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Lakshmi Electrical Control Systems Ltd.

BSE: 504258 Sector: Engineering
NSE: LAKSELECON ISIN Code: INE284C01018
BSE 00:00 | 18 Oct 333.15 -5.50
(-1.62%)
OPEN

339.95

HIGH

348.00

LOW

325.10

NSE 05:30 | 01 Jan Lakshmi Electrical Control Systems Ltd
OPEN 339.95
PREVIOUS CLOSE 338.65
VOLUME 297
52-Week high 589.80
52-Week low 300.00
P/E 9.72
Mkt Cap.(Rs cr) 82
Buy Price 326.15
Buy Qty 10.00
Sell Price 347.00
Sell Qty 10.00
OPEN 339.95
CLOSE 338.65
VOLUME 297
52-Week high 589.80
52-Week low 300.00
P/E 9.72
Mkt Cap.(Rs cr) 82
Buy Price 326.15
Buy Qty 10.00
Sell Price 347.00
Sell Qty 10.00

Lakshmi Electrical Control Systems Ltd. (LAKSELECON) - Auditors Report

Company auditors report

INDEPENDENT AUDITOR'S REPORT

To the Members of LAKSHMI ELECTRICAL CONTROL SYSTEMS LIMITED

Report on the IND AS Financial Statements

We have audited the accompanying IND AS financial statements of LAKSHMI ELECTRICALCONTROL SYSTEMS LIMITED ("the Company") which comprise the Balance Sheet as atMarch 31 2018 the Statement of Profit and Loss (including Other Comprehensive Income)the Cash Flow Statement and the Statement of Changes in Equity for the year then ended anda summary of the significant accounting policies and other explanatory information.(hereinafter referred to IND AS financial statements)

Management's Responsibility for the IND AS 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 IND AS financial statements that give a true and fair view of the financialposition financial performance (including other comprehensive income) cash flows andchanges in equity of the Company in accordance with the Indian Accounting Standards (INDAS) 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 IND ASfinancial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.

Auditors' Responsibility

Our responsibility is to express an opinion on these IND AS financial statements basedon 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 thereunder and the Orderissued under section 143 (11) of the Act.

We conducted our audit of the IND AS financial statements in accordance with theStandards on Auditing specified under Section 143 (10) of the Act. Those Standards requirethat we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether the IND AS financial statements are free from materialmisstatement.

An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the IND AS financial statements. The procedures selected depend on theauditor's judgment including the assessment of the risks of material misstatement of theIND AS financial statements whether due to fraud or error. In making those riskassessments the auditor considers internal financial control relevant to the Company'spreparation of the IND AS financial statements that give a true and fair view in order todesign audit procedures that are appropriate in the circumstances. An audit also includesevaluating the appropriateness of the accounting policies used and the reasonableness ofthe accounting estimates made by the Company's directors as well as evaluating theoverall presentation of the IND AS financial statements.

We believe that the audit evidence obtained by us is sufficient and appropriate toprovide a basis for our audit opinion on the IND AS financial statements.

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid IND AS financial statements give the information required bythe Act in the manner so required and give a true and fair view in conformity with theaccounting principles generally accepted in India of the state of affairs of the Companyas at March 31 2018 and its profit total comprehensive income the cash flows and thechanges in equity 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 we 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 our audit we report that:

a) we have sought and obtained all the information and explanations which to the bestof our knowledge and belief were necessary for the purposes 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 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 books of account;

d) in our opinion the aforesaid IND AS financial statements comply with the IndianAccounting Standards 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 internal financial controls over financialreporting of the Company and the operating effectiveness of such controls refer to ourseparate report in Annexure "B" 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 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 IND AS financial statements - Refer note no. 39 to the IND AS financialstatements.

ii The Company does 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 to theinvestor education and protection fund by the Company.

For M/s Subbachar & Srinivasan
Chartered Accountants
Firm Registration No.004083S
(T.S.V.RAJAGOPAL)
Place : Coimbatore Partner
Date : May 21 2018 Membership No. 200380

Annexure - "A" to the Independent Auditors' Report

(Referred to in Paragraph 1 under "Report on Other legal and regulatoryrequirements" section of our report to the members of LAKSHMI ELECTRICAL CONTROLSYSTEMS LIMITED of even date).

We report that

1. In respect of its Fixed Assets:

a. The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets [Property Plant and Equipment].

b. As explained to us fixed assets have been physically verified by the management atregular intervals in accordance with a programme of verification which in our opinionprovides for physical verification of all the fixed assets at reasonable intervals havingregard to the size of the company and nature of its assets. According to the informationand explanations given to us no material discrepancies were noticed on such verification.

c. According to the information and explanations given to us and the records examinedby us the title deeds of immovable properties are held in the name of the Company.

2. In respect of its inventories:

As explained to us physical verification of inventories has been conducted atreasonable intervals by the management during the year and no material discrepancies werenoticed.

3. The Company has not granted any loan secured or unsecured to companies firmsLimited Liability Partnerships or other parties covered in the register maintained undersection 189 of the Companies Act 2013 during the financial year and hence sub-clauses(a) to (c) of clause (iii) of the Order are not applicable to the Company.

4. The Company has not granted loans or made investments or given guarantees andsecurities during the year and hence compliance with Section 185 and 186 are notapplicable.

5. The Company has not accepted any deposits from the public during the year to whichthe provisions of sections 73 to 76 of the Act are applicable and as such clause 3(v) ofthe Order is not applicable.

6. We have broadly reviewed the cost records maintained by the Company specified by theCentral Government under subSection (1) of Section 148 of the Companies Act 2013 asapplcable to the Company and are of the opinion that prima - facie the specified costrecords have been maintained. We have however not made a detailed examination of thecost records with a view to determine whether they are accurate or complete.

7. According to the information and explanations given to us and on the basis of ourexamination of the records of the company in respect of the statutory dues:

a. The Company is regular in depositing undisputed statutory dues including ProvidentFund Employees' State insurance Income tax Sales Tax Service Tax duty of customsduty of excise value added tax and any other statutory dues with the appropriateauthorities during the year. According to the information and explanations given to us noundisputed amounts payable in respect of the aforesaid dues were outstanding as at 31stMarch 2018 for a period of more than six months from the date they became payable.

b. According to the information and explanations given to us the details of disputedstatutory dues that have not been deposited on account of dispute is as under:

Name of the Statute Nature of the dues Amount ( Rs. in lakhs) Amount paid/ adjusted ( Rs. in lakhs) Period to which the amount relates Forum where dispute is pending
Central Excise Act / Service Tax Act Excise Duty 23.45 Nil 2012-13 to 2015-16 Settlement Commission
Central Excise Act / Service Tax Act Excise Duty 1.44 Nil April 2016 to June 2017 Deputy Commissioner
Central Excise Act / Service Tax Act Service Tax 9.18 0.92 2011-12 to 2014-15 CESTAT
Central Excise Act / Service Tax Act Service Tax 2.32 0.17 April 2015 to October 2016 CESTAT
Central Excise Act / Service Tax Act Excise Duty 89.40 6.70 2011-12 to 2013-14 Commissioner (Appeals)
Central Excise Act / Service Tax Act Excise Duty 89.41 Nil 2011-12 to 2013-14 Commissioner (Appeals)
Income Tax Act 1961 Income tax and interest 229.22 50.00 A.Y. 2013-14 ITAT
The Tamilnadu Tax on Consumption or sale of Electricity Act 2003 Electricity Tax 33.27 NIL 2007-08 and 2009-10 to 2012-13 High Court

8. In our opinion and according to the information and explanations given to us theCompany has not defaulted in repayment of loans or borrowings to any financialinstitution bank government or dues to debenture holders.

9. In our opinion and according to the information and explanations given to us thecompany has not raised any money by way of term loans or by way of initial public offer orfurther public offer (including debt instruments) during the year and hence clause 3(ix)of the Order is not applicable to the Company.

10. To the best of our knowledge and belief and according to the information andexplanations given to us during the course of our examination of the books and records ofthe Company carried out in accordance with the auditing standards generally accepted inIndia no fraud on or by the Company was noticed or reported during the year that causesthe IND

AS financial statements to be materially misstated.

11. According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has paid / provided for managerialremuneration during the year in accordance with the requisite approvals mandated by theprovisions of section 197 read with Schedule V to the Companies Act 2013.

12. In our opinion and according to the information and explanations given to us theCompany is not a nidhi company.

Accordingly clause 3(xii) of the Order is not applicable.

13. According to the information and explanations given to us and based on ourexamination of the records of the Company transactions with the related parties are incompliance with sections 177 and 188 of the Act where applicable and details of suchtransactions have been disclosed in the IND AS financial statements as required by theapplicable accounting standards.

14. According to the information and explanations give to us and based on ourexamination 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.

15. According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has not entered into non-cashtransactions with directors or persons connected with him. Accordingly clause 3(xv) ofthe Order is not applicable.

16. The Company is not required to be registered under section 45-IA of the ReserveBank of India Act 1934.

For M/s Subbachar & Srinivasan
Chartered Accountants
Firm Registration No.004083S
(T.S.V.RAJAGOPAL)
Place : Coimbatore Partner
Date : May 21 2018 Membership No. 200380

Annexure - "B" to the Independent Auditors' Report

(Referred to in Paragraph 2(f) under "Report on Other legal and regulatoryrequirements" section of our report to the members of LAKSHMI ELECTRICAL CONTROLSYSTEMS LIMITED 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")

We have audited the internal financial controls over financial reporting of LAKSHMIELECTRICAL CONTROL SYSTEMS LIMITED as of 31st March 2018 in conjunction with our audit ofthe IND AS financial statements of the Company for the year ended on that 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 ('ICAI'). 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 safeguarding ofits 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. Those Standards and the GuidanceNote require that we comply with ethical requirements and plan and perform the audit toobtain reasonable assurance about whether adequate internal financial controls overfinancial reporting was established and maintained and if such controls operatedeffectively 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 judgment including the assessment of the risks ofmaterial misstatement of the IND AS financial statements whether due to fraud or 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 controls 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 IND AS financial statements for external purposes in accordance withgenerally accepted accounting principles. A company's internal financial control overfinancial reporting includes those policies and procedures that (1) pertain to themaintenance of records that in reasonable detail accurately and fairly reflect thetransactions and dispositions of the assets of the company; (2) provide reasonableassurance that transactions are recorded as necessary to permit preparation of IND ASfinancial statements in accordance with generally accepted accounting principles and thatreceipts and expenditures of the company are being made only in accordance withauthorisations of management and directors of the company; and (3) provide reasonableassurance regarding prevention or timely detection of unauthorised acquisition use ordisposition of the company's assets that could have a material effect on the financialstatements.

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 to the best of our information and according to the explanations givento us the Company has in all material respects an adequate internal financial controlssystem over financial reporting and such internal financial controls over financialreporting were operating effectively as at 31st March 2018 based on the internal controlover financial reporting criteria established by the Company considering the essentialcomponents of internal control stated in the Guidance Note on Audit of Internal FinancialControls over Financial Reporting issued by the Institute of Chartered Accountants ofIndia.

For M/s Subbachar & Srinivasan
Chartered Accountants
Firm Registration No.004083S
(T.S.V.RAJAGOPAL)
Place : Coimbatore Partner
Date : May 21 2018 Membership No. 200380