Mar 31, 2015
We have audited the accompanying financial statements of Shri Lakshmi
Cotsyn Limited ("the Company"), which comprise the Balance Sheet as at
31st March, 2015, the Statement of Profit and Loss for the year and
statement of cash flow for the year ended 31st March, 2015, and a
summary of the significant accounting policies and other explanatory
information.
Management'sResponsibility for theFinancial 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.
Auditor's Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We have taken into account the
provisions of the Act, the accounting and auditing standards and
matters which are required to be included in the audit report under the
provisions of the Act and the Rules made thereunder.
We conducted our audit in accordance with the Standards on Auditing
specified under Section 143(10) of the Act. Those Standards require
that we comply with ethical requirements and plan and perform the audit
to obtain reasonable assurance about whether the financial statements
are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and the disclosures in the financial statements. The
procedures selected depend on the auditor's judgment, including the
assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal financial control relevant
to the Company's preparation of the financial statements that give a
true and fair view in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing
an opinion on whether the Company has in place an adequate internal
financial controls system over financial reporting and the operating
effectiveness of such controls. An audit also includes evaluating the
appropriateness of the accounting policies used and the reasonableness
of the accounting estimates made by the Company's Directors, as well as
evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion on the 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/loss 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, 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 report that:
a) We have sought and obtained all the information and explanations
which to the best of our knowledge and belief were necessary for the
purposes of our audit.
b) In our opinion, proper books of account as required by law have been
kept by the Company so far as it appears from our examination of those
books.
c) The Balance Sheet, the Statement of Profit and Loss and the
statement of cash flow dealt with by this Report are in agreement with
the books of account.
d) In our opinion, the aforesaid financial statements comply with the
Accounting Standards specified under Section 133 of the Act, read with
Rule 7 of the Companies (Accounts) Rules, 2014.
e) On the basis of the written representations received from the
directors as on 31st March, 2015 taken on record by the Board of
Directors, none of the directors is disqualified as on 31st March, 2015
from being appointed as a director in terms of Section 164(2) of the
Act.
f) With respect to the other matters to be included in the Auditor's
Report in accordance with Rule 11 of the Companies (Audit and Auditors)
Rules, 2014, in our opinion and to the best of our information and
according to the explanations given to us:
i. the Company has disclosed the impact of pending litigations on its
financial position in its financial statements - Refer Note 26 in
'Other Notes'.
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 to the Independent Auditors' Report
The Annexure referred to in our Independent Auditors' Report to the
members of the Company on the financial statements for the year ended
31 March 2015, we report that:
1. a. The Company has maintained proper records showing full
particulars, including quantitative details and situation of
fixed assets.
b. The Company has a regular programme of physical verification of its
fixed assets by which fixed assets are verified in a phased manner over
a period of three years. In accordance with this programme, certain
fixed assets were verified during the year and no material
discrepancies were noticed on such verification. In our opinion, this
periodicity of physical verification is reasonable having regard to the
size of the Company and the nature of its assets.
2. a. As explained to us, the 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 were reasonable and adequate in relation to
the size of the Company and the nature of its business.
c. In our opinion and according to the information and explanations
given to us, the Company has maintained proper records of its
inventories and no material discrepancies were noticed on physical
verification.
3. The Company has not granted any loans, secured or unsecured, to
companies, firms or other parties covered in the Register maintained
under Section 189 of the Companies Act, 2013.
4. In our opinion and according to the information and explanations
given to us, there is an adequate internal control system commensurate
with the size of the Company and thenature of its business with regard
to purchases of inventory and fixed assets and the sale of goods and
services. During the course of our audit, we have not observed any
major weakness in such internal control system.
5. The Company has not accepted any deposits from the public.
6. We have broadly reviewed the cost records maintained by the Company
pursuant to the Companies (Cost Accounting Records) Rules, 2011
prescribed by the Central Government under Section 209(1)(d) of the
Companies Act, 1956 and are of the opinion that prima facie the
prescribed cost records have been maintained. We have, however, not
made a detailed examination of the cost records with a view todetermine
whether they are accurate or complete.
7. a. According to the information and explanations given to us,
certain undisputed amounts payable in respect of provident fund,
employees' state insurance, income tax and cess were in arrears as at
31 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 us, there
are dues of income tax for A.Y. 2012-13 amounting to Rs. 42,83,740/-
against which the appeal is pending before the DCIT of ITO-6, Kanpur
which have not been deposited with the appropriate authorities. Other
than the above, no dues are pending against which any dispute is
pending as on 31-03-2015.
c. According to the information and explanations given to us the
amounts (if any) which were required to be transferred to the investor
education and protection fund in accordance with the relevant
provisions of the Companies Act, 1956 (1 of 1956) and rules there under
has been transferred to such fund within time.
8. The accumulated losses at the end of the financial year exceed
fifty percent of the networth of the company. The company has further
incurred cash losses during the year under consideration and also in
the year immediately precedingthe financial year.
9. The Company has outstanding dues to financial institutions, banks
and others during the year. However, as the company has opted for CDR
mechanism as per letter of approval dated 28th June, 2013 and Master
Restructuring Agreement (MRA) signed on 29th June, 2013 the outstanding
dues have been restructured.
10. In our opinion and according to the information and the
explanations given to us, the Company has not given any guarantee for
loans taken by others from banks or financial institutions.
11. As per the information and explanations given by the management,
the Company has applied the term loan for the purpose for which the
loan amount was granted. year.
12. According to the information and explanations given to us, no
material fraud on or by the Company has been noticed or reported during
the course of our audit.
For PRADEEP & ASSOCIATES
Chartered Accountants
(Firm Registration No. 001254C)
P. K. GUPTA
Date : 05.09.2015 Partner
Place : Kanpur Membership No. 070492
Mar 31, 2014
We have audited the accompanying financial statements of M/s Shri
Lakshmi Cotsyn Ltd. which comprise the Balance Sheet as at 31st March
2014, and the Statement of Profit and Loss and Cash Flow Statement for
the nine months period 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 clause (2) of section 2 of the
Companies Act, 2013. This responsibility includes the design,
implementation and maintenance of internal control relevant to the
preparation and presentation of the financial statements that give a
true and fair view and are free from material misstatement, whether due
to fraud or error.
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 31st March 2014
b) in the case of the Statement of Profit and Loss Account, 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.
1.As required by the Companies (Auditor''s Report) Order, 2003 ("the
Order") issued by the Central Government of India in terms of section
143 of the Companies Act, 2013, we give in the Annexure a statement on
the matters specified in paragraphs 4 and 5 of the Order.
2. As required by section 143 of the Companies Act, 2013, 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
clause (2) of section 2 of the Companies Act, 2013;
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 section 164 of the Companies Act,
2013.
f) Since the Central Government has not notified the date at which the
cess is to be paid under Section 269 of the Companies Act 2013, for the
purpose of rehabilitation or revival or protection of assets of the
Sick Industrial Company, nor has issued any rules prescribing the
manner in which such cess is to be paid, Hence no cess is due and
payable by the Company.
The Annexure referred to in paragraph 1 of the Our Report of even date
to the members of Shri Lakshmi Cotsyn Limited. On the accounts of the
company for the nine months financial year ended on 31st March 2014.
On the basis of such checks as we considered appropriate and according
to the information and explanation given to us during the course of our
audit, we 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 us, fixed assets have been physically verified by
the management at reasonable intervals; no material discrepancies were
noticed on such verification.
(c) In our opinion and according to the information and explanations
given to us, no fixed asset has been disposed during the year and
therefore does not affect the going concern assumption.
2. (a) As explained to us, inventories 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 the nature of its business.
(c) In our opinion and on the basis of our 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. (a) According to the information and explanations given to us and
on the basis of our examination of the books of account, the Company
has not granted loans, secured or unsecured, to companies firms or
other parties listed in the register maintained under section 189 of
the Companies Act, 2013. Consequently, the provisions of clauses iii
(b), iii(c) and iii (d) of the order are not applicable to the Company.
(e) According to the information and explanations given to us and on
the basis of our examination of the books of account, the Company has
not taken loans from companies, firms or other parties listed in the
register maintained under section 189 of the Companies Act, 2013. Thus
sub clauses (f) & (g) are not applicable to the company.
4. In our opinion and according to the information and explanations
given to us, 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
5. a) Based on the audit procedures applied by us and according to the
information and explanations provided by the management, there are no
contracts or arrangements referred to in section 189 of the Companies
Act, 2013
b) This Clause is not applicable as stated above.
6. The Company has not accepted any deposits from the public covered
under section section 73 of the Companies Act, 2013
7. As per information & explanations given by the management, the
Company has an internal audit system commensurate with its size and the
nature of its business.
8. As per information & explanation given by the management,
maintenance of cost records has been prescribed by the Central
Government under section 128 of the Companies Act, 2013and we are of
the opinion that prima facie the prescribed accounts and records have
been made and maintained.
9. (a) According to the records of the company, undisputed statutory
dues including Investor Education and Protection Fund, Income-tax,
Sales-tax, Wealth Tax, Service Tax, Custom Duty, Excise Duty, cess to
the extent applicable and any other statutory dues have been regularly
deposited with the appropriate authorities except Provident Fund &
Employees'' State Insurance, TDS, work contact tax etc According to the
information and explanations given to us there were outstanding
statutory dues of Provident Fund & Employees'' State Insurance as on
31st March 2014 for a period of more than six months from the date they
became payable.
(b) According to the information and explanations given to us, 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.
10. In our opinion, the Company''s accumulated losses at the end of the
financial year are in excess of fifty percent of its net worth. The
Company has net loss of Rs. 624.15 Crores and has incurred cash loss of
Rs. 545.68 Crores during the financial year covered by our audit. Thus
the net worth of the company has been completely eroded and the company
is required to make necessary reference to BIFR in accordance with the
provisions of Section 15(1) of Sick Industrial Companies ( Special
Provisions) Act 1985 ( SICA).
11. 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 repayment of dues to banks and other
Financial Institution except the dues of IFCI amounting to Rs. 6.68
crores and of FCCB worth USD 2.80 Mn for which IFCI has filed a
recovery suit at Hon''able DEBT Recovery Tribunal (DRT) Delhi and Bond
Holders have filed winding up petition at Allahabad High Court.
12. Due to the liquidity crunch, the Company had opted Corporate Debt
Restructuring Mechanism envisaged under RBI guidelines & the CDR
package of the Company was approved by the CDR cell vide Letter of
Approval (LOA) dated 28th June 2013 and Master Restructuring Agreement
(MRA) was signed on 29th June 2013. The CDR package is under
implementation.
13. According to the information and explanations given to us, the
Company has not granted loans and advances on the basis of security by
way of pledge of shares, debentures and other securities.
14. The Company is not a chit fund or a nidhi /mutual benefit
fund/society. Therefore, the provision of this clause of the Companies
(Auditor''s Report) Order, 2003 (as amended) is not applicable to the
Company.
15. According to information and explanations given to us, the Company
has made investment in Shares. Proper records & timely entries have
been maintained in this regard & investments specified are held in
their own name.
16. According to the information and explanations given to us, the
Company has not given any guarantees for loan taken by others from a
bank or financial institution.
17. Based on our audit procedures and on the information given by the
management, we report that the company, in compliance of terms of LOA
issued by CDR Cell, has raised Rs. 93.90 crore as unsecured loan from
its Business Associates towards promoters contribution which was to be
converted into equity subject to the approval of BSE/NSE during the
year.
18. Based on the information and explanations given to us and on an
overall examination of the Balance Sheet of the Company as at 31st
March 2014, we report that no funds raised on short-term basis have
been used for long-term investment by the Company.
19. Based on the audit procedures performed and the information and
explanations given to us by the management, we report that the Company
has not made any preferential allotment of shares during the year.
20. The Company has not raised any money by public issue during the
year.
21. Based on the audit procedures performed and the information and
explanations given to us, we report that no fraud on or by the Company
has been noticed or reported during the year, nor have we been informed
of such case by the management.
For Pradeep & Associates.
Chartered Accountants
FRN: 001254C
Sd/-
CA. P.K. Gupta (FCA)
Place: Kanpur (Partner)
Date: 30.05.2014 Membership No. :070492
Jun 30, 2013
We have audited the accompanying financial statements of M/s Shri
Lakshmi Cotsyn Ltd. which comprise the Balance Sheet as at 30th June,
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 explana- tory information.
Management is responsible for the preparation of these finan- cial
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. 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.
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in ac- cordance
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 per- form the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evi- dence
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 consid- ers 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
account- ing 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 suf- ficient 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 af- fairs of the
Company as at June 30, 2013;
b) in the case of the Profit and Loss Account, 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.
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 explana- tions 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 Prof- it 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.
On the basis of such checks as we considered appropriate and according
to the information and explanation given to us dur- ing the course of
our audit, we report that:
1. (a) The company has maintained proper records showing full
particulars including quantitative details and situa- tion of its fixed
assets.
(b) As explained to us, fixed assets have been physically verified by
the management at reasonable intervals; no material discrepancies were
noticed on such veri- fication.
(c) In our opinion and according to the information and explanations
given to us, no fixed asset has been dis- posed during the year and
therefore does not affect the going concern assumption.
2. (a) As explained to us, inventories have been physically verified
during the year by the management at rea- sonable 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 manage- ment are reasonable and adequate in relation to
the size of the company and the nature of its business.
(c) In our opinion and on the basis of our examination of the records,
the Company is generally maintaining proper records of its inventories.
No material discrep- ancy was noticed on physical verification of
stocks by the management as compared to book records.
3. (a) According to the information and explanations given to us and
on the basis of our examination of the books of account, the Company
has not granted loans, se- cured or unsecured, to companies firms or
other par- ties listed in the register maintained under Section 301 of
the Companies Act, 1956. Consequently, the provisions of clauses iii
(b), iii(c) and iii (d) of the order are not applicable to the Company.
(e) According to the information and explanations given to us and on
the basis of our examination of the books of account, the Company has
not taken loans from companies, firms or other parties listed in the
register maintained under Section 301 of the Companies Act, 1956. Thus
sub clauses (f) & (g) are not applicable to the company.
4. In our opinion and according to the information and expla- nations
given to us, there is generally an adequate inter- nal 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 our
audit, no major instance of continuing failure to correct any
weaknesses in the internal controls has been noticed.
5. a) Based on the audit procedures applied by us and ac- cording to
the information and explanations provided by the management, there are
no contracts or ar- rangements referred to in section 301 of the Act.
b) This Clause is not applicable as stated above.
6. The Company has not accepted any deposits from the public covered
under section 58A and 58AA of the Com- panies Act, 1956.
7. As per information & explanations given by the manage- ment, the
Company has an internal audit system com- mensurate with its size and
the nature of its business.
8. As per information & explanation given by the manage- ment,
maintenance of cost records has been prescribed by the Central
Government under clause (d) of sub-sec- tion (1) of section 209 of the
Act and we are of the opinion that prima facie the prescribed accounts
and records have been made and maintained.
9. (a) According to the records of the company, undisput- statutory
dues including Investor Education and Protection Fund, Income-tax,
Sales-tax, Wealth Tax, Service Tax, Custom Duty, Excise Duty, cess to
the extent applicable and any other statutory dues have been regularly
deposited with the appropriate authori- ties except Provident Fund &
Employees'' State Insur- ance. According to the information and
explanations given to us there were outstanding statutory dues of
Provident Fund & Employees'' State Insurance as on 30th June, 2013 for a
period of more than six months from the date they became payable.
(b) According to the information and explanations given to us, there is
no amounts payable in respect of in- come tax, wealth tax, service tax,
sales tax, customs duty and excise duty which have not been deposited
on account of any disputes.
10. The Company has accumulated loss of Rs. 40862.37 Lakhs and has
incurred cash loss of Rs. 25987.80 Lakhs during the financial year
covered by our audit.
11. 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 repayment of dues to a financial
institution, bank or debenture holders except the payment of FCCB worth
USD 2.80Mn.
12. As without Qualifying in our opinion, the attention is invited to
the stakeholders that the company due to the liquidity crunch has opted
Corporate Debt Restructuring Mechanism envisaged under RBI guidelines &
has made reference to CDR cell in February 2013. The CDR package of the
Company was approved by the CDR cell vide Letter of Approval (LOA)
dated 28th June 2013 and Master Restructuring Agreement (MRA) was
signed on 29th June 2013 by the 18 Joint lender Banks out of 20
Bankers. The rest Bankers have signed after 30th June 2013.The CDR
package is under implementation.
13. According to the information and explanations given to us, the
Company has not granted loans and advances on the basis of security by
way of pledge of shares, debentures and other securities.
14. The Company is not a chit fund or a nidhi /mutual benefit
fund/society. Therefore, the provision of this clause of the Companies
(Auditor''s Report) Order, 2003 (as amended) is not applicable to the
Company.
15. According to information and explanations given to us, the Company
is not trading in Shares, Mutual funds & other Investments. Proper
records & timely entries have been maintained in this regard & further
investments specified are held in their own name.
16. According to the information and explanations given to us, the
Company has not given any guarantees for loan taken by others from a
bank or financial institution.
17. Based on our audit procedures and on the information given by the
management, we report that the company has raised term loans during the
year. Besides, the External Commercial Borrowings (ECB) to the tune of
USD 5.00 Mn was raised from UCO Bank and the proceeds thereof was
utilised for the redemption of FCCBs worth USD 5.00 Mn held by UCO Bank
itself.
18. Based on the information and explanations given to us and on an
overall examination of the Balance Sheet of the Company as at 30th June
2013, we report that no funds raised on short-term basis have been used
for long-term investment by the Company.
19. Based on the audit procedures performed and the infor- mation and
explanations given to us by the management, we report that the Company
has not made any preferential allotment of shares during the year.
However the Com- pany has converted its existing FCCB amounting to USD
1 Million into equity shares.
20. During the year, the Company has issued Non- Convertible Debentures
(NCDs) worth Rs. 40 crores to Central Bank of India.
21. The Company has not raised any money by public issue during the
year.
22. Based on the audit procedures performed and the infor- mation and
explanations given to us, we report that no fraud on or by the Company
has been noticed or reported during the year, nor have we been informed
of such case by the management.
For PRADEEP & ASSOCIATES
Chartered Accountants
FRN:001254C
CA. P.K. Gupta
Place: Kanpur Partner
Date: 30th September 2013 Membership No.:070492
Jun 30, 2010
1. We have audited the attached Balance Sheet of Shri Lakshmi Cotsyn
Limited as at 30th June, 2010 and the profit and Loss Account for the
period ended on that date and the Cash Flow Statement for the period
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. These Standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material mis-statement; an audit
includes examining on a test basis, evidence supporting the amounts and
disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statements
presentation. We believe that our audit provides a reasonable basis
for our opinion.
3. As required by the Companies (Auditors Report) Order, 2003 , 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 hereto a
statement on the matters specifed in paragraphs 4 and 5 of the said
Order.
4. Further to our comments in the Annexure referred to in paragraph 3
above, we report that:- (a) We have obtained all the information and
explanations which, to the best of our knowledge and belief, were
necessary for the purpose of our audit.
(b) In our opinion, proper books of accounts, as required by law, have
been kept by the Company so far as appears from our examination of
those.
(c) The Balance Sheet, profit & Loss Account and Cash Flow Statement
dealt with by this report, are in agreement with the books of account.
(d) In our opinion, the Balance Sheet, profit & Loss Account and Cash
Flow Statements dealt with by this report, comply with the Accounting
Standards referred to in Sub-Section (3C) of Section 211 of the
Companies Act, 1956 to the extent applicable.
(e) On the basis of written representation received from the Directors
of the Company as on 30th June, 2010 and taken on record by the Board
of Directors, we report that none of the Directors is disqualifed as on
30th June, 2010 from being appointed as Director in terms of clause (g)
of Sub-Section (1) of Section 274 of the Companies Act, 1956.
(f) In our opinion and to the best of our information and according to
the explanations given to us, the said Accounts read together with
Notes thereon, give the information required by the Companies Act,
1956, in the manner so required and give a true and fair view , in
conformity with the Accounting Principles generally accepted in India
(i) In so far as it relates to the Balance Sheet , of the State of
Affairs of the Company as at 30th June, 2010 and
(ii) In so far as it relates to the profit & Loss Account of the profit
for the period ended on that date; and
(iii) In so far as it relates to the Cash Flow Statement of the Cash
fow of the Company for the period ended on that date.
ANNEXURE REFERRED IN PARAGRAPH 3 OF OUR REPORT OF EVEN DATE
1. (i) The Company has maintained proper records showing full
particulars including quantitative details and situation of fxed
assets.
(ii) As explained to us, the fxed assets have been physically verifed
by the management during the period under regular programme of
verifcation which in our opinion is reasonable having regard to the
size of the Company & nature of its assets. As informed, no material
discrepancies were noticed on such verifcation.
(iii) There was no substantial disposal of fxed assets during the
period.
2. (i) As explained to us, inventory has been physically verifed by
the management at reasonable intervals during the period.
(ii) In our opinion and according to the information and explanations
given to us, the procedures at physical verifcation of inventory
followed by the management are reasonable and adequate in relation to
the size of the Company and nature of its business.
(iii) On the basis of our examination of inventory records, we are of
the opinion that the Company is maintaining proper records of
inventory. As explained to us, there was no material discrepancies
noticed on physical verifcation of inventory as compared to the book
records.
3. (i) The Company has neither granted nor taken any loan
Secured/Unsecured to /from Companies, frms, or other parties covered in
the register maintained u/s 301 of the Companies Act, 1956.
(ii) Since Company has not taken any loan from Companies, frms or other
parties covered in the register maintained u/s 301 of the Companies
Act, 1956 this clause is not applicable.
(iii) Since the Company has not taken any loan from parties covered u/s
301 of the Companies act 1956 comments on this para is not applicable.
4. In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the Company and the nature of its
business with regard to purchase of inventory and fxed assets and for
the sale of goods. During the course of our audit, no major weakness
has been noticed in the internal control in respect of these areas.
5. (i) According to the information and explanations given to us , we
are of the opinion that the transactions that need to be entered in to
the Register maintained under Section 301 of the Companies act 1956
have been so entered.
(ii) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts, of
arrangements entered in the Register maintained under Section 301 of
the Companies Act, 1956 and exceeding the value of Rupees Five Lacs in
respect of any party during the period have been made at prices which
are reasonable having regard to prevailing market prices at the
relevant time.
6. The Company has not accepted Public deposit u/s 58A and 58AA of the
Companies Act, 1956 and rules framed thereunder.
7. In our opinion, the Company has an internal Audit System
commensurate with the size and nature of its business.
8. The Central Government has prescribed maintenance of Cost Records
under Section 209(1) (d) of the Companies Act, 1956 in respect of
certain manufacturing activities of the Company. We have broadly
reviewed the accounts and records of the Company in this connection and
are of the opinion that prima facie, the prescribed accounts and
records have been made & maintained.
9. (i) Undisputed statutory duties in respect of Provident Fund and
Income Tax Deducted at source under Income Tax Act, 1961 have been
deposited regularly by the Company on prescribed due dates with the
appropriate authorities. Further other undisputed statutory dues
including Investor , Education and Protection Fund , Income Tax, Wealth
tax , Sales Tax, Custom duty , Excise duty and Cess have been deposited
subsequently.
(ii) According to the information and explanations given to us, there
is no arrear of undisputed statutory dues outstanding as on 30th June,
2010 for a period of more than six months from the date they became
payable and these dues have been deposited subsequently.
(iii) Since there no arrears of undisputed statutory dues outstanding
comment on this clause not applicable.
10. The Company has no accumulated losses at the end of the financial
period ended on 30th June, 2010 and it has not incurred any cash losses
in the current and immediately preceding financial year.
11. Based on our audit procedures and as per the information and
explanations given by the management, we are of the opinion that the
Company has not defaulted in repayment of dues to financial
Institutions.
12. In our opinion and according to the information and explanations
given to us the Company has not granted loans and advances on the basis
of security by way of pledge of shares, debentures and other
securities.
13. In our opinion, the Company is not a Chit Fund or nidhi / mutual
beneft fund/society.
14. In our opinion, the Company is not dealing or trading in shares,
securities, debentures and other investments.
15. In our opinion and according to the information & explanations
given to us, the Company has not given any guarantee for loans taken by
others from Bank or financial Institutions.
16. Based on the information and explanations given to us by the
management. The Term Loans taken during financial year were applied for
the purpose for which the loans were obtained.
17. According to information and explanation given to us and on an
overall examination of the Balance Sheet of the Company we are of the
opinion that Company has not utilized any short term borrowing for
repayment of long term borrowing and acquisition of fxed assets.
18. During the period covered by our audit report Non-Convertible
Debentures of Rs. 50 crores were issued by the Company and the Company
has also provided Rs. 10 crores (aggregating to Rs.20 crores) as
Debenture Redemption Reserve.
19. The Company has not raised any money by way of public issue during
the period.
20. Based upon the audit procedures performed by the purpose of
reporting true and fair view of the financial statements and according
to the information and explanations given to us by the management , in
our opinion , no fraud on or buy the Company has been noticed or
reported during the course of our audit.
For Pradeep & Associates
Chartered Accountants
(P. K. GUPTA)
Place: Kanpur Proprietor
Dated: 28th September, 2010 Membership No.70492
Jun 30, 2009
Not Available
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