state of affairs
of the Company as at 31st March, 2000 and
ii. insofar as it relates to the Profit and Loss Account of the profit
of the Company for the year ended on that date.
6. As required by the Manufacturing and Other Companies (Auditors
Report) Order, 1988, issued by the Company Law Board in terms of
Section 227 (4A) of the Companies Act, 1956 and on the basis of such
checks, as we considered appropriate, we report hereunder on the
matters specified in paragraphs 4 and 5 of the said Order:
a. The Company has maintained adequate records to show full
particulars including quantitative details and situation of its fixed
assets. The major fixed assets owned by the Company other than the
assets leased out have been physically verified partially by the
management during the year and no significant discrepancies were
noticed on such verification. In case of assets leased out, the Company
follows the procedure of obtaining confirmations from lessees and the
management has still to obtain such confirmations.
b. None of the fixed assets have been revalued during the year.
c. In our opinion the rate of interest and other terms and conditions
on which loans have been taken from the parties listed in the registers
maintained under Section 301 are not, prima facie, prejudicial to the
interest of the Company and there were no companies under the same
management within the meaning of Section 370(1-B) of the Companies Act,
1956.
d. The Company has not granted any loans, secured or unsecured to
companies, firms or other parties listed in the registers maintained
under Section 301 and there were no companies under the same management
within the meaning of Sub section (1-B) Section 370 of the Companies
Act, 1956.
e. In respect of loans and advances in the nature of loans given by
the Company, some of the parties are not repaying the principal amounts
and interest as stipulated. We are informed that the Company is taking
necessary steps to recover the same.
f. 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 with regard to purchases of plant and machinery, equipment and
other assets and with regard to the sale of equipment and income
related activity.
g. In our opinion and according to the information and explanations
given to us, there were no transactions of purchase of goods and
materials and sale of goods, materials and services, made in pursuance
of contracts or arrangements entered in the registers maintained under
section 301 of the Companies Act, 1956.
h. In our opinion and according to the information and explanations
given to us, the Company has complied with the directives issued by the
Reserve Bank of India and the provisions of Section 58-A of the
Companies Act, 1956, with regard to deposits accepted from the public.
i. In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business.
j. According to the records of the Company, Provident Fund and
Employees State Insurance dues have been regularly deposited during the
year with the appropriate authorities.
k. There were no undisputed amounts payable by the Company in respect
of Income Tax, Wealth Tax, Customs Duty and Excise Duty outstanding as
at 31st March, 2000 for a period of more than 6 months from the date
they became payable, except an amount of Rs. 65,589/- payable towards
Sales Tax.
1. According to the information and explanations given to us, no
personal expenses of employees or directors have been charged to
revenue account, other than those payable under contractual obligations
or in accordance with generally accepted business practice.
m. The Company is not a Sick Industrial Company within the meaning of
Clause (o) of Sub-section (1) of Section 3 of the Sick Industrial
Companies (Special Provisions) Act, 1985.
n. The Company has maintained proper records, in respect of
transactions and contracts relating to dealing in shares, securities,
debentures and other investments. As explained to us timely entries
have been made therein. Shares and debentures have been held by the
Company in its own name to the extent applicable.
o. The items specified in paragraphs 4(A) (iii), (iv), (v), (vi),
(xii), (xiv) & (xvi) and 4D (ii) & (iii) of the said order are not
applicable to this Company.
For M.ANANDAM & CO. For BRAHMAYYA & CO. For M.BHASKARA RAO & CO.,
Chartered Accountants Chartered
Accountants Chartered Accountants
M.V. RANGANATH P. CHANDRAMOULI ANIL KUMAR MEHTA
Partner Partner Partner
Place : Hyderabad
Date : 31st July, 2000