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Lakshana Cotton Spinning Mills Ltd.

BSE: 521157 Sector: Industrials
NSE: N.A. ISIN Code: N.A.
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Lakshana Cotton Spinning Mills Ltd. (LAKSHANACOTTON) - Auditors Report

Company auditors report

LAKSHANA COTTON SPINNING MILLS LIMITED ANNUAL REPORT 1999-2000 AUDITOR'S REPORT Ladies & Gentlemen, I have audited the Balance Sheet of LAKSHANA COTTON SPINNING MILLS LIMITED as at 30th September 2000 and the Profit & Loss Account for the period ended on that date and have signed the statements under the note" To be read with my report annexed herewith". The following is the report annexed with the Balance Sheet and the Profit & Loss Account. 1. In my opinion and to the best of our information and according to the explanations given to us, the above Balance Sheet and the profit & Loss account together with the noted thereon gives the information required by the Companies Act, 1956 in the manner so required. I have obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purpose of our audit. 2. I also state the following as required by the Manufacturing and other Companies (Auditors Report) order 1988: i. The Company has maintained proper records showing full particulars including quantitative details and the situation of fixed assets. As per the information and explanations given to us, the fixed assets have been physically verified by the management during the period at reasonable intervals and it is reported to us that no material discrepancies have been noticed on such verification. ii. None of the fixed assets have been revalued during the year. iii. The Management had arranged for Physical verification of finished goods, raw materials, stores and spare parts during the year. iv. In my opinion and according to the explanations given to us, the procedures for physical verification of stocks followed by the management are reasonable and adequate in relation to the size of the company and the nature of its business. v. No material discrepancies were noticed on verification between physical stocks & the book records. vi. On the basis of my examination of stock records, we are of the opinion that the valuation of stocks is fair and proper in accordance with the normally accepted accounting principles and is on the same basis as in the preceding year. vii. The Company has not taken any loans secured or unsecured from Companies, firms or other parties listed in the register maintained under section 301 & 370 (1-C) of the Companies Act, 1956. viii. All the advances are trade advances in the normal course of business of the company. In my opinion, these loans or advances are not prima facie prejudical to the interest of the company. ix. Loans or advances in the nature of loans have been given to employees and they are repaying the principal amounts as stipulated. x. In my 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 the purchase of stores, raw materials, plant and machinery, equipments and other similar assets and for the sale of goods. xi. In my opinion and according to the information and explanations given to us, there are purchases of stores, raw materials and components exceeding Rs. 50,000/- in value for each type thereof purchased from subsidiaries, firms and companies and other parties in which the Directors are interested as listed in the register maintained under section 301 of the Companies Act, 1956, and the rates paid are reasonable and are at market rate only. xii. As explained to me, the company has a regular procedure for determination of unserviceable or damaged stores, raw materials and finished goods. There had been no unserviceable or damaged stores or raw materials which has arisen during the year. xiii. The Company has not accepted any deposits from the public or from its Directors as on 30.9.2000. Hence the provisions of Section 58-A of the Companies Act, will not be applicable to the company. xiv. The Company is maintaining reasonable records for the sale and disposal of realisable by- products and scrap. xv. The Company has an Internal Audit System commensurate with the size and nature of its business. xvi. On the basis of the records produced, we are of the opinion that prima facie, the cost records and accounts prescribed by the Central Government under Section 209 (1) (d) if the Companies Act, 1956 have been maintained by the company. However, we are not required to carry out any detailed examination of such accounts and records. xvii. As per the records of the company, the company is almost regular in remitting the employees contributions towards Employees State Insurance and Provident Fund (PF). However as on 30-09-2000, due to delay in remittances there is an arrears of Employers Contribution of Rs. 16,20,728/- towards Provident Fund and Rs. 7,27,019/- towards Employees State Insurance relating to the year ended 30-09-2000. xviii. According to the information and explanations given to us, no undisputed amounts are payable in respect of wealth tax, Sales tax, Customs duty and Excise duty which are outstanding as at 30.9.2000 for a period of more than six months from the date they became payable. xix. During the course of our examination of the books of accounts, we have not come across any personal expenses which have been charged to Profit & Loss Account nor have we been informed of such case by the management. xx. The Company is a Sick Industrial Unit within the meaning of clause (o) of sub-section (1) of section 3 of the Sick Industrial Companies (Special Provisions) Act, 1985. 3. Subject to the above remarks, and subject to Note No.12 (e) regarding non provision of liability for Gratuity in the absence of Actuarial Valuation of liability as at 30.09.2000 which cannot be quantified. The said Profit & Loss Account and Balance Sheet give a true and fair view: 1. In the case of the Balance Sheet, of the state of affairs of the company as at September 30, 2000, and 2. In the case of the Profit & Loss Account, of the loss of the company for the period ended on that date. In my opinion, proper books of account as required by the law have been kept by the company so far as it appears from our examination of these books. The above Balance Sheet and Profit & Loss Account are in agreement with the books of account of the Company. (Sd.) A. Nageswaran Place: Coimbatore Chartered Accountant Date : 22-10-2001 Auditor