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Lakshmi Energy & Foods Ltd.

BSE: 519570 Sector: Agri and agri inputs
NSE: LAKSHMIEFL ISIN Code: INE992B01026
BSE 15:40 | 23 Feb 24.75 0.35
(1.43%)
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25.00

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25.50

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24.60

NSE 15:43 | 23 Feb 24.40 -0.05
(-0.20%)
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24.80

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OPEN 25.00
PREVIOUS CLOSE 24.40
VOLUME 12831
52-Week high 74.90
52-Week low 24.20
P/E 3.10
Mkt Cap.(Rs cr) 182
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 25.00
CLOSE 24.40
VOLUME 12831
52-Week high 74.90
52-Week low 24.20
P/E 3.10
Mkt Cap.(Rs cr) 182
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Lakshmi Energy & Foods Ltd. (LAKSHMIEFL) - Auditors Report

Company auditors report

To the Members of

M/s LAKSHMI ENERGY AND FOODS LIMITED

Report on the Standalone IND AS Financial Statements

We have audited the accompanying Standalone IND AS financial statements of LAKSHMIENERGY AND FOODS LIMITED ("the Company") which comprise the Balance Sheet as atMarch 31 2017 the Statement of Profit and Loss (including Other Comprehensive Income)Cash Flow Statement and the Statement of changes in Equity for the year then ended and asummary of significant accounting policies and other explanatory information.

Management’s Responsibility for the Standalone IND AS Financial Statements

The Company’s Board of Directors is responsible for the matters stated in Section134(5) of the Companies Act 2013 ("the Act") with respect to the preparation ofthese IND AS Standalone Financial Statements that give a true and fair view of thefinancial position financial performance including other comprehensive income cash ofthe Company in accordance with the accounting principles generally accepted in Indiaincluding the Indian Accounting Standards (IND AS) prescribed under Section 133 of theAct.

This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding the assets of the Company andfor preventing and detecting frauds and other irregularities; selection and application ofappropriate accounting policies; making judgments and estimates that are reasonable andprudent; and design implementation and maintenance of adequate internal financialcontrols that were operating effectively for ensuring the accuracy and completeness ofthe accounting records relevant to the preparation and presentation of the financialstatements that give a true and fair view and are free from material misstatement whetherdue to fraud or error.

Auditor’s Responsibility

Our responsibility is to express an opinion on these Standalone IND AS FinancialStatements based on our audit.

In conducting our audit we have taken into account the provisions of the Act theaccounting and auditing standards and matters which are required to be included in theaudit report under the provisions of the Act and the Rules made there under.

We conducted our audit in accordance with the Standards on Auditing specified underSection 143(10) of the Act. Those Standards require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetherthe financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the standalone IND AS financial statements. The procedures selecteddepend on the auditor’s judgment including the assessment of the risks of materialmisstatement of the standalone IND AS financial statements whether due to fraud or error.In making those risk assessments the auditor considers internal financial controlrelevant to the Company’s preparation of the standalone IND AS financial statementsthat give a true and fair view in order to design audit procedures that are appropriate inthe circumstances. An audit also includes evaluating the appropriateness of the accountingpolicies used and the reasonableness of the accounting estimates made by theCompany’s Directors as well as evaluating the overall presentation of the financialstatements.

We believe that the audit evidence we have obtained is sufficientand appropriate toprovide a basis for our audit opinion on the Standalone IND AS financial statements.

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid Standalone IND AS financial statements give the informationrequired by the Act in the manner so required and give a true and fair view in conformitywith the accounting principles generally accepted in India of the state of affairs of theCompany as at March 31 2017 and its loss total comprehensive income its cash Flows andthe changes in equity for the year ended on that date.

Report on Other Legal and Regulatory Requirements

1. As required by section 143 (3) of the Act based on our Audit we report to theextent applicable that:

a. We have sought and obtained all the information and explanations which to the bestof 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 theCompany so far as it appears from our examination of those books;

c. The Balance Sheet the Statement of Profit and Loss including Other ComprehensiveIncome the Cash Flow Statement and Statement of changes in Equity dealt with by thisReport are in agreement with the relevant books of account;

d. In our opinion the aforesaid standalone IND AS financial statements comply with theIndian Accounting Standards prescribed under section 133 of the Act;

e. On the basis of written representations received from the directors as on March 312017 taken on record by the Board of Directors none of the directors is disqualified ason March 31 as a director in terms of Section 164 (2) of the Act;

f. With respect to the adequacy of the internal financial financialreporting of theCompany and controlsover the operating effectiveness of such controls refer to ourseparate Report in "Annexure A". Our report expresses an unmodifiedopinion on the adequacy and operating effectiveness of the company’s internalfinancial controls over financial reporting.

g. With respect to the other matters to be included in the Auditor’s Report inaccordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 as amended inour opinion and to the best of our information and according to the explanations given tous:

i. The Company has disclosed the impact of pending litigations on its financialposition in its standalone IND AS financial statements Refer Note 32(6) to the financialstatements;

ii. The Company did not have any long-term contracts including derivative contracts forwhich there were any material foreseeable losses.

iii. There has been no delay in transferring amounts required to be transferred tothe Investor Education and Protection Fund by the Company.

iv. The Company has provided requisite disclosures in the standalone IND AS financialstatements as regards its holding and dealings in Specified Bank Notes as defined in theNotificatiom S.O. 3407(E) dated 8th November 2016 of the Ministry of Finance during theperiod from 8th November 2016 to 30th December 2016. Based on the Audit proceduresperformed and the representations provided to us by the management we report that thedisclosures are in accordance with the books of account maintained by the company and asproduced to us by the management- Refer Note 32(18) of the standalone IND AS financialstatements.

2. As required by the Companies (Auditor’s Report) Order 2016 ("theorder") issued by the Central Government in terms of Section 143(11) of the Act wegive in "Annexure B" a statement on the matters specified in paragraphs 3and 4 of the Order.

For SMPS & Co.
Chartered Accountants
Saurabh Mishra
(Partner)
Membership No. 402499
Place: Khammano FRN 021622N
Date: 30-05-2017

ANNEXURE TO THE INDEPENDENT AUDITORS’ REPORT

"Annexure A" to the Independent Auditor’s Report

(Referred to in paragraph 1(f) under ‘Report on Other Legal and RegulatoryRequirements’ of our report on even date.)

Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143 of the Companies Act 2013 ("the Act")

We have audited the internal financial controls over financial reporting of LakshmiEnergy and Foods Limited ("the Company") as of March 31 2017 in conjunctionwith our audit of the standalone IND AS financial statements of the Company for the yearended on that date.

Management’s Responsibility for Internal Financial Controls

The Company’s management is responsible for establishing and maintaining internalfinancial controls based on the internal control over financial reporting criteriaestablished by the Company considering the essential components of internal control statedin the Guidance Note on Audit of Internal Financial Controls Over Financial Reportingissued by the "Institute of Chartered Accountants of India". Theseresponsibilities include the design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the orderly and efficientconduct of its business including adherence to company’s policies the safeguardingof its assets the prevention and detection of frauds and errors the accuracy andcompleteness of the accounting records and the timely preparation of reliable financialinformation as required under the Companies Act 2013.

Auditors’ Responsibility

Our responsibility is to express an opinion on the Company’s internal financialcontrols over financial reporting based on our audit. We conducted our audit in accordancewith the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting(the "Guidance Note") and the Standards on Auditing issued by ICAI and deemedto be prescribed under section 143(10) of the Companies Act 2013 to the extentapplicable to an audit of internal financial controls both applicable to an audit ofInternal Financial Controls and both issued by the Institute of Chartered Accountants ofIndia. Those Standards and the Guidance Note require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetheradequate internal financial controls over financial reporting was established andmaintained and if such controls operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls system over financial reporting and their operatingeffectiveness. Our audit of internal financial controls over financial reporting includedobtaining an understanding of internal financial controls over financial reportingassessing the risk that a material weakness exists and testing and evaluating the designand operating effectiveness of internal control based on the assessed risk. The proceduresselected depend on the auditor’s judgement including the assessment of the risks ofmaterial misstatement of the standalone IND AS financial statements whether due to fraudor error.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Company’s internal financial controlssystem over financial reporting.

Meaning of Internal Financial Controls over Financial Reporting

A company’s internal financial control over financial reporting is a processdesigned to provide reasonable assurance regarding the reliability of financial reportingand the preparation of financial statements for external purposes in accordance withgenerally accepted accounting principles. A company’s internal financial control overfinancial reporting includes those policies and

(1) pertain to the maintenance of records that in reasonable detail accurately andfairly reflect the transactions and dispositions of the assets of the company;

(2) provide reasonable assurance that transactions are recorded as necessary to permitpreparation of financial statements in accordance with generally accepted accountingprinciples and that receipts and expenditures of the company are being made only inaccordance with authorizations of management and directors of the company; and

(3) provide reasonable assurance regarding prevention or timely detection ofunauthorised acquisition use or disposition of the company’s assets that could havea material effect on the financial statements.

Inherent Limitations of Internal Financial Controls over Financial Reporting

Because of the inherent limitations of internal financial controls over financialreporting including the possibility of collusion or improper management override ofcontrols material misstatements due to error or fraud may occur and not be detected.Also projections of any evaluation of the internal financial controls over financialreporting to future periods are subject to the risk that the internal financial controlover financial reporting may become inadequate because of changes in conditions or thatthe degree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion the Company has in all material respects an adequate internalfinancial controls system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at March 31 2017 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note on Audit ofInternal Financial Controls Over Financial Reporting issued by the Institute of CharteredAccountants of India.

For SMPS & Co.
Chartered Accountants
Saurabh Mishra
(Partner)
Place: Khammano Membership No. 402499
Date: 30-05-2017 FRN 021622N

Annexure to the Auditor’s Report

"Annexure B" to the Independent Auditors’ Report

(Referred to in paragraph 2 under ‘Report on Other Legal & RegulatoryRequirement’ of our report of even date)

1) In respect of its Property plant and equipment:

(a) The Company has maintained proper records showing full particulars includingquantitative details and situation of Property plant and Equipment;

(b) The Company has a programme of verification of Property plant and equipment tocover all the items in a phased manner over a period of two years which in our opinionis reasonable having regard to the size of the Company and the nature of its assets.Pursuant to the programme Property plant and Equipment were physically verified by theManagement during the year. According to the information and explanations given to usdiscrepancies noticed on such verification were not material and have been properly dealtin the books of account.

(c) According to the information and explanations given to us and the records examinedby us and based on the examination of the registered sale deed and transfer deed providedto us we report that the title deeds of immovable properties are held in the name of thecompany.

2) (a) The management has conducted the physical verification of inventory atreasonable intervals during the year and no material discrepancies were noticed on suchphysical verification.

(b) In our opinion and according to the information and explanations given to us theprocedures of physical verification of inventories followed by the management arereasonable and adequate in relation to the size of the company and the nature of itsbusiness.

3) The Company has not granted any loans secured or unsecured to companies firmsLimited Liability partnerships or other parties covered in the Register maintained undersection 189 of the Act.

4) In our opinion and according to the information and explanations given to us thecompany has complied with the provisions of section 185 and I86 of the Companies Act 2013in respect of loans investments guarantees and security.

5) In our opinion and according to the information and explanations given to us theCompany has not accepted any deposits during the year from the public in accordance withthe provisions of Sections 73 to 76 or any other relevant provisions of the Act and rulesframed there under. Accordingly paragraph 3(v) of the order is not applicable to theCompany.

6) The maintenance of cost records has been specified by the Central Government undersection 148(1) of the Companies Act 2013 in respect of Power generation unit of theCompany. We have broadly reviewed the cost records maintained by the company pursuant tothe Companies(Cost Records and Audit) Rules 2014 as amended and prescribed by theCentral Government of India under sub section(1) of section 148 of the Companies Act andare of the opinion that prima facie the prescribed records have been maintained. We havehowever not made detailed examination of the cost records so as to determine whether theyare accurate or complete.

7) (a) According to information and explanations given to us and on the basis of ourexamination of the books of account and records the Company has been generally regularin depositing undisputed statutory dues including Employees State Insurance Income-TaxSales tax Service Tax Duty of Customs Duty of Excise Value added Tax Cess and anyother statutory dues with the appropriate authorities. According to the information andexplanations given to us no undisputed amounts payable in respect of the above were inarrears as at March 31 2017 for a period of more than six months from the date on whenthey become payable except for the Employee’s Provident Fund dues of Rs.894105.00 which were duly deposited on 04.04.2017.

(b) According to the information and explanation given to us there are no dues ofsales tax service tax duty of customs duty of excise value added tax outstanding onaccount of any dispute. Income Tax dues outstanding on account of disputes are as follows:

(Rs. in Million)
Name of the Statutes Nature of dues Amount Period to which amount relates Forum where dispute is pending
Income Tax Act 1961 Demand Raised 65.50 AY 2008-09 Punjab & Haryana High Court

8) In our opinion and according to the information and explanations given to us theCompany has defaulted in the repayment of fund based and non-fund based borrowings to thebanks as per details given below (refer note no. 32 point no. 2 to the note to financialstatements). Besides these facilities there is no default in the repayment ofloans/borrowings to the financialinstitutions banks Government or debenture holders:

Lender Outstanding as on 31.03.2017 (including term loan & WC Facilities (Rs in millions) Maximum Period of overdue (In Days)
Banks:
Particulars Principal Interest Principal Interest
1. PNB 6209.29 7.67 90 243
2. SYNDICATE 3062.85 214.53 90 212
3. ICICI BANK 1582.37 38.72 90 121
4. AXIS BANK 800.29 39.00 90 151
11654.80 299.92

9) Based upon the audit procedures performed and the information and explanations givenby the management the company has not raised moneys by way of initial public offer orfurther public offer including debt instruments and term Loans. Accordingly theprovisions of clause 3 (ix) of the Order are not applicable to the Company and hence notcommented upon.

10) Based upon the audit procedures performed and the information and explanationsgiven by the management we report that no fraud by the Company or on the company by itsofficers or employees has been noticed or reported during the year.

11) Based upon the audit procedures performed and the information and explanationsgiven by the management the managerial remuneration has been paid or provided inaccordance with the requisite approvals mandated by the provisions of section 197 readwith Schedule V to the Companies Act 2013;

12) The Company is not a Nidhi Company. Therefore the provisions of clause (xii) ofthe Order are not applicable to the Company.

13) In our opinion all transactions with the related parties are in compliance withsection 177 and 188 of Companies Act 2013 and the details have been disclosed in theFinancial Statements as required by the applicable accounting standards.

14) Based upon the audit procedures performed and the information and explanationsgiven by the management the company has made preferential allotment of convertiblewarrants (7140000 warrants at Rs. 17.50 per warrant)out of which Rs.76912500.00 havebeen received during the year under review. Accordingly the provisions of section 42 ofthe Companies Act 2013 have been complied with and the amount raised has been used forthe purpose for which the funds were raised.

15) Based upon the audit procedures performed and the information and explanationsgiven by the management the company has not entered into any non-cash transactions withdirectors or persons connected with him and hence provisions of Section 192 of the Act arenot applicable.

16) The company is not required to be registered under section 45 IA of the ReserveBank of India Act 1934

For SMPS & Co.
Chartered Accountants
Saurabh Mishra
(Partner)
Membership No. 402499
Place: Khammano FRN No. 021622N
Date: 30-05-2017