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Kovilpatti Lakshmi Roller Flour Mills Ltd.

BSE: 507598 Sector: Agri and agri inputs
NSE: KLRF ISIN Code: INE014E01015
BSE 00:00 | 23 May 37.30 0
(0.00%)
OPEN

35.50

HIGH

39.75

LOW

35.50

NSE 05:30 | 01 Jan Kovilpatti Lakshmi Roller Flour Mills Ltd
OPEN 35.50
PREVIOUS CLOSE 37.30
VOLUME 1410
52-Week high 79.60
52-Week low 32.00
P/E
Mkt Cap.(Rs cr) 21
Buy Price 37.30
Buy Qty 50.00
Sell Price 39.75
Sell Qty 31.00
OPEN 35.50
CLOSE 37.30
VOLUME 1410
52-Week high 79.60
52-Week low 32.00
P/E
Mkt Cap.(Rs cr) 21
Buy Price 37.30
Buy Qty 50.00
Sell Price 39.75
Sell Qty 31.00

Kovilpatti Lakshmi Roller Flour Mills Ltd. (KLRF) - Auditors Report

Company auditors report

To the Members of Kovilpatti Lakshmi Roller Flour Mills Limited

Report on the Financial Statements

I have audited the accompanying financial statements of Kovilpatti Lakshmi Roller FlourMills Limited (formerly KLRF Limited) ("the Company") which comprise of theBalance Sheet as at March 31 2018 and the Statement of Profit and Loss (including OtherComprehensive Income) the Statement of Changes in Equity and the Statement of Cash Flowsfor the year then ended and a summary of the significant accounting policies and otherexplanatory information.

Management's Responsibility for the Financial Statements

The Company's board of directors is responsible for the matters stated in Section 134(5) of the Companies Act 2013 ("the Act") with respect to the preparation ofthese financial statements that give a true and fair view of the financial positionfinancial performance including other comprehensive income cash flows and changes inequity of the Company in accordance with the Indian Accounting Standards (Ind AS)prescribed under section 133 of the Act read with the Companies (Indian AccountingStandards) Rules 2015 as amended and other accounting principles generally accepted inIndia.

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

My responsibility is to express an opinion on these financial statements based on myaudit. In conducting my audit I 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 thereunder and the Orderissued under section 143 (11) of the Act.

I have conducted my audit of the financial statements in accordance with the Standardson Auditing specified under Section 143 (10) of the Act. Those Standards require that Icomply with ethical requirements and plan and perform the audit to obtain reasonableassurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the financial statements. The procedures selected depend on theauditor's judgment including the assessment of the risks of material misstatement of thefinancial statements whether due to fraud or error. In making those risk assessments theauditor considers internal financial control relevant to the Company's preparation of thefinancial statements that give a true and fair view in order to design audit proceduresthat are appropriate in the circumstances. An audit also includes evaluating theappropriateness of the accounting policies used and the reasonableness of the accountingestimates made by the Company's directors as well as evaluating the overall presentationof the financial statements.

I believe that the audit evidence obtained by me is sufficient and appropriate toprovide a basis for my audit opinion on the financial statements.

Opinion

In my opinion and to the best of my information and according to the explanations givento me the aforesaid 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 of the state of affairs of the Company as at March31 2018 and its profit total comprehensive income the changes in equity and its cashflows for the year ended as on that date.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor's Report) Order 2016 ("the Order")issued by the Central Government in terms of Section 143 (11) of the Act I give inAnnexure "A" a statement on the matters specified in paragraphs 3 and 4 of theOrder.

2. As required by Section 143 (3) of the Act based on my audit I report that:

a) I have sought and obtained all the information and explanations which to the best ofmy 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;

c) the balance sheet the statement of profit and loss including other comprehensiveincome statement of changes in equity and the statement of cash flow dealt with by thisreport are in agreement with the books of account;

d) in my opinion the aforesaid financial statements comply with the Indian AccountingStandards prescribed under section 133 of the Act;

e) on the basis of the written representations received from the directors of theCompany as on March 31 2018 taken on record by the board of directors none of thedirectors are disqualified as on March 31 2018 from being appointed as a director interms of Section 164 (2) of the Act; f) with respect to the adequacy of the internalfinancial controls over financial reporting of the Company and the operating effectivenessof such controls refer to my separate report in Annexure "B". My reportexpresses an unmodified opinion on the adequacy and operating effectiveness of theCompany's internal financial controls over financial reporting; and

g) with respect to the other matters to be included in the auditors' report inaccordance with rule 11 of the Companies (Audit and Auditors) Rules 2014 as amended inmy opinion and to the best of my information and according to the explanations given tome:

i. The Company has disclosed the impact of pending litigations on its financialposition in its financial statements - refer note no.; 37

ii. The Company has no long-term contracts including derivative contracts; and

iii. There has been no delay in transferring amounts required to be transferred tothe investor education and protection fund by the Company.

iv. The disclosures regarding details of specified bank notes held and transactedduring 8th November 2016 to 30th December 2016 has not been madesince the requirement does not pertain to financial year ended March 31 2018.

Other matters

The financial statements of the Company for the previous year ended March 31 2017prepared in accordance with Companies (Accounting Standards) Rules 2006 were audited byanother chartered accountant under the Companies Act 2013 who vide their report datedMay 20 2017 expressed an unmodified opinion on those financial statements.

For M/s ARUN & CO
Chartered Accountants
Firm Registration No.0014464S
A. ARUN
Place : Coimbatore Proprietor
Date : May 25 2018 Membership No. 227831

"Annexure A" to the Independent Auditor's Report

(Referred to in paragraph 1 under 'Report on Other Legal and Regulatory Requirements'section of my report to the members of KovilpattiLakshmi Roller Flour Mills CompanyLimited 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 and explanations given to me no material discrepancieswere 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 the information and explanations given to me the company has notgranted any loan secured or unsecured to companies firms limited liability partnershipsor other 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 the information and explanations given to me thecompany has not granted any loans or provided any guarantees or given any security towhich the provisions of section 185 of the Companies Act 2013 are applicable. In respectof investments made by the Company the Company had complied with the provisions ofsection 186 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 theCompany had maintained cost records for the Engineering Division under section 148 (1) (d)of the Companies Act 2013 and the relevant rules prescribed. However I have not carriedout a detailed examination of the 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 2018 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 2018 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
Income Tax Act 1961 Income tax 3.19 AY 2013-14 & 2014-15 Departmental Authorities
Tamilnadu Value Added Tax Act & Kerala Added Added Tax Act TNVAT & KVAT 293.41 FY 2008-09 to 2013-14 & July 2016 to June 2017 Departmental Authorities
Finance Act 1994 Service Tax 4.88 FY 2008-09 to 2012-13 CESTAT
Employees Provident Fund and Miscellaneous Provisions Act 1952 EPF claims 6.03 FY 1998 to 2002 High Court

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. To the best of my knowledge and according to the information and explanations givento me no fraud by the Company and no material fraud on the Company by its officers oremployees has been noticed or reported during the year.

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

(a) the company has made preferential allotment of 520832 equity shares during theyear and the allotment has been made in compliance of the requirements of Section 42 ofthe Companies Act. 2013.

(b) the amount raised through preferential allotment of equity shares have been usedfor the purposes for which the funds were raised.

(c) no allotment by way of private placement of shares or fully or partly convertibledebentures was made during the year.

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.

For M/s ARUN & CO
Chartered Accountants
Firm Registration No.0014464S
A. ARUN
Place : Coimbatore Proprietor
Date : May 25 2018 Membership No. 227831

"Annexure B" to the Independent Auditor's Report

(Referred to in paragraph 2 (f) 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 2018 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.

Auditor's Responsibility

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 Act 2013to the extent applicable to an audit of internal financial controls. Those Standards andthe Guidance Note require that I comply with ethical requirements and plan and perform theaudit to obtain reasonable assurance about whether adequate internal financial controlsover financial reporting was established and maintained and if such controls operatedeffectively in all material respects.

My audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls system over financial reporting and their operatingeffectiveness. My 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 in the financial statements 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.

Opinion

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 2018 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
Place : Coimbatore Proprietor
Date : May 25 2018 Membership No. 227831