You are here » Home » Companies » Company Overview » Laxmi Vishnu Textile Mills Ltd

Laxmi Vishnu Textile Mills Ltd.

BSE: 502955 Sector: Industrials
NSE: N.A. ISIN Code: N.A.
BSE LIVE 05:30 | 01 Jan Stock Is Not Traded.
NSE 05:30 | 01 Jan Stock Is Not Traded.
OPEN
PREVIOUS CLOSE
VOLUME
52-Week high 0.00
52-Week low 0.00
P/E
Mkt Cap.(Rs cr) 0
Buy Price
Buy Qty
Sell Price
Sell Qty
OPEN
CLOSE
VOLUME
52-Week high 0.00
52-Week low 0.00
P/E
Mkt Cap.(Rs cr) 0
Buy Price
Buy Qty
Sell Price
Sell Qty

Laxmi Vishnu Textile Mills Ltd. (LAXMIVISHNUTEX) - Auditors Report

Company auditors report

THE LAXMI VISHNU TEXTILE MILLS LTD. AUDITORS' REPORT AUDITOR'S REPORT TO THE MEMBERS OF THE LAXMI VISHNU TEXTILE MILLS LIMITED We have audited the attached Balance Sheet of The Laxmi Vishnu Textile Mills Limited as at 31st March, 1998 and also the Profit and Loss Account of the Company for the year ended on that date annexed there to and report that: 1. As required by the Manufacturing and other Companies (Auditor's Report) Order, 1988 issued by the Company Law Board in terms of Section 227(4A) of the Companies Act, 1956, we give in the Annexure a statement on the matters specified in paragraph 4and 5 of the said order. 2. Further to our comments in the Annexure referred to in paragraph 1 above: (a) The Company's operations have been discontinued since June, 1995 due to non-availability of working capital finance. The Board of Industrial and Finance reconstruction (BIFR) was of the prima facie opinion that the Company is no longer viable and is not likely to make its networth positive within a reasonable time and to consider it just and equitable and in the larger public interest to wind up the Company. However, the Company had preferred an appeal before the Appellate Authority of Industrial and Finan cial Reconstruction (AAIFR), New Delhi, against the order. The same has workers' union have filed a petition against the order of the AAIFR in the Mumbai High Court. In view of the above, in our opinion the Company is not going concern. b) (i) The Company has not determined the liability for gratuity payable to its employees on acturial basis as on 31st March. 1998. The accrued li ability for gratuity as on 31st March, 1995 determined on acturial basis amounting to Rs.324.45 lacs has not been provided for, as the Company account for Gratuity as and when due as referred to in Note No.4 of Sched ule 18. Interest on gratuity payable amounting to Rs. 109.95 lacs has also not been provided. (ii) Depreciation in respect of multiple shift allowance amounting in the aggregate to Rs.255.32 lacs for the years 1983 to 1987 has not been provid ed as referred to in Note No.5 Schedule 18. This is contrary to the ac counting practice recommended by the Institute of Chartered Accountants of India. (iii) Provision has not been made in the accounts for excise duty on yarn used for captive consumption amounting to Rs.402.68 lacs as referred to in Note No.9 (a) of Schedule 18. (iv) Provision has not been made in the accounts for doubtful debts and advances amounting to Rs.95.34 lacs and Rs.6.04 lacs respectively as re ferred to in Note No.11 of Schedule 18. (v) As stated in Note No.22 of Schedule 18 the Company has not circulated requests for confirmation of balances of sundry Debtors,Creditors, Advances and Deposits. These balances, therefore, remain unconfirmed and are sub ject to consequential adjustments, if any. (vi) Provision has not been made in the accounts for interest payable on inter corporate deposits as the amount is not ascertainable as referred to in Note No.6 of Schedule 18. (vii) We are unable to express an opinion as to whether inventory valued at Rs.28.80 lacs is realisable in view of the fact that the company's opera tions have come to a standstill since June 1995 as referred to in Note No.15 of Schedule 18. (viii) Provision for Salaries have been made only in respect of Management Staff as the Management Staff as the Management contends that salary wages and retirement benefits are not payable in view of the Mills closure due to Non-availability of Working Capital Finance as referred to in Note No.16 of Schedule 18. (ix) Provision has not been made in the accounts for single shift deprecia tion for the year approximately amounting to Rs.36.69 lacs as referred to in Note No.5 of Schedule 18. (x) Provisions have not been made in the accounts for interest on loan from Financial Institutions and Banks approximately amounting to Rs.110.27 lacs and Rs.776.88 lacs respectively for the year as referred to in Note.6 of Schedule 18. (xi) Provision has not been made in the accounts for interest on statutory liabilities (EPF, ESI, FP, EDLI, P. Tax, MST/CST) approximately amounting to Rs.57.00 lacs for the year as referred to in Note No. 12 of Schedule 18. (xii) Due to closure of the Mills, we were unable to physically verify inventories on 31.3.1998 and have therefore relied on quantitative details as per book records. Discrepancies if any between physical stock and book records have not been dealt within accounts as referred in Note No.17 of Schedule 18. Consequent to the matters referred to in items (i) to (ix) above, loss for the year is understated by Rs.1225.17 lacs and accumulated loss is under stand by Rs.2207.62 lacs. c) 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. d) Subject to our paragraph (b) above, 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. e) The Balance Sheet and the Profit and Loss Account referred to in this report are in agreement with the books of account. f) Subject to para, 1, 2(a) 2(b) in our opinion and to the best of our information and according to the explanations given to us. the said ac counts given to us, the said accounts give the information required by the Companies Act, 1956 in the manner so required and give a true and fair view: i) in the case of the Balance Sheet of the state of affairs of the Company as at 31st March, 1998 and ii) in the case of Profit and Loss Account of the loss for the year ended on that date. Yours faithfully, for CHANDABHOY & JASSOOBHOY Chartered Accountants Place : Mumbai, A.K. KOTWAL Dated : 25th August, 1998. Partner ANNEXURE TO THE AUDITOR'S REPORT Referred to in Paragraph 1 of our report of even date on the accounts for the year ended 31st March, 1998 of The Laxmi Vishnu Textile Mills Limited. 1. Fixed Assets records were not made available for verification and there fore we are unable to comment as to whether these have been properly main tained during the year. The fixed assets have not been physically verified by the management during the year and therefore discrepancies have not been identified between physical inventory and book records. 2. The Fixed Assets have not been revalued during the year. 3. The stocks of finished goods, stores and spares and work-in-process have not been physically verified by the management during the year. 4. The discrepancies if any, between physical stock and book records have not been determined and therefore not dealt with in the books of account. 5. We are unable to express our opinion on whether the valuation of stocks as on 31.3.98 is fair and proper in accordance with normally accepted accounting principles. 6. The Company has taken interest free unsecured loan from a Company listed in the register maintained under section 301 and 370 (1-c) of the Companies Act, 1956 and the terms and conditions of such loan is prima facie not prejudicial to the interest of the Company. 7. The Company has not granted any secured or unsecured loans to companies, firms or other parties listed in the register maintained under Section 301 and 307 (1-C) of the Companies Act, 1956. 8. Employees to whom loans and advances in the nature of loans have not repaid the principal amounts as stipulated. 9. There were no purchases of stores, raw materials including components, plant and machinery, equipment, other assets and sale of goods during the year and therefore the Company's internal control procedures in these areas could not be verified as to its adequacy. 10. According to the information and explanations given to us, there were no transactions of purchase of goods and materials and sale of goods materi als and services aggregating Rs.50,000/- or more in respect of each party in pursuance of contracts or arrangements entered in the register main tained under Section 301 of the Companies Act, 1956. 11. The Company has not determined unserviceable or damaged stores, there fore loss, if any, has not been determined. We are unable to express an opinion on the realisation of stores and spare parts. 12. The Company has not accepted any deposits from the public during the year. 13. Records have not been maintained for sale and disposal of scrap. The Company does not have any by-products. 14. The Company did not have an internal audit system during the year. 15. We have not been able to review the books of account maintained by the Company pursuant to the order made by the Central Government for the main tenance of cost records under Section 209(1) (d) of the Companies Act, 1956 as the records were not maintained. 16. The Company has been irregular in depositing the Provident Fund dues and Employees State Insurance dues with the appropriate authorities. The arrears of Provident Fund dues as at 31st March, 1997 amount to Rs.515.13 lacs and the arrears of Employees State Insurance dues amount to Rs.332.80 lacs. We are unable to quantity the arrears of Provident Fund dues and Employees State Insurance dues for the year ended 31st March, 198. 17. According to the information and explanations given to us, there are no undisputed amounts payable in respect of Income tax, Wealth tax, Sales tax, custom duty and excise duty which were outstanding as at 31st March, 1988 for a period of more than six months from the date they become payable. 18. According to the information and explanations given to us, no personal expenses have been charged to revenue account. other than those payable under contractual obligations or in accordance with the generally accepted business practices. 19. The Company has become a Sick Industrial Company within the meaning of clause (o) of sub section (i) of section 3 of the Sick Industrial Companies (Special Provisions) Act, 1985. The Board for Industrial and Financial Reconstruction (BIFR) bench is of the prima facie opinion that the Company is no longer viable and is not likely to make its networth positive within a reasonable time and is not likely to make its net worth positive within a reasonable time and to consider it just and equitable and in the larger public interest to wind up the Company. However, the Company has preferred an appeal before the Appellate Authority for Industrial and Financial Reconstruction (AAIFR), New Delhi, against the order. The same has been dismissed by AAIFR on 15th January, 1998. The workers' union has filed a petition in the high Court of Mumbai against the order of the AAIFR. The matter is pending decision of the Mumbai High Court. 20. In our opinion clause (iv) of para 4A is not applicable to the company. Yours faithfully, for CHANDABHOY & JASSOOBHOY Chartered Accountants Place : Mumbai, A.K. KOTWAL Dated : 25th August, 1998. Partner