To the Members of The Lakshmi Mills Company Limited
Report on the Financial Statements
We have audited the accompanying financial statements of The Lakshmi Mills CompanyLimited ("the Company) which comprise of the Balance Sheet as at March 312018 the Statement of Profit and Loss (including Other Comprehensive Income) theStatement of Changes in Equity and the Statement of Cash Flows for the year then ended anda summary of the significant accounting policies and other explanatory 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.
Our responsibility is to express an opinion on these financial statements based on ouraudit. 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 financial statements in accordance with the Standards onAuditing specified under Section 143 (10) of the Act. Those Standards require that wecomply 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.
We believe that the audit evidence obtained by us is sufficient and appropriate toprovide a basis for our audit opinion on the financial statements.
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 March312018 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 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 it appears from our 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 our 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 internal financial controls over financialreporting of the Company and the operating effectiveness of such controls refer to ourseparate report in Annexure "B. Our report expresses an
unmodified opinion on the adequacy and operating effectiveness of the Company'sinternal 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 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 financial statements under Note 29;
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.
The financial statements of the Company for the year ended March 31 2017 prepared inaccordance with Companies (Accounting Standards) Rules 2006 were audited by another firmof chartered accountants under the Companies Act 2013 who vide their report dated25-05-2017 expressed an unmodified opinion on those financial statements.
| ||For M S Jagannathan & Visvanathan |
| ||Firm Registration No. 001209S |
| ||Chartered Accountants |
| ||M.V. Jeganathan |
|Coimbatore ||Partner |
|18th May 2018 ||Membership No. 214178 |