Mar 31, 2015
We have audited the accompanying financial statements of M/s. Lakshmi
Automatic Loom Works Limited ("the Company"), which comprise the
Balance Sheet as at March 31, 2015, 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.
Managements' Responsibility for the Financial Statements
The management and Board of Directors of the Company are 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 Companies (Accounts)Rules, 2014. This responsibility 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; design, implementation
and maintenance of adequate internal financial controls, that are
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.
Auditors' Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We have taken into account the
provisions of the Act, the accounting and auditing standards and
matters which are required to be included in the audit report under the
provisions of the Act and the Rules made thereunder.
We conducted our audit in accordance with the Standards on Auditing
specified under section 143(10) of the Act. Those Standards require
that we comply with ethical requirements and plan and perform the audit
to obtain reasonable assurance about whether the financial statements
are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and 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 control
systems over financial reporting and the operating effectiveness of
such controls. An audit also includes evaluating the appropriateness of
accounting policies used and the reasonableness of the accounting
estimates made by Company's Management and Board of Directors, as well
as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion on the financial
statements.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid financial statements give the
information required by the Act in the manner so required and give a
true and fair view in conformity with the accounting principles
generally accepted in India, of the state of affairs of the Company as
at 31st March, 2015 and its profit and its cash flows for the year
ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor's Report) Order, 2015 ("the
Order") issued by the Central Government of India in terms of
sub-section (11) of section 143 of the Act, we give in the Annexure a
statement on the matters specified in paragraphs 3 and 4 of the Order
to the extent applicable.
2. As required by section 143(3) of the Act, we further 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
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 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 written representations received from the directors
as on March 31, 2015, and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31, 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 Auditors
Report in accordance with Rule 11 of the Companies (Audit and Auditors)
Rules, 2014, in our opinion and to the best of our information and
according to the explanations given to us;
i) The Company does not have any pending litigations which would impact
its financial position.
ii ) The Company did not have any long term contracts including
derivative contracts; as such the question of commenting on any
material foreseeable losses thereon does not arise.
iii) There is no amount required to be transferred to Investor
Education and Protection Fund by the Company. The question of delay in
transferring such sums does not arise.
Annexure to Independent Auditors' Report
Annexure referred to in our Independent Auditors' report to the members
of Lakshmi Automatic Loom Works Limited ('the Company') on the
financial statements for the year ended 31 March 2015.
On the basis of such checks as we considered appropriate and according
to the information and explanations given to us during the course of
our audit, we report that:
i) a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets;
b) As explained to us, fixed assets have been physically verified by
the management at regular intervals; as informed to us 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.
ii) a) The inventory has been physically verified during the year by
the management. In our opinion the frequency of verification is
reasonable.
b) In our opinion 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 nature of its business.
c) The Company has maintained proper records of inventories and the
discrepancies between the physical inventories and the book records
which have been properly dealt with in the books of account were not
material.
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 189 of the Companies Act, 2013 ('the
Act'). Hence, the question of reporting whether the terms and
conditions of such loans are prejudicial to the interests of the
Company and whether reasonable steps for recovery/repayment of overdue
amounts of such loans are taken does not arise.
iv) In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the Company and the nature of its
business for the purchase of inventory and fixed assets and for the
sale of goods. During the course of our audit, we have not observed any
major weaknesses in internal control system.
v) The Company has not accepted any deposits from the public covered
under section 74 to 76 of the Companies Act, 2013.
vi) The Company is not covered under maintenance of cost records
pursuant to section 148 (1) of the Companies Act, 2013 read with the
Companies (Cost Records and Audit) Amendment Rules, 2014.
vii) a) According to the records of the Company, the Company is regular
in depositing with appropriate authorities undisputed statutory dues
including Provident Fund, Employees State Insurance, Income Tax, Value
Added Tax, Wealth Tax, Service Tax, Customs Duty, Excise Duty/Cess and
other statutory dues applicable to it.
b) According to the information and explanations given to us, no
undisputed amounts payable in respect of Income Tax, Wealth Tax, Sales
Tax, Value Added Tax, Service Tax, Customs Duty, Excise Duty/Cess were
outstanding, as at 31st March, 2015 for a period of more than six
months from the date they became payable.
c) According to the records of the Company, there are no dues to Sales
Tax, Income Tax, Value Added Tax, Service Tax, Customs Duty, Wealth
Tax, Excise Duty/Cess which have not been deposited on account of any
dispute, except as under :
Period to which Forum where dispute
Name of Statute Nature Amount
the is pending
of Dues Rs. in
Lakhs amount relates
Central Excise
Act/ Service 8.86 February 2007 to Commissioner of
Service Tax Act Tax September 2008 Central Excise
(Appeals), Coimbatore
d) There is no amount required to be transferred to Investor Education
and Protection Fund by the Company. The question of delay in
transferring such sums does not arise.
viii) The accumulated losses of the Company at the end of the financial
year ended 31.03.2015 are in excess of 50% of its net worth. The
Company has not incurred any cash losses during the financial year
covered by our audit and the immediately preceding financial year.
ix) Based on our audit procedures and on the information and
explanations given by the management, we are of the opinion that the
Company has not availed any loans from financial institutions or issued
any debentures and has not defaulted in repayment of dues to banks
during the year.
x) In our opinion and according to the information and explanations
given to us, the Company has not given any guarantees for loans taken
by others from banks or financial institutions.
xi) In our opinion and according to the information and explanations
given to us, the Company has not raised any term loans during the year.
xii) During the course of our examination of the books and records of
the Company carried out in accordance with the auditing standards
generally accepted in India, we have neither come across any instance
of fraud on or by the Company noticed or reported during the course of
our audit nor have been informed of any such instance by the
management.
For N.R. DORAISWAMI & CO
Chartered Accountants
(Firm Regn. No. 000771S)
(Sd.) Suguna Ravichandran
Coimbatore
Partner
20.05.2015 (Membership No. 207893)
Mar 31, 2014
We have audited the accompanying financial statements of M/s. Lakshmi
Automatic Loom Works 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.
Managements'' 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.
Auditors'' Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditor''s judgment, including the assessment of
the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the Company''s preparation and
fair presentation of the financial statements in order to design audit
procedures that are appropriate in the circumstances, but not for the
purpose of expressing an opinion on the effectiveness of the Company''s
Internal control. An audit also includes evaluating the appropriateness
of accounting policies used and the reasonableness of the accounting
estimates made by management, as well as evaluating the overall
presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
Opinion
In our opinion and to the best of our information and according 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.
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 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, we give in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the Order.
2. As required by section 227(3) of the Act, we report that :
a) we have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
audit.
b) in our opinion proper books of account as required by law have been
kept by the Company so far as appears from our examination of those
books.
c) the Balance Sheet, Statement of Profit and Loss and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account.
d) in our opinion, the Balance Sheet, Statement of Profit and Loss, and
Cash Flow Statement comply with the Accounting Standards referred to in
subsection (3C) of section 211 of the Companies Act, 1956.
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 is 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.
f) Since the Central Government has not issued any notification as to
the rate at which the cess is to be paid under section 441A of the
Companies Act, 1956 nor has it issued any Rules under the said section,
prescribing the manner in which such cess is to be paid, no cess is due
and payable by the Company.
(Referred to in paragraph 1 under the heading "Report on other legal
and Regulatory Requirements" of our report of even date).
In our opinion and according to the information and explanations given
to us.
i) In respect of its Fixed Assets.
a) The Company has maintained proper records to show full particulars
including quantitative details and situation of its fixed assets.
b) The fixed assets of the company have been physically verified during
the year by the management and no material discrepancies between the
book records and the physical inventory have been noticed.
c) No substantial part of fixed assets of the company has been disposed
off during the year.
ii) In respect of its Inventories
a) As explained to us, inventories of the company have been 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 procedures of physical verification of inventories
followed by the management are reasonable and adequate in relation to
the size of the company and nature of its business.
c) The Company has maintained proper records of inventories and the
discrepancies between the physical inventories and the book records
which have been properly dealt with in the books of account were not
material.
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.
Hence, the question of reporting whether the terms and conditions of
such loans are prejudicial to the interests of the Company and whether
reasonable steps for recovery/repayment of overdue amounts of such
loans are taken, does not arise.
iv) In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the Company and the nature of its
business for the purchase of inventory and fixed assets and for the
sale of goods. During the course of our 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.
a) To the best of our knowledge and belief and according to the
information and explanations given to us, contracts or arrangements
that needed to be entered into the register have been so entered.
b) In our opinion, each of these transactions exceeding the value of
Rupees five lakhs in respect of each party during the financial year,
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 explanations given to us, the
Company has not accepted any deposits 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 accounts maintained by the
Company pursuant to the rules prescribed by the Central Government for
maintenance of cost records under section 209 (1) (d) of the Companies
Act, 1956 and are of the opinion that prima facie, the prescribed
accounts and records have been made and maintained. However we have not
made a detailed examination of the records.
ix) According to the information and explanations given to us in
respect of statutory and other dues .
a) The Company has been regular in depositing undisputed statutory dues
including Provident Fund, Employees State Insurance, Investors
Education and Protection Fund, Income Tax, Wealth Tax, Service Tax,
Customs Duty, Excise Duty and Cess. According to the information and
explanation given to us, no undisputed arrears of statutory dues were
outstanding as on 31.03.2014 for a period of more than 6 months from
the date they became payable.
b) At the end of the financial year there were no dues of Sales Tax,
Income Tax, Service Tax, Customs Duty, Wealth Tax, Excise Duty and Cess
which have not been deposited on account of any dispute, except as
under.
Name of Statute Nature Amount Period to Forum where dispute
of Dues Rs. in Lakhs which the is pending
amount
related
Central Excise Service 8.86 2006-2008 CESTAT, Chennai
Act/Service Tax
Act Tax
x) The accumulated losses of the Company at the end of the financial
year ended 31.03.2014 are in excess of 50% of its net worth. The
Company has not incurred any cash losses during the financial year
covered by our audit and the immediately preceding financial year.
xi) Based on our audit procedures and on the information and
explanations given by the management, we are of the opinion that the
Company has not defaulted in the repayment of dues to banks.
xii) According to the information and explanations given to us, the
Company has not given any loans and advances on the basis of security
by way of pledge of shares, debentures and other securities.
xiii) The Company is not a Chit Fund or a Nidhi / Mutual Benefit Fund /
Society and as such reporting under clause 4 (xiii) of the Order is not
applicable to the Company.
xiv) The Company is not dealing or trading in shares, securities,
debentures and other investments and as such clause 4 (xiv) of the
Order is 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 guarantees for loans taken
by others from banks and financial institutions.
xvi) According to the records of the Company, the Company has not
obtained any term loans. Hence the question of commenting on the
utilization of such term loans does not arise.
xvii) On the basis of review of utilization of funds on an overall
basis, in our opinion, the funds raised on short term basis have not
been used for long term investment during the year.
xviii)The Company has not made any preferential allotment of shares
during the year.
xix) The Company has not issued any debentures during the year.
xx) The Company has not raised money by any public issues during the
year and hence the question of disclosure and verification of end use
of such money does not arise.
xxi) During the course of our examination of the books of account
carried out in accordance with the generally accepted auditing
practices in India, we have not come across any instance of fraud on or
by the Company nor have been informed by the management of any such
instance being noticed or reported during the year.
For N.R. DORAISWAMI & CO
Chartered Accountants
(Firm Regn. No. 000771S)
(Sd.) Suguna Ravichandran
Coimbatore Partner
30.05.2014 (Membership No. 207893)
Mar 31, 2013
Report on the Financial Statements
We have audited the accompanying financial statements of M/s Lakshmi
Automatic Loom Works Limited ("the Company"), which comprise the
Balance Sheet as at March 31, 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 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 arefree from material misstatement,
whether due to fraud or error.
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.
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:
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, we give in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the Order.
2. As required by section 227(3) of the Act, we report that:
a) we have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
b) in our opinion proper books of account as required by law have been
kept by the Company so far as appears from our examination of those
books.
c) the Balance Sheet, Statement of Profit and Loss and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account.
d) in our opinion, the Balance Sheet, Statement of Profit and Loss, and
Cash Flow Statement comply with the Accounting Standards referred to in
subsection (3C) of section 211 of the Companies Act, 1956;
e) on the basis of written representations received from the directors
as on March 31, 2013, and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31, 2013, from being
appointed as a director in terms of clause (g) of sub-section (1) of
section 274 of the Companies Act, 1956.
f) Since the Central Government has not issued any, notification as to
the rate at which the cess is to be paid under section 441A of the
Companies Act, 1956 nor has it issued any Rules under the said section,
prescribing the manner in which such cess is to be paid, no cess is due
and payable by the Company
Annexure to the Auditors'' Report
(Referred to in paragraph 1 of our report of even date)
In our opinion and according to the information and explanations given
to us,
i) a) The Company has maintained proper records to show full
particulars including quantitative details and situation of its fixed
assets.
b) The fixed assets of the company have been physically verified during
the year by the management and no material discrepancies between the
book records and the physical inventory have been noticed.
c) No substantial part of fixed assets of the company has been disposed
off during the year.
ii) a) As explained to us, inventories of the company have been
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 procedures of physical verification of inventories
followed by the management are reasonable and adequate in relation to
the size of the company and nature of its business.
c) The Company has maintained proper records of inventories and the
discrepancies between the physical inventories and the book records
which have been properly dealt with in the books of account were not
material.
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.
Hence, the question of reporting whether the terms and conditions of
such loans are prejudicial to the interests of the Company and whether
reasonable steps for recovery/repayment of overdue amounts of such
toans are taken, does not arise.
iv) In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the Company and the nature of its
business for the purchase of inventory and fixed assets and for the
sale of goods. During the course of our 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;
a) To the best of our knowledge and belief and according to the
information and explanations given to us, contracts or arrangements
that needed to be entered into the register have been so entered.
b) In our opinion, each of these transactions exceeding the value of
Rupees five lakhs in respect of each party during the financial year,
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 explanations given to us, the
Company has not accepted any deposits 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 accounts maintained by the
Company pursuant to the rules prescribed by the Central Government for
maintenance of cost records under section 209 (1) (d) of the Companies
Act, 1956 and are of the opinion that prima facie, the prescribed
accounts and records have been made and maintained. However we have not
made a detailed examination of the records.
ix) According to the information and explanations given to us in
respect of statutory and other dues :
a) The Company has been regular in depositing undisputed statutory dues
including Provident Fund, Employees State Insurance, Investors
Education and Protection Fund, Income Tax, Wealth Tax, Service Tax,
Customs Duty, Excise Duty and Cess. According to the information and
explanation given to us, no undisputed arrears of statutory dues were
outstanding as on 31.03.2013 for a period of more than 6 months from
the date they became payable.
The accumulated losses of the Company at the end of the financial year
ended 31.03.2013 are in excess of 50% of its net worth. The Company has
not incurred any cash losses during the financial year covered by our
audit and the immediately preceding financial year.
xi) Based on our audit procedures and on the information and
explanations given by the management, we are of the opinion that the
Company has not defaulted in the repayment of dues to banks.
xii) According to the information and explanations given to us, the
Company has not given any loans and advances on the basis of security
by way of pledge of shares, debentures and other securities.
xiii) The Company is not a Chit Fund or a Nidhi / Mutual Benefit Fund /
Society and as such reporting under clause 4 (xiii) of the Order is not
applicable to the Company.
xiv) The Company is not dealing or trading in shares, securities,
debentures and other investments and as such clause 4 (xiv) of the
Order is 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 guarantees for loans taken
by others from banks and financial institutions.
xvi) According to the records of the Company, the Company has not
obtained any term loans. Hence the question of commenting on the
utilization of such term loans does not arise.
xvii) On the basis of review of utilization of funds on an overall
basis, in our opinion, the funds raised on short term basis have not
been used for long term investment during the year.
xviii)The Company has not made any preferential allotment of shares
during the year.
xix) The Company has not issued any debentures during the year.
xx) The Company has not raised money by any public issues during the
year and hence the question of disclosure and verification of end use
of such money does not arise.
xxi) During the course of our examination of the books of account
carried out in accordance with the generally accepted auditing
practices in India, we have not come across any instance of fraud on or
by the Company nor have been informed by the management of any such
instance being noticed or reported during the year.
For N.R. DORAISWAMI & CO
Chartered Accountants
Regn. No. 000771S
(Sd.) Suguna Ravichandran
Coimbatore Partner
20.05.2013 Membership No. 207893
Mar 31, 2012
1. We have audited the attached Balance Sheet of M/s. Lakshmi
Automatic Loom Works Limited, as at 31st March, 2012 and also the
Statement of Profit and Loss and the Cash Flow Statement of the Company
for the year ended on that date annexed thereto. These financial
statements are the responsibility of the Company's management. Our
responsibility is to express an opinion on these financial statements
based on our audit.
2. We conducted our audit in accordance with auditing standards
generally accepted in India. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
3. As required by the Companies (Auditors' Report) Amendment Order,
2004 issued by the Central Government of India in terms of sub-section
(4A) of section 227 of the Companies Act, 1956, we enclose in the
Annexure a statement on the matters specified in paragraph 4 of the
said order.
4. Further to our comments in the Annexure referred to in paragraph 3
above, we report that :
i. We have obtained all the information and explanation, which to the
best of our knowledge and belief were necessary for the purposes of our
audit:
ii. In our opinion, proper books of accounts as required by law have
been kept by the company so far as appears from our examination of such
books;
iii. The Balance Sheet and Statement of Profit and Loss and Cash Flow
Statement dealt with by this report are in agreement with the books of
account;
iv. In our opinion, the Balance Sheet and 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;
v. On the basis of written representations received from the
directors, as on 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.
vi. In our opinion and to the best of our information and according to
the explanations given to us, 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 read with the significant accounting
policies and other notes thereon,
a) in the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2012; and
b) in the case of Statement of Profit and Loss, of the Profit for the
year ended on that date.
c) in the case of Cash Flow Statement, of the cash flows for the year
ended on that date.
Annexure to the Auditors' Report
(Referred to in paragraph 3 of our report of even date)
In our opinion and according to the information and explanations given
to us,
i) a) The Company has maintained proper records to show full
particulars including quantitative details and situation of its fixed
assets.
b) The fixed assets of the company have been physically verified during
the year by the management and no material discrepancies between the
book records and the physical inventory have been noticed.
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 disposal 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 procedures of physical verification of inventories
followed by the management are reasonable and adequate in relation to
the size of the company and nature of its business.
c) The company has maintained proper records of inventories and the
discrepancies between the physical inventories and the book records
which have been properly dealt with in the books of account were not
material.
iii) The Company has neither taken for granted any loans or advances in
the nature of loans to parties covered in the register maintained under
section 301 of the Companies Act, 1956. Hence, the question of
reporting whether the terms and conditions of such loans are
prejudicial to the interests of the Company and whether reasonable
steps for recovery/repayment of overdue amounts of such loans are
taken, does not arise.
iv) In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the Company and the nature of its
business for the purchase of inventory and fixed assets and for the
sale of goods. During the course of our audit, we have not observed any
continuing failure to correct major weaknesses in internal control.
v) In respect of contracts and arrangements entered in the register
maintained in pursuance of section 301 of the Companies Act, 1956;
a) To the best of our knowledge and belief and according to the
information and explanations given to us, contracts and arrangements
that needed to be entered into the register have been so entered.
b) In our opinion, the aforesaid transactions exceeding the value of
five Lakhs rupees in respect of any party during the year have been
made at prices which are reasonable having regard to the prevailing
market prices at the relevant time.
vi) Based on our scrutiny of the Company's records and according to
the information and explanations provided by the management, in our
opinion the Company has not accepted any deposits 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) The Company's (cost accounting record) Rules 2011 is applicable
and the company is required to file the compliance report in the
prescribed form duly certified by a Cost Accountant in respect of the
financial year commencing from 01.04.2011, on or before 30.09.2012. We
have been informed that the company is in the process of obtaining the
same.
ix) In respect of statutory dues :
a) According to the records of the Company, the company is regular in
depositing with appropriate authorities undisputed statutory dues
including provident fund, investor education and protection fund,
employees' state insurance, income tax, sales tax, service tax,
wealth tax, customs duty, excise duty, cess and other statutory dues
applicable to it.
b) According to the information and explanations given, there were no
undisputed amounts payable in respect of income tax, service tax,
wealth tax, customs duty, excise duty, cess and other statutory dues
which have remained outstanding as at March 31st 2012 for a period of
more than six months from the date they became payable.
c) According to the records of the Company, there are no dues of sales
tax, income tax, service tax, customs duty, wealth tax, excise duty and
cess which have not been deposited on account of any dispute, except as
under :
Period to
Amount Forum where
Name of Nature of Rs in which the dispute is
Statute Dues amount
Lakhs related pending
Central Service 8.86 2006 - Additional
Excise Tax 2008 Commissioner,
Act / Coimbatore
Service
Tax Act
-do- 1.35 2008 - Assistant
2012 Commissioner,
Hosur
-do- 0.46 2007 - -do-
2009
x) The accumulated losses of the Company at the end of the financial
year ended 31.03.2012 are in excess of 50% of its net worth. The
Company has not incurred any cash losses during the financial year
covered by our audit and the immediately preceding financial year.
xi) Based on our audit procedures and on the information and
explanations given by the management, we are of the opinion that the
Company has not defaulted in the repayment of dues to banks.
xii) According to the information and explanations given to us, the
Company has not given any loans and advances on the basis of security
by way of pledge of shares, debentures and other securities.
xiii) The Company is not a Chit Fund or a Nidhi / Mutual Benefit Fund /
Society and as such reporting under clause (xiii) of the Order is not
applicable to the Company.
xiv) The Company is not dealing or trading in shares, securities,
debentures and other investments and as such clause (xiv) of the Order
is not applicable to the Company.
xv) According to the records of the Company and the information and
explanations provided by the management, the company has not given any
guarantee for loans taken by others from bank or financial
institutions.
xvi) According to the records of the Company, the Company has not
obtained any term loans. Hence, the question of commenting on the
utilization of such term loans does not arise.
xvii) On the basis of review of utilization of funds on an overall
basis, in our opinion, the funds raised on short term basis have not
been used for long term investment during the year.
xviii) The Company has not made any preferential allotment of shares
during the year.
xix) The Company has not issued any debentures during the year.
xx) The Company has not raised any money by public issue during the
year.
xxi) During the course of our examination of the books of account
carried out in accordance with the generally accepted auditing
practices in India, we have not come across any instance of fraud on or
by the Company nor have been informed by the management of any such
instance being noticed or reported during the year.
For N.R. DORAISWAMI & CO
Chartered Accountants
Regn. No. 000771S
(Sd.) Suguna Ravichandran
Coimbatore Partner
23.05.2012 Membership No. 207893
Mar 31, 2011
1. We have audited the attached Balance Sheet of M/s. Lakshmi
Automatic Loom Works Limited, as at 31st March, 2011 and also the
Profit and Loss Account and the Cash Flow Statement of the Company for
the year ended on that date annexed thereto. These financial statements
are the responsibility of the Company's management. Our responsibility
is to express an opinion on these financial statements based on our
audit.
2. We conducted our audit in accordance with auditing standards
generally accepted in India. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
3. As required by the Companies (Auditorsà Report) Order, 2003 issued
by the Central Government of India in terms of sub-section (4A) of
section 227 of the Companies Act, 1956, we enclose in the Annexure a
statement on the matters specified in paragraph 4 of the said order.
4. Further to our comments in the Annexure referred to in paragraph 3
above, we report that:
i. We have obtained all the information and explanation, which to the
best of our knowledge and belief were necessary for the purposes of our
audit:
ii. In our opinion, proper books of accounts as required by law have
been kept by the company so far as appears from our examination of such
books;
iii. The Balance Sheet and Profit and Loss Account and Cash Flow
Statement dealt with by this report are in agreement with the books of
account;
iv. In our opinion, the Balance Sheet and Profit and Loss Account and
Cash Flow Statement dealt with by this report comply with the
accounting standards referred to in sub-section (3C) of section 211 of
the Companies Act, 1956;
v. On the basis of written representations received from the directors,
as on 31st March, 2011 and taken on record by the Board of Directors,
we report that none of the directors is disqualified as on 31st March,
2011 from being appointed as a director in terms of clause (g) of
sub-section (1) of section 274 of the Companies Act, 1956.
vi. In our opinion and to the best of our information and according to
the explanations given to us, the said accounts 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 read with the significant accounting
policies and other notes thereon,
a) in the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2011; and
b) in the case of Profit and Loss Account, of the Profit for the year
ended on that date.
c) in the case of Cash Flow Statement, of the cash flows for the year
ended on that date.
Annexure to the Auditors' Report
(Referred to in paragraph 3 of our report of even date)
In our opinion and according to the information and explanations given
to us,
i) a) The Company has maintained proper records to show full
particulars including quantitative details and situation of its fixed
assets.
b) The fixed assets of the company have been physically verified during
the year by the management and no material discrepancies between the
book records and the physical inventory have been noticed.
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 disposal 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 procedures of physical verification of inventories
followed by the management are reasonable and adequate in relation to
the size of the company and nature of its business.
c) The company has maintained proper records of inventories and the
discrepancies between the physical inventories and the book records
which have been properly dealt with in the books of account were not
material.
iii) The Company has neither taken nor granted any loans or advances in
the nature of loans to parties covered in the register maintained under
section 301 of the Companies Act, 1956. Hence, the question of
reporting whether the terms and conditions of such loans are
prejudicial to the interests of the Company and whether reasonable
steps for recovery/repayment of overdue amounts of such loans are
taken, does not arise.
iv) In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the Company and the nature of its
business for the purchase of inventory and fixed assets and for the
sale of goods. During the course of our audit, we have not observed any
continuing failure to correct major weaknesses in internal control.
v) In respect of contracts and arrangements entered in the register
maintained in pursuance of section 301 of the Companies Act, 1956;
a) To the best of our knowledge and belief and according to the
information and explanations given to us, contracts and arrangements
that needed to be entered into the register have been so entered.
b) In our opinion, the aforesaid transactions exceeding the value of
five lakhs rupees in respect of any party during the year have been
made at prices which are reasonable having regard to the prevailing
market prices at the relevant time.
vi) Based on our scrutiny of the Company's records and according to the
information and explanations provided by the management, in our opinion
the Company has not accepted any deposits 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) As explained to us, no order for the maintenance of cost records
under section 209(1) (d) of the Act has been made by the Central
Government for any of the products of the Company.
ix) In respect of statutory dues :
a) According to the records of the Company, the company is regular in
depositing with appropriate authorities undisputed statutory dues
including provident fund, investor education and protection fund,
employeesà state insurance, income tax, sales tax, service tax, wealth
tax, customs duty, excise duty, cess and other statutory dues
applicable to it.
b) According to the information and explanations given, there were no
undisputed amounts payable in respect of income tax, service tax,
wealth tax, customs duty, excise duty, cess and other statutory dues
which have remained outstanding as at March 31st, 2011 for a period of
more than six months from the date they became payable.
c) According to the records of the Company, there are no dues of sales
tax, income tax, service tax, customs duty, wealth tax, excise duty and
cess which have not been deposited on account of any dispute.
x) The accumulated losses of the Company at the end of the financial
year ended 31.03.2011 are in excess of 50% of its net worth. The
Company has not incurred any cash losses during the financial year
covered by our audit and the immediately preceeding financial year.
xi) Based on our audit procedures and on the information and
explanations given by the management, we are of the opinion that the
Company has not defaulted in the repayment of dues to banks.
xii) According to the information and explanations given to us, the
Company has not given any loans and advances on the basis of security
by way of pledge of shares, debentures and other securities.
xiii) The Company is not a Chit Fund or a Nidhi / Mutual Benefit Fund /
Society and as such reporting under clause (xiii) of the Order is not
applicable to the Company.
xiv) The Company is not dealing or trading in shares, securities,
debentures and other investments and as such clause (xiv) of the Order
is not applicable to the Company.
xv) According to the records of the Company and the information and
explanations provided by the management, the company has not given any
guarantee for loans taken by others from bank or financial
institutions.
xvi) According to the records of the Company, the Company has not
obtained any term loans. Hence, the question of commenting on the
utilization of such term loans does not arise.
xvii) On the basis of review of utilization of funds on an overall
basis, in our opinion, the funds raised on short term basis have not
been used for long term investment during the year.
xviii) The Company has not made any preferential allotment of shares
during the year.
xix) The Company has not issued any debentures during the year.
xx) The Company has not raised any money by public issue during the
year.
xxi) During the course of our examination of the books of account
carried out in accordance with the generally accepted auditing
practices in India, we have not come across any instance of fraud on or
by the Company nor have been informed by the management of any such
instance being noticed or reported during the year.
For N.R. DORAISWAMI & CO
Chartered Accountants
Regn. No. 000771S
(Sd.) Suguna Ravichandran
Partner
Membership No. 207893
Coimbatore
30.05.2011
Mar 31, 2010
1. We have audited the attached Balance Sheet of M/s. Lakshmi
Automatic Loom Works Limited, as at 31st March, 2010 and also the
Profit and Loss Account and the Cash Flow Statement of the Company for
the year ended on that date annexed thereto. These financial statements
are the responsibility of the Companys management. Our responsibility
is to express an opinion on these financial statements based on our
audit.
2. We conducted our audit in accordance with auditing standards
generally accepted in India. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis
for our opinion.
3. As required by the Companies (Auditors Report) Order, 2003 issued
by the Central Government of India in terms of sub- section (4A) of
section 227 of the Companies Act, 1956, we enclose in the Annexure a
statement on the matters specified in paragraph 4 of the said order.
4. Further to our comments in the Annexure referred to in paragraph 3
above, we report that:
i. We have obtained all the information and explanation, which to the
best of our knowledge and belief were necessary for the purposes of our
audit:
ii. In our opinion, proper books of accounts as required by law have
been kept by the company so far as appears from our examination of such
books;
iii. The Balance Sheet and Profit and Loss Account and Cash Flow
Statement dealt with by this report are in agreement with the books of
account;
iv. In our opinion, the Balance Sheet and Profit and Loss Account and
Cash Flow Statement dealt with by this report comply with the
accounting standards referred to in sub-section (3C) of section 211 of
the companies Act, 1956;
v. On the basis of written representations received from the directors,
as on 31st March, 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. As regards
Government Nominee Directors, they are exempted from the provisions of
section 274 (1) (g) in view of general circular issued by the
Department of Company affairs.
vi. In our opinion and to the best of our information and according to
the explanations given to us, 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 read with the significant accounting
policies and other notes thereon,
a) in the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2010; and
b) in the case of Profit and Loss Account, of the Profit for the year
ended on that date.
c) in the case of Cash Flow Statement, of the cash flows for the year
ended on that date.
Annexure to the Auditors Report (Referred to in paragraph 3 of our report
of even date)
In our opinion and according to the information and explanations given
to us,
i) a) The Company has maintained proper records to show full
particulars including quantitative details and situation of its fixed
assets.
b) The fixed assets of the company have been physically verified during
the year by the management and no material discrepancies between the
book records and the physical inventory have been noticed.
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 disposal 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 procedures of physical verification of inventories
followed by the management are reasonable and adequate in relation to
the size of the company and nature of its business.
c) The company has maintained proper records of inventories and the
discrepancies between the physical inventories and the book records
which have been properly dealt with in the books of account were not
material.
iii) In respect of loans, secured or unsecured, granted or taken by the
Company to or from companies, firms or other parties covered in the
register maintained under section 301 of the Companies Act, 1956,
according to the information and explanations given to us:
a) The Company had taken interest free loan from a company aggregating
to Rs.226.00 Lakhs.
b) The terms and conditions of such loans are, in our opinion, prima
facie, not prejudicial to the interest of the Company.
c) The repayment of the principal amount is as per the agreed terms.
d) There is no overdue amount of such loans taken from aforesaid
company.
iv) In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the Company and the nature of its
business for the purchase of inventory and fixed assets and for the
sale of goods. During the course of our audit, we have not observed any
continuing failure to correct major weaknesses in internal control.
v) In respect of contracts and arrangements entered in the register
maintained in pursuance of section 301 of the Companies Act, 1956;
a) To the best of our knowledge and belief and according to the
information and explanations given to us, contracts and arrangements
that needed to be entered into the register have been so entered.
b) In our opinion, the aforesaid transactions exceeding the value of
five lakhs rupees in respect of any party during the year have been
made at prices which are reasonable having regard to the prevailing
market prices at the relevant time.
vi) Based on our scrutiny of the Companys records and according to the
information and explanations provided by the management, in our opinion
the Company has not accepted any deposits 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)As explained to us, no order for the maintenance of cost records
under section 209(1) (d) of the Act has been made by the Central
Government for any of the products of the Company.
ix) In respect of statutory dues :
a) According to the records of the Company, the company is regular in
depositing with appropriate authorities undisputed statutory dues
including provident fund, investor education and protection fund,
employees state insurance, income tax, sales tax, service tax, wealth
tax, customs duty, excise duty, cess and other statutory dues
applicable to it.
b) According to the information and explanations given, there were no
undisputed amounts payable in respect of income tax, service tax,
wealth tax, customs duty, excise duty, cess and other statutory dues
which have remained outstanding as at March 31st 2010 for a period of
more than six months from the date they became payable except IFST Loan
dues of Rs.7.43 Lakhs.
c) According to the records of the Company, there are no dues of sales
tax, income tax, service tax, customs duty, wealth tax, excise duty,
cess which have not been deposited on account of any dispute except as
follows:
Name of Nature Amount Forum
the of (Rs.in where
Statute Dues Lakhs) Dispute is
pending
Tamilnadu Penal Inte- 205.43 Honourable
General rest on sales (current High Court
Sales Tax tax defer- year of Judicature
Act ral dues 13.66) at Chennai
Tamilnadu Penal Inte- 66.16 Government
General rest on be- (current of
Sales Tax lated pay- year Tamilnadu,
Act ment of 13.92) Chennai
IFST Loan
dues
x) The accumulated losses of the Company at the end of the financial
year ended 31.03.2010 are in excess of 50% of its net worth. The
Company has not incurred any cash losses during the financial year
covered by our audit and has incurred a cash loss of Rs.73.70 lakhs
during the immediately preceeding financial year.
xi) Based on our audit procedures and on the information and
explanations given by the management, we are of the opinion that the
Company has not defaulted in the repayment of dues to banks.
xii) According to the information and explanations given to us, the
Company has not given any loans and advances on the basis of security
by way of pledge of shares, debentures and other securities.
xiii) The Company is not a Chit Fund or a Nidhi / Mutual Benefit Fund /
Society and as such reporting under clause (xiii) of the Order is not
applicable to the Company.
xiv)The Company is not dealing or trading in shares, securities,
debentures and other investments and as such clause (xiv) of the Order
is not applicable to the Company.
xv) According to the records of the Company and the information and
explanations provided by the management, the company has not given any
guarantee for loans taken by others from bank or financial
institutions.
xvi)To the best of our knowledge and belief and according to the
information and explanations given to us, term loans availed by the
Company were, prima facie, applied by the Company during the year for
the purposes for which the loans were obtained.
xvii) On the basis of review of utilization of funds on an overall
basis, in our opinion, the funds raised on short term basis have not
been used for long term investment during the year.
xviii) The Company has made a preferential allotment of 8,50,000 - 6%
Cumulative Redeemable Preference shares of Rs.100/- each, redeemable at
par on the expiry of 10 years from the date of allotment.
xix)The Company has not issued any debentures during the year.
xx) The Company has not raised any money by public issue during the
year.
xxi) During the course of our examination of the books of account
carried out in accordance with the generally accepted auditing
practices in India, we have not come across any instance of fraud on or
by the Company nor have been informed by the management of any such
instance being noticed or reported during the year.
For N.R. DORAISWAMI & CO
Chartered Accountants
Regn. No. 000771S
(Sd.) Suguna Ravichandran
Coimbatore Partner
27.05.2010 Membership No. 207893
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