Standalone Financial Results
The Members of Kovilpatti Lakshmi Roller Flour Mills Limited Gangaikondan. Report onthe Audit of the Standalone Financial Statements Opinion
I have audited the standalone financial statements of Kovilpatti Lakshmi Roller FlourMills Limited ("the Company") which comprises the Balance Sheet as at 31stMarch 2021 and the Statement of Profit and Loss Statement of changes in equity andstatement of cash flows for the year ended 31.03.2021 and notes to the financialstatements including a summary of significant accounting policies and other explanatoryinformation in which are also included the financial statements/ information for the yearended on that date audited by the branch auditors of the Company's branches located atCoimbatore Tamilnadu.
In my opinion and to the best of my information and according to the explanations givento me the aforesaid standalone financial statements give the information required by theCompanies Act 2013 ("the Act") in the manner so required and give a true andfair view in conformity with the accounting principles generally accepted in India of thestate of affairs of the Company as at March 31 2021 its profit and other comprehensiveincome changes in equity and its cash flows for the year ended on that date.
Basis for Opinion
I conducted my audit in accordance with the Standards on Auditing (SAs) specified undersection 143(10) of the Companies Act 2013. My responsibilities under those Standards arefurther described in the Auditor's Responsibilities for the Audit of the FinancialStatements section of my report. I am independent of the Company in accordance with theCode of Ethics issued by the Institute of Chartered Accountants of India together with theethical requirements that are relevant to my audit of the financial statements under theprovisions of the Companies Act 2013 and the Rules thereunder and I have fulfilled myother ethical responsibilities in accordance with these requirements and the Code ofEthics. I believe that the audit evidence I have obtained is sufficient and appropriate toprovide a basis for my opinion.
Information Other than the Financial Statements and Auditor's Report Thereon
The Company's Board of Directors are responsible for the other information. The otherinformation comprises the Board's Report and the Corporate Governance Report but does notinclude the standalone financial statements and my auditor's report thereon.
My opinion on the standalone financial statements does not cover the other informationand I do not express any form of assurance conclusion thereon.
In connection with my audit of the standalone financial statements my responsibilityis to read the other information and in doing so consider whether the other informationis materially inconsistent with the standalone financial statements or my knowledgeobtained during the course of my audit or otherwise appears to be materially misstated.If based on the work I have performed I conclude that there is a material misstatementof this other information; I am required to report that fact. I have nothing to report inthis regard.
Key Audit Matters
Key audit matters are those matters that in my professional judgment were of mostsignificance in my audit of the financial statements of the current period. These matterswere addressed in the context of my audit of the financial statements as a whole and informing my opinion thereon and I do not provide a separate opinion on these matters.
|Key Audit Matter ||How the Key Audit Matter was addressed in my audit |
|Evaluation of uncertain tax positions || Obtained details of completed tax assessments and demands for the year ended March 31 2021 from management. |
| || Reviewed the management's underlying assumptions in estimating the tax provision and the possible outcome of the disputes. |
| || Considered legal precedence and other rulings in evaluating management's position on these uncertain tax positions. |
| || Also considered the effect of new information in respect of uncertain tax positions to evaluate whether any change was required to management's position on these uncertainties. |
Management's Responsibility for the Standalone 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 standalone financial statements that give a true and fair view of the financialposition financial performance changes in equity and cash flows of the Company inaccordance with the accounting principles generally accepted in India including theAccounting Standards specified under Section 133 of the Act.
This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding of the assets of the Companyand for preventing and detecting frauds and other irregularities; selection andapplication of appropriate accounting policies; making judgments and estimates that arereasonable and prudent; and design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the accuracy andcompleteness of the accounting records relevant to the preparation and presentation ofthe financial statement that give a true and fair view and are free from materialmisstatement whether due to fraud or error.
In preparing the financial statements management is responsible for assessing theCompany's ability to continue as a going concern disclosing as applicable mattersrelated to going concern and using the going concern basis of accounting unless managementeither intends to liquidate the Company or to cease operations or has no realisticalternative but to do so.
The Board of Directors are also responsible for overseeing the Company's financialreporting process.
Auditor's Responsibilities for the Audit of the Financial Statements
My objectives are to obtain reasonable assurance about whether the financial statementsas a whole are free from material misstatement whether due to fraud or error and toissue an auditor's report that includes my opinion. Reasonable assurance is a high levelof assurance but is not a guarantee that an audit conducted in accordance with SAs willalways detect a material misstatement when it exists. Misstatements can arise from fraudor error and are considered material if individually or in the aggregate they couldreasonably be expected to influence the economic decisions of users taken on the basis ofthese financial statements.
I give in "Annexure A" a detailed description of Auditor's responsibilitiesfor Audit of the standalone Financial Statements.
I did not audit the financial statements/ information of 2 (Two) branches included inthe stand alone financial statements of the Company whose financial statements/financialinformation reflect total assets of Rs 3399.91 lakhs as at 31st March 2021 andthe total revenue of Rs 6496.79 lakhs for the year ended on that date as considered inthe standalone financial statements/ information of these branches have been audited bythe branch auditors whose reports have been furnished to me and my opinion in so far asit relates to the amounts and disclosures included in respect of branches is based solelyon the report of such branch auditors.
My opinion is not modified in respect of these matters.
Report on Other Legal and Regulatory Requirements
As required by the Companies (Auditor's Report) Order 2016 ("the Order")issued by the Central Government of India in terms of sub-section (11) of section 143 ofthe Companies Act 2013 I give in the "Annexure B" a statement on the mattersspecified in paragraphs 3 and 4 of the Order to the extent applicable.
As required by Section 143(3) of the Act I report that:
(a) I have sought and obtained all the information and explanations which to the bestof my knowledge and belief were necessary for the purposes of my audit.
(b) In my opinion proper books of account as required by law have been kept by theCompany so far as it appears from my examination of those books and proper returnsadequate for the purposes of my audit have been received from the branches not visited byme.
(c) The reports on the accounts of the branch offices of the Company audited underSection 143(8) of the Act by branch auditors have been sent to me and have been properlydealt with by me in preparing this report.
(d) The Balance Sheet the Statement of Profit and Loss and the Cash Flow Statementdealt with by this Report are in agreement with the books of account and with the returnsreceived from the branches not visited by me.
(e) In my opinion the aforesaid standalone financial statements comply with theAccounting Standards specified under Section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014.
(f) On the basis of the written representations received from the directors as on 31stMarch 2021 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2021 from being appointed as a director in termsof Section 164 (2) of the Act.
(g) With respect to the adequacy of the internal financial controls over financialreporting of the Company and the operating effectiveness of such controls refer to myseparate Report in "Annexure C".
(h) 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 in my opinionand to the best of my information and according to the explanations given to me:
I. The Company has disclosed the impact of pending litigations on its financialposition in its financial statements Refer Note 37 to the financial statements;
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.
As required by the Companies (Amendment) Act 2017 in my opinion and according to theinformation and explanations given to me the remuneration paid by the Company to itsdirectors is within the limits prescribed under Section 197 of the Act and the rulesthereunder.
Annexure "A" to the Independent Auditor's Report
(Referred to in Auditor's Responsibilities for the Audit of the Financial Statementssection of my report to the members of Kovilpatti Lakshmi Roller Flour Mills Limited ofeven date)
Auditor's Responsibilities for the Audit of the Financial Statements
As part of an audit in accordance with SAs I exercise professional judgment andmaintain professional scepticism throughout the audit. I also:
I. Identify and assess the risks of material misstatement of the financial statementswhether due to fraud or error design and perform audit procedures responsive to thoserisks and obtain audit evidence that is sufficient and appropriate to provide a basis formy opinion. The risk of not detecting a material misstatement resulting from fraud ishigher than for one resulting from error as fraud may involve collusion forgeryintentional omissions misrepresentations or the override of internal control.
II. Obtain an understanding of internal control relevant to the audit in order todesign audit procedures that are appropriate in the circumstances. Under section 143(3)(i)of the Companies Act 2013 I am also responsible for expressing my opinion on whether thecompany has adequate internal financial controls system in place and the operatingeffectiveness of such controls.
III. Evaluate the appropriateness of accounting policies used and the reasonableness ofaccounting estimates and related disclosures made by management.
IV. Conclude on the appropriateness of management's use of the going concern basis ofaccounting and based on the audit evidence obtained whether a material uncertaintyexists related to events or conditions that may cast significant doubt on the Company'sability to continue as a going concern. If I conclude that a material uncertainty existsI am required to draw attention in my auditor's report to the related disclosures in thefinancial statements or if such disclosures are inadequate to modify my opinion. Myconclusions are based on the audit evidence obtained up to the date of my audit report.However future events or conditions may cause the company to cease to continue as a goingconcern.
V. Evaluate the overall presentation structure and content of the financialstatements including the disclosures and whether the financial statements represent theunderlying transactions and events in a manner that achieves fair presentation.
Materiality is the magnitude of misstatements in the financial statements thatindividually or in aggregate makes it probable that the economic decisions of areasonably knowledgeable user of the financial statements may be influenced.
I consider quantitative materiality and qualitative factors in
(i) planning the scope of our audit work and in evaluating the results of our work; and
(ii) to evaluate the effect of any identified misstatements in the financial statements
I communicate with those charged with governance regarding among other matters theplanned scope and timing of the audit and significant audit findings including anysignificant deficiencies in internal control that I identify during my audit.
I also provide those charged with governance with a statement that I have complied withrelevant ethical requirements regarding independence and to communicate with them allrelationship and other matters that may reasonably be thought to bear on my independenceand where applicable related safeguards.
From the matters communicated with those charged with governance we determine thosematter that were of most significance in the audit of the standalone financial statementsof the current period and are therefore the key audit matters. I describe these matters inmy auditors' report unless law or regulation precludes public disclosure about the matteror when in extremely rare circumstances I determine that the matter should not becommunicated in my report because the adverse consequences of doing so would reasonably beexpected to outweigh the public interest benefits of such communication.
Annexure "B" to the Independent Auditor's Report
(Referred to in paragraph 1 under Report on Other Legal and RegulatoryRequirements' section of my report to the members of Kovilpatti Lakshmi Roller Flour MillsLimited of even date)
1. In respect of the Company's fixed assets:
(a) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.
(b) The Company has a program of verification to cover all the items of fixed assets ina phased manner which in my opinion is reasonable having regard to the size of theCompany and the nature of its assets. Pursuant to the program certain fixed assets werephysically verified by the management during the year. According to the information andexplanations given to me no material discrepancies were noticed on such verification.
(c) According to the information and explanations given to me the records examined byme and based on the examination of the conveyance deeds provided to me I report that thetitle deeds comprising all the immovable properties of land and buildings which arefreehold are held in the name of the Company as at the balance sheet date.
2. The inventory has been physically verified by the management during the year. In myopinion the frequency of such verification is reasonable.
3. According to information and explanation given to me the company has not grantedany loan secured or unsecured to companies firms limited liability partnerships orother parties covered in the register required under Section 189 of the Companies Act2013. Accordingly paragraph 3 (iii) of the order is not applicable.
4. In my opinion and according to information and explanation given to me the Companyhas not granted any loans or provided any guarantees or given any security to which theprovision of Section 185 of the Companies Act 2013 are applicable. In respect ofinvestments made by the Company the Company had complied with the provisions of Section186 of the Companies Act 2013.
5. In my opinion and according to the information and explanations given to me thecompany has not accepted any deposits and accordingly paragraph 3 (v) of the order is notapplicable.
6. In my opinion and according to the information and explanations given to me andbased on the report of the branch auditors the Engineering Divisions of the company hadmaintained cost records specified under Section 148 (1) (d) of the Companies Act 2013 andthe relevant rules prescribed. However I have not carried out a detailed examination ofthe same.
7. According to the information and explanations given to me in respect of statutorydues:
(a) The Company has generally been regular in depositing undisputed statutory duesincluding Provident Fund Employees' State Insurance Income Tax Sales Tax Service TaxGoods and Service Tax Value Added Tax Customs Duty Excise Duty Cess and other materialstatutory dues applicable to it with the appropriate authorities.
(b) There were no undisputed amounts payable in respect of Provident Fund Employees'State Insurance Income Tax Sales Tax Service Tax Value Added Tax Goods and ServiceTax Customs Duty Excise Duty Cess and other material statutory dues in arrears as atMarch 31 2021 for a period of more than six months from the date they became payable.
(c) Details of dues of Income Tax Sales Tax Service Tax Excise Duty Value Added Taxand Goods and Service Tax which have not been deposited as at March 31 2021 on account ofdispute are given below:
|Statute ||Nature of dues ||Amount (Rs in lakhs) ||Period to which the amount relates ||Forum where the dispute is pending |
|Tamil Nadu Value Added Tax Act ||TNVAT ||25.05 ||FY 2008-09 to 2013-14 ||Commercial Tax Appellate Tribunal Madurai |
|Kerala Value Added Tax Act ||KVAT ||199.17 ||July 2016 to December 2016 & April 2017 to June 2017 ||Case disposed off in favour of the Company by the Hon'ble High Court of Kerala Ernakulam |
|Kerala Value Added Tax Act ||KVAT ||66.90 ||January 2017 to March 2017 ||Deputy Commissioner appeal Kollam |
8. In my opinion and according to the information and explanations given to me theCompany has not defaulted in repayment of dues to its bankers during the year. Accordingto the information and explanations given to me the Company has no outstanding dues toany financial institutions or any government or any debenture holders during the year.
9. In my opinion and according to the information and explanations given to me theterm loans taken by the Company have been applied for the purpose for which they wereraised. The Company has not raised any money by way of initial public offer or furtherpublic offer (including debt instruments) during the year.
10. During the course of my audit examination of the books and records of the Companycarried out in accordance with the generally accepted auditing practices in India andaccording to the information and explanations given to me I have neither come across anyinstance of material fraud by the company or on the Company by its officers or employees.
11. In my opinion and according to the information and explanations given to me theCompany has paid/provided managerial remuneration in accordance with the requisiteapprovals mandated by the provisions of Section 197 read with Schedule V to the Act.
12. The Company is not a Nidhi Company and hence reporting under clause 3 (xii) of theOrder is not applicable to the Company.
13. According to the information and explanations given to me and based on myexamination of the records of the company transactions with the related parties are incompliance with Section 177 and 188 of the Act. Where applicable the details of suchtransactions have been disclosed in the financial statements as required by the applicableaccounting standards.
14. According to the information and explanations given to me and based on myexamination of the records of the Company the Company has not made any preferentialallotment or private placement of shares or fully or partly convertible debentures duringthe year. Accordingly the provisions stated in paragraph 3 (xiv) of the order are notapplicable.
15. According to the information and explanations given to me and based on myexamination of the records of the Company the company has not entered into non-cashtransactions with directors or persons connected with them. Accordingly paragraph 3(xv)of the order is not applicable.
16. According to the information and explanations given to me and based on myexamination of the records of the Company the Company is not required to be registeredunder Section 45-IA of the Reserve Bank of India Act 1934.
Annexure "C" to the Independent Auditor's Report
(Referred to in paragraph 2 (g) under Report on Other Legal and RegulatoryRequirements' section of my report to the Members of Kovilpatti Lakshmi Roller Flour MillsLimited of even date)
Report on the Internal Financial Controls Over Financial Reporting under Clause (i) ofSub- section 3 of Section 143 of the Companies Act 2013 ("the Act")
I have audited the internal financial controls over financial reporting of KovilpattiLakshmi Roller Flour Mills Limited ("the Company") as of March 31 2021 inconjunction with my audit of the financial statements of the Company for the year ended onthat date.
Management's Responsibility for Internal Financial Controls
The Board of Directors of the Company is responsible for establishing and maintaininginternal financial controls based on the internal control over financial reportingcriteria established by the Company considering the essential components of internalcontrol stated in the Guidance Note on Audit of Internal Financial Controls Over FinancialReporting issued 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 the safeguarding of its assets the prevention and detection offrauds and errors the accuracy and completeness of the accounting records and the timelypreparation of reliable financial information as required under the Companies Act 2013.
My responsibility is to express an opinion on the internal financial controls overfinancial reporting of the Company based on my audit. I conducted my audit in accordancewith the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting(the "Guidance Note") issued by the Institute of Chartered Accountants of Indiaand the Standards on Auditing prescribed under Section 143 (10) of the Companies Act2013 to the extent applicable to an audit of internal financial controls. Those Standardsand the Guidance Note require that I comply with ethical requirements and plan and performthe audit to obtain reasonable assurance about whether adequate internal financialcontrols over financial reporting was established and maintained and if such controlsoperated effectively in all material respects. My audit involves performing procedures toobtain audit evidence about the adequacy of the internal financial controls system overfinancial reporting and their operating effectiveness. My audit of internal financialcontrols over financial reporting included obtaining an understanding of internalfinancial controls over financial reporting assessing the risk that a material weaknessexists and testing and evaluating the design and operating effectiveness of internalcontrol based on the assessed risk. The procedures selected depend on the auditor'sjudgement including the assessment of the risks of material misstatement in the financialstatements whether due to fraud or error.
I believe that the audit evidence I have obtained is sufficient and appropriate toprovide a basis for my audit opinion on the Company's internal financial control systemover financial reporting.
Meaning of Internal Financial Controls Over Financial Reporting
A company's internal financial control over financial reporting is a process designedto provide reasonable assurance regarding the reliability of financial reporting and thepreparation of financial statements for external purposes in accordance with generallyaccepted accounting principles. A company's internal financial control over financialreporting includes those policies and procedures that (1) pertain to the maintenance ofrecords that in reasonable detail accurately and fairly reflect the transactions anddispositions of the assets of the company; (2) provide reasonable assurance thattransactions are recorded as necessary to permit preparation of financial statements inaccordance with generally accepted accounting principles and that receipts andexpenditures of the company are being made only in accordance with authorisations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorised acquisition use or disposition of thecompany's assets that could have a material effect on the financial statements.
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 of 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.
In my opinion and according to the information and explanations given to me theCompany has in all material respects an adequate internal financial control system overfinancial reporting and such internal financial controls over financial reporting wereoperating effectively as at March 31 2021 based on the internal control over financialreporting criteria established by the Company considering the essential components ofinternal control stated in the Guidance Note on Audit of Internal Financial Controls OverFinancial Reporting issued by the Institute of Chartered Accountants of India.
| ||For M/s ARUN & CO |
| ||Chartered Accountants |
| ||Firm Registration No.0014464S |
| ||A. ARUN |
| ||Proprietor |
|Place : Tirunelveli ||Membership No. 227831 |
|Date : 28th May 2021 ||UDIN: 21227831AAAAFG7964 |