You are here » Home » Companies » Company Overview » Lakshmi Finance & Industrial Corporation Ltd

Lakshmi Finance & Industrial Corporation Ltd.

BSE: 532562 Sector: Financials
NSE: LFIC ISIN Code: INE850E01012
BSE 05:30 | 01 Jan Lakshmi Finance & Industrial Corporation Ltd
NSE 00:00 | 15 Oct 50.05 2.05
(4.27%)
OPEN

52.80

HIGH

52.80

LOW

48.10

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

Lakshmi Finance & Industrial Corporation Ltd. (LFIC) - Auditors Report

Company auditors report

TO THE MEMBERS OF

LAKSHMI FINANCE & INDUSTRIAL CORPORATION LIMITED HYDERABAD. Report on theFinancial Statements:

We have audited the accompanying financial statements of LAKSHMI FINANCE &INDUSTRIAL CORPORATION LIMITED ("the Company") which comprise the BalanceSheet as at 31st March 2018 the Statement of Profit and Loss the Cash Flow Statement forthe 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 Section134(5) of the Companies Act 2013 ("the Act") with respect to the preparation ofthese financialstatements that give a true and fair view of the financial positionfinancialperformance and cash flows of the Company in accordance with the accountingprinciples generally accepted in India including the Accounting Standards specified underSection 133 of the Act read with Rule 7 of the

Companies (Accounts) Rules 2014. This responsibility also includes maintenance ofadequate accounting records in accordance with the provisions of the Act for safeguardingof the assets of the Company and for preventing and detecting frauds and otherirregularities; selection and application of appropriate accounting policies; makingjudgments and estimates that are reasonable and prudent; and design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the accuracy and completeness of the accounting records relevant to thepreparation and presentation of the financial statements that give a true and fair viewand are free from material misstatement whether due to fraud or error.

Auditor's Responsibility:

Our responsibility is to express an opinion on these financialstatements based on ouraudit. We have taken into account the provisions of the Act the accounting and auditingstandards and matters which are required to be included in the audit report under theprovisions of the Act and the Rules made thereunder.

We conducted our audit in accordance with the Standards specifiedunder Section Auditing143(10) of the Act. Those

Standards require that we comply with ethical requirements and plan and perform theaudit to obtain reasonable assurance about whether the financial statements are free frommaterial 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 thefinancialstatements 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

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the financial statements.

Opinion:

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid financial statements give the information required by the Actin the manner 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 31stMarch 2018 its Profit and its cash flows for the year ended on that date.

Other Matters:

The comparative financial information of the Company for the year ended 31 March 2017included in these financial statements is based on the statutory financial statementsaudited by the predecessor auditors whose audit report for the year ended 31 March 2017dated 17thMay 2017 expressed an unmodified opinion on those financial statements. Ouropinion is not modified in respect of abovematter.

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 of India in terms of sub-section (11) of section 143 ofthe Act we give in the "Annexure A" a statement on the matters specified inparagraphs 3 and 4 of the Order.

2. As required by Section 143 (3) of the Act 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 ouropinion proper books of account as required by law have been kept by the Company so faras it appears from our examination of those books

(c) 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.

(d) In our opinion the aforesaid financial statements comply with the AccountingStandards specified under Section 133 of the Act read with Rule 7 of the Companies(Accounts) Rules 2014.

(e) On the basis of the written representations received from the directors as on 31stMarch 2018 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2018 from being appointed as a director in terms of Section164 (2) of the Act. (f) With respect to the adequacy of the internal financial controlsover financial reporting of the Company and the operating effectiveness of such controlsrefer to our separate Report in "Annexure B".

(g) 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 our opinion and to the best of ourinformation and according to the explanations given to us: i. The Company does not haveany pending litigations which would impact its financial position. ii. The Company did nothave any long-term contracts including derivative contracts for which there were anymaterial foreseeable losses. iii. There has been no delay in transferring amountsrequired to be transferred to the Investor Education and Protection Fund by the Company.

for K.S. Rao & Co.
Chartered Accountants
Firms' Registration Number: 003109S
Sd/-
(T. SUKESH KUMAR)
Partner
Membership Number: 229963
Place : Hyderabad
Date : 11.05.2018

ANNEXURE -A TO THE AUDITOR'S REPORT

The Annexure referred to in Para 1 under the heading of "Report on Other Legal andRegulatory Requirements" of our report of even date to the members of LAKSHMIFINANCE & INDUSTRIAL CORPORATION LIMITEDHYDERABAD for the year ended March 312018.

1. a. The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets. b. As explained to us the managementhas physically verified the fixed assets during the year and there is a regular programmeof physical verification which in our opinion is reasonable having regard to the size ofthe Company and the nature of the assets. No discrepancies were noticed on suchverification. c. According to the information and explanations given to us and on thebasis of our examination of the records of the Company the title deeds of immovableproperties are held in the name of the Company.

2. The Company does not carry any inventory during the year. Therefore the provisionsof paragraph 3(ii) of the

Companies (Auditor's Report) Order 2016 are not applicable to the Company.

3. a. During the year the Company has not granted any loans secured or unsecured toCompanies firms limited liability partnerships or other parties covered in the registermaintained under Section 189 of the Companies Act 2013. b. In view of our comment in para(a) above Clause (III) (a) (b) and (c) of paragraph 3 of the Companies

(Auditor's Report) Order 2016 are not applicable to the Company.

4. In our opinion and according to the information and explanations given to us theCompany has not advanced any loan to any Director and no investments were made during theyear as referred to in sections 185 and 186 of the Act.Therefore the provisions ofparagraph 3(iv) of the Companies (Auditor's Report) Order 2016 are not applicable to theCompany.

5. The Company has not accepted any deposits from the public. Hence the provisions ofSections 73 to 76 or any other relevant provisions of the Companies Act 2013 and therules framed there under do not apply to this Company.

6. The Central Government has not prescribed the maintenance of cost records undersub-section (1) of 148 section of the Companies Act 2013 for the activities of theCompany.

7. a. According to the records the company is regular in depositing undisputedstatutory dues including provident fund employees ‘state insurance income-taxsales-tax service tax duty of customs duty of excise value added tax cess and allother material statutory dues with the appropriate authorities and there were no arrearsof statutory dues as at March 31 2018 for a period of more than six months from the datethey became payable. b. According to the records of the Company and the information andexplanations given to us there were no dues of income tax or sales tax or service tax orduty of customs or duty of excise or value added tax have not been deposited on account ofany dispute.

8. As the Company has no borrowings the provisions of paragraph 3(viii) of theCompanies (Auditor's Report)

Order 2016 are not applicable.

9. The Company did not raise any money by way of initial public offer or further publicoffer (including debt instruments) and term loans during the year. Accordingly theprovisions of paragraph 3 (ix) of the Companies (Auditor's Report)

Order 2016 are not applicable.

10. According to the information and explanations given to us no material fraud by theCompany or on the Company by its officers or employees has been noticed or reported duringthe course of our audit.

11. According to the information and explanations give to us and based on ourexamination of the records of the Company the Company has paid/provided for managerialremuneration in accordance with the requisite approvals mandated by the provisions ofsection 197 read with Schedule V to the Act.

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

Company. Accordinglythe provisions of paragraph 3(xii) of the Companies (Auditor'sReport) Order 2016 are not applicable. 13. According to the information and explanationsgiven to us and based on our examination of the records of the

Company transactions with the related parties are in compliance with sections 177 and188 of the Act where applicable and details of such transactions have been disclosed inthe financial statements as required by the applicable accounting standards. 14. Accordingto the information and explanations give to us and based on our examination of the recordsof the Company the Company has not made any preferential allotment or private placementof shares or fully or partly convertible debentures during the year. 15. According to theinformation and explanations given to us and based on our examination of the records ofthe Company the Company has not entered into non-cash transactions with directors orpersons connected with him. Accordingly the provisions of paragraph 3(xv) of theCompanies (Auditor's Report) Order 2016 are not applicable. 16. According to theinformation and explanations given to us and based on our examination of the records ofthe Company the Company is required to be registered under section 45-IA of the ReserveBank of India Act 1934 and such registration has been obtained.

for K.S. Rao & Co.
Chartered Accountants
Firms' Registration Number: 003109S
Sd/-
(T. SUKESH KUMAR)
Partner
Membership Number: 229963
Place : Hyderabad
Date : 11.05.2018

ANNEXURE – B TO THE AUDITORS' REPORT

Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143 of the Companies

Act 2013 ("the Act")

We have audited the internal financial controls over financial reporting of LAKSHMIFINANCE & INDUSTRIAL

CORPORATION LIMITEDHYDERABAD ("the Company") as of 31 March 2018 inconjunction with our audit of the financial statements of the Company for the year endedon that date.

Management's Responsibility for Internal Financial Controls

The Company's management is responsible for establishing and maintaining internalfinancialcontrols based on the internal control over financialreporting criteriaestablished by the Company considering the essential components of internal control statedin the Guidance Note on Audit of Internal Financial Controls Over Financial Reportingissued 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 tothe extent applicable to an audit of internal financial controls both applicable to anaudit of Internal Financial Controls and both issued by the Institute of Chartered

Accountants of India. Those Standards and the Guidance Note require that we comply withethical requirements and plan and perform the audit to obtain reasonable assurance aboutwhether adequate internal financialcontrols over financial reporting was established andmaintained and if such controls operated effectively 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 financial statements whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficientand appropriate toprovide a basis for our audit opinion.

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 of records that in reasonable detail accurately andfairly reflect the transactions and dispositions of the assets of the company;

2. provide reasonable assurance that transactions are recorded as necessary topermit preparation of financial statements in accordance with generally acceptedaccounting principles and that receipts and expenditures of the company are being madeonly in accordance with authorisations of management and directors of the company; and 3.provide reasonable assurance regarding prevention or timely detection of unauthorisedacquisition use or disposition of the company's assets that could have a material effecton the financial statements.

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 the Company has in all materialrespects financialcontrols systemover financial adequateinternal reporting and such internal financial controls overfinancial reporting were operating effectively as at 31 March 2018 based on the internalcontrol over financialreporting criteria established by the Company considering theessential components of internal control stated in the Guidance Note on Audit of InternalFinancial Controls Over Financial Reporting issued by the Institute of CharteredAccountants of India.

for K.S. Rao & Co.
Chartered Accountants
Firms' Registration Number: 003109S
Sd/-
(T. SUKESH KUMAR)
Place : Hyderabad Partner
Date : 11.05.2018 Membership Number: 229963