Mar 31, 2018
Report on the Financial Statements
We have audited the accompanying financial statements of The Lakshmi Mills Company Limited, (âthe Companyâ), which comprise of the Balance Sheet as at March 31, 2018, 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 and other explanatory information.
Managementâs Responsibility for the Financial Statements
The Companyâs board of directors is responsible for the matters stated in Section 134 (5) of the Companies Act, 2013 (âthe Actâ) with respect to the preparation of these 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 Indian Accounting Standards (Ind AS) prescribed under section 133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015, as amended, 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 financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
Auditorsâ Responsibility
Our responsibility is to express an opinion on these financial statements based on our audit. In conducting our audit, we have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made thereunder and the Order issued under section 143 (11) of the Act.
We conducted our audit of the financial statements in accordance with the Standards on Auditing specified under Section 143 (10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the financial statements. The procedures selected depend on the auditorâs judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Companyâs preparation of the financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Companyâs directors, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence obtained by us is sufficient and appropriate to provide a basis for our audit opinion on the financial statements.
Opinion
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Company as at March 31, 2018, and its profit, total comprehensive income, the changes in equity and its cash flows for the year ended as on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditorâs Report) Order, 2016 (âthe Orderâ) issued by the Central Government in terms of Section 143 (11) of the Act, we give in Annexure âAâ a statement on the matters specified in paragraphs 3 and 4 of the Order.
2. 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 books of account;
d) in our opinion, the aforesaid financial statements comply with the Indian Accounting Standards prescribed under section 133 of the Act;
e) on the basis of the written representations received from the directors of the Company as on March 31, 2018 taken on record by the board of directors, none of the directors are disqualified as on March 31, 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, refer to our separate report in Annexure âBâ. Our report expresses an unmodified opinion on the adequacy and operating effectiveness of the Companyâs internal financial controls over financial reporting; and
g) with respect to the other matters to be included in the auditorsâ 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 financial statements under Note 29;
ii The Company does 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.
Other matters
The financial statements of the Company for the year ended March 31, 2017 prepared in accordance with Companies (Accounting Standards) Rules, 2006, were audited by another firm of chartered accountants under the Companies Act, 2013 who, vide their report dated 25-05-2017, expressed an unmodified opinion on those financial statements.
Annexure âAâ to the Independent Auditor''s Report
(Referred to in paragraph 1 under ''Report on Other Legal and Regulatory Requirementsâ section of our report to the members of The Lakshmi Mills Company Limited of even date)
1. A The Company has maintained proper records showing full particulars including quantitative details and situation of fixed assets.
B The Company has a regular programme of physical verification of its fixed assets by which fixed assets are verified in a phased manner over a period of three years. In accordance with this programme, certain fixed assets were verified during the period and no material discrepancies were noticed on such verification. In our opinion, this periodicity of physical verification is reasonable having regard to the size of the Company and the nature of its assets.
C According to the information and explanations given to us and the records examined by us and based on the evidences received from Banks, Immovable properties whose title deeds have been pledged as security for Term Loans and cash credit facilities availed from Banks are held in the name of the Company. In respect of freehold properties these have been confirmed by the management.
2. A As explained to us, inventories have been physically verified by the management at regular intervals during the year.
B I n 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 of records.
3. During the year, the company has not granted any loan, secured or unsecured to companies, firms or other parties covered in the register maintained under section 189 of the Companies Act, 2013 and hence, Clause (b) and (c) is not applicable.
4. During the year, Company has not made any loans or investments or given any guarantees and hence disclosure under this clause related to compliance with the provisions of Section 185 and 186 of the Act does not arise.
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. A According to the information and explanations given to us, the company is regular in depositing undisputed statutory dues including Provident Fund, Employeesâ State insurance, Income tax, Service Tax, 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 2018 for a period of more than six months from the date they became payable
B According to the information and explanations given to us, the details of disputed statutory dues that have not been deposited on account of dispute is as under:
Nature of Statue |
Nature of Dues |
Amount Rs. lakhs |
Amount paid / adjusted |
Period to which the amount relates |
Forum where dispute is pending |
Central Excise / Service Tax |
Rebate claim |
57.96 |
- |
April 2015 to March 2017 |
Commissioner of GST and Central Excise (Appeals) |
Income tax |
Income tax |
28.57 |
4.30 |
A Y 2014-15 |
CIT( Appeals) |
8. In our opinion and according to the information and explanation given to us, the company has not defaulted in repayment of dues to any of the banks.
9. The Company did not raise any money by way of initial public offer or further public offer (including debt instruments) during the year. The Company had utilised the term loans for the purpose for which it was raised.
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 give 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 non-cash transactions with Directors or persons connected with him. Accordingly paragraph 3(xv) of the Order is not applicable.
16. The Company is not required to be registered under section 45-1A of the Reserve Bank of India Act 1934.
Annexure âBâ to the Independent Auditor''s Report
(Referred to in paragraph 2 (f) under ''Report on Other Legal and Regulatory Requirementsâ section of our report to the Members of The Lakshmi Mills Company Limited of even date)
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 Actâ)
We have audited the internal financial controls over financial reporting of The Lakshmi Mills Company Limited (âthe Companyâ) as of March 31, 2018, in conjunction with our audit of the financial statements of the Company for the year ended on that date.
Managementâs 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, 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.
Auditorsâ 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 âGuidance Noteâ) 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 auditorâs judgement, including the assessment of the risks of material misstatement in 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 Companyâs internal financial control 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 authorisations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorised acquisition, use, or disposition of the companyâs assets that could have a material effect on the financial statements.
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 of 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 and according to the information and explanations given to us, the Company has, in all material respects, an adequate internal financial control system over financial reporting and such internal financial controls over financial reporting were operating effectively as at March 31, 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 M S Jagannathan & Visvanathan
Firm Registration No. 001209S
Chartered Accountants
M.V. Jeganathan
Coimbatore Partner
18th May, 2018 Membership No. 214178
Mar 31, 2017
INDEPENDENT AUDITORSâ REPORT
To the Members of The Lakshmi Mills Company Limited
Report on the Financial Statements
We have audited the accompanying financial statements of The Lakshmi Mills Company Limited (âthe Companyâ), which comprise the balance sheet as at 31 March 2017, 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
The Companyâs Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 (âthe Actâ) with respect to the preparation and presentation of these financial statements that give a true and fair view of the financial position, financial performance and cash flows of the Company in accordance with the accounting principles generally accepted in India, including the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014. This responsibility also includes 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 financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
Auditor''s Responsibility
Our responsibility is to express an opinion on these financial statements based on our audit. We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made 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 financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the financial statements. The procedures selected depend on the auditorâs judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Companyâs preparation of the financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Companyâs Directors, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the financial statements.
Opinion
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the financial position of the Company as at 31 March 2017, its financial performance and its cash flows for the year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditorâs Report) Order, 2016 (âthe 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.
2. As required by Section 143 (3) of the Act, we report that:
(a) we have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit.
(b) in our opinion proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books;
(c) the balance sheet, the statement of profit and loss and the cash flow statement dealt with by this Report are in agreement with the books of account;
(d) in our opinion, the aforesaid financial statements comply with the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014;
(e) on the basis of the written representations received from the directors as on 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 âAnnexure Bâ; 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 financial statements - Refer Note 30.1 to the 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 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.-Refer Note 30.19 to the financial statements
The Annexure referred to in the Independent Auditorsâ Report to the members of the Company on the 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) 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.
b. The details of disputed statutory dues are as under:
Name of the Statute |
Nature of Dues |
Amount '' in Lakhs |
Amount paid/ adjusted ['' in Lakhs] |
Period to which the amount relates |
Forum where dispute is pending |
Income Tax Act, 1961 |
Tax and Interest |
28.57 |
4.30 |
A Y 2014 - 15 |
CIT (A) |
8. The Company has not defaulted in repayment of loans or borrowings to any financial institution, bank, government or dues to debenture holders.
9. In our opinion and according to the information and explanations given to us, the Company has utilized the money raised by way of term loans during the year for purposes for which they were raised. The Company did not raise any money by way of initial public offer or further public offer (including debt instruments) during the year.
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 give 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 give 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 non-cash 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.
Annexure - B to the Independent Auditorsâ Report
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 (âthe Actâ)
We have audited the internal financial controls over financial reporting of THE LAKSHMI MILLS COMPANY LIMITED as of 31st March 2017 in conjunction with our audit of the standalone 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 âGuidance 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 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 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 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, 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 Subbachar & Srinivasan
Firm Registration No. 004083S
Chartered Accountants
T.S.V. Rajagopal
Coimbatore Partner
25th May 2017 Membership No. 200380
Mar 31, 2016
To the Members of The Lakshmi Mills Company Limited
Report on the Financial Statements
We have audited the accompanying financial statements of The Lakshmi Mills Company Limited (''the Companyâ), which comprise the balance sheet as at 31st March 2016, 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
The Companyâs Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 (âthe Actâ) with respect to the preparation and presentation of these financial statements that give a true and fair view of the financial position, financial performance and cash flows of the Company in accordance with the accounting principles generally accepted in India, including the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014. This responsibility also includes 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 financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
Auditor''s Responsibility
Our responsibility is to express an opinion on these financial statements based on our audit. We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made 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 financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the financial statements. The procedures selected depend on the auditorâs judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Companyâs preparation of the financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Companyâs Directors, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the financial statements.
Opinion
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Company as at 31st March 2016 and its profit and its cash flows for the year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditorâs Report) Order, 2016 (âthe 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.
2. As required by Section 143 (3) of the Act, we report that:
(a) we have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit.
(b) in our opinion proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books;
(c) the balance sheet, the statement of profit and loss and the cash flow statement dealt with by this Report are in agreement with the books of account;
(d) in our opinion, the aforesaid financial statements comply with the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014;
(e) on the basis of the written representations received from the directors as on 31 st March 2016 taken on record by the Board of Directors, none of the directors is disqualified as on 31st March 2016 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 âAnnexure Bâ; 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 financial statements - Refer Note 30.1 to the 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.
ANNEXURE - A TO THE AUDITORSâ REPORT
The Annexure referred to in Independent Auditorsâ Report to the members of the Company on the financial statements for the year ended 31st March 2016, 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) 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 primafacie 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 2016 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 Dues |
Amount Rs.in Lakhs |
Amount Paid / Adjusted Rs.in Lakhs |
Period to which the amount relates |
Forum where dispute is pending |
Excise Act 1944 / Service Tax Act |
Excise Duty |
1.61 |
- |
1995 - 96 |
High Court, Chennai |
Cenvat |
1.07 |
0.10 |
2013 - 14 |
Tribunal, Chennai |
8. The company has not defaulted in repayment of loans or borrowings to any financial institution, bank, government or dues to debenture holders.
9. In our opinion and according to the information and explanations given to us, the company has utilized the money raised by way of term loans during the year for purposes for which they were raised. The Company did not raise any money by way of initial public offer or further public offer (including debt instruments) during the year.
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 give 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 give 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 non-cash 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.
Annexure - B to the Auditorsâ Report
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 (âthe Actâ)
We have audited the internal financial controls over financial reporting of THE LAKSHMI MILLS COMPANY LIMITED as of 31st March 2016 in conjunction with our audit of the standalone 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 (''ICAIâ). 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 âGuidance 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 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 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 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.
Coimbatore 26th May 2016
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 2016, 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 Subbachar & Srinivasan
Firm Registration No. 004083S
Chartered Accountants
T.S.V. Rajagopal
Partner Coimbatore
26th May 2016 Membership No. 200380
Mar 31, 2015
We have audited the accompanying standalone financial statements of THE
LAKSHMI MILLS COMPANY LIMITED (''the Company''), which comprise the
Balance Sheet as at 31st March 2015, 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 Standalone Financial Statements
The Company''s Board of Directors is responsible for the matters
stated in Section 134(5) of the Companies Act, 2013 ("the Act")
with respect to the preparation and presentation of these standalone
financial statements that give a true and fair view of the financial
position, financial performance and cash flows of the Company in
accordance with the accounting principles generally accepted in India,
including the Accounting Standards specified under Section 133 of the
Act, read with Rule 7 of the Companies (Accounts) Rules, 2014. This
responsibility also includes maintenance of adequate accounting records
in accordance with the provisions of the Act for safeguarding the
assets of the Company and for preventing and detecting frauds and other
irregularities; selection and application of appropriate accounting
policies; making judgments and estimates that are reasonable and
prudent; and design, implementation and maintenance of adequate
internal financial controls, that were operating effectively for
ensuring the accuracy and completeness of the accounting records,
relevant to the preparation and presentation of the financial
statements that give a true and fair view and are free from material
misstatement, whether due to fraud or error.
Auditor''s Responsibility
Our responsibility is to express an opinion on these standalone
financial statements based on our audit. We have taken into account the
provisions of the Act, the accounting and auditing standards and
matters which are required to be included in the audit report under the
provisions of the Act and the Rules made thereunder. We conducted our
audit in accordance with the Standards on Auditing specified under
Section 143(10) of the Act. Those Standards require that we comply
with ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and the disclosures in the
financial statements. The procedures selected depend on the auditor''s
judgment, including the assessment of the risks of material
misstatement of the financial statements, whether due to fraud or
error. In making those risk assessments, the auditor considers internal
financial control relevant to the Company''s preparation of the
financial statements that give a true and fair view in order to design
audit procedures that are appropriate in the circumstances, but not for
the purpose of expressing an opinion on whether the Company has in
place an adequate internal financial controls system over financial
reporting and the operating effectiveness of such controls. An audit
also includes evaluating the appropriateness of the accounting policies
used and the reasonableness of the accounting estimates made by the
Company''s Directors, as well as evaluating the overall presentation
of the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion on the standalone
financial statements.
Opinion
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 Act in the manner so required and
give a true and fair view in conformity with the accounting principles
generally accepted in India, of the state of affairs of the Company as
at 31st March 2015 and its profit and its cash flows for the year ended
on that date. Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2015
("the Order") issued by the Central Government of India in terms of
sub-section (11) of section 143 of the Act, we give in the Annexure a
statement on the matters specified in 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;
(b) in our opinion proper books of account as required by law have been
kept by the Company so far as it appears from our examination of those
books;
(c) the Balance Sheet, the Statement of Profit and Loss and the Cash
Flow Statement dealt with by this Report are in agreement with the
books of account;
(d) in our opinion, the aforesaid standalone financial statements
comply with the Accounting
Standards specified under Section 133 of the Act, read with Rule 7 of
the Companies (Accounts) Rules, 2014;
(e) on the basis of the written representations received from the
directors as on 31 March 2015 taken on record by the Board of
Directors, none of the directors is disqualified as on 31 March 2015
from being appointed as a director in terms of Section 164 (2) of the
Act; and
(f) with respect to the other matters to be included in the Auditor''s
Report in accordance with Rule 11 of the Companies (Audit and Auditors)
Rules, 2014, in our opinion and to the best of our information and
according to the explanations given to us:
i. the Company has disclosed the impact of pending litigations on its
financial position in its financial statements - Refer Note 30.1 to the
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.
ANNEXURE TO THE INDEPENDENT AUDITORS'' REPORT
The Annexure referred to in our Independent Auditors'' Report to the
members of the Company on the standalone financial statements for the
year ended 31st March 2015, 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.
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. The company has not granted any loan, secured or unsecured to
companies, firms or other parties covered in the register maintained
under section 189 of the Companies Act, 2013, during the financial
year. Hence the provisions of Clause 3(iii) of the Companies
(Auditor''s Report) Order, 2015 is not applicable.
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. During the course of the audit, we have not observed any
continuing failure to correct major weaknesses in internal control.
5. In our opinion and according to the information and explanations
given to us, the Company has complied with the provisions of Section 73
to 76 and other relevant provisions of the Companies Act, 2013 and the
Rules framed thereunder wherever applicable with respect to deposits
accepted by it.
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, Employees'' State Insurance, Income tax,
Wealth tax, Service Tax, Customs Duty, Excise Duty, VAT, 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 2015 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 Dues Amount Period to which
Rs in Lakhs the amount relates
Excise Act 1944 / Excise Duty 1.61 1995 - 96
Service Tax Act Service Tax 2.95 1997 - 99
Cenvat 1.07 2013 - 14
Name of the Statute Forum where dispute is pending
Excise Act 1944 High Court
Service TAx Act High Court
Commissioner of Central Excise - Madurai
c. According to the information and explanations given to us, the
amounts which were required to be transferred to the Investor Education
and Protection Fund in accordance with the relevant provisions of the
Companies Act, 1956 (1 of 1956) and rules made there under have been
transferred to such fund within time.
8. 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.
9. On the basis of our audit procedures, in our opinion and according
to the information and explanations given to us the Company has not
defaulted in the payment of dues to financial institutions and Banks.
10. 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.
11. To the best of our knowledge and belief and according to the
information and explanations given to us, in our opinion term loans
availed by the Company were, prima facie, applied by the Company for
the purpose for which the loans were obtained.
12. 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.
Coimbatore
29th May 2015
For Subbachar & Srinivasan
Firm Registration No. 004083S
Chartered Accountants
T.S.V. Rajagopal Partner
Membership No. 200380
Mar 31, 2014
We have audited the accompanying financial statements of M/s. The
Lakshmi Mills Company Limited (Âthe Company'') which comprise the
Balance Sheet as at 31st 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, 1956 ("the Act") read with the General Circular
15/2013 dated 13th September 2013 of the Ministry of Corporate Affairs
in respect of Section 133 of the Companies Act, 2013. 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 auditorÂs 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 CompanyÂs
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 the 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 31st 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 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 notified under
the Companies Act, 1956 read with the General Circular 15/2013 dated
13th September 2013 of the Ministry of Corporate Affairs in respect of
Section 133 of the Companies Act, 2013, referred to in sub Section (3C)
of Section 211 of the Companies Act, 1956; and
e. On the basis of written representations received from the directors
as on 31st March 2014, and taken on record by the Board of Directors,
none of the directors are disqualified as on 31 st March 2014, 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 AUDITORS'' REPORT
The Annexure referred to in our report to the members of M/s. The
Lakshmi Mills Company Limited (''the Company'') for the year ended 31st
March 2014. We report that:
i. In respect of fixed assets:
a. The Company has maintained proper records showing full particulars,
including quantitative details and situation of fixed assets.
b. Some of the fixed assets were physically verified during the year
by the management in accordance with the programme of verification,
which in our opinion provides for physical verification of all the
fixed assets at reasonable intervals. According to the information and
explanations given to us, no material discrepancies were noticed on
such verification.
c. The fixed assets disposed off during the year, in our opinion do
not constitute a substantial part of the fixed assets of the Company
and such disposals has, in our opinion not affected the going concern
status of the Company.
ii. In respect of its inventories:
a. As explained to us, inventories were physically verified during the
year by the management at reasonable intervals.
b. In our opinion and according to the information and explanations
given to us, the procedure of physical verification of inventories
followed by the management were reasonable and adequate in relation to
the size of the Company and 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.
iii. The company has neither granted nor taken any loans, secured or
unsecured, to / from companies, firms or other parties covered in the
register maintained under Section 301 of the Companies Act, 1956 and
hence the provisions of clauses 4 (iii) (b) to (d), (f) & (g) of the
Companies (Auditor''s Report) Order, 2003 are not applicable.
iv. In our opinion and according to the information and explanations
given to us, there are adequate internal control systems that
commensurate with the size of the Company and nature of its business
for the purchase of inventory and fixed assets and for the sale of the
goods and services. During the course of the audit, we have not
observed any continuing failure to correct major weaknesses in internal
control.
v. In respect of contracts or arrangements entered in the register
maintained in pursuance of Section 301 of the Companies Act 1956, to
the best of our knowledge and belief and according to the information
and explanations given to us:
a. The particulars of contracts or arrangements referred to Section 301
that needed to be entered into the register maintained under the said
section have been so entered.
b. In our opinion and according to 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.
vi. In our opinion and according to the information and explanations
given to us, the Company has complied with the provisions of Section
58A and 58AA or any other relevant provisions of the Companies Act,
1956 and the Companies (Acceptance of Deposit) Rules, 1975 with regard
to the deposits accepted from the public.
vii. In our opinion, the internal audit functions carried out during
the year by Independent Chartered Accountants appointed by the
management have been commensurate with the size and nature of its
business.
viii. We have broadly reviewed the books of account and records
maintained by the Company relating to the manufacture of textiles
pursuant to the order made by the Central Government for the
maintenance of cost records under Section 209 (1) (d) of the Companies
Act 1956 and are of the opinion that prima facie prescribed accounts
and records have been made and maintained. We have, however, not made a
detailed examination of the records with a view to determining whether
they are accurate or complete.
ix. In respect of Statutory dues:
According to the information and explanations given to us, the Company
has generally been regular in depositing undisputed statutory dues,
including Provident Fund, Investor Education and Protection Fund,
Employees'' State Insurance, Income Tax, Sales Tax, Wealth Tax, Service
Tax, Custom Duty, Excise duty, Cess and any other material statutory
dues with the appropriate authorities during the year. There are no
undisputed statutory dues which are outstanding for more than six
months as at the Balance Sheet date.
x. The company has no accumulated losses as at the end of the financial
year and has not incurred cash losses during the financial year covered
by our audit and in the immediately preceding financial year.
xi. On the basis of our audit procedures, in our opinion and according
to the information and explanations given to us, the Company has not
defaulted in the payment of dues to financial institutions and Banks.
xii. The company has not granted loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
Hence the provisions of this clause 4 (xii) of the Companies
(Auditor''s Report) Order, 2003 are not applicable.
xiii. The company is not a chit fund or Nidhi mutual benefit
fund/society. Therefore, the provisions of clause 4 (xiii) of the
Companies (Auditor''s Report) Order, 2003 are not applicable.
xiv. The company is not dealing in or trading in shares, securities,
debentures and other investments. Hence the provisions of clause 4(xiv)
of the Companies (Auditor''s Report) Order 2003 are not applicable to
the company.
xv. In our opinion and according to the information and explanations
given to us, the company has not given any guarantee for loans taken by
others from Banks and Financial Institutions during the year.
xvi. To the best of our knowledge and belief and according to the
information and explanations given to us, in our opinion term loans
availed by the Company were, prima facie, applied by the Company during
the year for the purpose for which the loans were obtained.
xvii. According to the information and explanations given to us and on
an overall examination of the Balance Sheet of the Company, funds
raised on short term basis have, prima facie, not been used during the
year for long term investment.
xviii.The provisions of clause 4 (xviii) (xix) and (xx) of the
Companies (Auditor''s Report) Order 2003 are not applicable since the
Company has not issued any shares or debentures during the year.
xix. 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.
For Subbachar & Srinivasan
Firm Registration No. 004083S
Chartered Accountants
T.S.V. Rajagopal
Coimbatore Partner
26th May 2014 Membership No. 200380
Mar 31, 2013
Report on the Financial Statements:
We have audited the accompanying financial statements of M/s. The
Lakshmi Mills Company Limited (''the Company'') which comprise the
Balance Sheet as at 31st 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 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.
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 31st 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 requirec 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 o1 Profit and Loss and
Cash Flow Statement comply with the Accounting Standards referred to ir
subsection (3C) of Section 211 of the Companies Act, 1956; and
e. On the basis of written representations receivec from the directors
as on 31st March 2013, anc taken on record by the Board of Directors
none of the Directors are disqualified as or 31st March 2013, from
being appointed as i director in terms of clause (g) of sub-section (1
of Section 274 of the Companies Act, 1956.
ANNEXURE TO THE AUDITORS'' REPORT
The Annexure referred to in our report to the members of M/s. The
Lakshmi Mills Company Limited (''the Company'') for the year ended
31st March 2013. We report that:
i. In respect of fixed assets:
a. The Company has maintained proper records showing full particulars,
including quantitative details and situations of fixed assets.
b. Some of the fixed assets were physically verified during the year
by the management in accordance with the programme of verification,
which in our opinion provides for physical verification of all the
fixed assets at reasonable intervals. According to the information and
explanations given to us, no material discrepancies were noticed on
such verification.
c. The fixed assets disposed off during the year, in our opinion do
not constitute a substantial part of the fixed assets of the Company
and such disposals has, in our opinion not affected the going concern
status of the Company.
ii. In respect of its inventories:
a. As explained to us, inventories were physically verified during the
year by the management at reasonable intervals.
b. In our opinion and according to the information and explanations
given to us, the procedure of physical verification of inventories
followed by the management were reasonable and adequate in relation to
the size of the Company and 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.
iii. The company has neither granted nor taken any loans, secured or
unsecured, to / from companies, firms or other parties covered in the
register maintained under Section 301 of the Companies Act, 1956 and
hence the provisions of clauses 4 (iii) (b) to (d), (f) & (g) of the
Companies (Auditor''s Report) Order, 2003 are not applicable.
iv. 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 and fixed assets and for the sale of the goods
and services. During the course of the audit, we have not observed any
continuing failure to correct major weaknesses in internal control.
v. In respect of contracts or arrangements entered in the register
maintained in pursuance of Section 301 of the Companies Act, 1956, to
the best of our knowledge and belief and according to the information
and explanations given to us:
a. The particulars of contracts or arrangements referred to Section
301 that needed to be entered into the register maintained under the
said section have been so entered.
b. In our opinion and according to 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.
vi. In our opinion and according to the information and explanations
given to us, the Company has complied with the provisions of Section
58A and 58AA or any other relevant provisions of the Companies Act,
1956 and the Companies (Acceptance of Deposit) Rules, 1975 with regards
to the deposits accepted from the public.
vii. In our opinion, the internal audit functions carried out during
the year by Independent Chartered Accountants appointed by the
management have been commensurate with the size and nature of its
business.
viii. We have broadly reviewed the books of account and records
maintained by the Company relating to the manufacture of textiles
pursuant to the order made by the Central Government for the
maintenance of cost records under Section 209 (1) (d) of the Companies
Act 1956 and are of the opinion that prima facie prescribed accounts
and records have been made and maintained. We have, however, not made a
detailed examination of the records with a view to determining whether
they are accurate or complete.
ix. In respect of Statutory dues:
a. According to the information and explanations given to us, the
Company has generally been regular in depositing undisputed statutory
dues, including Provident Fund, Investor Education and Protection Fund,
Employees'' State Insurance, Income Tax, Sales Tax, Wealth Tax,
Service Tax, Custom Duty, Excise duty, Cess and any other material
statutory dues with the appropriate authorities during the year. There
are no undisputed statutory dues which are outstanding for more than
six months as at the Balance Sheet date.
b. According to the information and explanations given to us, details
of disputed tax which have not been deposited as on 31.3.2013 on
account of any dispute are given below:
Name of the
Statute Amount Period to
which Forum where
dispute is pending
Nature of Dues Rs. in
Lakhs the amount
relates
Excise Act
1944 / Excise Duty 1.61 1995 - 96 High Court
Service
Tax Act Service Tax 2.95 1997 - 99 High Court
Excise Duty 0.37 2002 - 03 CESTAT. Chennai
Cenvat 2.79 2004 - 05 Deputy
Commissioner-
Coimbatore
Cenvat 1.36 2007 - 08 Asst. Commissioner
-Kovilpatti
x. The company has no accumulated losses as at the end of the
financial year and has not incurred cash losses during the financial
year covered by our audit. In the immediately preceding financial year,
the company has incurred a cash loss of Rs. 1,260.07 lakhs.
xi. On the basis of our audit procedures, in our opinion and according
to the information and explanations given to us, the Company has not
defaulted in the payment of dues to financial institutions and Banks.
xii. The company has not granted loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
Hence the provisions of this clause 4 (xii) of the Companies
(Auditor''s Report) Order, 2003 are not applicable.
xiii. The company is not a chit fund or Nidhi mutual benefit
fund/society. Therefore, the provisions of clause 4 (xiii) of the
Companies (Auditor''s Report) Order, 2003 are not applicable.
xiv. The company is not dealing in or trading in shares, securities,
debentures and other investments. Hence the provisions of clause 4(xiv)
of the Companies (Auditor''s Report) Order 2003 are not applicable to
the company.
xv. In our opinion and according to the information and explanations
given to us, the company has not given any guarantee for loans taken by
others from Banks and Financial Institutions during the year.
xvi. To the best of our knowledge and belief and according to the
information and explanations given to us, in our opinion term loans
availed by the Company were, prima facie, applied by the Company during
the year for the purpose for which the loans were obtained.
xvii. According to the information and explanations given to us and on
an overall examination of the Balance Sheet of the Company, funds
raised on short term basis have, prima facie, not been used during the
year for long term investment.
xviii. The provisions of clause 4 (xviii), (xix) and (xx) of the
Companies (Auditor''s Report) Order 2003 are not applicable since the
Company has not issued any shares or debentures during the year.
xix. 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.
For Subbachar & Srinivasar
Firm Registration No. 004083S
Chartered Accountants
T.S.V. Rajagopal
Coimbatore Partner
29th May 2013 Membership No. 200380
Mar 31, 2012
1. We have audited the attached Balance Sheet of The Lakshmi Mills
Company Limited, as at March 31, 2012, the Statement of Profit and Loss
and the Cash Flow Statement of the Company for the year ended on that
dated annexed thereto. These financial statements are the
responsibility of the management of the company. Our responsibility is
to express an opinion on these financial statements based on our audit.
2. We conducted our audit in accordance with generally accepted
auditing standards in India. These Standards require that we plan and
perform the audit to obtain reasonable assurance whether the financial
statements are prepared, in all material respects, in accordance with
an identified financial reporting framework and are free of material
misstatements. An audit includes, examining on a test basis, evidence
supporting the amounts and disclosures in the financial statements. An
audit also includes assessing the accounting principles used and
significant estimates made by management as well as evaluating the
overall financial statements presentation. We believe that our audit
provides a reasonable basis for our opinion.
3. As required by the Companies (Auditor's Report) Order, 2003
issued by the Central Government of India in terms of section 227 (4A)
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, the Statement of Profit and Loss and the Cash
Flow Statement dealt with by this report are prepared in accordance
with the Accounting Standards referred to in section 211 (3C) of the
Companies Act, 1956.
(d) In our opinion, the Balance Sheet, the Statement of Profit and Loss
and the Cash Flow Statement dealt with by this report are in agreement
with the books of account.
(e) On the basis of written representations received from the directors
of the Company, as at 31st March 2012 and taken on record by the Board
of Directors, we report that none of the directors is disqualified as
on 31st March 2012 from being appointed as a director in terms of
clause (g) of sub-section (1) of section 274 of the Companies Act,
1956.
5. In our opinion and to the best of our information and according to
the explanations given to us, the said accounts read together with the
Notes thereon give the information required by the Companies Act, 1956,
in the manner so required and give a true and fair view in conformity
with the accounting principles generally accepted in India;
(a) in the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2012;
(b) in the case of the Statement of Profit and Loss of the Loss for the
year ended on that date; and
(c) in the case of the Cash Flow Statement, of the cash flows of the
company for the year ended on that date.
ANNEXURE TO THE AUDITORS' REPORT
(Referred to in our report of even date)
i. In respect of fixed assets:
a. The Company has maintained proper records showing full particulars,
including quantitative details and situations of fixed assets.
b. Some of the fixed assets were physically verified during the year
by the management in accordance with the programme of verification,
which in our opinion provides for physical verification of all the
fixed assets at reasonable intervals. According to the information and
explanations given to us no material discrepancies were noticed on such
verification.
c. The fixed assets disposed off during the year, in our opinion do
not constitute a substantial part of the fixed assets of the Company
and such disposals has, in our opinion not affected the going concern
status of the Company.
ii. In respect of its inventories:
a. As explained to us, inventories were physically verified during the
year by the management at reasonable intervals.
b. In our opinion and according to the information and explanations
given to us, the procedure of physical verification of inventories
followed by the management were reasonable and adequate in relation to
the size of the Company and 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.
iii. The company has neither granted nor taken any loans, secured or
unsecured, to / from companies, firms or other parties covered in the
register maintained under Section 301 of the Companies Act, 1956 and
hence the provisions of clauses 4 (iii) (b) to (d), (f) & (g) of the
Companies (Auditor's Report) Order, 2003 are not applicable.
iv. 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 and fixed assets and for the sale of the goods
and services. During the course of the audit, we have not observed any
continuing failure to correct major weaknesses in internal control.
v. In respect of contracts or arrangements entered in the register
maintained in pursuance of Section 301 of the Companies Act 1956, to
the best of our knowledge and belief and according to the information
and explanations given to us: '
a. The particulars of contracts or arrangements referred to Section
301 that needed to be entered into the register maintained under the
said section have been so entered.
b. In our opinion and according to 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.
vi. In our opinion and according to the information and explanations
given to us, the Company has complied with the provisions of Section
58A and 58AA or any other relevant provisions of the Companies Act,
1956 and the Companies (Acceptance of Deposit) Rules, 1975 with regards
to the deposits accepted from the public.
vii. In our opinion, the internal audit functions carried out during
the year by Independent Chartered Accountants appointed by the
management have been commensurate with the size and nature of its
business.
viii. We have broadly reviewed the books of account and records
maintained by the Company relating to the manufacture of textiles
pursuant to the order made by the Central Government for the
maintenance of cost records under section 209 (1) (d) of the Companies
Act 1956 and are of the opinion that prime facie prescribed accounts
and records have been made and maintained. We have, however, not made a
detailed examination of the records with a view to determining whether
they are accurate or complete.
ix. In respect of Statutory dues:
a.. According to the information and explanations given to us, the
Company has generally been regular in depositing undisputed statutory
dues, including Provident Fund, Investor Education and Protection Fund,
Employees' State Insurance, Income Tax, Sales Tax, Wealth Tax,
Service Tax, Custom Duty, Excise duty, Cess and any other material
statutory dues with the appropriate authorities during the year. There
are no undisputed statutory dues which are outstanding for more than
six months as at the Balance Sheet date.
b. According to the information and explanations given to us details
of disputed tax which have not been deposited as on 31.3.2012 on
account of any dispute are given below:
Name of the
Statute Amount Period to
which Forum where
dispute is
pending
Nature of Dues Rs In
Lakhs the amount
relates
Excise Act
1944 / Service Tax 2.95 1997 - 99 High Court
Service Tax
Act Excise Duty 1.61 1995 - 96 High Court
Cenvat 2.79 2004 - 05 Deputy Commissioner
-Coimbatore
Cenvat 1.36 2007 - 08 Asst. Commissioner
-Kovilpatti
x. The company has incurred a cash loss of Rs. 1260.07 lakhs during
the financial year covered by our audit and . a cash loss of Rs. Nil
in the immediately preceding financial year. The accumulated losses at
the end of the year is Rs. 627.98 lakhs.
xi. On the basis of our audit procedures, in our opinion and according
to the information and explanations given to us the Company has not
defaulted in the payment of dues to financial institutions and Banks,
except two term loan installments to banks amounting to Rs. 117.50
lakhs and Rs. 22.00 lakhs respectively which were due and outstanding
as on 31st March, 2012 and were since repaid before the date of our
report.
xii. The company has not granted loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
Hence the provisions of this clause 4 (xii) of the Companies
(Auditor's Report) Order, 2003 are not applicable.
xiii. The company is not a chit fund or Nidhi mutual benefit
fund/society. Therefore, the provisions of clause 4 (xiii) of the
Companies (Auditor's Report) Order, 2003 are not applicable.
xiv. The company is not dealing in or trading in shares, securities,
debentures and other investments. Hence the provisions of clause 4(xiv)
of the Companies (Auditor's Report) Order 2003 are not applicable to
the company.
xv. In our opinion and according to the information and explanations
given to us the company has not given any guarantee for loans taken by
others from Banks and Financial Institutions during the year.
xvi. To the best of our knowledge and belief and according to the
information and explanations given to us, in our opinion term loans
availed by the Company were, prime facie, applied by the Company during
the year for the purpose for which the loans were obtained, other than
temporary deployment pending application.
xvii According to the information and explanations given to us and on
an overall examination of the Balance Sheet of the Company, funds
raised on short term basis have, prime facie, not been used during the
year for long term investment.
xviii The provisions of clause 4 (xviii) (xix) and (xx) of the
Companies (Auditor's Report) Order 2003 are not applicable since the
Company has not issued any shares or debentures during the year.
xix 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.
For Subbachar & Srinivasan
Firm Registration No. 004083S
Chartered Accountants
T.S.V. Rajagopal
Coimbatore Partner
30th May 2012 Membership No. 200380
Mar 31, 2011
1. We have audited the attached Balance Sheet of The Lakshmi Mills
Company Limited, as at March 31, 2011, the Profit and Loss Account and
the Cash Flow Statement of the Company for the year ended on that dated
annexed thereto. These financial statements are the responsibility of
the management of the company. Our responsibility is to express an
opinion on these financial statements based on our audit.
2. We conducted our audit in accordance with generally accepted
auditing standards in India. These Standards require that we plan and
perform the audit to obtain reasonable assurance whether the financial
statements are prepared, in all material respects, in accordance with
an identified financial reporting framework and are free of material
misstatements. An audit includes, examining on a test basis, evidence
supporting the amounts and disclosures in the financial statements. An
audit also includes assessing the accounting principles used and
significant estimates made by management as well as evaluating the
overall financial statements presentation. We believe that our audit
provides a reasonable basis for our opinion.
3. As required by the Companies (Auditor's Report) Order, 2003 issued
by the Central Government of India in terms of Section 227 (4A) 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, the Profit and Loss Account and the Cash Flow
Statement dealt with by this report are prepared in accordance with the
Accounting Standards referred to in Section 211(3C) of the Companies
Act, 1956.
(d) In our opinion, the Balance Sheet, the Profit and Loss Account and
the Cash Flow Statement dealt with by this report are in agreement with
the books of account.
(e) On the basis of written representations received from the directors
of the Company, as at 31st March 2011 and taken on record by the Board
of Directors, we report that none of the directors is disqualified as
on 31st March 2011 from being appointed as a director in terms of
clause (g) of sub-section (1) of Section 274 of the Companies Act,
1956.
5. In our opinion and to the best of our information and according to
the explanations given to us, the said accounts read together with the
Notes thereon give the information required by the Companies Act, 1956,
in the manner so required and give a true and fair view in conformity
with the accounting principles generally accepted in India;
(a) in the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2011;
(b) in the case of the Profit and Loss Account of the Profit for the
year ended on that date; and
(c) in the case of the Cash Flow Statement, of the cash flows of the
company for the year ended on that date.
ANNEXURE TO THE AUDITORS' REPORT (Referred to in our report of even
date)
i. In respect of fixed assets:
a. The Company has maintained proper records showing full particulars,
including quantitative details and situations of fixed assets.
b. Some of the fixed assets were physically verified during the year
by the management in accordance with the programme of verification,
whic!" in our opinion provides for physical verification of all the
fixed assets at reasonable intervals. According to the information and
explanations given to us no material discrepancies were noticed on such
verification.
c. The fixed assets disposed off during the year, in our opinion do
not constitute a substantial part of the fixed assets of the Company
and such disposals has, in our opinion not affected the going concern
status of the Company.
ii. In respect of its inventories:
a. As explained to us, inventories were physically verified during the
year by the management at reasonable intervals.
b. In our opinion and according to the information and explanations
given to us, the procedure of physical verification of inventories
followed by the management were reasonable and adequate in relation to
the size of the Company and 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.
iii. The company has neither granted nor taken any loans, secured or
unsecured, to / from companies, firms or other parties covered in the
register maintained under Section 301 of the Companies Act, 1956 and
hence the provisions of clauses 4 (iii) (b) to (d), (f) & (g) of the
Companies (Auditor's Report) Order, 2003 are not applicable.
iv. 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 and fixed assets and for the sale of the goods
and services. During the course of the audit, we have not observed any
continuing failure to correct major weaknesses in internal control.
v. In respect of contracts or arrangements entered in the register
maintained in pursuance of Section 301 of the Companies Act, 1956, to
the best of our knowledge and belief and according to the information
and explanations given to us:
a. The particulars of contracts or arrangements referred to Section
301 that needed to be entered into the register maintained under the
said section have been so entered.
b. In our opinion and according to 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.
vi. In our opinion and according to the information and explanations
given to us, the Company has complied with the provisions of Section
58A and 58AA or any other relevant provisions of the Companies Act,
1956 and the Companies (Acceptance of Deposit) Rules, 1975 with regards
to the deposits accepted from the public.
vii. In our opinion, the internal audit functions carried out during
the year by Independent Chartered Accountants appointed by the
management have been commensurate with the size and nature of its
business.
viii. We have broadly reviewed the books of account and records
maintained by the Company relating to the manufacture of textiles
pursuant to the order made by the Central Government for the
maintenance of cost records under section 209 (1) (d) of the Companies
Act, 1956 and are of the opinion that prime facie prescribed accounts
and records have been made and maintained. We have, however, not made a
detailed examination of the records with a view to determining whether
they are accurate or complete.
ix. In respect of Statutory dues:
a. According to the information and explanations given to us, the
Company has generally been regular in depositing undisputed statutory
dues, including Provident Fund, Investor Education and Protection Fund,
Employees' State Insurance, Income Tax, Sales Tax, Wealth Tax, Service
Tax, Custom Duty, Excise duty, Cess and any other material statutory
dues with the appropriate authorities during the year. There are no
undisputed statutory dues which are outstanding for more than six
months as at the Balance Sheet date.
b. According to the information and explanations given to us details
of disputed tax which have not been deposited as on 31.03.2011 on
account of any dispute are given below:
Name of the
Statute Amount Period to
which Forum where dispute
is pending
Nature of Dues Rs in
Lakhs the amount
relates
Excise Act
1944 / Service Tax 2.95 1997 - 99 High Court
Service Tax
Act Excise Duty 1.61 1995-96 High Court
Cenvat 2.79 2004 - 05 Deputy Commissioner-
Coimbatore
Cenvat 0.36 2007 - 08 Asst. Commissioner-
Kovilpatti
Income Tax Income Tax 70.01* A.Y. 2006
- 07 ITAT-Chennai
* Since Paid Rs. 70.01 lakhs
x. The company has no accumulated losses and has not incurred cash
losses during the financial year covered by our audit and in the
immediately preceding financial year.
xi. In our opinion and according to the information and explanations
given to us Company has not defaulted in the payment of dues to
financial institutions and Banks.
xii. The company has not granted loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
Hence the provisions of this clause 4 (xii) of the Companies (Auditor's
Report) Order, 2003 are not applicable.
xiii. The company is not a chit fund or Nidhi mutual benefit
fund/society. Therefore, the provisions of clause 4 (xiii) of the
Companies (Auditor's Report) Order, 2003 are not applicable.
xiv. The company is not dealing in or trading in shares, securities,
debentures and other investments. Hence the provisions of clause 4(xiv)
of the Companies (Auditor's Report) Order, 2003 are not applicable to
the company.
xv. In our opinion and according to the information and explanations
given to us the company has not given any guarantee for loans taken by
others from Banks and Financial Institutions during the year.
xvi. To the best of our knowledge and belief and according to the
information and explanations given to us, in our opinion term loans
availed by the Company were, prime facie, applied by the Company during
the year for the purpose for which the loans were obtained, other than
temporary deployment pending application.
xvii. According to the information and explanations given to us and on
an overall examination of the Balance Sheet of the Company, funds
raised on short term basis have, prime facie, not been used during the
year for long term investments.
xviii. The provisions of clause 4 (xviii) (xix) and (xx) of the
Companies (Auditor's Report) Order, 2003 are not applicable since the
Company has not issued any shares or debentures during the year.
xix. 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.
For Subbachar & Srinivasan
Firm Registration No. 004083S
Chartered Accountants
T.S.V. Rajagopal
Partner
Membership No. 200380
Coimbatore
20th May 2011
Mar 31, 2010
1. We have audited the attached Balance Sheet of The Lakshmi Mills
Company Limited, as at March 31, 2010, the Profit and Loss Account and
the Cash Flow Statement of the Company for the year ended on that dated
annexed thereto. These financial statements are the responsibility of
the management of the company. Our responsibility is to express an
opinion on these financial statements based on our audit.
2. We conducted our audit in accordance with generally accepted
auditing standards in India. These Standards require that we plan and
perform the audit to obtain reasonable assurance whether the financial
statements are prepared, in all material respects, in accordance with
an identified financial reporting framework and are free of material
misstatements. An audit includes, examining on a test basis, evidence
supporting the amounts and disclosures in the financial statements. An
audit also includes assessing the accounting principles used and
significant estimates made by management as well as evaluating the
overall financial statements presentation. We believe that our audit
provides a reasonable basis for our opinion.
3. As required by the Companies (Auditors Report) Order, 2003 issued
by the Central Government of India in terms of section 227 (4A) 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, the Profit and Loss Account and the Cash Flow
Statement dealt with by this report are prepared in accordance with the
Accounting Standards referred to in section 211 (3C) of the Companies
Act, 1956.
(d) In our opinion, the Balance Sheet, the Profit and Loss Account and
the Cash Flow Statement dealt with by this report are in agreement with
the books of account.
(e) On the basis of written representations received from the Directors
of the Company, as at 31st March 2010 and taken on record by the Board
of Directors, we report that none of the Directors is disqualified as
on 31st March 2010 from being appointed as a Director in terms of
clause (g) of sub-section (1) of section 274 of the Companies Act,
1956.
5. In our opinion and to the best of our information and according to
the explanations given to us, the said accounts read together with the
Notes thereon give the information required by the Companies Act 1956,
in the manner so required and give a true and fair view in conformity
with the accounting principles generally accepted in India;
(a) in the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2010;
(b) in the case of the Profit and Loss Account of the Profit for the
year ended on that date; and
(c) in the case of the Cash Flow Statement, of the cash flows of the
company for the year ended on that date.
ANNEXURE TO THE AUDITORS REPORT (Referred to in our report of even date)
i. In respect of fixed assets:
a. The Company has maintained proper records showing full particulars,
including quantitative details and situations of fixed assets.
b. Some of the fixed asset: were physically verified during the year
by the management in accordance with the programme of verification,
which in our opinion provides for physical verification of all the
fixed assets at reasonable intervals. According to the information and
explanations given to us no material discrepancies were noticed on such
verification.
c. The fixed assets disposed off during the year, in our opinion do
not constitute a substantial part of the fixed assets of the Company
and such disposals has, in our opinion not affected the going concern
status of the Company.
ii. In respect of its inventories:
a. As explained to us, inventories were physically verified during the
year by the management at reasonable intervals.
b. In our opinion and according to the information and explanations
given to us, the procedure of physical verification of inventories
followed by the management were reasonable and adequate in relation to
the size of the Company and 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.
iii. The company has neither granted nor taken any loans, secured or
unsecured, to / from companies, firms or other parties covered in the
register maintained under Section 301 of the Companies Act, 1956 and
hence the provisions of clauses 4 (iii) (b) to (d), (f) & (g) of the
Companies (Auditors Report) Order, 2003 are not applicable.
iv. 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 and fixed assets and for the sale of the goods
and services. During the course of the audit, we have not observed any
continuing failure to correct major weaknesses in internal control.
v. In respect of contracts or arrangements entered in the register
maintained in pursuance of Section 301 of the Companies Act 1956, to
the best of our knowledge and belief and according to the information
and explanations given to us:
a. The particulars of contracts or arrangements referred to Section
301 that needed to be entered into the register maintained under the
said section have been so entered.
b. In our opinion and according to 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.
vi. In our opinion and according to the information and explanations
given to us, the Company has complied with the provisions of Section
58A and 58AA or any other relevant provisions of the Companies Act,
1956 and the Companies (Acceptance of Deposit) Rules, 1975 with regards
to the deposits accepted from the public.
vii. In our opinion, the Internal Audit functions carried out during
the year by Independent Chartered Accountants appointed by the
management have been commensurate with the size and nature of its
business.
viii. We have broadly reviewed the books of account and records
maintained by the Company relating to the manufacture of textiles
pursuant to the order made by the Central Government for the
maintenance of cost records under section 209 (1) (d) of the Companies
Act 1956 and are of the opinion that prime facie prescribed accounts
and records have been made and maintained. We have, however, not made a
detailed examination of the records with a view to determining whether
they are accurate or complete.
ix. In respect of Statutory dues:
a. According to the information and explanations given to us, the
Company has generally been regular in depositing undisputed statutory
dues, including Provident Fund, Investor Education and Protection Fund,
Employees State Insurance, Income Tax, Sales Tax, Wealth Tax, Service
Tax, Custom Duty, Excise duty, Cess and any other material Statutory
dues with the appropriate authorities during the year. There are no
undisputed Statutory dues which are outstanding for more than six
months as at the Balance Sheet date.
x. The company has no accumulated losses and has incurred cash losses
during the financial year covered by our audit and in the immediately
preceding financial year.
xi. In our opinion and according to the information and explanations
given to us Company has not defaulted in the payment of dues to
Financial Institutions and Banks.
xii. The company has not granted loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
Hence the provisions of this clause 4 (xii) of the Companies (Auditors
Report) Order, 2003 are not applicable.
xiii. The company is not a chit fund or Nidhi mutual benefit
fund/society. Therefore, the provisions of clause 4 (xiii) of the
Companies (Auditors Report) Order, 2003 are not applicable.
xiv. The company is not dealing in or trading in shares, securities,
debentures and other investments. Hence the provisions of clause 4(xiv)
of the Companies (Auditors Report) Order 2003 are not applicable to
the company.
xv. In our opinion and according to the information and explanations
given to us the company has not given any guarantee for loans taken by
others from Banks and Financial Institutions during the year.
xvi. To the best of our knowledge and belief and according to the
information and explanations given to us, in our opinion term loans
availed by the Company were, prime facie, applied by the Company during
the year for the purpose for which the loans were obtained, other than
temporary deployment pending application.
xvii According to the information and explanations given to us and on
an overall examination of the Balance Sheet of the Company, funds
raised on short term basis have, prime facie, not been used during the
year for long term investment.
xviii The provisions of clause 4 (xviii) (xix) and (xx) of the
Companies (Auditors Report) Order 2003 are not applicable since the
Company has not issued any shares or debentures during the year.
xix 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.
For Fraser & Ross For Subbachar & Srinivasan
Firm Registration No. 000829S Firm Registration No. 004083S
Chartered Accountants Chartered Accountants
C.R. Rajagopal T.S.V. Rajagopal
Coimbatore Partner Partner
26th May 2010 Membership No 23418 Membership No. 200380