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Laxmi Cotspin Ltd.

BSE: 538411 Sector: Industrials
NSE: LAXMICOT ISIN Code: INE801V01019
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Laxmi Cotspin Ltd. (LAXMICOT) - Auditors Report

Company auditors report

To

The Members

Laxmi Cotspin Limited Jalna

CIN U17120MH2005PLC156866

Report on the Standalone Financial Statements

We have audited the accompanying standalone financial statements of Laxmi CotspinLimited ("the Company") which comprise the Balance Sheet as at 31stMarch 2018 the Statement of Profit and Loss for the period ended and a summary ofsignificant accounting policies and other explanatory information.

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 and cash flows of the Company in accordance with theaccounting principles generally accepted in India including the Accounting Standardsspecified under Section 133 of the Act read with Rule 7 of the Companies (Accounts)Rules 2014 This responsibility also includes maintenance of adequate accounting recordsin accordance with the provisions of the Act for safeguarding 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 statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.

Auditor's Responsibility

Our responsibility is to express an opinion on these standalone financial statementsbased on our audit We have taken into account the provisions of the Act the accountingand auditing standards and matters which are required to be included in the audit reportunder the provisions of the Act and the Rules made there under.

We conducted our audit in accordance with the Standards on Auditing specified underSection 143(10) of the Act. Those Standards require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetherthe 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 but not for the purpose of expressing anopinion on whether the Company has in place an adequate internal financial controls systemover financial reporting and the operating effectiveness of such controls An audit alsoincludes evaluating the appropriateness of the accounting policies used and thereasonableness of the accounting estimates made by the Company's Directors as well asevaluating the overall presentation of 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 standalone financial statements.

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid standalone financial statements give the information requiredby the Act in the manner so required and give a true and fair view in conformity with theaccounting principles generally accepted in India:

a. In case of the Balance Sheet of the "State of Affairs" of the Company asat 31st March 2018; and

b. In the case of the Statement of Profit and Loss of the "Profit" for theyear ended on that date;

c. In the case of the Cash Flow Statement of the "Cash flows" for the yearended on that date.

Emphasis of Matter

The Company has not considered the effect of ICDS while calculating the amount ofincome tax provision and Deferred Tax Liability amount of which cannot be quantified. Ouropinion is not qualified in this matter

Report on Other Legal and Regulatory Requirements

1. 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 A" Our report expresses an unmodified opinion onthe adequacy and operating effectiveness of the Company's internal financial controls overfinancial reporting

2. As required by the Companies (Auditor's Report) 2016 ("the Order") issuedby the Central Government of India in terms of subjection (11) of the section 143 of theact we give in the Annexure-B a statement on the matters specified in paragraphs 3 and 4of the order.

3. As required by section 143 (3) of the Act we report that: -

a) We have sought and except for the matter described in the Emphasis of matterparagraph obtained all the information and explanations which to the best of ourknowledge and belief were necessary for the purpose of our audit.

b) Except for the possible effects of the matter described in the Emphasis of matterparagraph above in our opinion proper books of account as required by law have been keptby the Company so far as it appears from our examination of those books.

c) Since the company does not have any branches the report on the accounts of thebranch offices audited by other auditor u/s 143 (8) of the Act is not applicable

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.

e) Except for the possible effects of the matter described in the Emphasis of matterparagraph in our opinion the Balance Sheet Statement of Profit and Loss and Cash Flowstatement comply with the Accounting Standards specified under section 133 of the Actread with Rule 7 of the Companies (Accounts) Rules 2014.

f) The matter described in the Emphasis of matter paragraph above in our opinion maynot have an adverse effect on the functioning of the company.

g) On the basis of 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.

h) The qualification relating to maintenance of accounts and other matters connectedtherewith are as stated in Emphasis of matter paragraph above.

i) 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 opinionand to the best of our information and according to the explanations given to us:

i. The company has disclosed the impact of pending litigations on its financialposition in its financial statements- refer Notes on accounts 22 (i)to the financialstatements

ii. The Company did not have any long-term contracts including derivative contracts forwhich there were any material foreseeable fosses

iii. There were no amounts which were required to be transferred to the InvestorEducation and Protection Fund by the Company.

For C N A & Associates Chartered Accountants FRN-128929-W

CA Anand Partani

(Partner)

M.No: 117766

Place: Aurangabad. Date: 23rd May 2018

Annexure 'A' To the Independent Auditor's Report

(Referred to in paragraph 1(f) under 'Report on Other Legal and RegulatoryRequirements' section of

our report 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 LaxmiCotspin Limited ('The Company') as of 31st March 2018 in conjunction with ouraudit of the Standalone Financial Statements of the Company for the year ended and as onthat date.

Management's Responsibility for Internal Financial Controls

The Company's management is responsible for establishing and maintaining internalfinancial controls based on the internal control over financial reporting criteriaestablished by the Company considering the essential components of internal control statedin the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting('the Guidance Note') issued by the Institute of Chartered Accountants of India ('theJCAI')". These responsibilities include the design implementation and maintenance ofadequate internal financial controls that were operating effectively for ensuring theorderly and efficient conduct of its business Including adherence to Company's policiesthe safeguarding of its assets the prevention and detection of frauds and errors theaccuracy and completeness of the accounting records and the timely preparation ofreliable financial information as required the Act.

Auditor's 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 Standards on Auditing ('the Standards') prescribed under section 143(10) of theAct and Guidance Note to the extent applicable to an audit of internal financialcontrols both Issued by the JCAI. Those Standards and the Guidance Note require that wecomply with the ethical requirements and plan and perform the audit to obtain reasonableassurance about whether adequate internal financial controls over financial reporting wasestablished and maintained and if such controls operated effectively in all materialrespects.

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 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 financial statements for external purposes in accordance with generallyaccepted accounting principles.

A Company's internal financial control over financial reporting includes those policiesand procedures that

i. Pertain to the maintenance of records that in reasonable detail accurately andfairly reflect the transactions and dispositions of the assets of the Company;

ii. Provide reasonable assurance that transactions are recorded as necessary to permitpreparation of financial statements in accordance with generally accepted accountingprinciples and that receipts and expenditures of the Company are being made only inaccordance with authorizations of management and directors of the company; and

iii. Provide reasonable assurance regarding prevention or timely detection ofunauthorized acquisition use or disposition of the Company's assets that could have amaterial effect on 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 to the best of our information and according to the explanation 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.

For C N A & Associates Chartered Accountants FRN 128929-W

CA Anand Partani (Partner)

M. No 117766

Date: 23rd May 2013 Place: Aurangabad

Annexure 'B' To the Independent Auditors' Report

(Referred to in paragraph 2 under 'Report on Other Legal and Regulatory Requirements'section of our report of even date)

Report on Companies (Auditor's Report) Order 2016 ('The Order') Issued by the centralgovernment in terms of Sub-section 11 of Section 143 of the Companies Act 2013 ('TheAct') of Laxmi Cotspin Limited ('The Company')

1. In respect of Company's fixed assets: -

a) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets;

b) The Fixed Assets have been physically verified by the management in a phased mannerdesigned to cover all the items over a period of three years which in our opinion isreasonable having regard to the size of the company and nature of its business. Pursuantto the program a portion of the fixed asset has been physically verified by themanagement during the year and no material discrepancies between the books records and thephysical fixed assets have been noticed.

c) The title deeds of immovable properties are held in the name of the company

2. In respect of Inventories: -

As explained to us the inventories were physically verified during the year by themanagement at reasonable intervals and no material discrepancies were noticed on physicalverification.

3. In Respect of Loans to parties covered under section 189: -

The Company has neither taken nor granted any loans or advances in the nature loans toparties covered in the register maintained under section 189 of the companies Act Hencethe question of reporting whether the receipt of the principal and Interest are regularwhether reasonable steps for recovery/repayment of over dues of such loans are taken doesnot arise.

4. In Respect of reporting on compliance with Section 185 and 186: -

In our opinion and according to the information and explanations given to us thecompany has complied with the provisions of section 185 and 186 of the Act 2013 inrespect of grant of loans making investments and providing guarantees and securities asapplicable.

5. In Respect of acceptance of Public Deposits: -

The Company has not accepted deposits during the year and does not have any unclaimeddeposits as at 31st March 2018 and therefore the provisions of the clause 3(v) of the order are not applicable to the company.

6. In respect of maintenance of cost records; -

On the basis of records produced to us we are of the opinion that prima facie thecost records prescribed by the Central Government of India under Section 148(1) of the acthave been maintained. However we are not required to and have not carried out anydetailed examination of such accounts and records.

7. In respect of Payment/ Non-payment of Statutory Dues: -

a) According to information and explanations given to us and on the basis of ourexamination of the books of account and records the Company has been generally regularin depositing undisputed statutory dues including Provident Fund Sales tax Service TaxValue added Tax Cess and any other statutory dues with the appropriate authorities.

b) According to the information and explanations given to us no undisputed amountspayable in respect of the above were in arrears as at March 31 2018 for a period of morethan six months from the date on when they become payable.

c) According to the information and explanation given to us there are no dues ofincome tax sales tax service tax duty of customs duty of excise value added taxoutstanding on account of any dispute except the following:

Nature of Statute Nature of Dues Amount (Rs.) Period to which it relates Forum where the dispute is pending Amount Paid (Rs.)
MVAT Act 2002 Assessment Dues 1347287 FY 2012-13 Joint Commissioner Aurangabad NIL
MVAT Act 2002 Assessment Dues 1224600 FY 2013-14 Joint Commissioner Aurangabad NIL
Service Tax Assessment Dues 1587854 Aug 12 - Nov 16 Appellant tribunal NIL

8. In respect of Default in repayment to Banks/ Financial Institutions/ GovernmentDebenture holders: -

Based on our audit procedures and on the information and explanations given bymanagement we are of the opinion that the company has not defaulted in repayment of loansor borrowings to a financial institution bank government or dues to debenture holders.

9. In respect of End use of monies raised by way of IPO/FPO/ Term Loans: -

According to the information and explanations received by us in case of monies raisedby way of IPO/FPO/ Term Loans the same were used for the purpose for which the funds wereraised. During the year the company has listed on SME stock exchange through Offer forSale (OFS).

10. In respect of Frauds noticed/ reported: -

In our opinion and according to the information and explanations given to us no fraudon the company by its officers or employees nor any fraud by the company has been noticedor reported during the year that causes the financial statements to be materiallymis-stated.

11. In respect of Managerial Remuneration: -

Based upon the audit procedures performed and the information and explanations given bythe management the managerial remuneration has been paid or provided in accordance withthe requisite approvals mandated by the provisions of section 197 read with Schedule V tothe Companies Act;

12. In respect of Nidhi Companies: -

In our opinion and to the best of our information and according to the explanationsprovided by the management we are of the opinion that the company is not a Nidhi companyhence in our opinion; the requirements of clause 3(xii) of the order do not apply to thecompany.

13. In respect of Related Party Transactions: -

In our opinion and according to the information and explanations given to us thecompany is in compliance with section 177 and 188 of the Act where applicable for alltransactions with the related parties and the details of related party transactions havebeen disclosed in the financial statements as required by applicable accounting standards

14. In respect of Private Placements/ Preferential Allotment of Shares/ Fully or PartlyConvertible Debentures: -

Based upon the audit procedures performed and the information and explanations given bythe management the company has not made any preferential allotment or of shares or fullyor partly convertible debentures during the year under review. Accordingly the provisionsof clause 3 (xiv) of the Order are not applicable to the Company and hence not commentedupon.

15. In respect of Non-cash transactions involving Directors or Connected Persons: -

In our opinion and according to the information and explanations given to us duringthe year the company has not entered into any non-cash transactions with its directors orthe persons connected to its directors. Accordingly the provisions of clause 3 (xv) ofthe Order are not applicable to the Company and hence no comment is called there upon

16. In respect of registration of NBFC under Section 45-1A of the RBI Act 1934: -

In our opinion the company is not required to be registered under section 45 IA of theReserve Bank of India Act 1934 and accordingly the provisions of clause 3 (xvi) of theOrder are not applicable to the Company and hence not commented upon.

For C N A & Associates Chartered Accountants FRN 128929-W

CA Anand Partani

(Partner)

M. No. 117766

Date: 23rd May 2018 Place: Aurangabad.

Auditor's Report on Half Yearly Financial Results and Year to Date Results of LaxmiCotspin Limited Pursuant to the Regulation 33 of the SEBI (Listing Obligations andDisclosure Requirements) Reguiations 2015

To

The Board of Directors of Laxmi Cotspin Limited

Jalna

We have audited the financial results Laxmi Cotspin Limited for the half Year and yearended on 31st March 2018 attached herewith being submitted by the companypursuant to the requirement of Regulation 33 of the SEBI (Listing Obligations andDisclosure Requirements) Regulations 2015. These half yearly financial results as well asthe yearly financial results have been prepared on the basis of the related interimfinancial statements which are the responsibility of the company's management. Ourresponsibility is to express an opinion on these financial results based on our audit ofsuch financial statements which have been prepared in accordance with the recognition andmeasurement principles laid down in Accounting Standard for Interim Financial Reportingprescribed under Section 133 of the Companies Act 2013 read with relevant rules issuedthere under and other accounting principles generally accepted in India.

We conducted our audit in accordance with the auditing standards generally accepted inIndia. Those standards require that we plan and perform the audit to obtain reasonableassurance about whether the financial results are free of material misstatement(s). Anaudit includes examining on a test basis evidence supporting the amounts disclosed asfinancial results. An audit also includes assessing the accounting principles used andsignificant estimates made by management. We believe that our audit provides a reasonablebasis for our opinion.

in our opinion and to the best of our information and according to the explanationsgiven to us these half yearly financial results as well as the yearly results:

(i) are presented in accordance with the requirements of Regulation 33 of the SEBI(Listing Obligations and Disclosure Requirements) Regulations 2015 in this regard; and

(ii) give a true and fair view of the net profit and other financial information forthe half year as well as the year ended 31St March 2018.

For C N A & Associates

Chartered Accountants

FRN 128929-W

CA Anand Partani (Partner) V M. No. 117766

Date: 23rd May 2018 Place: Aurangabad.