Mar 31, 2023
TO THE MEMBERS OF LAKSHMI MACHINE WORKS LIMITE
Report on the Audit of the Standalone Financial Statement
We have audited the accompanying Standalone Financial Statements of LAKSHMI MACHINE WORKS LIMITED
("the Company"), which comprise the Balance Sheet as at March 31,2023, the Statement of Profit and Loss (including Other Comprehensive Income), the Statement of Changes in Equity and the Statement of Cash Flows for the year ended on that date, and a summary of the significant accounting policies, Notes to the Financial Statements and other explanatory information (hereinafter referred to as the "Standalone Financial Statements").
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid Standalone Financial Statements give the information required by the Companies Act, 2013 ("the Act") in the manner so required and give a true and fair view in conformity with the Indian Accounting Standards prescribed under section 133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015, as amended, ("Ind AS") and other accounting principles generally accepted in India, of the state of affairs of
the Company as at March 31, 2023, its profit, total comprehensive income, changes in equity and its cash flows for the year ended on that date.
We conducted our audit of the Standalone Financial Statements in accordance with the Standards on Auditing ("SA"s) specified under section 143(10) of the Companies Act, 2013. Our responsibilities under those Standards are further described in the Auditor''s Responsibilities for the Audit of the Standalone Financial Statements 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 (ICAI) together with the ethical requirements that are relevant to our audit of the Standalone Financial Statements under the provisions of the Act and the Rules made thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the ICAI''s Code of Ethics. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Standalone Financial Statements.
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the 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. We have determined the matters described below to be the key audit matters to be communicated in our report.
KEY AUDIT MATTER |
RESPONSE TO KEY AUDIT MATTER |
Accuracy of recognition, measurement, presentation and disclosures of revenues and other related balances in respect of "Revenue from contracts with Customers" under Ind AS 115. The application of this revenue accounting standard involves certain key judgments relating to identification of distinct performance obligations, determination of transaction price of identified performance obligations, the appropriateness of the basis used to measure revenue recognised over a period, and disclosures including presentations of balances in the financial statements. |
Our audit approach consisted testing of the design and operating effectiveness of internal controls and procedures as follows: ⢠Evaluated the effectiveness of controls over the preparation of information that are designed to ensure the completeness and accuracy. ⢠Selected a sample of existing continuing contracts and new contracts, and tested the operating effectiveness of the internal control, relating to identification of the distinct performance obligations and determination of transaction price. |
Estimated efforts is a critical estimate to determine revenue, as it requires consideration of progress of the contract, efforts incurred till date, efforts required to complete the remaining performance obligation. |
⢠Tested the relevant information, accounting systems and change relating to contracts and related information used in recording and disclosing revenue in accordance with Ind AS 115. ⢠Reviewed a sample of contracts to identify possible delays in achieving milestones, which require change in estimated efforts to complete the remaining performance obligations. ⢠Performed analytical procedures and test of details for reasonableness and other related material items. |
Assessment of carrying value of investments The company has invested in listed equity instruments and debt instruments. We consider this a key audit matter given the relative significance of the value of investments. |
Our procedures in relation to assessing the carrying value of investments include the following observations. ⢠The equity investments are carried at fair value as on 31st March 2023. ⢠During the year the company has made new investments in Non-convertible debentures. All the investments in debentures are measured at cost. ⢠The company has also invested in debt oriented mutual funds, and the same has also been recognised at fair market value as on 31st March 2023. |
Assessment of Contingent Liability There are a number of litigations pending before various forums against the Company and the management''s judgement is required for estimating the amount to be disclosed as contingent liability. We determined the above area as a Key Audit Matter in view of associated uncertainty relating to the outcome of these matters which requires application of judgment in interpretation of law. Accordingly, our audit was focused on analysing the facts of subject matter under consideration and judgments/ interpretation of law involved. (Refer Note 30.1 to the standalone financial statements) |
The audit procedures included but were not limited to: ⢠Obtaining a detailed understanding of processes and controls of the Management with respect to claims or disputes. ⢠Performing following procedures on samples selected. ⢠Understanding the matters by reading the correspondences, communications, minutes of the management meeting. ⢠Making corroborative inquiries with appropriate level of the management personnel including status update, expectation of outcomes with the basis, and the future course of action contemplated by the Company, and perusing legal opinions, if any, obtained by the Management. ⢠Obtaining direct confirmation from the legal attorneys of the company and considering their opinions / probability assessment of the outcomes. ⢠Evaluating the evidence supporting the judgement of the management about possible outcomes and the reasonableness of the estimates. ⢠Evaluating appropriateness of adequate disclosures in accordance with the applicable accounting standards. |
Information Other than the Standalone Financial Statements and Auditor''s Report Thereon
The Company''s Board of Directors is responsible for the preparation of the other information. The other information comprises the information included in the Management Discussion and Analysis, Board''s Report including Annexures to Board''s Report, Business
Responsibility and Sustainability Report, Corporate Governance and Shareholder''s Information, but does not include the consolidated financial statements, Standalone Financial Statements and our auditor''s 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.
a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor''s 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 these Standalone Financial Statements. 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 Standalone Financial Statements, 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 financial controls 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 system 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 management.
⢠Conclude on the appropriateness of management''s 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 Company''s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor''s report to the related disclosures in the statements 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 auditor''s report. However, future events or conditions may cause the Company to cease to continue as a going concern.
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 is materially inconsistent with the Standalone Financial Statements or our knowledge obtained during the course of our 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 are required to report that fact. We have nothing to report in this regard.
Responsibilities of Management and Those Charged with Governance for the Standalone Financial Statements
The Company''s Board of Directors is responsible for the matters stated in section 134(5) of the Act with respect to the preparation of these Standalone Financial Statements that give a true and fair view of the financial position, financial performance including other comprehensive income, changes in equity and cash flows of the Company in accordance with the Ind AS and other accounting principles generally accepted in India. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding 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 standalone Ind AS financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
In preparing the Standalone Financial Statements, management is responsible for assessing the Company''s 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 responsible for overseeing the Company''s financial reporting process.
Auditor''s Responsibilities for the Audit of the Standalone Financial Statements
Our objectives are to obtain reasonable assurance about whether the Standalone Financial Statements as
⢠Evaluate the overall presentation, structure and content of the Standalone Financial Statements, including the disclosures, and whether the Standalone Financial Statements represent the underlying transactions and events in a manner that achieves fair presentation.
Materiality is the magnitude of misstatements in the Standalone Financial Statements that, individually or in aggregate, makes it probable that the economic decisions of a reasonably knowledgeable user of the standalone financial statements may be influenced. We consider quantitative materiality and qualitative factors in (i) planning the scope of our audit work and in evaluating the results of our work; and (ii) to evaluate the effect of any identified misstatements in the Standalone Financial Statements.
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 Standalone Financial Statements of the current period and are therefore the key audit matters. We describe these matters in our auditor''s 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 Section 143(3) of the Act, based on our audit 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 including Other Comprehensive Income, Statement of Changes in Equity and the Statement of Cash Flow dealt with by this Report are in agreement with the relevant books of account.
d) In our opinion, the aforesaid Standalone Financial Statements comply with the Ind AS 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 March 31,2023 taken on record by the Board of Directors, none of the directors is disqualified as on March 31,2023 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, refer to our separate Report in "Annexure B". Our report expresses an unmodified opinion on the adequacy and operating effectiveness of the Company''s internal financial controls over financial reporting.
g) With respect to the other matters to be included in the Auditor''s 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.
h) 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, as amended in our opinion and to the best of our information and according to the explanations given to us:
i. The Company has disclosed the impact of pending litigations on its financial position in its Standalone Financial Statements - Refer Note 30.1 to Standalone Financial Statements.
ii. The Company has made provision, as required under the applicable law or accounting standards, for material foreseeable losses, if any, on long-term contracts including derivative contracts - Refer Note 18 to Standalone Financial Statements.
iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company.
iv. (a) The Management has represented that, to the best of its knowledge and belief, no funds (which
are material either individually or in the aggregate) have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the Company to or in any other person or entity, including foreign entity ("Intermediaries"), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall, whether, directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company ("Ultimate Beneficiaries") or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
(b) The Management has represented, that, to the best of its knowledge and belief, no funds (which are material either individually or in the aggregate) have been received by the Company from any person or entity, including foreign entity ("Funding Parties"), with the understanding, whether recorded in writing or otherwise, that the Company shall, whether, directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party ("Ultimate Beneficiaries") or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
(c) Based on the audit procedures that have been considered reasonable and appropriate in the circumstances, nothing has come to our notice that has caused us to believe that the representations under sub-clause (i) and (ii) of Rule 11(e), as provided under (a) and (b) above, contain any material misstatement.
v. (a) The final dividend proposed in the previous year, declared and paid by the Company during the
year is in accordance with Section 123 of the Act, as applicable.
(b) The Board of Directors of the Company have proposed final dividend for the year which is subject to the approval of the members at the ensuing Annual General Meeting. The amount of dividend proposed is in accordance with section 123 of the Act, as applicable.
vi. Proviso to Rule 3(1) of the Companies (Accounts) Rules, 2014 for maintaining books of Accounts using accounting software which has a feature of recording audit trail (edit log) facility is applicable to the company with effect from April 1, 2023, and accordingly, reporting under Rule 11(g) of Companies (Audit and Auditors) Rules, 2014 is not applicable for the financial year ended March 31,2023.
2. As required by the Companies (Auditor''s 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, we give in "Annexure A" a statement on the matters specified in paragraphs 3 and 4 of the Order.
For S. Krishnamoorthy & Co.
Chartered Accountants Firm'' s Registration No.001496S
B. Krishnamoorthi
Partner
Place : Coimbatore Membership No.020439
Date : 24th May, 2023 UDIN: 23020439BGUGTM9749
Mar 31, 2022
Report on the Audit of the Standalone Financial Statements
KEY AUDIT MATTER |
RESPONSE TO KEY AUDIT MATTER |
Accuracy of recognition, measurement, presentation and disclosures of revenues and other related balances in view of adoption of Ind AS 115 "Revenue from Contracts with Customersâ (Revenue Accounting Standard! The application of the revenue accounting standard involves certain key judgements relating to identification of distinct performance obligations, determination of transaction price of the identified performance obligations, the appropriateness of the basis used to measure revenue recognized over a period. Additionally, revenue accounting standard contains disclosures which involves collation of information in respect of disaggregated revenue and periods over which the remaining performance obligations will be satisfied subsequent to the balance sheet date. |
We assessed the Company''s process to identify the impact of adoption of the revenue accounting standard. Our audit approach consisted testing of the design and operating effectiveness of the internal controls and substantive testing as follows: ⢠Evaluated the design of internal controls relating to implementation of the revenue accounting standard. ⢠It is observed that transaction price charged is ex-works price and revenue is booked at the time of dispatch of the goods. ⢠The above method followed by the company is in line the provisions of Ind AS 115 - âRevenue from contracts with customers'' Conclusion: We agree with the management''s evaluation. |
KEY AUDIT MATTER |
RESPONSE TO KEY AUDIT MATTER |
|
Accuracy of revenues and onerous obligations in respect of fixed price contracts. |
In the process of verifying the accuracy of recognition of revenues of fixed price contracts, we have undertaken the following audit approach ⢠Understood, evaluated and tested the key controls over the recognition of revenue from fixed price contracts. We selected a sample of transactions and ⢠Agreed the applied tariff to the respective terms in the contract. ⢠Tested revenue calculations and agreed the revenue recognized to the underlying accounting records. Conclusion: We agree with the management''s evaluation. |
|
Assessment of carrying value of investments The company has invested in listed equity instruments and debt instruments. We consider this a key audit matter given the relative significance of the value of investments. |
Our procedures in relation to assessing the carrying value of investments include the following observations. ⢠The equity investments are carried at fair value as on March 31, 2022. ⢠During the year the company has made new investments in Non-convertible debentures. All the investments in debentures are measured at cost. ⢠The company has also invested in debt oriented mutual funds, and the same has also been recognized at fair market value as on March 31, 2022. Conclusion: We agree with the management''s evaluation. |
We have audited the Standalone Financial Statements of LAKSHMI MACHINE WORKS LIMITED ("the Company"), which comprise the Balance Sheet as at March 31, 2022, the Statement of Profit and Loss (including Other Comprehensive Income), the Statement of Changes in Equity and the Statement of Cash Flows for the year then ended, and a summary of the significant accounting policies, Notes to the Financial Statements and other explanatory information (hereinafter referred to as "the Standalone Financial Statements").
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid Standalone Financial Statements give the information required by the Companies Act, 2013 ("the Act") in the manner so required and give a true and fair view in conformity with the Indian Accounting Standards prescribed under section 133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015, as amended, ("Ind AS") and other accounting principles generally accepted in India, of the state of affairs of the Company as at March 31, 2022, its profit, total comprehensive income, changes in equity and its cash flows for the year ended on that date.
We conducted our audit of the Standalone Financial Statements in accordance with the Standards on
Auditing specified under section 143(10) of the Companies Act, 2013. Our responsibilities under those Standards are further described in the Auditor''s Responsibilities for the Audit of the Standalone Financial Statements 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 (ICAI) together with the independence requirements that are relevant to our audit of the Standalone Financial Statements under the provisions of the Act and the Rules made thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the ICAI''s Code of Ethics. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Standalone Financial Statements.
Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the 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. We have determined the matters described below to be the key audit matters to be communicated in our report.
Information Other than the Standalone Financial Statements and Auditor''s Report Thereon
The Company''s Board of Directors is responsible for the preparation of the other information. The other information comprises the information included in the Management Discussion and Analysis, Board''s Report including Annexures to Board''s Report, Business Responsibility Report, Corporate Governance and Shareholder''s Information, but does not include the Standalone Financial Statements and our auditor''s 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 is materially inconsistent with the Standalone Financial Statements or our knowledge obtained during the course of our 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 are required to report that fact. We have nothing to report in this regard.
Management''s Responsibilities for the Standalone Financial Statements
The Company''s Board of Directors is responsible for
the matters stated in section 134(5) of the Act with respect to the preparation of these Standalone Financial Statements that give a true and fair view of the financial position, financial performance, total comprehensive income, changes in equity and cash flows of the Company in accordance with the Ind AS and other accounting principles generally accepted in India including Indian Accounting Standards (Ind AS) prescribed under section 133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015, as amended. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding 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 standalone Ind AS financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
In preparing the Standalone Financial Statements, management is responsible for assessing the Company''s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.
The Board of Directors are responsible for overseeing the Company''s financial reporting process.
Auditor''s Responsibilities for the Audit of the Standalone Financial Statements
Our objectives are to obtain reasonable assurance about whether the Standalone Financial Statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor''s 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 these Standalone Financial Statements.
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 Standalone Financial Statements, 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 financial controls 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 system 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 management.
⢠Conclude on the appropriateness of management''s 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 Company''s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor''s report to the related disclosures in the statements 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 auditor''s report. However, future events or conditions may cause the Company to cease to continue as a going concern.
⢠Evaluate the overall presentation, structure and content of the Standalone Financial Statements, including the disclosures, and whether the Standalone Financial Statements represent the underlying transactions and events in a manner that achieves fair presentation.
Materiality is the magnitude of misstatements in the Standalone Financial Statements that, individually or in aggregate, makes it probable that the economic decisions of a reasonably knowledgeable user of the financial statements may be influenced. We consider quantitative materiality and qualitative factors in (i) planning the scope of our audit work and in evaluating the results of our work; and (ii) to evaluate the effect of any identified misstatements in the Standalone Financial Statements.
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 Standalone Financial Statements of the current period and are therefore the key audit matters. We describe these matters in our auditor''s 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 Section 143(3) of the Act, based on our audit 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 including Other Comprehensive Income, Statement of Changes in Equity and the Statement of Cash Flow dealt with by this Report are in agreement with the relevant books of account.
d) In our opinion, the aforesaid Standalone Financial Statements comply with the Ind AS 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 March 31, 2022 taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2022 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, refer to our separate Report in "Annexure B". Our report expresses an unmodified opinion on the adequacy and operating effectiveness of the Company''s internal financial controls over financial reporting.
g) With respect to the other matters to be included in the Auditor''s 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.
h) 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, as amended in our opinion and to the best of our information and according to the explanations given to us:
i. The Company has disclosed the impact of pending litigations on its financial position in its Standalone Financial Statements - Refer Note 31.1 to Standalone Financial Statements.
ii. The Company has made provision, as required under the applicable law or accounting standards, for material
foreseeable losses, if any on longterm contracts including derivative contracts - Refer Note 19 to Standalone Financial Statements.
iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company.
iv. (a) The Management has represented that, to the best of its knowledge and belief, no funds (which are material either individually or in the aggregate) have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the Company to or in any other person or entity, including foreign entity (âIntermediaries"), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall, whether, directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company (âUltimate Beneficiaries") or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
(b) The Management has represented, that, to the best of its knowledge and belief, no funds (which are material either individually or in the aggregate) have been received by the Company from any person or entity, including foreign entity (âFunding Parties"), with the understanding, whether recorded in writing or otherwise, that the Company shall, whether, directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (âUltimate Beneficiaries") or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
(c) Based on the audit procedures that have been considered reasonable and appropriate in the circumstances, nothing has come to our notice that has caused us to believe that the representations under sub-clause (i) and (ii) of Rule
11(e), as provided under (a) and (b) above, contain any material misstatement.
(v) (a) The final dividend proposed in the previous year, declared and paid by the Company during the year is in accordance with Section 123 of the Act, as applicable.
(b) The Board of Directors of the Company have proposed final dividend for the year which is subject to the approval of the
members at the ensuing Annual General Meeting. The amount of dividend proposed is in accordance with section 123 of the Act, as applicable
2. As required by the Companies (Auditor''s Report) Order, 2020 (âthe Order"), issued by the Central Government of India in terms of sub-section (11) of section 143 of the Companies Act, 2013, we give in "Annexure A" a statement on the matters specified in paragraphs 3 and 4 of the Order.
For S. Krishnamoorthy & Co
Chartered Accountants Firm'' s Registration No.001496S
B. Krishnamoorthi
Partner
Membership No.020439 UDIN:22020439AITJYK3456
Mar 31, 2019
Independent Auditor''s report
TO THE MEMBERS OF LAKSHMI MACHINE WORKS LIMITED Report on the Audit of the Standalone Ind AS Financial Statements
Opinion
We have audited the accompanying standalone Ind AS financial statements of Lakshmi Machine Works Limited ("the Company"), which comprise the Balance Sheet as at 31st March, 2019, the Statement of Profit and Loss (including Other Comprehensive Income), the Statement of Changes in Equity and the Statement of Cash Flows for the year ended on that date, and a summary of the significant accounting policies and other explanatory information (hereinafter referred to as "the standalone Ind AS financial statements").
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone Ind AS financial statements give the information required by the Companies Act, 2013 ("the Act") in the manner so required and give a true and fair view in conformity with the Indian Accounting Standards prescribed under section 133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015, as amended, ("Ind AS") and other accounting principles generally accepted in India, of the state of affairs of the Company as at 31st March, 2019, the profit and total comprehensive income, changes in equity and its cash flows for the year ended on that date.
Basis for Opinion
We conducted our audit of the standalone Ind AS financial statements in accordance with the Standards on Auditing specified under section 143(10) of the Companies Act, 2013. Our responsibilities under those Standards are further described in the Auditor''s Responsibilities for the Audit of the Standalone Ind AS Financial Statements 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(ICAI) together with the independence requirements that are relevant to our audit of the standalone Ind AS financial statements under the provisions of the Act and the Rules made thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the ICAI''s Code of Ethics. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the standalone Ind AS financial statements.
Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the standalone Ind AS financial statements of the current period. These matters were addressed in the context of our audit of the standalone Ind AS financial statements as a whole, and in forming our opinion thereon, and we do not providea separate opinion on these matters. We have determined the matters described below to be the key audit matters to be communicated in our report.
KEY AUDIT MATTER |
RESPONSE TO KEY AUDIT MATTER |
Accuracy of recognition, measurement, presentation and disclosures of revenues and other related balances in view of adoption of Ind AS 115 âRevenue from Contracts with Customers" (new revenue accounting standard) The application of the new revenue accounting standard involves certain key judgments relating to identification of distinct performance obligations, determination of transaction price of the identified performance obligations, the appropriateness of the basis used to measure revenue recognized over a period. Additionally, new revenue accounting standard contains disclosures which involves collation of information in respect of disaggregated revenue and periods over which the remaining performance obligations will be satisfied subsequent to the balance sheet date. |
We assessed the Company''s process to identify the impact of adoption of the new revenue accounting standard. Our audit approach consisted testing of the design and operating effectiveness of the internal controls and substantive testing as follows: - Evaluated the design of internal controls relating to implementation of the new revenue accounting standard. - It is observed that transaction price charged is exworks price and revenue is booked at the time of dispatch of the goods. - The above method followed by the company is in line with the provisions of Ind AS 115-''Revenue from contracts with customers'' Conclusion: We agree with the management''s evaluation. |
Accuracy of revenues and onerous obligations in respect of fixed price contracts. |
In the process of verifying the accuracy of recognition of revenues of fixed price contracts, we have undertaken the following audit approach - Understood, evaluated and tested the key controls over the recognition of revenue from fixed price contracts. We selected a sample of transactions and - Agreed the applied tariff to the respective terms in the contract. - Tested revenue calculations and agreed the revenue recognized to the underlying accounting records. Conclusion: We agree with the management''s evaluation. |
Assessment of carrying value of investments The company has invested in listed equity instruments and debt instruments. We consider this a key audit matter given the relative significance of the value of investments. |
Our procedures in relation to assessing the carrying value of investments include the following observations. - The equity investments are carried at fair value as on 31st March 2019. - Due to market fluctuation, there has been significant value reduction in the equity investments. - The company has also invested in debt oriented mutual funds, and the same has also been recognized at fair market value as on 31st March, 2019. Conclusion: We agree with the management''s evaluation |
Information Other than the Standalone Ind AS Financial Statements and Auditor''s Report Thereon
The Company''s Board of Directors is responsible for the preparation of the other information. The other information comprises the information included in the Management Discussion and Analysis, Board''s Report including Annexures to Board''s Report, Business Responsibility Report, Corporate Governance and Shareholder''s Information, but does not include the standalone Ind AS financial statements and our auditor''s report thereon.
Our opinion on the standalone Ind AS 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 Ind AS financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the standalone Ind AS financial statements or our knowledge obtained during the course of our 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 are required to report that fact. We have nothing to report in this regard.
Responsibilities of Management and those charged with governance for the standalone Ind AS financial statements
The Company''s Board of Directors is responsible for the matters stated in section 134(5) of the Act with respect to the preparation of these standalone Ind AS financial statements that give a true and fair view of the financial position, financial performance, total comprehensive income, changes in equity and cash flows of the Company in accordance with the Ind AS and other accounting principles generally accepted in India including Indian Accounting Standards (Ind AS) prescribed under section 133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015, as amended. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding 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 standalone Ind AS financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
In preparing the standalone Ind AS financial statements, management is responsible for assessing the Company''s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.
The Board of Directors are responsible for overseeing the Company''s financial reporting process.
Auditor''s Responsibilities for the Audit of the Standalone Ind AS Financial Statements
Our objectives are to obtain reasonable assurance about whether the standalone Ind AS financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor''s 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 these standalone Ind AS financial statements.
A further description of the auditor''s responsibilities for the audit of the standalone Ind AS financial statements is included in Annexure "A". This description forms part of our auditor''s report.
Report on Other Legal and Regulatory Requirements
1. As required by Section 143(3) of the Act, based on our audit we reportthat:
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 including Other Comprehensive Income, Statement of Changes in Equity and the Statement of Cash Flow dealt with by this Report are in agreement with the relevant books of account.
d) In our opinion, the aforesaid standalone Ind AS financial statements comply with the Ind AS 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, 2019 taken on record by the Board of Directors, none of the directors is disqualified as on 31st March, 2019 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, refer to our separate Report in Annexure "B". Our report expresses an unmodified opinion on the adequacy and operating effectiveness of the Company''s internal financial controls over financial reporting.
g) With respect to the other matters to be included in the Auditor''s 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 ofthe Act.
h) 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, as amended in our opinion and to the best of our information and according to the explanations given to us:
i. The Company has disclosed the impact of pending litigations on its financial position in its standalone Ind AS financial statements - Refer Note 31.1 to Standalone Ind AS Financial Statements.
ii. The Company has made provision, as required under the applicable law or accounting standards, for material foreseeable losses, if any, on long-term contracts including derivative contracts - Refer Note 19 to Standalone Ind AS Financial Statements.
iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company.
2. As required by the Companies (Auditor''s Report) Order, 2016 ("the Order"), issued by the Central Government of India in terms of sub-section (11) of section 143 of the Companies Act, 2013, we give in the Annexure "C" a statement on the matters specified in paragraphs 3 and 4 of the Order, to the extent applicable.
Responsibilities for Audit of Standalone Ind AS Financial Statements
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 standalone Ind AS financial statements, 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 financial controls 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 system 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 management.
- Conclude on the appropriateness of management''s 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 Company''s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor''s report to the related disclosures in the statements 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 auditor''s report. However, future events or conditions may cause the Company to cease to continue as a going concern.
- Evaluate the overall presentation, structure and content of the standalone Ind AS financial statements, including the disclosures, and whether the standalone Ind AS financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
Materiality is the magnitude of misstatements in the standalone Ind AS financial statements that, individually or in aggregate, makes it probable that the economic decisions of a reasonably knowledgeable user of the financial statements may be influenced. We consider quantitative materiality and qualitative factors in (i) planning the scope of our audit work and in evaluating the results of our work; and (ii) to evaluate the effect of any identified misstatements in the financial statements.
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 standalone Ind AS financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor''s 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 the Internal Financial Controls Over Financial Reporting under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 (âthe Act")
We have audited the internal financial controls over financial reporting of LAKSHMI MACHINE WORKS LIMITED ("the Company") as of 31st March, 2019 in conjunction with our audit of the standalone Ind AS financial statements of the Company for the year ended on that date.
Management''s Responsibility for Internal Financial Controls
The Board of Directors of the Company is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India. These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to respective company''s policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013.
Auditor''s Responsibility
Our responsibility is to express an opinion on the internal financial controls over financial reporting of the Company based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (the "Guidance Note") issued by the Institute of Chartered Accountants of India and the Standards on Auditing prescribed under Section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. 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.
We believe that the audit evidence we have obtained, is sufficient and appropriate to provide a basis for our audit opinion on the internal financial controls system over financial reporting of the Company.
Meaning of Internal Financial Controls Over Financial Reporting
A company''s internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting Principles. A company''s internal financial control over financial reporting includes those policies and procedures that
(1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company''s assets that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls Over Financial Reporting
Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Opinion
In our opinion, to the best of our information and according to the explanations given to us, the Company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at 31st March, 2019, based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India.
According to the information and explanations sought by us and given by the company and the books and records examined by us during the course of our Audit and to the best of our Knowledge and belief we report the following:
i. In respect of the Company''s fixed assets:
(a) The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets.
(b) The fixed assets of the company have been physically verified in a phased periodical manner, by the management, 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.
(c) The title deeds of all the immovable properties of the company shown under the Fixed Assets as at the balance sheet date, are held in the name of the Company.
ii. The physical verification of inventory has been conducted by the management at reasonable intervals. The
Company has maintained proper record of inventory and no material discrepancies were noticed on the physical verification of inventories as compared to the book records.
iii. The Company has not granted any loans, secured or unsecured to companies, firms, limited liability partnerships or other parties covered in the register maintained under section 189 of the Companies Act, 2013 during the financial year.
iv. The Company has not granted loans or made investments or given guarantees and securities during the year and hence compliance with section 185 and 186 are not applicable.
v. The Company has not accepted deposits during the year and does not have any unclaimed deposits as at 31st March, 2019 and therefore, the provisions of the clause 3 (v) of the Order are not applicable to the Company.
vi. The Central Government has prescribed the maintenance of cost records under section 148(1) of the Act. We have broadly reviewed the accounts and records of the company in this connection and are of the opinion that prima facie, the prescribed accounts and records have been made and maintained. We have not, however carried out a detailed examination of the cost records with a view to determine whether they are accurate or complete.
vii. According to the information and explanations given to us, in respect of statutory dues:
(a) The Company has generally been regular in depositing undisputed statutory dues, including Provident Fund, Employees'' State Insurance, Income Tax, Goods and Service Tax, Customs Duty, Cass and other material statutory dues applicable to it with the appropriate authorities.
(b) There were no undisputed amounts payable in respect of Provident Fund, Employees'' State Insurance, Income Tax, Goods and Service Tax, Customs Duty, Cess and other material statutory dues in arrears as at 31st March, 2019 for a period of more than six months from the date they became payable.
(c) The details of disputed statutory dues are as under:
viii. The Company has not taken any loans or borrowings from financial institutions, banks and government or has not issued any debentures. Hence reporting under clause 3 (viii) of the Order is not applicable to the Company.
Name of the Statue |
Nature of the dues |
Amount (Rs, in Lakhs) |
Amount paid/ adjusted (Rs, in Lakhs) |
Forum where dispute is pending (Rs, in Lakhs) |
Central Excise Act,1944 |
Excise Duty, Service Tax and Customs Duty |
2,462.81 |
152.42 |
Appellate authorities Up to Commissioner''s Level - ''121.15 CESTAT - ''2,325.32 High Court - ''16.33 |
Income Tax Act, 1961 |
Income tax and Interest |
327.22 |
327.22 |
CIT(A) - ''252.53 ITAT - ''74.69 |
ix. The Company has not raised moneys by way of initial public offer or further public offer (including debt instruments) or term loans and hence reporting under clause 3 (ix) of the Order is not applicable to the Company.
x. To the best of our knowledge and according to the information and explanations given to us, no fraud by the Company or no material fraud on the Company by its officers or employees has been noticed or reported during the year.
xi. In our opinion, the Company has paid/provided managerial remuneration in accordance with the requisite approvals mandated by the provisions of section 197 read with Schedule V to the Act.
xii. The Company is not a Nidhi Company and hence reporting under clause 3 (xii) of the Order is not applicable to the Company.
xiii. In our opinion and according to the information and explanations given to us, the Company is in compliance with Section 177 and 188 of the Companies Act, 2013 where applicable, for all transactions with the related parties and the details of related party transactions have been disclosed in the standalone Ind AS financial statements as required by the applicable accounting standards.
xiv. During the year, the Company has not made any preferential allotment or private placement of shares or fully or partly paid convertible debentures and hence reporting under clause 3 (xiv) of the Order is not applicable to the Company.
xv. In our opinion and according to the information and explanations given to us, during the year 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.
xvi. The Company is not required to be registered under section 45-IA of the Reserve Bank of India Act, 1934.
For S. KRISHNAMOORTHY & Co.
Chartered Accountants
Firm Registration No.001496S
K.Raghu
Partner
Membership No.11178
Coimbatore 20th May 2019
Mar 31, 2018
Independent Auditor''s Report
To the Members of Lakshmi Machine Works Limited Report on the Standalone IND AS Financial Statements
We have audited the accompanying standalone IND AS financial statements of Lakshmi Machine Works Limited (''the Company''), which comprise the balance sheet as at 31st March 2018, the statement of profit and loss (including Other Comprehensive Income), the Statement of Changes in Equity and the Statement of cash flow for the year then ended, and a summary of significant accounting policies and other explanatory information.(herein after referred to as "standalone IND AS financial statementsâ)
Management''s Responsibility for the standalone IND AS financial statements
The Company''s Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 ("the Actâ) with respect to the preparation of these Standalone IND AS financial statements that give a true and fair view of the financial position, financial performance including Other Comprehensive income , Cash flows and Changes in Equity of the Company in accordance with the accounting principles generally accepted in India, including the Indian Accounting Standards (INDAS) 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 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 standalone IND AS 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 standalone Ind AS 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 there under.
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 Standalone Ind AS financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the standalone IND AS financial statements. The procedures selected depend on the auditor''s judgments, including the assessment of the risks of material misstatement of the standalone IND AS 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 standalone IND AS 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 standalone IND AS 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 standalone IND AS Financial Statements.
Opinion
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone IND AS 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 including, the IND AS, of the Financial position of the Company as at 31st March 2018, and its financial performance including other comprehensive income, its cash flows and changes in the equity for the year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2016 ("the Orderâ) 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, a statement on the matters specified in the paragraph 3 and 4 of the Order, to the extent applicable.
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 of the aforesaid standalone IND AS Financial Statements.
(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 including Other Comprehensive Income, Statement of Changes in Equity and the Cash flow statement dealt with by this Report are in agreement with the books of account;
(d) In our opinion, the aforesaid standalone IND AS financial statements comply with the Indian
Accounting Standards (IND AS) specified under Section 133 of the Act, read with the relevant Rules issued there under.
(e) On the basis of the written representations received from the directors as on 31st March 2018 taken on record by the Board of Directors, none of the directors is disqualified as on 31st March 2018 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, a separate report has been given in "Annexure Bâ; and
(g) 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, as amended, in our opinion and to the best of our information and according to the explanations given to us:
i. the Company has disclosed the impact of pending litigations in its financial position in its standalone IND AS financial statements-Refer note no.31.1
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
The Annexure referred to in Independent Auditors'' Report to the members of the company on the Standalone IND AS Financial Statements for the year ended 31st March 2018.
According to the information and explanations sought by us and given by the Company and the books and records examined by us during the course of our Audit and to the best of our knowledge and belief we report the following:
(i) (a) The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets
(b) The fixed assets of the company have been physically verified in a phased periodical manner, by the management, 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.
(c) The title deeds of all the immovable properties of the company shown under the Fixed Assets schedule are held in the name of the company.
(ii) The physical verification of inventory has been conducted by the management at reasonable intervals. The Company has maintained proper record of inventory and no material discrepancies were noticed on the physical verification of inventories as compared to the book records.
(b) The details of disputed statutory dues are as under:
Name of the Statue |
Nature of the dues |
Amount (RS in Lakhs) |
Amount paid/adjusted (RS in Lakhs) |
Forum where dispute is pending (RS in Lakhs) |
Central Excise Act,1944 |
Excise Duty, Service Tax and Customs Duty |
2,717.19 |
146.51 |
Appellate authorities Up to Commissioner''s Level - C2,539.73 CESTAT - C153.74 High Court - C23.72 |
Income Tax Act, 1961 |
Income tax and Interest |
519.33 |
329.14 |
CIT(A) - C35.45 ITAT - C483.88 |
(iii) The Company has not granted any loans, secured or unsecured to companies, firms, limited liability partnerships or other parties covered in the register maintained under section 189 of the Companies Act, 2013 during the financial year.
(iv) The Company has not granted loans or made investments or given guarantees and securities during the year and hence compliance with section 185 and 186 are not applicable.
(v) The Company has not accepted any deposits and therefore paragraph 3(v) of the order is not applicable to the Company.
(vi) The Central Government has prescribed the maintenance of cost records under section 148(1) of the Act. We have broadly reviewed the accounts and records of the company in this connection and are of the opinion that prima facie, the prescribed accounts and records have been made and maintained. We have not, however carried out a detailed examination of the cost records with a view to determine whether they are accurate or complete.
(vii)(a) The Company is regular in depositing undisputed statutory dues including provident fund, employee''s state insurance, income-tax, sales tax, service tax, Goods and service tax, duty of customs, duty of excise, value added tax, cess and other material statutory dues have been regularly deposited during the year by the Company with the appropriate authorities.
There are, no undisputed arrears of statutory dues which were outstanding as at 31 March 2018 for a period of more than six months from the date they became payable.
(viii) The Company has not borrowed from any financial institution and has not issued any debentures till date.
(ix) The Company did not raise any money by way of initial public offer or further public offer (including debt instruments) and term loan during the year. Accordingly, clause 3(ix)of the order is not applicable.
(x) No fraud by the Company or fraud on the Company by its officers or employees has been noticed or reported during the year.
(xi) In our opinion the managerial remuneration has been paid in accordance with the requisite approval mandated by the provisions of section 197, read with schedule V of the Act.
(xii) The Company is not a Nidhi Company. Accordingly, paragraph 3(xii) of the Order is not applicable.
(xiii) In our opinion the transactions with the related parties are in compliance with sections 177 and 188 of the Act and details of such transactions have been disclosed in the financial statements as required by the applicable accounting standards.
(xiv) The Company has not made preferential allotment or private placement of shares or issued any debentures during the year.
(xv) The Company has not entered into non-cash transactions with directors or persons connected with him. Accordingly clause 3(xv)of the order is not applicable.
(xvi) The Company is not required to be registered under section 45-IA of the Reserve Bank of India Act 1934.
We have audited the internal financial controls over financial reporting of Lakshmi Machine Works Limited ("the Companyâ) as of 31 March 2018 in conjunction with our audit of the standalone IND AS financial statements of the Company for the year ended on that date.
Management''s Responsibility for Internal Financial Controls
The Company''s management is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued by the Institute of Chartered Accountants of India (''ICAI''). These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to company''s policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013.
Auditors'' Responsibility
Our responsibility is to express an opinion on the Company''s internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls over Financial Reporting (the "Guidance Noteâ) and the Standards on Auditing, issued by ICAI and deemed to be prescribed under section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls, both issued by the Institute of Chartered Accountants of India. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. 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.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Company''s internal financial controls system over financial reporting.
Meaning of Internal Financial Controls over Financial Reporting
A company''s internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company''s internal financial control over financial reporting includes those policies and procedures that
(1) Pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company;
(2) Provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and
(3) Provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company''s assets that could have a material effect on the standalone IND AS Financial Statements.
Inherent Limitations of Internal Financial Controls over Financial Reporting
Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Opinion
In our opinion to the best of our information and according to the explanation given to us, the Company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at 31 March 2018, based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India.
For S.Krishnamoorthy & Co
Firm Registration No 001496S
Chartered Accountants
K.Raghu
Coimbatore Partner
25th May, 2018 Membership No.11178
Mar 31, 2017
INDEPENDENT AUDITOR''S REPORT
To the Members of Lakshmi Machine Works Limited Report on the standalone Ind As Financial statements
We have audited the accompanying standalone IND AS financial statements of Lakshmi Machine Works Limited (âthe Companyâ), which comprise the balance sheet as at 31 March 2017, the statement of profit and loss (including Other Comprehensive Income), the Statement of cash flows and the Statement of Changes in Equity for the year then ended, and a summary of significant accounting policies and other explanatory information. (herein after referred to as "standalone IND AS Financial Statements").
Management''s responsibility for the standalone Financial statements
The Companyâs Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 ("the Act") with respect to the preparation and presentation of these standalone IND AS Financial Statements that give a true and fair view of the Financial Position, Financial Performance including other comprehensive income, Cash Flows and Changes in Equity of the Company in accordance with the accounting principles generally accepted in India, including the Indian Accounting Standards [IND AS] 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 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 Standalone IND AS 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 standalone IND AS 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 there under.
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 Standalone IND AS Financial Statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the Standalone IND AS Financial Statements. The procedures selected depend on the auditorâs judgment, including the assessment of the risks of material misstatement of the Standalone IND AS Financial Statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Companyâs preparation of the Standalone IND AS 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 Companyâs Directors, as well as evaluating the overall presentation of the Standalone IND AS 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 Standalone IND AS Financial Statements.
opinion
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid Standalone IND AS 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 including the IND AS, of the financial position of the Company as at 31 March 2017, and its financial performance including other comprehensive income, its cash flows and changes in the Equity for the year ended on that date.
report on other Legal and regulatory requirements
1. As required by the Companies (Auditorâs Report) Order, 2016 ("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, a statement on the matters specified in the paragraph 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 of the aforesaid Standalone IND AS Financial Statements;
(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, the statement of cash flows and the statement of changes in equity, dealt with by this Report are in agreement with the books of account;
(d) in our opinion, the aforesaid Standalone IND AS Financial Statements comply with the Indian Accounting Standards [IND AS] specified under Section 133 of the Act, read with relevant rule issued there under;
(e) on the basis of the written representations received from the directors as on 31 March 2017 taken on record by the Board of Directors, none of the directors is disqualified as on 31 March 2017 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, refer to our separate report in "Annexure B"; and
(g) with respect to the other matters to be included in the Auditorâs 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 has disclosed the impact of pending litigations on its financial position in its standalone IND AS financial statements - Refer Note 31.1 to the standalone IND AS financial statements;
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.
iv. The company has provided requisite disclosures in its standalone IND AS financial statements as to holdings as well as dealings in Specified Bank Notes during the period from 8th November 2016 to 30th December 2016 and these disclosures are in accordance with the books of accounts maintained by the company.âRefer Note 10(a) to the Standalone IND AS Financial Statements
The Annexure referred to in Independent Auditorsâ Report to the members of the Company on the Standalone IND AS Financial Statements for the year ended 31 March 2017. We report that:
1. In respect of its Fixed Assets:
a. The company has maintained proper records showing full particulars including quantitative details and situation of fixed assets.
b. The company has physically verified fixed assets during the year in accordance with a regular and phased programme of verification, which in our opinion provides for physical verification of all the fixed assets at reasonable intervals having regard to the size of the company and nature of its assets. According to the information and explanations given to us 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 immovable properties are held in the name of the Company.
2. In respect of its inventories:
As explained to us, physical verification of inventories has been conducted at reasonable intervals by the management and no material discrepancies were noticed.
3. The company has not granted any loan, secured or unsecured to companies, firms, Limited Liability Partnerships or other parties covered in the register maintained under section 189 of the Companies Act, 2013, during the financial year and hence sub-clauses (a)
b The details of disputed statutory dues are as under:
Name of the statute |
Nature of the dues |
Amount [D in Lakhs] |
Amount paid/ adjusted [D in Lakhs] |
Forum where dispute is pending |
Central Excise Act, 1944 |
Excise Duty, Service Tax and Customs duty |
2,818.77 |
127.93 |
Appellate authorities Upto Commissionerâs Level -- C1,259.24 Lakhs CESTAT -- C1,538.19 Lakhs High Court-C 21.34 Lakhs |
Income Tax Act |
Income tax and Interest |
1,471.71 |
329.14 |
Commissioner of Income Tax (Appeals) C1,361.65 Lakhs ITAT --- C 110.06 Lakhs |
8. The company has no borrowings from financial institutions, banks and debenture holders and as such reporting under clause 3(viii) of the Order is not applicable to the company.
9. The Company did not raise any money by way of initial public offer or further public offer (including debt instruments) and term loans during the year. Accordingly, clause 3 (ix) of the Order is not applicable.
to (c) of clause (iii) of the Order are not applicable.
4. The Company has not granted loans or made investments or given guarantees and securities during the year and hence compliance with Section 185 and 186 are not applicable.
5. The company has not accepted any deposits from the public and as such clause 3(v) of the Order is not applicable.
6. We have broadly reviewed the cost records maintained by the company specified by the Central Government under sub-section (1) of Section 148 of the Companies Act, 2013, as applicable to the company, and are of the opinion that prima facie the specified cost records have been maintained. We have, however, not made a detailed examination of the cost records with a view to determine whether they are accurate or complete.
7. According to the information and explanations given to us and on the basis of our examination of the records of the company in respect of the statutory dues:
a The company is regular in depositing undisputed statutory dues including Provident Fund, Employeesâ State insurance, Income tax, Sales Tax, Service Tax, duty of customs, duty of excise, value added tax, and any other statutory dues with the appropriate authorities during the year. According to the information and explanations given to us, no undisputed amounts payable in respect of the aforesaid dues were outstanding as at 31st March 2017 for a period of more than six months from the date they became payable.
10. To the best of our knowledge and belief and according to the information and explanations given to us, no fraud on or by the company was noticed or reported during the year that causes the financial statements to be materially misstated.
11. According to the information and explanations given to us and based on our examination of the records of the Company, the Company has paid/provided for managerial remuneration in accordance with the requisite approvals mandated by the provisions of section 197 read with Schedule V to the Act.
12. In our opinion and 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.
13. According to the information and explanations given to us and based on our examination of the records of the Company, transactions with the related parties are in compliance with sections 177 and 188 of the Act where applicable and details of such transactions have been disclosed in the financial statements as required by the applicable accounting standards.
14. According to the information and explanations given to us and based on our examination of the records of the Company, the Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year.
15. According to the information and explanations given to us and based on our examination of the records of the Company, the Company has not entered into noncash transactions with directors or persons connected with him. Accordingly, clause 3(xv) of the Order is not applicable.
16. The Company is not required to be registered under section 45-IA of the Reserve Bank of India Act 1934. report on the Internal Financial Controls under Clause (i) of sub-section 3 of section 143 of the Companies Act, 2013 ("the Act")
We have audited the internal financial controls over financial reporting of LAKsHMI MACHINE WORKs LIMITED as of 31st March 2017 in conjunction with our audit of the Standalone IND AS Financial Statements of the Company for the year ended on that date.
Management''s Responsibility for Internal Financial Controls
The Companyâs management is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued by the Institute of Chartered Accountants of India (âICAIâ). These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to companyâs policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013.
Auditors'' Responsibility
Our responsibility is to express an opinion on the Companyâs internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls over Financial Reporting (the "Guidance Note") and the Standards on Auditing, issued by ICAI and deemed to be prescribed under section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls, both applicable to an audit of Internal Financial Controls and, both issued by the Institute of Chartered Accountants of India. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditorâs judgment, including the assessment of the risks of material misstatement of the Standalone IND AS Financial Statements, whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Companyâs internal financial controls system over financial reporting.
Meaning of Internal Financial Controls over Financial Reporting
A companyâs internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A companyâs internal financial control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the companyâs assets that could have a material effect on Standalone IND AS Financial Statements.
Inherent Limitations of Internal Financial Controls Over Financial Reporting
Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Opinion
In our opinion, the Company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at 31st March 2017, based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India.
For s.Krishnamoorthy & Co
Firm Registration No.001496S
Chartered Accountants
Per K.Raghu
Partner
Membership No. 11178
For subbachar & srinivasan
Firm Registration No. 004083S
Chartered Accountants
Per T.s.V.Rajagopal
Place : Coimbatore Partner
Date : 22nd May 2017 Membership No. 200380
Mar 31, 2014
We have audited the accompanying financial statements of M/s Lakshmi
Machine Works Limited (''the Company'') which comprise the Balance Sheet
as at 31 March 2014, the Statement of Profit and Loss and the Cash Flow
Statement for the year then ended and a summary of significant
accounting policies and other explanatory information.
Management''s Responsibility for the Financial Statements:
Management is responsible for 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 Standards referred to in sub- section (3C) of section
211 of the Companies Act, 1 956 ("the Act") read with the General
Circular 15/2013 dated 13th September 201 3 of the Ministry of
Corporate Affairs in respect of section 1 33 of the Companies Act, 201
3. This responsibility includes the design, implementation and
maintenance of internal control 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 conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditor''s judgment, including the assessment of
the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the Company''s preparation and
fair presentation of the financial statements in order to design audit
procedures that are appropriate in the circumstances, but not for the
purposes of expressing an opinion on the effectiveness of the entity''s
internal control. An audit also includes evaluating the appropriateness
of accounting policies used and the reasonableness of the accounting
estimates made by management, 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.
Opinion:
In our opinion and to the best of our information and according
I to the explanations given to us, the financial statements give the
information required bythe Act in the manner so required and give a
true and fair view in conformity with the accounting principles
generally accepted in India:
(i) In the case of the Balance Sheet, of the state of affairs of the
Company as at 31 March 2014;
(ii) In the case of the Statement of Profit and Loss, of the profit for
the year ended on that date; and
(iii) In the case of the Cash Flow Statement, of the 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, 2003 ("the
Order"), as amended, issued bythe Central Government of India in terms
of sub-section (4A) of section 227 of the Act, we give in the Annexure
a statement on the matters specified in paragraphs 4 and 5 of the
Order.
2. As required by section 227(3) of the Act, we report that:
a. 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;
b. In our opinion proper books of account as required bylaw have been
kept by the Company so far as appears from our examination of those
books;
c. The Balance Sheet, 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 Balance Sheet, Statement of Profit and Loss and
Cash Flow Statement comply with the Accounting Standards notified under
the Companies Act, 1956 read with the General Circular 15/2013 dated 13
September 2013 of the Ministry of Corporate Affairs in respect of
section 1 33 of the Companies Act, 2013 and
e. On the basis of written representations received from the directors
as on 31 March 2014, and taken on record by the Board of Directors,
none of the directors is disqualified as on 31 March 2014, from being
appointed as a director in terms of clause (g) of sub-section (1) of
section 274 of the Companies Act, 1 956.
ANNEXURE TO THE AUDITORS'' REPORT
The Annexure referred to in our report to the members of M/s Lakshmi
Machine Works Limited ("the Company") for the year ended 31 March 2014.
We report that:
1. In respect of its Fixed Assets:
a. The company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets.
b. The company has physically verified fixed assets during the year in
accordance with a regular and phased programme of verification, which
in our opinion provides for physical verification of all the fixed
assets at reasonable intervals having regard to the size of the company
and nature of its assets. According to the information and explanations
given to us no material discrepancies were noticed on such
verification.
c. The company has not disposed off any substantial part of fixed
assets during the year that affects the going concern assumption.
2. In respect of its inventories:
a. As explained to us, inventories have been physically verified by
the management at regular intervals during the year.
b. In our opinion and according to the information and explanations
given to us, 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 has maintained proper records of its
inventories and no material discrepancies were noticed on physical
verification as compared to the book records.
3. (a) The company has not taken any loans, secured or unsecured, from
companies, firms or other parties covered in the register maintained
under Section 301 of the Companies Act, 1956.
(b) During the year the company has not given any unsecured loans to
parties covered in the register maintained under Section 301 of the
Companies Act, 1956. However, in respect of loans given in an earlier
year the maximum amount outstanding during the year was Rs.650 Lakhs and
the year end balance was Rs.450 Lakhs.
(c) In our opinion, the rate of interest and other terms and conditions
on which loans have been given are not prima facie, prejudicial to the
interests of the company and the repayment of principal amount and
payment of interest are regular as stipulated and there are no overdue
amounts.
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 nature of its business for the
purchase of inventory, fixed assets and also for the sale of goods and
services. We have not observed any major weaknesses in internal control
systems during the course of our audit.
5. In respect of contracts or arrangements referred to in Sec. 301 of
the Companies Act, 1956:
a. In our opinion and according to the information and explanations
given to us, particulars of such contracts or arrangements have been
entered in the register required to be maintained under Sec. 301 of the
Companies Act, 1956.
b. In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of such contracts or
arrangements have been made at prices which are reasonable having
regard to the prevailing market prices at the relevant time.
6. The company has not accepted any deposits from the public and as
such clause 4(vi) of the Order is not applicable.
7. In our opinion, the company has an adequate internal audit system
commensurate with the size and nature of its business.
8. We have broadly reviewed the cost records maintained by the company
pursuant to the Companies (Cost Accounting Records) Rules, 2011
prescribed by the Central Government under Sec. 209(1 )(d) of the
Companies Act, 1956, as applicable to the company, and are of the
opinion that prima facie the prescribed cost records have been
maintained. We have, however, not made a detailed examination of the
cost records with a view to determine whether they are accurate or
complete.
9. According to the information and explanations given to us in
respect of the statutory dues:
a. The company is regular in depositing undisputed statutory dues
including Provident Fund, Investor Education and Protection Fund,
Employees'' State Insurance, Income Tax, Wealth Tax, Service Tax, Sales
Tax, Customs Duty, Excise Duty, Cess and any other statutory dues with
the appropriate authorities during theyear. According to the
information and explanations given to us, no undisputed amounts payable
in respect of the aforesaid dues were outstanding as at 31st March 2014
for a period of more than six months from the date they became payable.
b. The details of disputed statutory dues are as under:
Name of the Statute Nature of the Amount Amount paid/
dues [Rs.in Lakhs] adjusted
Central Excise Act, 1944 Excise Duty 472.63 NIL
Income Tax Act, 1961 Income Tax and 653.26 329.14
Interest
Name of the Statue Forum where dispute is pending
Central Excise Act, 1944 Appellate authorities upto
Commissioner''s Level Rs 309.17 Lakhs
CESTAT Rs 141.76 Lakhs
High Court Rs 21.70 Lakhs
Income Tax Act, 1961 Commissioner of
Income Tax (Appeals) T 543.20 Lakhs
ITAT Rs. 110.06 Lakhs
10. The company has no accumulated losses and has not incurred any
cash losses during the financial year covered by our audit and in the
immediately preceding financial year.
11. The company has no borrowings from financial institutions, banks
and debenture holders and as such reporting under clause (xi) of the
Order is not applicable to the company.
12. In our opinion and according to the information and explanations
given to us, no loans and advances have been granted by the company 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 and as such reporting under clause (xiii) of the Order is not
applicable to the company.
14. The company is not dealing or trading in shares, securities,
debentures and other investments and as such clause (xiv) of the Order
is not applicable to the company.
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. To the best of our knowledge and belief and according to the
information and explanations given to us, no term loans were availed by
the company during the year.
17. The company has not raised any funds on short term basis.
18. The company has not made any preferential allotment of shares
during theyear.
19. The company has not issued any debentures during theyear.
20. The company has not raised any money by public issue during the
year.
21. To the best of our knowledge and belief and according to the
information and explanations given to us, no fraud on or by the company
was noticed or reported during the year that causes the financial
statements to be materially misstated.
For M.S.JAGANNATHAN & VISVANATHAN For SUBBACHAR & SRINIVASAN
Firm Regn.No: 001209S Firm Regn. No: 004083S
CHARTERED ACCOUNTANTS CHARTERED ACCOUNTANTS
[M J .VIJAYARAGHAVAN] [T. S.V. RAJAGOPAL]
Partner Partner
Membership No: 7534 Membership No:200380
Place: Coimbatore
Date: 23rd May, 2014
Mar 31, 2013
Report on the Financial Statements:
We have audited the accompanying financial statements of M/s Lakshmi
Machine Works Limited (''the Company'') which comprise the Balance Sheet
as at 31 March 2013, the Statement of Profit and Loss and the Cash Flow
Statement for the year then ended and a summary of significant
accounting policies and other explanatory information.
Management''s Responsibility for the Financial Statements:
Management is responsible for 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 Standards referred to in sub- section (3C) of section
211 of the Companies Act, 1956 ("the Act"). This responsibility
includes the design, implementation and maintenance of internal control
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 conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The
procedures selected depend on the auditor''s judgement, 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 control relevant to the
Company''s preparation and fair presentation of the financial statements
in order to design audit procedures that are appropriate in the
circumstances. An audit also includes evaluating the appropriateness of
accounting policies used and the reasonableness of the accounting
estimates made by management, 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.
Opinion:
In our opinion and to the best of our information and according to the
explanations given to us, the 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:
(i) In the case of the Balance Sheet, of the state of affairs of the
Company as at 31 March 2013;
(ii) In the case of the Statement of Profit and Loss, of the profit for
the year ended on that date; and
(iii) In the case of the Cash Flow Statement, of the 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, 2003 ("the
Order"), as amended, issued by the Central Government of India in terms
of sub-section (4A) of section 227 of the Act, we give in the Annexure
a statement on the matters specified in paragraphs 4 and 5 of the
Order.
2. As required by section 227(3) of the Act, we report that:
a. 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;
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 Balance Sheet, 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 Balance Sheet, Statement of Profit and Loss and
Cash Flow Statement comply with the Accounting Standards referred to in
subsection (3C) of section 211 of the Companies Act, 1956; and
e. On the basis of written representations received from the Directors
as on 31 March 2013, and taken on record by the Board of Directors,
none of the Directors is disqualified as on 31 March 2013, from being
appointed as a Director in terms of clause (g) of sub-section (1) of
section 274 of the Companies Act, 1956.
Annexure to the Independent Auditors'' Report
The Annexure referred to in our report to the members of M/s Lakshmi
Machine Works Limited (''the Company'') for the year ended 31st March
2013. We report that:
1. In respect of its Fixed Assets:
a. The company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets.
b. The company has physically verified fixed assets during the year in
accordance with a regular and phased programme of verification, which
in our opinion provides for physical verification of all the fixed
assets at reasonable intervals having regard to the size of the company
and nature of its assets. According to the information and explanations
given to us no material discrepancies were noticed on such
verification.
c. The company has not disposed off any substantial part of fixed
assets during the year that affects the going concern assumption.
2. In respect of its inventories:
a. As explained to us, inventories have been physically verified by
the management at regular intervals during the year.
b. In our opinion and according to the information and explanations
given to us, 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 has maintained proper records of its
inventories and no material discrepancies were noticed on physical
verification as compared to the book records.
3. a The company has not taken any loans, secured or unsecured, from
companies, firms or other parties covered in the register maintained
under Section 301 of the Companies Act, 1956.
b During the year the company has not given any unsecured loans to
parties covered in the register maintained under Section 301 of the
Companies Act, 1956. However, in respect of one loan given in an
earlier year the maximum amount outstanding during the year was Rs. 850
lakhs and the year end balance was Rs. 650 lakhs.
c In our opinion, the rate of interest and other terms and conditions
on which loans have been given are not prima facie, prejudicial to the
interests of the company and the repayment of principal amount and
payment of interest are regular as stipulated and there are no overdue
amounts.
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 nature of its business for the
purchase of inventory, fixed assets and also for the sale of goods and
services. We have not observed any major weaknesses in internal control
systems during the course of our audit.
5. In respect of contracts or arrangements referred to in Sec. 301 of
the Companies Act, 1956:
a. In our opinion and according to the information and explanations
given to us, particulars of such contracts or arrangements have been
entered in the register required to be maintained under Sec. 301 of the
Companies Act, 1956.
b. In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of such contracts or
arrangements have been made at prices which are reasonable having
regard to the prevailing market prices at the relevant time.
6. The company has not accepted any deposits from the public and as
such clause 4(vi) of the Order is not applicable.
7. In our opinion, the company has an adequate internal audit system
commensurate with the size and nature of its business.
8. We have broadly reviewed the cost records maintained by the company
pursuant to the Companies(Cost Accounting Records) Rules, 2011
prescribed by the Central Government under Sec. 209(1 )(d) of the
Companies Act, 1956, as applicable to the company, and are of the
opinion that prima facie the prescribed cost records have been
maintained. We have, however, not made a detailed examination of the
cost records with a view to determine whether they are accurate or
complete.
9. According to the information and explanations given to us in
respect of the statutory dues:
a. The company is regular in depositing undisputed statutory dues
including Provident Fund, Investor Education and Protection Fund,
Employees'' State Insurance, Income tax, Wealth tax, Service Tax, Sales
Tax, Customs duty, Excise Duty, Cess and any other statutory dues with
the appropriate authorities during the year. According to the
information and explanations given to us, no undisputed amounts payable
in respect of the aforesaid dues were outstanding as at 31st March 2013
for a period of more than six months from the date they became payable.
b. The details of disputed statutory dues are as under:
Name of the Nature of the Amount Amount paid/ Forum where
dispute is
pending
Statute dues [Rs. In
lakhs] adjusted
Central
Excise
Act, 1944 Excise Duty 443.99 NIL Appellate
authorities
Upto
Commissioner''s
Level -- Rs.
357.10 lakhs
CESTAT -- Rs.
65.20 lakhs
High Court-- Rs.
21.69 lakhs
Income Tax
Act, 1961 Income tax
and 513.05 NIL Commissioner
of Income Tax
Interest (Appeals) -- Rs.
477.60 lakhs
ITAT -- Rs.
35.45 lakhs
10. The company has no accumulated losses and has not incurred any
cash losses during the financial year covered by our audit and in the
immediately preceding financial year.
11. The company has no borrowings from financial institutions, banks
and debenture holders and as such reporting under clause (xi) of the
Order is not applicable to the company.
12. In our opinion and according to the information and explanations
given to us, no loans and advances have been granted by the company 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 and as such reporting under clause (xiii) of the Order is
not applicable to the company.
14. The company is not dealing or trading in shares, securities,
debentures and other investments and as such reporting under clause
(xiv) of the Order is not applicable to the company.
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. To the best of our knowledge and belief and according to the
information and explanations given to us, no term loans were availed by
the company during the year.
17. The company has not raised any funds on short term basis.
18. The company has not made any preferential allotment of shares
during the year.
19. The company has not issued any debentures during the year.
20. The company has not raised any money by public issue during the
year.
21. To the best of our knowledge and belief and according to the
information and explanations given to us, no fraud on or by the company
was noticed or reported during the year that causes the financial
statements to be materially misstated.
For SUBBACHAR & SRINIVASAN For M.S.JAGANNATHAN & VISVANATHAN
Firm Regn.No: 004083S Firm Regn. No: 001209S
Chartered Accountants Chartered Accountants
[T.S.V.RAJAGOPAL] [M.V. JEGANATHAN]
Partner Partner
Membership No: 200380 Membership No:214178
Coimbatore
22-May-2013
Mar 31, 2012
1. We have audited the attached Balance Sheet of LAKSHMI MACHINE WORKS
LIMITED as at 31st March 2012, the Statement of Profit & Loss 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 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 Companies (Auditor's 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:
a) 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.
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 Balance Sheet, Statement of Profit & Loss and Cash Flow
Statement dealt with by this report are in agreement with the books of
account;
d) In our opinion, the Balance Sheet, Statement of Profit & Loss and
Cash Flow Statement dealt with by this report comply with the mandatory
Accounting Standards referred to in Section 211 (3C) of the Companies
Act, 1956.
e) On the basis of the written representations received from the
Directors, as on 31 st March, 2012 and taken on record by the Board of
Directors, we report that none of the Directors is, prima facie,
disqualified as on 31 st March, 2012 from being appointed as a Director
in terms of Clause (g) of subsection (1) of Section 274 of the
Companies Act, 1956.
f) In our opinion and to the best of our information and according to
the explanations given to us, they said accounts read with the statement
of significant accounting policies and the notes to the accounts, 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;
1) in the case of the Balance Sheet of the state of affairs of the
Company as at 31 st March 2012 and
2) in the case of Statement of Profit & Loss, of the Profit of the
Company for the year ended on that date.
3) in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
1. In respect of its Fixed Assets:
a. The company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets.
b. The company has physically verified fixed assets during the year in
accordance with a regular and phased programme of verification, which
in our opinion provides for physical verification of all the fixed
assets at reasonable intervals having regard to the size of the company
and nature of its assets. According to the information and explanations
given to us no material discrepancies were noticed on such
verification.
c. The company has not disposed off any substantial part of fixed
assets during the year that affects the going concern assumption.
2. In respect of its inventories:
a. As explained to us, inventories have been physically verified by
the management at regular intervals during the year.
b. In our opinion and according to the information and explanations
given to us, 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 has maintained proper records of its
inventories and no material discrepancies were noticed on physical
verification as compared to the book records.
3. a) The company has not taken any loans, secured or unsecured, from
companies, firms or other parties covered in the register maintained
under Section 301 of the Companies Act, 1956.
b) During the year the company has given an unsecured loan of Rs1,000
Lakhs to one party covered in the register maintained under Section 301
of the Companies Act, 1956. The maximum amount outstanding during the
year in respect of this loan and the loans to two other parties given
in the earlier years, was Rs2,500 Lakhs and their yearend balance was
Rs1,100 Lakhs.
c) In our opinion, the rate of interest and other terms and conditions
on which loans have been given are not prima facie, prejudicial to the
interests of the company and the repayment of principal amount and
payment of interest are regular as stipulated and there are no overdue
amounts.
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 nature of its business for the
purchase of inventory, fixed assets and also for the sale of goods and
services. We have not observed any major weaknesses in internal control
systems during the course of our audit.
5. In respect of contracts or arrangements referred to in Sec. 301 of
the Companies Act, 1956:
a. In our opinion and according to the information and explanations
given to us, particulars of such contracts or arrangements have been
entered in the register required to be maintained under Sec. 301 of the
Companies Act, 1956.
b. In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of such contracts or
arrangements have been made at prices which are reasonable having
regard to the prevailing market prices at the relevant time.
6. The company has not accepted any deposits from the public and as
such clause 4(vi) of the Order is not applicable.
7. In our opinion, the company has an adequate internal audit system
commensurate with the size and nature of its business.
8. We have broadly reviewed the cost records maintained by the company
pursuant to the Companies(Cost Accounting Records) Rules, 2011
prescribed by the Central Government under Sec. 209(1 )(d) of the
Companies Act, 1956, as applicable to the company, and are of the
opinion that prima facie the prescribed cost records have been
maintained. We have, however, not made a detailed examination of the
cost records with a view to determine whether they are accurate or
complete.
9. According to the information and explanations given to us in
respect of the statutory dues:
a. The company is regular in depositing undisputed statutory dues
including Provident Fund, Investor Education and Protection Fund,
Employees' State Insurance, Income Tax, Wealth Tax, Service Tax, Sales
Tax, Customs Duty, Excise Duty, Cess and any other Statutory dues with
the appropriate authorities during the year. According to the
information and explanations given to us, no undisputed amounts payable
in respect of the aforesaid dues were outstanding as at 31st March 2012
for a period of more than six months from the date they became payable.
b. The details of disputed statutory dues are as under:
Name of the Nature of Amount Amount paid / Forum where dispute
Statute the dues (Rs. in adjusted is pending
Lakhs)
Central
Excise
Act, 1944 Excise
Duty 385.59 NIL Appellate
authorities
Upto Commissioner's
Level - Rs279.58
Lakhs
CESTAT - Rs84.67
Lakhs High
Court-Rs21.34 Lakhs
Income
Tax Act Income
tax and
Interest 274.51 NIL Commissioner of
Income Tax
(Appeals) Rs274.51
Lakhs
10. The company has no accumulated losses and 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 the repayment of dues to
financial institutions, banks and debenture holders.
12. In our opinion and according to the information and explanation
given to us, no loans and advances have been granted by the company 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 and as such reporting under clause (xiii) of the Order is
not applicable to the company.
14. The company is not dealing or trading in shares, securities,
debentures and other investments and as such clause (xiv) of the Order
is not applicable to the company.
1 5. 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. To the best of our knowledge and belief and according to the
information and explanations given to us, no term loans were availed by
the company during the year.
17. The company has not raised any funds on short terms basis.
18. The company has not made any preferential allotment of shares
during the year.
19. The company has not issued any debentures during the year.
20. The company has not raised any money by public issue during the
year.
21. To the best of our knowledge and belief and according to the
information and explanations given to us, no fraud on or by the company
was noticed or reported during the year that causes the financial
statements to be materially misstated.
For M.S.Jagannathan & Visvanathan For Subbachar & Srinivasan
Firm Regn.No: 001209S Firm Regn. No: 004083S
Chartered Accountants Chartered Accountants
[M.J. Vijayaraghavan] [T.S.V. Rajagopal]
Partner Partner
Membership No: 7534 Membership No:200380
Coimbatore
23rd May, 2012
Mar 31, 2011
1. We have audited the attached Balance Sheet of LAKSHMI MACHINE WORKS
LIMITED as at 31st March 2011, the Profit & Loss Account and also the
Cash Flow Statement for the year ended on that date annexed thereto
signed by us under reference to this report. 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 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 Companies (Auditor's 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:
a) 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.
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 Balance Sheet, Profit & Loss Account and Cash Flow Statement
dealt with by this report are in agreement with the books of account;
d) In our opinion, the Balance Sheet, Profit and Loss Account and Cash
Flow Statement dealt with by this report comply with the mandatory
Accounting Standards referred to in Section 211(3C) of the Companies
Act, 1956.
e) On the basis of the 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, prima facie,
disqualified as on 31st March, 2011 from being appointed as a Director
in terms of Clause (g) of subsection (1) of Section 274 of the
Companies Act, 1956.
f) In our opinion and to the best of our information and according to
the explanations given to us, the said accounts read with the statement
of significant accounting policies and the notes to the accounts, 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;
1) in the case of the Balance Sheet of the state of affairs of the
Company as at 31 st March 2011 and
2) in the case of Profit & Loss Account, of the Profit of the Company
for the year ended on that date.
3) in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
ANNEXURE TO THE AUDITORS' REPORT
[Referred to in Para 3 of our Audit Report of even date]
1. In respect of its Fixed Assets:
a. The company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets.
b. The company has physically verified fixed assets during the year in
accordance with a regular and phased programme of verification, which
in our opinion provides for physical verification of all the fixed
assets at reasonable intervals having regard to the size of the company
and nature of its assets. According to the information and explanations
given to us no material discrepancies were noticed on such
verification.
c. The company has not disposed off any substantial part of fixed
assets during the year that affects the going concern assumption.
2. In respect of its inventories:
a. As explained to us, inventories have been physically verified by
the management at regular intervals during the year.
b. In our opinion and according to the information and explanations
given to us, 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 has maintained proper records of its
inventories and no material discrepancies were noticed on physical
verification as compared to the book records.
3. a. The company has not taken any loans, secured or unsecured, from
companies, firms or other parties covered in the register maintained
under Section 301 of the Companies Act, 1956.
b. During the year the company has not given any loans, secured or
unsecured, to companies, firms or other parties covered in the register
maintained under Section 301 of the Companies Act, 1956. In respect of
loans to three parties already given in previous years the maximum
amount outstanding during the year was Rs. 191,400,000 and the year
end balance was Rs. 186,000,000.
c. In our opinion, the rate of interest and other terms and conditions
on which loans have been given are not prima facie, prejudicial to the
interests of the company and the repayment of principal amount and
payment of interest are regular as stipulated and there are no overdue
amounts.
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 nature of its business for the
purchase of inventory, fixed assets and also for the sale of goods and
services. We have not observed any major weaknesses in internal control
systems during the course of our audit.
5. In respect of contracts or arrangements referred to in Sec. 301 of
the Companies Act, 1956:
a. In our opinion and according to the information and explanations
given to us, particulars of such contracts or arrangements have been
entered in the register required to be maintained under Sec. 301 of the
Companies Act, 1956.
b. In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of such contracts or
arrangements have been made at prices which are reasonable having
regard to the prevailing market prices at the relevant time.
6. The company has not accepted any deposits from the public and as
such clause 4(vi) of the Order is not applicable.
7. In our opinion, the company has an adequate internal audit system
commensurate with the size and nature of its business.
8. We have broadly reviewed the books of account and records
maintained by the company as applicable to it pursuant to Sec. 209(1
)(d) of the Companies Act, 1956 and are of the opinion that prima facie
the prescribed accounts and records have been made and maintained. We
have, however, not made a detailed examination of these records.
9. According to the information and explanations given to us in
respect of the statutory dues:
a. The company is regular in depositing undisputed statutory dues
including Provident Fund, Investor Education and protection Fund,
Employees' State insurance, Income tax, Wealth tax, Service Tax, Sales
Tax, Customs duty, Excise Duty, Cess and any other statutory dues with
the appropriate authorities during the year. According to the
information and explanations given to us, no undisputed amounts payable
in respect of the aforesaid dues were outstanding as at 31st March 2011
for a period of more than six months from the date they became payable.
b. The details of disputed statutory dues are as under:
Name of the Nature of Amount Amount
paid/ Forum where
Statute the dues [Rs. In
lakhs] adjusted dispute is pending
Central Excise Excise Duty 440.58 Nil Appellate Authorities
Act, 1944 Upto Commissioner's
Level Rs. 345.80
lakhs
CESTAT Rs. 68.73
lakhs
High Court Rs. 26.05
lakhs
Income Tax
Act, 1961 Income tax
and 342.56 88.24 Commissioner of Income
Tax
interest (Appeals)Rs.342.56 lakhs
10. The company has no accumulated losses and 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 the repayment of dues to
financial institutions, banks and debenture holders.
12. In our opinion and according to the information and explanation
given to us, no loans and advances have been granted by the company 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 N id hi/Mutual Benefit
Fund/society and as such reporting under clause (xiii) of the Order is
not applicable to the company.
14. The company is not dealing or trading in shares, securities,
debentures and other investments and as such clause (xiv) of the Order
is not applicable to the company.
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. To the best of our knowledge and belief and according to the
information and explanations given to us, no term loans were availed by
the company during the year.
17. The company has not raised any funds on short terms basis.
18. The company has not made any preferential allotment of shares
during the year.
19. The company has not issued any debentures during the year.
20. The company has not raised any money by public issue during the
year.
21. To the best of our knowledge and belief and according to the
information and explanations given to us, no fraud on or by the company
was noticed or reported during the year that causes the financial
statements to be materially misstated.
For M.S. Jagannathan & Visvanathan For Subbachar & Srinivasan
Firm Regn. No: 001209S Firm Regn. No: 004083S
Chartered Accountants Chartered Accountants
M.J. Vijayaraaghavan T.S.V. Rajagopal
Partner Partner
Membership No: 7534 Membership No: 200380
Place: Coimbatore
Date: 20th May, 2011
Mar 31, 2010
1. We have audited the attached Balance Sheet of LAKSHMI MACHINE WORKS
LIMITED as at 31st March 2010, the Profit & 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 have 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 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 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:
a) We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of
ouraudit.
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 Balance Sheet, Profit & Loss Account and Cash Flow Statement
dealt with by this report are in agreement with the books of account.
d) In our opinion, the Balance Sheet, Profit and Loss Account and Cash
Flow Statement dealt with by this report comply with the mandatory
Accounting Standards referred to in Section 211(3C)oftheCompaniesAct,
1956.
e) On the basis of the written representations received from the
Directors, as on 31st March 2010 and taken on record by the Board of
Directors, we report that none of the Directors is, prima facie,
disqualified as on 31st March 2010 from being appointed as a Director
in terms of Clause (g) of subsection (1) of Section 274 of the
Companies Act, 1956.
f) In our opinion and to the best of our information and according to
the explanations given to us, the said accounts read with the statement
of significant accounting policies and the notes to the accounts, 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;
1) in the case of the Balance Sheet of the state of affairs of the
Company as at 31 st March 2010and
2) in the case of Profit & Loss Account, of the Profit of the Company
for the year ended on that date.
3) in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
ANNEXURE TO THE AUDITORS REPORT
[Referred to in Para 3 of our Audit Report of even date]
1. In respect of its Fixed Assets:
a. The company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets.
b. The company has physically verified certain fixed assets during the
year in accordance with a regular programme of verification, which in
our opinion provides for physical verification of all the fixed assets
at reasonable intervals having regard to the size of the company and
nature of its assets. According to the information and explanations
given to us no material discrepancies were noticed on such
verification.
c. The company has not disposed off any substantial part of fixed
assets during the year that affects the going concern assumption.
2. In respect of its inventories:
a. As explained to us, inventories have been physically verified by
the management at regular intervals during the year.
b. In our opinion and according to the information and explanations
given to us, 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 has maintained proper records of its
inventories and no material discrepancies were noticed on physical
verification as compared to the book records.
3. (a) The company has not taken any loans,
secured or unsecured, from companies, firms or other parties covered in
the register maintained under Section 301 of the Companies Act, 1956.
(b) During the year the company has given a secured loan of Rs.
9,000,000 to one party and an unsecured loan of Rs. 125,000,000 to one
party covered in the register maintained under Section 301 of the
Companies Act, 1956. The
maximum amount outstanding during the year in respect of the above
parties was Rs. 170,000,000 and the year end balance was Rs.
166,400,000.
(c) In our opinion, the rate of interest and other terms and conditions
on which loans have been given are not prima facie, prejudicial to the
interests of 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 nature of its business for the
purchase of inventory, fixed assets and also for the sale of goods and
services. We have not observed any major weaknesses in internal control
systems during the course of our audit.
5. In respect of contracts or arrangements referred to in Sec. 301 of
the Companies Act, 1956:
a. In our opinion and according to the information and explanations
given to us, particulars of such contracts or arrangements have been
entered in the register required to be maintained under Sec. 301 of the
Companies Act, 1956.
b. In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of such contracts or
arrangements have been made at prices which are reasonable having
regard to the prevailing market prices at the relevant time.
6. The company has not accepted any deposits from the public and as
such clause (vi) of the Order is not applicable.
7. In our opinion, the company has an adequate internal audit system
commensurate with the size and nature of its business.
8. We have broadly reviewed the books of account and records
maintained by the company as applicable to it pursuant to Sec. 209(1
)(d) of the Companies Act, 1956 and are of the opinion that prima facie
the prescribed accounts and records have been made and maintained. We
have, however, not made a detailed examination of these records.
9. According to the information and explanations given to us in
respect of the statutory dues:
a. The Company is regular in depositing undisputed statutory dues
including Provident Fund, Investor Education and Protection Fund,
Employees State Insurance, Income Tax, Wealth Tax, Service Tax, Sales
Tax, Customs
Duty, Excise Duty, Cess and any other statutory dues with the
appropriate authorities during the year. According to the information
and explanations given to us, no undisputed amounts payable in respect
of the aforesaid dues were outstanding as at 31st March 2010 for a
period of more than six months from the date they became payable.
b. The details of disputed statutory dues are as under:
Name of Nature of Amount Amount paid/ Forum where dispute is pending
the Statute the dues [Rs. In lakhs] adjusted
Appellate authorities Upto Commissioners Central Excise Excise Duty
584.96 NIL Level -- Rs. 495.75 lakhs
Act, 1944 & Penalty CESTAT --Rs. 67.86 lakhs
High Court--Rs. 21.35 lakhs
10. The company has no accumulated losses and 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 the repayment of dues to
financial institutions, banks and debenture holders.
12. In our opinion and according to the information and explanation
given to us, no loans and advances have been granted by the company 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 and as such reporting under clause (xiii) of the Order is
not applicable to the company.
14. The company is not dealing or trading in shares, securities,
debentures and other investments and as such clause (xiv) of the Order
is not applicable to the company.
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. To the best of our knowledge and belief and according to the
information and explanations given to us, no term loans were availed by
the company during the year.
17. The company has not raised any funds on short terms basis.
18. The company has not made any preferential allotment of shares
during the year.
19. The company has not issued any debentures during the year.
20. The company has not raised any money by public issue during the
year.
21. To the best of our knowledge and belief and according to the
information and explanations given to us, no fraud on or by the company
was noticed or reported during the year that causes the financial
statements to be materially misstated.
For M S Jagannathan & Visvanathan
Chartered Accountants, Auditors
Firm Registration No. : 001209S
per M J Vijayaraaghavan
(Partner) Membership No.7534
Chennai
24th May, 2010
For Subbachar & Srinivasan
Firm Registration No. : 004083S
Chartered Accountants, Auditors
per T S V Rajagopal
(Partner)
Membership No. 200380