Report on the Financial Statements:
We have audited the accompanying financial statements of Coimbatore
Lakshmi Investment and Finance Company 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's Responsibility for the Financial Statements:
Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position,
financial performance and cash flows of the Company in accordance with
the Accounting Standards referred to.in sub-section (3C) of section 211
of the Companies Act, 1956 ("the Act"). This responsibility includes
the design, implementation and maintenance of internal control relevant
to the preparation and presentation of the financial statements that
give a true and fair view and are free from material misstatement,
whether due to fraud or error.
Auditor's Responsibility:
Our responsibility is to express an opinion on these financial
statements based on our audit We conducted our audit in accordance with
the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence dbout
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 controlrelevant 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 qualified audit opinion.
Basis of Qualified Opinion:
a) Going Concern of the company being affected, the exact Impact of
which is not ascertainable.
b) Non-reconciliation of Bank accounts for the aggregate amount of
difference as of 31" March 2013 being Rs.1,14,561/-, the exact Impact
of which on the working results of the company is not ascertainable as
the company is yet to complete the reconciliation.
c) Non-reconciliation of certain subsidiary records, the exact impact
of which on the working results of the company is not ascertainable as
the company is yet to complete the reconciliation.
d) Won receipt of confirmation of balances from parties, the exact
impact of which on the working results of the company is not
ascertainable due to non availability of information with the company.
m) Nan compliance of the Reserve Bank of India Guidelines In respect of
Statutory liquidity Ratio and Capital Adequacy Ratio.
Q Non-recognition of disposal of Bangalore Branch assets, the quantum
of which have not been Identified and determined by the Company.
Qualified Opinion:
In ouropinfon and to the best of our Information and according to the
explanations given to us, except for the effects of the matter
described in the Basis of Qualified Opinion paragraph, the financial
statements give the information required by the Act In Ihe manner so
required and give a true and fair view In conformity with 1he
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 Statement of Profit and Loss, of the loss for the
year ended on that date; and
c) In the case of the Cash Flow Statement, of the cash flows for the
year ended on that date. Report on the 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 .22 7 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 Lossand 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 Ihe Accounting Standards referred to in
subsection (3C) of section 211 of the Companies Act, 1966;
e) on Ihe 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 Auditor's Report to the Members of Coimbatore Lakshmi
Investment and Finance Company Limited, Coimbatore.
1 The company has neither taken nor granted any loans, secured or
unsecured to or from companies, firms or other parties covered in the
register maintained under section 301 of the companies Act, 1956. -
2 There are adequate internal system procedures commensurate with the
size of the company - and the nature of its business, for the purchase
of fixed assets and for the Services rendered. During the course of
our audit, we have not observed any mdjor weaknesses in internal
control.
3 We are of the opinion that the transactions that need to be entered
in the register maintained u/ s 301 of the Companies Act, 1956, have
been so entered.
4 The company has not accepted any deposits from public during the
year. The Company law Board had passed an order dated 31.3,1999,
regarding repayment of deposit and interest.
5 The company has an Internal audit system commensurate with its size
and the nature of its business.
6 The company is generally regular in depositing with the appropriate
authorities undisputed statutory dues including Provident Fund,'
Employees' State Insurance, and Sales-tax. According to the information
and expldnation given to us, no undisputed arrears of statutory dues
were outstanding as at 31 * March, 2013 for a period of more than six
months from the date they became payable.
7 The accumulated losses of the Company as at 31" March 2013 are more
than fifty per cent of its net worth and the company has incurred cash
losses during the financial year covered by our audit and also In the
immediately preceding financial year.
8 a. The company is dealing in shares, securities and other
Investments and the company has maintained proper records of
transactions and contracts thereon.
b. The Company has made timely entries of the above transactions.
c. The shares, securities and other securities have been held by the
company in Its own name.
9 The Company has not given any guarantee for loans taken by others
from bank or financial institutions. .
10 According to the information and the explanation given to us and on
an overall examination of the balance sheet of the company, we report
that no funds raised on short-term basis have been used for long-term
investment.
11 According to the information and the explanation given to us and the
books and records examined by us, no fraud on or by the company has
been noticed or reported during the year.
12 The other clauses of the order are not applicable to the company.
For Suri & Co.
Chartered Accountants
Firm Registration No 004283S
(Sd/-)
M. SIVARAM
Place : Coimbatore Partner
Date ; 02.12.2013 M.No. 211916 |