You are here » Home » Companies » Company Overview » Lokesh Machines Ltd

Lokesh Machines Ltd.

BSE: 532740 Sector: Engineering
NSE: LOKESHMACH ISIN Code: INE397H01017
BSE LIVE 12:42 | 21 Sep 80.00 -1.25
(-1.54%)
OPEN

81.75

HIGH

82.20

LOW

78.35

NSE 12:31 | 21 Sep 79.25 -2.05
(-2.52%)
OPEN

82.25

HIGH

82.25

LOW

78.30

OPEN 81.75
PREVIOUS CLOSE 81.25
VOLUME 15413
52-Week high 109.70
52-Week low 61.15
P/E 58.39
Mkt Cap.(Rs cr) 136
Buy Price 79.55
Buy Qty 35.00
Sell Price 79.90
Sell Qty 75.00
OPEN 81.75
CLOSE 81.25
VOLUME 15413
52-Week high 109.70
52-Week low 61.15
P/E 58.39
Mkt Cap.(Rs cr) 136
Buy Price 79.55
Buy Qty 35.00
Sell Price 79.90
Sell Qty 75.00

Lokesh Machines Ltd. (LOKESHMACH) - Auditors Report

Company auditors report

INDEPENDENT AUDITORS

To

The Members of

LOKESH MACHINES LIMITED

HYDERABAD.

Report on the Financial Statements:

We have audited the accompanying financial statements of LOKESH MACHINES LIMITEDHYDERABAD ("the Company") which comprise the Balance Sheet as at March 312014 and the Statement of Profit and Loss and Cash Flow Statement for the year then endedand 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 atrue and fair view of the financial position financial performance and cash flows of theCompany in accordance with the Accounting Standards referred to in subsection (3C) ofsection 211 of the Companies Act 1956 ("the Act"). This responsibility includesthe design implementation and maintenance of internal control relevant to the preparationand presentation of the financial statements that give a true and fair view and are freefrom material misstatement whether due to fraud or error.

Auditor's Responsibility:

Our responsibility is to express an opinion on these financial statements based on ouraudit. We conducted our audit in accordance with the Standards on Auditing issued by theInstitute of Chartered Accountants of India. Those Standards require that we comply withethical requirements and plan and perform the audit to obtain reasonable assurance aboutwhether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts anddisclosures in the financial statements. The procedures selected depend on the auditor'sjudgment including the assessment of the risks of material misstatement of the financialstatements whether due to fraud or error.

In making those risk assessments the auditor considers internal control relevant tothe Company's preparation and fair presentation of the financial statements in order todesign audit procedures that are appropriate in the circumstances. An audit also includesevaluating the appropriateness of accounting policies used and the reasonableness of theaccounting estimates made by management as well as evaluating the overall presentation ofthe financial statements. We believe that the audit evidence we have obtained issufficient and appropriate to provide a basis for our audit opinion

Bases for qualified opinion:

During the financial year Company has paid an amount of Rs. 148.07 lac out of Rs.603.59 lacs payable against Secured non convertible debentures (NCD's).

In our opinion and to the best of our information and according to the explanationsgiven to us the financial statements give the information required by the Act in themanner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India:

a. in the case of the Balance Sheet of the state of affairs of the Company as at March31 2014;

b. in the case of the Statement of Profit and Loss of the profit for the year ended onthat date; and

c. in the case of the Cash Flow Statement of the cash flows for the year ended on thatdate

Report on 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 227 ofthe Act we give in the Annexure a statement on the matters specified in paragraphs 4 and5 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 ourknowledge 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 appears from our examination of those books ;

c. the Balance Sheet Statement of Profit and Loss and Cash Flow Statement dealt withby this Report are in agreement with the books of account;

d. in our opinion the Balance Sheet Statement of Profit and Loss and Cash FlowStatement comply with the Accounting Standards referred to in subsection (3C) of section211 of the Companies Act 1956;

e. On the basis of written representations received from the directors as on March 312014 and taken on record by the Board of Directors none of the directors is disqualifiedas on March 31 2014 from being appointed as a director in terms of clause (g) ofsub-section (1) of section 274 of the Companies Act 1956.

for BRAHMAYYA & CO.
Chartered Accountants
Firm Regn. No.000513S
(K.S.RAO)
Place: Hyderabad Partner
Date : 30.05.2014 Membership No.015850

Annexure to the Auditor's Report: referred to in paragraph 3 of our report of evendate

Re: LOKESH MACHINES LIMITED HYDERABAD.

1. a) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.

b) As explained to us the management has physically verified most of the fixed assetsduring the year and there is a regular programme of verification which in our opinion isreasonable having regard to the size of the Company and the nature of the assets. Asinformed no material discrepancies were noticed on such verification.

c) During the year the Company has not disposed off any of the fixed assets.

2. a) The inventory has been physically verified during the year by the management. Inour opinion the frequency of verification is reasonable.

b) In our opinion the procedures of physical verification of inventories followed bythe management are reasonable and adequate in relation to the size of the Company and thenature of its business.

c) The Company is maintaining proper records of inventory. The discrepancies noticed onphysical verification between the physical stocks and book records were not material.

3. According to the information and explanations given to us the company has neithergranted nor taken any loans secured or unsecured from/to companies firms or otherparties covered in the register maintained under section 301 of the Companies Act 1956.

4. In our opinion and according to the information and explanations given to us thereare adequate internal control systems commensurate with the size of the Company and thenature of its business with regard to purchase of inventory and fixed assets and withregard to sale of goods and services. During the course of our audit we have not observedany continuing failure to correct major weaknesses in internal control system.

5. a) According to the information and explanations given to us by the Management weare of the opinion that the particulars of contracts or arrangements referred to insection 301 of the Companies Act 1956 have been entered in the register to be maintainedunder that section b) In our opinion and according to the information and explanationsgiven to us the transactions made in pursuance of contracts or arrangements entered inthe register maintained under section 301 of the Companies Act 1956 have been made atprices which are reasonable having regard to prevailing market prices at the relevanttime.

6. The company has not accepted any deposits from the public. Hence the provisions ofSections and 58A 58AA and other relevant provisions of the Companies Act 1956 and theCompanies (Acceptance of Deposits) Rules 1975 are not applicable to the Company for thetime being.

7. In our opinion the Company has an internal audit system commensurate with its sizeand nature of its business.

8. We have broadly reviewed the books of account relating to materials labour andother items of cost maintained by the company pursuant to the Rules made by the CentralGovernment for the maintenance of cost records under section 209(1)(d) of the CompaniesAct 1956 in respect of manufacturing of machinery and job works and are of the opinionthat prima facie the prescribed accounts and records have been made and maintained.

9. a) According to the records the Company is generally regular in depositing withappropriate authorities undisputed statutory dues including Provident Fund InvestorEducation and Protection Fund Employees' State Insurance Sales Tax Service Tax CustomsDuty Excise Duty Cess and other material statutory dues applicable to it. b) Accordingto the information and explanations given to us no undisputed amounts payable in respectof Income Tax Sales Tax Service Tax Customs Duty Excise Duty and Cess were in arrearsas at March 31 2014 for a period of more than six months from the date they becamepayable.

10. The Company has no accumulated losses as at the end of the financial year. TheCompany has not incurred any cash losses during the financial year covered by our auditand the immediately preceding financial year.

11. In our opinion and according to the information and explanations given to us theCompany has not defaulted in repayment of dues to any financial institutions and Banks.

12. The Company has not granted any loans and advances on the basis of security by wayof pledge of shares debentures and other securities.

13. The Company is not a chit fund or a nidhi/mutual benefit fund/ society. Thereforethe provisions of clause 4(xiii) of the Companies (Auditor's Report) Order 2003 are notapplicable to the Company.

14. The Company is not dealing or trading in shares securities debentures and otherinvestments. Therefore the provisions of clause 4(xiv) of the Companies (Auditor'sReport) Order 2003 are not applicable to the Company.

15. According to the information and explanations given to us the Company has notgiven any guarantee for loans taken by others from bank or financial institutions.

16. In our opinion and according to the information and explanations given to us theterm loans were applied for the purpose for which the loans were raised.

17. According to the information and explanations given to us and on an overallexamination of the Balance Sheet of the Company we report that no funds raised onshort-term basis have been used for long-term investment.

18. During the year the Company has not made any preferential allotment of shares toparties and Companies covered in the Register maintained under section 301 of theCompanies Act 1956.

19. During the year the Company has not issued any debentures therefore the questionof creating security or charge in respect thereof does not arise

20. During the year the Company has not made any public issue and therefore thequestion of disclosing the end use of money raised by public issue does not arise.

21. Based upon the audit procedures performed and according to the information andexplanations given to us we report that no fraud on or by the Company has been noticed orreported during the year.

for BRAHMAYYA & CO.
Chartered Accountants
Firm Regn. No.000513S
(K.S.RAO)
Place: Hyderabad Partner
Date : 30.05.2014 Membership No.015850