Auditor Report of Kovilpatti Lakshmi Roller Flour Mills Ltd.
Mar 31, 2023
Independent Auditor Report
Standalone Financial Results
The Members of Kovilpatti Lakshmi Roller Flour Mills Limited, Gangaikondan.
Report on the Audit of the Standalone Financial Statements
Opinion
I have audited the standalone financial statements of Kovilpatti Lakshmi Roller Flour Mills
Limited ("the Company"), which comprise the balance sheet as at 31st March 2023, and the
statement of Profit and Loss, statement of changes in equity, and statement of cash flows for
the year then ended, and notes to the financial statements, including a summary of significant
accounting policies and other explanatory information in which are included the financial
statements/ information for the year ended on that date audited by the branch auditors of the
Company''s branches located at Coimbatore, Tamilnadu.
In my opinion and to the best of my information and according to the explanations given
to me, the aforesaid standalone financial statements give the information required by
the Companies Act ("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 31,2023, its profit and other comprehensive income, changes in
equity and its cash flows for the year ended on that date.
I conducted my audit in accordance with the Standards on Auditing (SAs) specified under
section 143(10) of the Companies Act, 2013. My responsibilities under those standards are
further described in the Auditor''s Responsibilities for the Audit of the Financial Statements section
of my report. I am independent of the Company in accordance with the Code of Ethics issued
by the Institute of Chartered Accountants of India together with the ethical requirements that
are relevant to my audit of the financial statements under the provisions of the Companies
Act, 2013 and the Rules thereunder, and I have fulfilled my other ethical responsibilities in
accordance with these requirements and the Code of Ethics. I believe that the audit evidence
I have obtained is sufficient and appropriate to provide a basis for my opinion.
Key audit matters are those matters that, in my professional judgment, were of most significance
in my audit of the financial statements of the current period. These matters were addressed
in the context of my audit of the financial statements as a whole, and in forming my opinion
thereon, and I do not provide a separate opinion on these matters.
I have determined the matter described below to be the key audit matter to be communicated
in my report.
The Company''s Management and Board of Directors is responsible for the other information.
The other information comprises the Board''s report and the corporate governance report but
does not include the standalone financial statements and my auditor''s report thereon. Those
reports are expected to be made available to me after the date of my auditor''s report.
My opinion on the financial statements does not cover the other information and I will not
express any form of assurance conclusion thereon.
In connection with my audit of the financial statements, my responsibility is to read the other
information identified above when it becomes available and, in doing so, consider whether
the other information is materially inconsistent with the financial statements or my knowledge
obtained in the audit, or otherwise appears to be materially misstated. When I read the other
information, if I conclude that there is a material misstatement therein, I am required to
communicate the matter to those charged with governance and I shall report that fact."
Managementâs Responsibility for the Standalone Financial Statements
The Company''s Board of Directors is responsible for the matters stated in section 134(5) of the
i Companies Act, 2013 ("the Act") with respect to the preparation of these standalone financial
statements that give a true and fair view of the financial position, financial performance,
changes in equity 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 relevant rules issued thereunder.
This responsibility also includes maintenance of adequate accounting records in accordance
with the provisions of the Act for the safeguarding of the assets of the Company and for
preventing and detecting frauds and other irregularities; selection and application of appropriate
accounting policies; making judgments and estimates that are reasonable and prudent; and
design, implementation, and maintenance of adequate internal financial controls, that were
operating effectively for ensuring the accuracy and completeness of the accounting records,
relevant to the preparation and presentation of the financial statement that gives a true and fair
view and are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, management is responsible for assessing the Company''s
ability to continue as a going concern, disclosing, as applicable, matters related to going
concern, and using the going concern basis of accounting unless management either intends
to liquidate the Company or to cease operations or has no realistic alternative but to do so.
The Board of Directors are also responsible for overseeing the Company''s financial reporting
process.
Auditorâs Responsibilities for the Audit of the Financial Statements
My objectives are to obtain reasonable assurance about whether the financial statements as
a whole are free from material misstatement, whether due to fraud or error, and to issue an
auditor''s report that includes my opinion. Reasonable assurance is a high level of assurance,
but is not a guarantee that an audit conducted in accordance with SAs will always detect
a material misstatement when it exists. Misstatements can arise from fraud or error and are
considered material if, individually or in the aggregate, they could reasonably be expected
to influence the economic decisions of users taken on the basis of these financial statements.
I give in âAnnexure Aâ a detailed description of Auditors; responsibilities for Audit of the
Standalone Financial Statements.
I did not audit the financial statements/ information of 1 (One) branch included in the stand¬
alone financial statements of the Company whose financial statements/financial information
reflect total assets of '' 5,976.34 lakhs as at 31st March 2023 and the total revenue of
'' 12,197.79 lakhs for the year ended on that date, as considered in the standalone financial
statements/ information of these branches have been audited by the branch auditors whose
reports have been furnished to me, and my opinion in so far as it relates to the amounts and
disclosures included in respect of branch is based solely on the report of such branch auditors.
My opinion is not modified in respect of these matters.
As required by the Companies (Auditor''s Report) Order, 2020 ("the Order"), issued by the
Central Government of India in terms of sub-section (11) of section 143 of the Companies Act,
2013, I give in the "Annexure B" a statement on the matters specified in paragraphs 3 and 4 of
the Order, to the extent applicable.
As required by Section 143(3) of the Act, I report that:
(a) I have sought and obtained all the information and explanations which to the best of my
knowledge and belief were necessary for the purposes of my audit.
(b) In my opinion, proper books of account as required by law have been kept by the
Company so far as it appears from my examination of those books and proper returns
adequate for the purposes of my audit have been received from the branches not visited
by me.
(c) The reports on the accounts of the branch offices of the Company audited under Section
143(8) of the Act by branch auditors have been sent to me and have been properly dealt
with by me in preparing this report.
(d) 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 and with the returns received
from the branches not visited by me.
(e) In my 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.
(f) On the basis of the written representations received from the directors as on 31st March
2023 taken on record by the Board of Directors, none of the directors is disqualified as on
31st March 2023 from being appointed as a director in terms of Section 164 (2) of the Act.
(g) 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 my separate
Report in âAnnexure Câ.
(h) With respect to the other matters to be included in the Auditor''s Report in accordance with
Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in my opinion, and to the best
of my information and according to the explanations given to me:
⢠The Company has disclosed the impact of pending litigations on its financial position
in its financial statements - Refer Note 36 to the financial statements;
⢠The Company did not have any long-term contracts including derivative contracts for
which there were any material foreseeable losses.
⢠There has been no delay in transferring amounts, required to be transferred, to the
Investor Education and Protection Fund by the Company.
(i) (A) The management has represented that, to the best of its knowledge and belief, no
funds have been advanced or loaned or invested (either from borrowed funds or share
premium or any other sources or kind of funds) by the Company to or in any other
persons or entities, including foreign entities ("Intermediaries"), with the understanding,
whether recorded in writing or otherwise, that the Intermediary shall:
⢠directly or indirectly lend or invest in other persons or entities identified in any
manner whatsoever ("Ultimate Beneficiaries") by or on behalf of the Company or
⢠provide any guarantee, security, or the like to or on behalf of the Ultimate
Beneficiaries.
(B) The management has represented, that, to the best of its knowledge and belief, no
funds have been received by the Company from any persons or entities, including
foreign entities ("Funding Parties"), with the understanding, whether recorded in writing
or otherwise, that the Company shall:
⢠directly or indirectly, lend or invest in other persons or entities identified in any manner
whatsoever ("Ultimate Beneficiaries") by or on behalf of the Funding Party or
⢠provide any guarantee, security, or the like from or on behalf of the Ultimate
Beneficiaries; and
(C) Based on such audit procedures as considered reasonable and appropriate in the
circumstances, nothing has come to my notice that has caused us to believe that the
representations under subclause (i) (A) and (i) (B) contain any material misstatement.
(j) The dividend declared or paid during the year by the Company is in compliance with
Section 123 of the Act.
(k) As proviso to Rule 3(1) of the Companies (Accounts) Rules, 2014 (as amended), which
provides for books of account to have the feature of audit trail, edit log, and related matters
in the accounting software used by the Company, is applicable to the Company only with
effect from financial year beginning April 1, 2023, the reporting under clause (g) of Rule 11
of the Companies (Audit and Auditors) Rules, 2014 (as amended), is currently not applicable.
(l) 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.
For Marimuthu And Associates
Chartered AccountantsCA. R Marimuthu
Membership No. 005770
Place : Coimbatore FRN: 014572S
Date : May 26, 2023 UDIN: 23005770BGXHGQ5636
Mar 31, 2016
TO THE MEMBERS OF KLRF LIMITED.
Report on the Financial Statements
I have audited the accompanying financial statements of KLRF LIMITED ("the Company") which comprise the Balance Sheet as at March 31, 2016, the Statement of Profit and Loss, Cash Flow Statement for the year then ended, and a summary of significant accounting policies and other explanatory information.
Managementâs Responsibility for the Financial Statements
The Company''s Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 ("the Act") with respect to the preparation of these financial statements that give a true and fair view of the financial position, financial performance and cash flows of the Company in accordance with the accounting principles generally accepted in India, including the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding 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.
Auditorâs Responsibility
My responsibility is to express an opinion on these financial statements based on my audit. I 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.
I have conducted my audit in accordance with the Standards on Auditing specified under Section 143(10) of the Act. Those Standards require that I 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 I assessments, the auditor considers internal financial control relevant to the Company''s j preparation of the financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances, An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Company''s Directors, as well as evaluating the overall presentation of the financial statements. I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my audit opinion on the financial statements
Opinion
In my opinion and to the best of my information and according to the explanations given to me, 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, 2016, and its Profit and its Cash Flow for the year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2016 ("the Order"), as amended, issued by the Central Government of India in terms of sub-section (11) of section 143 of the Act, I give in the "Annexure A" a statement on the matters specified in paragraphs 3 and 4 of the Order.
2. As required by section 143 (3) of the Act, I report that:
a) I have sought and obtained all the information and explanations which to the best of my knowledge and belief were necessary for the purpose of my audit;
b) In my opinion proper books of account as required by law have been kept by the Company so far as it appears from my examination of those books;
c) The reports on the accounts of the branch offices of the Company audited under Section 143(8) of the Act by branch auditors have been sent to me and have been properly dealt by me in preparing this report.
d) 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) In my 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.
f) On the basis of written representations received from the directors as on March 31,2016 taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2016 from being appointed as a director in terms of Section 164 (2) of the Act.
g) 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 my separate report in "Annexure B".
h) With respect to the other matters to be included in the Auditor''s Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in my opinion and to the best of my information and according to the explanations given to me:
I. The Company has disclosed the impact of pending litigations on its financial position in its financial statements - Refer notes on accounts 22 (4) 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 were no amounts which were required to be transferred to the Investor Education and Protection Fund by the Company.
"Annexure A" to the Independent Auditors'' Report of even date on the Financial Statements of KLRF Limited:
Referred to in paragraph 1 under the heading ''Report on Other Legal & Regulatory Requirement'' of my report of even date to the financial statements of the Company for the year ended March 31, 2016:
1. (a) The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets;
(b) The Fixed Assets have been physically verified by the management in a phased manner, designed to cover all the items over a period of three years, which in my opinion, is reasonable having regard to the size of the Company and nature of its business. Pursuant to the program, a portion of the fixed asset has been physically verified by the management during the year and no material discrepancies between the books / records and the physical fixed assets have been noticed.
(c) The title deeds of immovable properties recorded in the books of accounts of the Company are held in the name of the company.
2. (a) The management has conducted the physical verification of inventory (excluding stocks lying with third parties) at reasonable intervals. In respect of inventory lying with third parties, these have substantially been confirmed by them.
(b) The discrepancies noticed on physical verification of the inventory as compared to books / records which has been properly dealt with in the books of account were not material.
3. The Company has not granted any loans, secured or unsecured to companies, firms, Limited Liability Partnerships or other parties covered in the Register maintained under section 189 of the Act. Accordingly, the provisions of clause 3 (iii) (a) to (c) of the Order are not applicable to the Company and hence not commented upon.
4. In my opinion and according to the information and explanations given to me, the Company has not granted any loans or provided any guarantees or security to the parties covered under Section 185 of the Act. The company has complied with the provisions of section I86 of the Act in respect of the investments made.
5. The Company has not accepted any deposits from the public and hence the directives issued by the Reserve Bank of India and the provisions of Sections 73 to 76 or any other relevant provisions of the Act and the Companies (Acceptance of Deposit) Rules, 2015 with regard to the deposits accepted from the public are not applicable.
6. As informed to me, the Cost Records specified by the Central Government under sub-section (1) of Section 148 of the Act, in respect of the activities carried on by the engineering division has been made and maintained by the company.
7. (a) According to information and explanations given to me and on the basis of my
examination of the books of account, and records, the Company has been generally regular in depositing undisputed statutory dues including Provident Fund, Employees State Insurance, Income-Tax, Sales tax, Service Tax, Duty of Customs, Duty of Excise, Value added Tax, Cess and any other statutory dues with the appropriate authorities.
According to the information and explanations given to me, no undisputed amounts payable in respect of the above were in arrears as at March 31, 2016 for a period of more than six months from the date on when they become payable.
(b) According to the information and explanation given to me, for dues of income tax, sales tax, service tax, duty of customs, duty of excise, value added tax outstanding on account of any dispute, refer notes on accounts 22 (3) of the financial statements.
8. In my opinion and according to the information and explanations given to me, the Company has not defaulted in the repayment of dues to banks, financial institutions or to the government and has not issued any debentures.
9. Based upon the audit procedures performed and the information and explanations given by the management, the Company has not raised moneys by way of initial public offer or further public offer including debt instruments and term loans.
Accordingly, the provisions of clause 3 (ix) of the Order are not applicable to the Company and hence not commented upon.
10. Based upon the audit procedures performed and the information and explanations given by the management, I report that no fraud by the Company or on the Company by its officers or employees has been noticed or reported during the year.
11. Based upon the audit procedures performed and the information and explanations given by the management, the managerial remuneration has been paid or provided in accordance with the requisite approvals mandated by the provisions of section 197 read with Schedule V to the Companies Act;
12. In my opinion, the Company is not a Nidhi Company. Therefore, the provisions of clause 4 (xii) of the Order are not applicable to the Company.
13. In my opinion, all transactions with the related parties are in compliance with section 177 and 188 of Companies Act, 2013 and the details have been disclosed in the Financial Statements as required by the applicable accounting standards.
14. Based upon the audit procedures performed and the information and explanations given by the management, the Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year under review. Accordingly, the provisions of clause 3 (xiv) of the Order are not applicable to the Company and hence not commented upon.
15. Based upon the audit procedures performed and the information and explanations given by the management, the Company has not entered into any non-cash transactions with directors or persons connected with him. Accordingly, the provisions of clause 3 (xv) of the Order are not applicable to the Company and hence not commented upon.
16. In my opinion, the Company is not required to be registered under section 45 IA of the Reserve Bank of India Act, 1934 and accordingly, the provisions of clause 3 (xvi) of the Order are not applicable to the Company and hence not commented upon.
"Annexure B" to the Independent Auditor''s Report of even date on the Financial Statements of KLRF Limited:
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 ("the Act")
I have audited the internal financial controls over financial reporting of KLRF Limited ("the Company") as of March 31, 2016 in conjunction with my audit of the financial statements of the Company for the year ended on that date.
Management''s Responsibility for Internal Financial Controls
The Company''s management is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India. These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to company''s policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013.
Auditors'' Responsibility
My responsibility is to express an opinion on the Company''s internal financial controls over financial reporting based on my audit. I conducted my audit in accordance with the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (the "Guidance Note") and the Standards on Auditing, issued by ICAI and deemed to be prescribed under section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls, both applicable to an audit of Internal Financial Controls and, both issued by the Institute of Chartered Accountants of India. Those Standards and the Guidance Note require that I 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.
My audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. My audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.
I believe that the audit evidence I have obtained is sufficient and appropriate to provide | a basis for my audit opinion on the Company''s internal financial controls system over financial reporting.
Meaning of Internal Financial Controls Over Financial Reporting
A company''s internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A Company''s internal financial control over financial reporting includes those policies and procedures that:
1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company;
2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the Company are being made only in accordance with authorizations of management and Directors of the Company; and
3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company''s assets that could have a material effect on the 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 my 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 was operating effectively as at March 31, 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.
P. Marimuthu
Place : Coimbatore Chartered Accountant
Date : 30.05.2016 Membership No.5770
Mar 31, 2015
I have audited the accompanying financial statements of KLRF LIMITED
("the company"), which comprise the Balance Sheet as at 31 March, 2015,
the Statement of Profit and Loss, 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 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 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
My responsibility is to express an opinion on these financial
statements based on my audit. I 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.
I conducted my audit in accordance with the Standards on Auditing
specified under section 143(10) of the Act. Those Standards require
that I 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.
I believe that the audit evidence I have obtained is sufficient and
appropriate to provide a basis for my audit opinion on the financial
statements.
Opinion
In my opinion and to the best of my information and according to the
explanations given to me, 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;
a) In the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2015.
b) In the case of the Statement of Profit and Loss, of the profit for
the year ended on that date; and
c) 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, 2015 ("the
Order") issued by the Central Government of India in terms of
sub-section (11) of section 143 of the Act, I 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, I report that:
a) I have sought and obtained all the information and explanations
which to the best of my knowledge and belief were necessary for the
purposes of my audit.
b) In my opinion proper books of account as required by law have been
kept by the Company so far as appears from my examination of those
books and proper returns adequate for the purposes of my audit have
been received from the branches not visited by me.
c) The reports on the accounts of the branch offices of the Company
audited under Section 143(8) of the Act by branch auditors have been
sent to me and have been properly dealt by me in preparing this report.
d) The Balance Sheet, the Statement of Profit and Loss, and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account and the returns received from the branches not visited by me.
e) In my 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.
f) On the basis of 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.
g) With respect to the other matters included in the Auditor's Report
and to the best of my information and according to the explanations
given to me:
i. The company has disclosed the impact of pending litigations on its
financial position in its financial statements. Refer Note: 4 to the
financial statements.
ii. The Company did not have any long-term contracts including
derivatives contracts for which there were any material foreseeable
losses.
iii. There has been no delay in transferring amounts, required to be
transferred, to the Investor Education and Protection Fund by the
Company.
ANNEXURE TO THE AUDITOR'S REPORT
The Annexure referred to in my report of even date to the members of
KLRF LIMITED for the year ended 31st March, 2015.
On the basis of the information and explanation given to me during the
course of my audit, I report that:
1. (a) The company has maintained proper records showing full
particulars including
quantitative details and situation of its fixed assets.
(b) As explained to me, fixed assets have been physically verified by
the management at reasonable intervals; no material discrepancies were
noticed on such verification.
2. (a) As explained to me, inventories have been physically verified
during the year by
the management at reasonable intervals.
(b) In my opinion and according to the information and explanations
given to me, 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 my opinion and on the basis of my examination of the records,
the Company is generally maintaining proper records of its inventories.
No material discrepancy was noticed on physical verification of stocks
by the management as compared to book records.
3. According to the information and explanations given to me and on
the basis of my examination of the books of account, the Company has
not granted any loans, secured or unsecured, to companies, firms or
other parties listed in the register maintained under Section 189 of
the Companies Act. Thus sub clauses (a) & (b) of (iii) in the Companies
(Auditor's Report) Order, 2015 are not applicable to the company.
4. In my opinion and according to the information and explanations
given to me, there is generally an adequate internal control procedure
commensurate with the size of the company and the nature of its
business, for the purchase of inventories & fixed assets and payment
for expenses & for sale of goods. During the course of my audit, no
major instance of continuing failure to correct any weaknesses in the
internal controls has been noticed.
5. In my opinion and according to the information and explanations
given to me company hasn't accepted any deposits, from the public
during the year. The directives issued by the Reserve Bank of India and
the provisions of sections 73 to 76 or any other relevant provisions of
the Companies Act, 2013 have been complied with. Under Section 74 of
the Companies Act, 2013 deposits accepted before the commencement of
the Act were repaid in full.
6. As per information & explanation given by the management,
maintenance of cost records has been prescribed by the Central
Government under clause (d) of sub- section (1) of section 148 of the
Act and I am of the opinion that prima facie the prescribed accounts
and records have been made and maintained.
7. (a) According to the records of the company, 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 to the extent applicable and any
other statutory dues have generally been regularly deposited with the
appropriate authorities. According to the information and explanations
given to me there were no outstanding statutory dues as on 31st of
March, 2015 for a period of more than six months from the date they
became payable.
(b) According to the information and explanations given to me, there is
no amounts payable in respect of income tax, wealth tax, service tax,
sales tax, customs duty and excise duty which have not been deposited
on account of any disputes. However, according to information and
explanations given to me, Service tax of Rs. 9,65,536/- is under dispute
before CESTAT, Chennai and 10 % of the disputed demand of Rs. 96,553/-
had been deposited as pre-deposit Rs. 40,00,000/- has been deposited
under protest towards pending TNVAT re-assessment proceedings for the
years 2008-09 to 2013-14.
(c) In my opinion, the company has transferred the amount which is
required to be transferred to investor education and protection fund in
accordance with the relevant provisions of the Companies Act, 1956 (1
of 1956) and rules made there under within time.
8. The Company does not have any accumulated loss and has not incurred
cash loss during the financial year covered by my audit and in the
immediately preceding financial year.
9. Based on my audit procedures and on the information and
explanations given by the management, I am of the opinion that, the
Company has not defaulted in repayment of dues to a financial
institution, bank or debenture holders.
10. According to the information and explanations given to me, the
Company has not given any guarantees for loan taken by others from a
bank or financial institution.
11. In my opinion Terms Loans taken were applied for the purpose for
which loans were obtained
12. Based on the audit procedures performed and the information and
explanations given to me, I report that no fraud on or by the Company
has been noticed or reported during the year, nor have I been informed
of such case by the management.
P. Marimuthu
Place :Coimbatore Chartered Accountant
Date :29.05.2015 Membership No.5770
Mar 31, 2014
I have audited the accompanying financial statements of KLRF LIMITED
("the Company") which comprise the Balance Sheet as at March 31, 2014
and the Statement of Profit and Loss and 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 financial statements that give a
true and fair view and are free from material misstatement, whether due
to fraud or error.
Auditor''s Responsibility
My responsibility is to express an opinion on these financial
statements based on my audit. I conducted my audit in accordance with
the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that I 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.
I believe that the audit evidence I have obtained is sufficient and
appropriate to provide a basis for my audit opinion
Opinion
In my opinion and to the best of my information and according to the
explanations given to me, 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:
(a) in the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2014;
(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 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") issued by the Central Government of India in terms of
sub-section (4A) of section 227 of the Act, I 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, I report that:
a. I have obtained all the information and explanations which to the
best of my knowledge and belief were necessary for the purpose of my
audit.
b. in my opinion, proper books of account as required by law have been
kept by the Company so far as appears from my examination of those
books and proper returns adequate for the purposes of my audit have
been received from the Branches not visited by me. Branch Auditors''
reports have been forwarded to me and has been appropriately dealt
with.
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 my opinion, the Balance Sheet, Statement of Profit and Loss and
Cash Flow Statement comply with the Accounting Standards referred to in
sub-section (3C) of section 211 of the Companies Act, 1956.
e. on the basis of written representations received from the directors
as on March 31,2014, and taken on record by the Board of Directors,
none of the directors are disqualified as on March 31, 2014, from being
appointed as a director in terms of /clause (g) of sub-section (1) of
section 274 of the Companies Act, 1956.
Referred to in paragraph 3 of my report of even date,
1. The Company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets.
2. All the assets have been physically verified by the management
during the year and there is a regular programme of verification which,
in my opinion, is reasonable having regard to the size of the company
and the nature of its business. No material discrepancies were noticed
on such verification.
3. The company has not disposed of a major part of the fixed assets.
According to the information and explanations given to me, I am of the
opinion that the sale of the part of plant and machinery has not
affected the going concern status of the company.
4. The inventories have been physically verified during the year by the
management. In my opinion, the frequency of verification is
reasonable.
5. 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.
6. The Company is maintaining proper records of inventories. The
discrepancies noticed on verification between the physical stocks and
the book records were not material.
7. The company has not granted any unsecured loan which attract Section
301 of the Companies Act, 1956. Hence, the question of rate of interest
and other terms and conditions on which the loan was granted does not
arise.
8. The Company has not taken any loans except deposits, secured or
unsecured from companies, firms or other parties covered in the
register maintained under section 301 of the Companies Act, 1956. Hence
the question of rate of interest and the terms and conditions of such
loan taken by the company and repayment of such loan with interest
thereon in due dates does not arise.
9. In my opinion and according to the information and explanations
given to me, there are adequate internal control procedures
commensurate with the size of the company and the nature of its
business with regard to purchase of inventory, fixed assets and with
regard to the sale of goods and services. During the course of my
audit, I have not observed any continuing failure to correct major
weaknesses in internal control system.
10. According to the explanations and information given to me I am of
the opinion that the particulars of contracts or arrangements referred
to in section 301 of the Companies Act, 1956 have been entered in the
register required to be maintained under that section.
11. According to the explanations and information given to me, 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.
12. In my opinion and according to the informations and explanations
given to me, 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 Deposits) Rules, 1975 with regard
to the deposits accepted from the public. No order has been passed by
the Company Law Board or National Company Law Tribunal or Reserve Bank
of India or any Court or any other Tribunal.
13. In my opinion, the company has an internal audit system
commensurate with the size and nature of its business.
14. I have broadly reviewed the books of account relating to materials,
labour and other items of cost maintained by the company pursuant to
the Rules made by the Central Government for the maintenance of cost
records in the textile and engineering division under section 209 (1)
(d) of the Companies Act, 1956 and I am of the opinion that prima facie
the prescribed accounts and records have been made and maintained. The
cost auditor has done the cost audit of food, textiles and engineering
divisions.
15. The company is regular in depositing with appropriate authorities
undisputed statutory dues including provident fund, investor education
protection fund, employee''s state insurance, income tax, sales tax,
wealth tax, service tax, custom duty, excise duty, cess and other
statutory dues applicable to it.
16. According to the information and explanations given to me, no
undisputed amounts payable in respect of income tax, wealth tax, sales
tax, service tax, customs duty, excise duty and cess were in arrears,
as at 31.03.2014 for a period of more than six months from the date
they became payable.
17. According to the information and explanations given to me, disputed
statutory dues pending for payment as at 31.3.2014 is Rs. 22.24 lakhs.
18. In my opinion and according to the information and explanations
given to me, the company has not defaulted in repayment of dues to a
financial institution, bank or debenture holders
19. In my opinion the company has not granted any loans and advances on
the basis of security by way of pledge of shares, debentures and other
securities.
20. In my opinion, the company is not a chit fund or a nidhi / mutual
benefit fund/ society. Therefore, the provisions of clause 4 (xiii) of
the Companies (Auditor''s Report) Order, 2003 are not applicable.
21. In my opinion, the company is not dealing in or trading in shares,
securities, debentures and other Investments. Accordingly, the
provisions of Clause xiv of para 4 of the Companies (Auditor''s Report)
Order, 2003 are not applicable.
22. In my opinion, on the basis of information the company has not
given any guarantees for loans taken by others from banks or financial
institutions.
23. Company has not availed term loan during the year from Financial
Institutions/ Banks.
24. According to the information and explanations given to me and on an
overall examination of the balance sheet of the company, I report that
no funds raised on short-term basis have been used for long term
investment.
25. The company has not made any preferential allotment of shares
during the year and hence the provisions of clause (xviii) of para 4 of
this order are not applicable.
26. According to the information and explanations given to me, during
the period covered in my audit report the company had not issued any
debentures.
27. Accordisng to the information and explanations given to me, no
fraud on or by the company has been noticed or reported during the
course of my audit.
P. Marimuthu
Place : Coimbatore Chartered Accountant
Date : 23.05.2014 Membership No.5770
Mar 31, 2013
I have audited the accompanying financial statements of KLRF LIMITED
("the Company") which comprise the Balance Sheet as at 31st March, 2013
and the Statement of Profit and Loss and 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 financial statements that give a
true and fair view and are free from material misstatement, whether due
to fraud or error.
Auditor''s Responsibility
My responsibility is to express an opinion on these financial
statements based on my audit. I conducted my audit in accordance with
the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that I 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.
I believe that the audit evidence I have obtained is sufficient and
appropriate to provide a basis for my audit opinion
Opinion
In my opinion and to the best of my information and according to the
explanations given to me, 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:
a) in the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2013;
b) in the case of the Statement of Profit and Loss, of the profit for
the year ended on that date; and
c) 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") issued by the Central Government of India in terms of
sub-section (4A) of section 227 of the Act, I 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, I report that:
a) I have obtained all the information and explanations which to the
best of my knowledge and belief were necessary for the purpose of my
audit.
b) In my opinion, proper books of account as required by law have been
kept by the Company so far as appears from my examination of those
books and proper returns adequate for the purposes of my audit have
been received from the Branches not visited by me. Branch Auditors''
reports have been forwarded to me and has been appropriately dealt
with.
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 my opinion, the Balance Sheet, Statement of Profit and Loss, and
Cash Flow Statement comply with the Accounting Standards referred to in
sub-section (3C) of section 211 of the Companies Act, 1956.
e) On the basis of written representations received from the directors
as on 31st March,2013, and taken on record by the Board of Directors,
none of the directors are disqualified as on 31st March, 2013, from
being appointed as a director in terms of /clause (g) of sub-section
(1) of section 274 of the Companies Act 1956.
ANNEXURE TO THE AUDITOR''S REPORT
Referred to in paragraph 1 of my report of even date,
1. a) The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
b) All the assets have been physically verified by the management
during the year and there is a regular programme of verification which,
in my opinion, is reasonable having regard to the size of the company
and the nature of its business. No material discrepancies were noticed
on such verification.
c) The company has not disposed of a major part of the fixed assets.
According to the information and explanations given to me, I am of the
opinion that the sale of the part of plant and machinery has not
affected the going concern status of the company.
2. a) The inventories have been physically verified during the year by
the management.
In my opinion, the frequency of verification is reasonable.
b) 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) The Company is maintaining proper records of inventories. The
discrepancies noticed on verification between the physical stocks and
the book records were not material.
3. a) The company has not granted any unsecured loan to parties listed
in the register maintained Under Section 301 of the Companies Act,
1956. Hence, the question of rate of interest and other terms and
conditions on which the loan was granted does not arise.
b) The Company has not taken any loans except deposits, secured or
unsecured from companies, firms or other parties covered in the
register maintained under section 301 of the Companies Act, 1956. Hence
the question of rate of interest and the terms and conditions of such
loan taken by the company and repayment of such loan with interest
thereon in due dates does not arise.
4. In my opinion and according to the information and explanations
given to me, there are adequate internal control procedures
commensurate with the size of the company and the nature of its
business with regard to purchase of inventory, fixed assets and with
regard to the sale of goods and services. During the course of my
audit, I have not observed any continuing failure to correct major
weaknesses in internal control system.
5. a) According to the explanations and information given to me I am
of the opinion that the particulars of contracts or arrangements
referred to in section 301 of the Companies Act, 1956 have been entered
in the register required to be maintained under that section.
b) According to the explanations and information given to me, the
transactions made in pursuance of such contracts or arrangements have
been made at prices which are reasonable having regard to the
prevailing market prices at the relevant time.
6. In my opinion and according to the information and explanations
given to me, 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 Deposits) Rules, 1975 with regard
to the deposits accepted from the public. No order has been passed by
the Company Law Board or National Company Law Tribunal or Reserve Bank
of India or any Court or any other Tribunal.
7. In my opinion, the company has an internal audit system
commensurate with the size and nature of its business.
8. I have broadly reviewed the books of account relating to materials,
labour and other items of cost maintained by the company pursuant to
the Rules made by the Central Government for the maintenance of cost
records in the textile and engineering divisions under section 209 (1)
(d) of the Companies Act, 1956 and I am of the opinion that prima facie
the prescribed accounts and records have been made and maintained. The
cost auditor has done the cost audit of textile and engineering
divisions.
9. a) The company is regular in depositing with appropriate
authorities undisputed statutory dues including provident fund,
investor education protection fund, employee''s state insurance, income
tax, sales tax, wealth tax, service tax, custom duty, excise duty, cess
and other statutory dues applicable to it.
b) According to the information and explanations given to me, no
undisputed amounts payable in respect of income tax, wealth tax, sales
tax, service tax, customs duty, excise duty and cess were in arrears,
as at 31.03.2013 for a period of more than six months from the date
they became payable.
c) According to the information and explanations given to me, disputed
statutory dues pending for payment as at 31.3.2013 is Rs.31.24 lakhs.
10. In my opinion and according to the information and explanations
given to me, the company has not defaulted in repayment of dues to a
financial institution, bank or debenture holders
11. In my opinion the company has not granted any loans and advances
on the basis of security by way of pledge of shares, debentures and
other securities.
12. In my opinion, the company is not a chit fund or a nidhi / mutual
benefit fund/ society. Therefore, the provisions of clause 4 (xiii) of
the Companies (Auditor''s Report) Order, 2003 are not applicable.
13. In my opinion, the company is not dealing in or trading in shares,
securities, debentures and other Investments. Accordingly, the
provisions of Clause (xiv) of para 4 of the Companies (Auditor''s
Report) Order, 2003 are not applicable.
14. In my opinion, on the basis of information the company has not
given any guarantees for loans taken by others from banks or financial
institutions.
15. The Company has not availed term loan during the year from
Financial Institutions/ Banks.
16. According to the information and explanations given to me and on
an overall examination of the balance sheet of the company, I report
that no funds raised on short-term basis have been used for long term
investment.
17. The company has not made any preferential allotment of shares
during the year and hence the provisions of clause (xviii) of para 4 of
this order are not applicable.
18. According to the information and explanations given to me, during
the period covered in my audit report the company had not issued any
debentures.
19. According to the information and explanations given to me, no
fraud on or by the company has been noticed or reported during the
of my audit.
Place : Coimbatore P. Marimuthu
Date : 28.05.2013 Chartered Accountant
Membership No : 5770
Mar 31, 2012
1. I have audited the attached balance sheet of KLRF Limited,
Gangaikondan (" the Company") which comprise the Balance Sheet as at
31st March, 2012, the statement of Profit and Loss and the Cash Flow
Statement for the year then ended and a summary of the significant
accounting policies and other explanatory information. These financial
statements are the responsibility of the Company's Management. My
responsibility is to express an opinion on these financial statements
based on my audit.
2. I have conducted my audit in accordance with the auditing standards
generally accepted in India. Those standards require that I plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit also
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. I believe that my audit provides a reasonable basis for
my opinion.
3. As required by the Companies (Auditors' Report) Order, 2003 issued
by the Central Government of India in terms of sub-section (4A) of
Section 227 of the Companies Act, 1956, I enclose in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the said
Order.
4. Further to my comments in the Annexure referred to above, I report
that :
1. I have obtained all the information and explanations, which to the
best of my knowledge and belief were necessary for the purposes of my
audit.
2. In my opinion, proper books of account as required by law have been
kept by the Company so far as appears from my examination of those
books and proper returns adequate for the purposes of my audit have
been received from the Branches not visited by me. Branch Auditors'
reports have been forwarded to me and has been appropriately dealt
with.
3. The Balance Sheet and Statement of Profit and Loss referred to in
this report are in agreement with the books of account.
4. In my opinion, the Balance Sheet, Statement of Profit and Loss and
Cash Flow Statement dealt with by this report comply with the
Accounting Standards referred to in sub-section (3C) of Section 211 of
the Companies Act, 1956.
5. On the basis of the written representation received from the
Directors, as on 31st March, 2012 and taken on record by the Board of
Directors, I report that none of the Directors is disqualified as on
31st March, 2012 from being appointed as a Director under Clause (g) of
sub section (1) of Section 274 of the Companies Act, 1956.
6. In my opinion and to the best of my information and according to
the explanations given to me, the said accounts give the information
required by the Companies Act, 1956, in the manner so required and give
a true and fair view in conformity with the accounting principles
generally accepted in India.
(a) in the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2012.
(b) in the case of Statement of Profit and Loss, of the Loss of the
Company for the year ended on that date and
(c) in the case of Cash Flow Statement, of the cash flow for the year
ended on that date.
ANNEXURE TO THE AUDITOR'S REPORT
Referred to in paragraph 3 of my report of even date,
1. The Company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets.
2. All the assets have been physically verified by the management
during the year and there is a regular programme of verification which,
in my opinion, is reasonable having regard to the size of the company
and the nature of its business. No material discrepancies were noticed
on such verification.
3. The company has not disposed of a major part of the fixed assets.
According to the information and explanations given to me, I am of the
opinion that the sale of the part of plant and machinery has not
affected the going concern status of the company.
4. The inventories have been physically verified during the year by
the management. In my opinion, the frequency of verification is
reasonable.
5. 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.
6. The Company is maintaining proper records of inventories. The
discrepancies noticed on verification between the physical stocks and
the book records were not material.
7. The company has not granted any unsecured loan which attract
Section 301 of the Companies Act, 1956. Hence, the question of rate of
interest and other terms and conditions on which the loan was granted
does not arise.
8. The Company has not taken any loans except deposits, secured or
unsecured from companies, firms or other parties covered in the
register maintained under section 301 of the Companies Act, 1956. Hence
the question of rate of interest and the terms and conditions of such
loan taken by the company and repayment of such loan with interest
thereon in due dates does not arise.
9. In my opinion and according to the information and explanations
given to me, there are adequate internal control procedures
commensurate with the size of the company and the nature of its
business with regard to purchase of inventory, fixed assets and with
regard to the sale of goods and services. During the course of my
audit, I have not observed any continuing failure to correct major
weaknesses in internal control system.
10. According to the explanations and informations given to me I am of
the opinion that the particulars of contracts or arrangements referred
to in section 301 of the Companies Act, 1956 have been entered in the
register required to be maintained under that section.
11. According to the explanations and informations given to me, 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.
12. In my opinion and according to the informations and explanations
given to me, 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 Deposits) Rules, 1975 with regard
to the deposits accepted from the public. No order has been passed by
the Company Law Board or National Company Law Tribunal or Reserve Bank
of India or any Court or any other Tribunal.
13. In my opinion, the company has an internal audit system
commensurate with the size and nature of its business.
14. I have broadly reviewed the books of account relating to
materials, labour and other items of cost maintained by the company
pursuant to the Rules made by the Central Government for the
maintenance of cost records in the textile and foundry division under
section 209 (1) (d) of the Companies Act, 1956 and I am of the opinion
that prima facie the prescribed accounts and records have been made and
maintained. The cost auditor has done the cost audit of textile units.
15. The company is regular in depositing with appropriate authorities
undisputed statutory dues including provident fund, investor education
protection fund, employee's state insurance, income tax, sales tax,
wealth tax, service tax, custom duty, excise duty, cess and other
statutory dues applicable to it.
16. According to the information and explanations given to me, no
undisputed amounts payable in respect of income tax, wealth tax, sales
tax, service tax, customs duty, excise duty and cess were in arrears,
as at 31.03.2012 for a period of more than six months from the date
they became payable.
17. According to the information and explanations given to me,
disputed statutory dues pending for payment as at 31.3.2012 is Rs.31.24
lakhs.
18. In my opinion and according to the information and explanations
given to me, the company has not defaulted in repayment of dues to a
financial institution, bank or debenture holders
19. In my opinion the company has not granted any loans and advances
on the basis of security by way of pledge of shares, debentures and
other securities.
20. In my opinion, the company is not a chit fund or a nidhi / mutual
benefit fund/ society. Therefore, the provisions of clause 4 (xiii) of
the Companies (Auditor's Report) Order, 2003 are not applicable.
21. In my opinion, the company is not dealing in or trading in shares,
securities, debentures and other Investments. Accordingly, the
provisions of Clause xiv of para 4 of the Companies (Auditor's Report)
Order, 2003 are not applicable.
22. In my opinion, on the basis of information the company has not
given any guarantees for loans taken by others from banks or financial
institutions.
23. Company has not availed term loan during the year from Financial
Institutions/ Banks.
24. According to the information and explanations given to me and on
an overall examination of the balance sheet of the company, I report
that no funds raised on short-term basis have been used for long term
investment.
25. The company has not made any preferential allotment of shares
during the year and hence the provisions of clause (xviii) of para 4 of
this order are not applicable.
26. According to the information and explanations given to me, during
the period covered in my audit report the company had not issued any
debentures.
27. According to the information and explanations given to me, no
fraud on or by the company has been noticed or reported during the
course of my audit.
Place : Coimbatore P.Marimuthu
Date : 25.05.2012 Chartered Accountant
Membership No : 5770
Mar 31, 2010
1. I have audited the attached balance sheet of KLRF LIMITED,
GANGAIKONDAN as at 31st March, 2010, the profit and loss account and
also the cash flow statement for the year ended on that date annexed
thereto. These financial statements are the responsibility of the
Companys Management. My responsibility is to express an opinion on
these financial statements based on my audit.
2. I have conducted my audit in accordance with the auditing standards
generally accepted in India. Those standards require that I plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit also
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. I believe that my audit provides a reasonable basis for
my opinion.
3. As required by the Companies (Auditors Report) Order, 2003 issued
by the Central Government of India in terms of sub-section (4A) of
Section 227 of the Companies Act, 1956, I enclose in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the said
Order :
4. Further to my comments in the Annexure referred to above, I report
that :
I. I have obtained all the information and explanations which to the
best of my knowledge and belief were necessary for the purposes of my
audit.
II. In my opinion, proper books of account as required by law have
been kept by the Company so far as appears from my examination of those
books and proper returns adequate for the purposes of my audit have
been received from the Branches not visited by me. Branch Auditors
reports have been forwarded to me and has been appropriately dealt
with.
III. The Balance Sheet and Profit and Loss Account referred to in this
report are in agreement with the books of account.
IV. In my opinion, the Balance Sheet, Profit and Loss Account and Cash
Flow Statement dealt with by this report comply with the Accounting
Standards referred to in sub-section (3C) of section 211 of the
Companies Act, 1956.
V. On the basis of the written representation received from the
Directors, as on 31st March, 2010 and taken on record by the Board of
Directors, I report that none of the Directors is disqualified as on
31st March, 2010 from being appointed as a Director under Clause (g) of
sub section (1) of Section 274 of the Companies Act, 1956.
VI. In my opinion and to the best of my information and according to
the explanations given to me, the said accounts give the information
required by the Companies Act, 1956, in the manner so required and give
a true and fair view in conformity with the accounting principles
generally accepted in India.
(a) in the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2010.
(b) in the case of Profit and Loss Account, of the profit of the
Company for the year ended on that date and
(c) in the case of Cash Flow Statement, of the cash flow for the year
ended on that date.
ANNEXURE TO THE AUDITORS REPORT Referred to in paragraph 3 of my report
of even date,
1. The Company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets.
2. All the assets have been physically verified by the management
during the year and there is a regular programme of verification which,
in my opinion, is reasonable having regard to the size of the company
and the nature of its business. No material discrepancies were noticed
on such verification.
3. The company has not disposed of a major part of the fixed assets.
According to the information and explanations given to me, I am of the
opinion that the sale of the part of plant and machinery has not
affected the going concern status of the company.
4. The inventories have been physically verified during the year by
the management. In my opinion, the frequency of verification is
reasonable.
5. 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.
6. The Company is maintaining proper records of inventories. The
discrepancies noticed on verification between the physical stocks and
the book records were not material.
7. The company has not granted any unsecured loan which attract
Section 372 of the Companies Act, 1956. Hence, the question of rate of
interest and other terms and conditions on which the loan was granted
does not arise.
8. The Company has not taken any loans except deposits, secured or
unsecured from companies, firms or other parties covered in the
register maintained under section 301 of the Companies Act, 1956. Hence
the question of rate of interest and the terms and conditions of such
loan taken by the company and repayment of such loan with interest
thereon in due dates does not arise.
9. In my opinion and according to the information and explanations
given to me, there are adequate internal control procedures
commensurate with the size of the company and the nature of its
business with regard to purchase of inventory, fixed assets and with
regard to the sale of goods and services. During the course of my
audit, I have not observed any continuing failure to correct major
weaknesses in internal control system.
10. According to the explanations and informations given to me I am of
the opinion that the particulars of contracts or arrangements referred
to in section 301 of the Companies Act, 1956 have been entered in the
register required to be maintained under that section.
11. According to the explanations and informations given to me, 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.
12. In my opinion and according to the informations and explanations
given to me, 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 Deposits) Rules, 1975 with regard
to the deposits accepted from the public. No order has been passed by
the Company Law Board or National Company Law Tribunal or Reserve Bank
of India or any Court or any other Tribunal.
13. In my opinion, the company has an internal audit system
commensurate with the size and nature of its business.
14. I have broadly reviewed the books of account relating to
materials, labour and other items of cost maintained by the company
pursuant to the Rules made by the Central Government for the
maintenance of cost records in the textile division under section 209
(1) (d) of the Companies Act, 1956 and I am of the opinion that prima
facie the prescribed accounts and records have been made and
maintained. The cost auditor has done the cost audit of textile units.
15. The company is regular in depositing with appropriate authorities
undisputed statutory dues including provident fund, investor education
protection fund, employees state insurance, income tax, sales tax,
wealth tax, service tax, custom duty, excise duty, cess and other
statutory dues applicable to it.
16. According to the information and explanations given to me, no
undisputed amounts payable in respect of income tax, wealth tax, sales
tax, service tax, customs duty, excise duty and cess were in arrears,
as at 31.03.2010 for a period of more than six months from the date
they became payable.
17. According to the information and explanations given to me,
disputed statutory dues pending for payment as at 31.3.2010 is Rs12.43
lakhs out of total dues of Rs.29.08 lakhs.
18. In my opinion and according to the information and explanations
given to me, the company has not defaulted in repayment of dues to a
financial institution, bank or debenture holders
19. In my opinion the company has not granted any loans and advances
on the basis of security by way of pledge of shares, debentures and
other securities.
20. In my opinion, the company is not a chit fund or a nidhi / mutual
benefit fund/ society. Therefore, the provisions of clause 4 (xiii) of
the Companies (Auditors Report) Order, 2003 are not applicable.
21. In my opinion, the company is not dealing in or trading in shares,
securities, debentures and other Investments. Accordingly, the
provisions of Clause xiv of para 4 of the Companies (Auditors Report)
Order, 2003 are not applicable.
22. In my opinion, on the basis of information the company has not
given any guarantees for loans taken by others from banks or financial
institutions.
23. Company has not availed term loan during the year from Financial
Institutions/ Banks.
24. According to the information and explanations given to me and on
an overall examination of the balance sheet of the company, I report
that no funds raised on short-term basis have been used for long term
investment.
25. The company has not made any preferential allotment of shares
during the year and hence the provisions of clause (xviii) of para 4 of
this order are not applicable.
26. According to the information and explanations given to me, during
the period covered in my audit report the company had not issued any
debentures.
27. According to the information and explanations given to me, no
fraud on or by the company has been noticed or reported during the
course of my audit.
Place: Coimbatore P.Marimuthu
Date : 27th May, 2010 Chartered Accountant
Membership No : 5770
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