| 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) |