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Lippi Systems Ltd.

BSE: 526604 Sector: Engineering
NSE: N.A. ISIN Code: INE845B01018
BSE 00:00 | 16 Apr 12.28 0
(0.00%)
OPEN

12.28

HIGH

12.28

LOW

12.27

NSE 05:30 | 01 Jan Lippi Systems Ltd
OPEN 12.28
PREVIOUS CLOSE 12.28
VOLUME 243
52-Week high 19.40
52-Week low 9.23
P/E 33.19
Mkt Cap.(Rs cr) 9
Buy Price 12.00
Buy Qty 1.00
Sell Price 12.27
Sell Qty 3.00
OPEN 12.28
CLOSE 12.28
VOLUME 243
52-Week high 19.40
52-Week low 9.23
P/E 33.19
Mkt Cap.(Rs cr) 9
Buy Price 12.00
Buy Qty 1.00
Sell Price 12.27
Sell Qty 3.00

Lippi Systems Ltd. (LIPPISYSTEMS) - Auditors Report

Company auditors report

To the Members of Lippi Systems Limited

Report on the Indian Accounting Standards (Ind AS) Financial Statements

We have audited the accompanying Ind AS financial statements of Lippi Systems Limited("the company") which comprise the Balance Sheet as at 31st March 2018 theStatement of Profit and Loss (including Other Comprehensive Income) the Cash FlowStatement and the Statement of Changes in Equity for the year then ended and a summary ofsignificant accounting policies and other explanatory information.

Management's Responsibility for the Ind AS 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 oftheseInd AS 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 accounting principles generally accepted inIndia including the Indian Accounting Standards specified in the Companies (IndianAccounting Standards) Rules 2015 (as amended) under Section 133 of the Act. Thisresponsibility also includes the maintenance of adequate accounting records in accordancewith the provisions of the Act for safeguarding the assets of the Company and forpreventing and detecting the 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 ASfinancial statements basedon our audit.

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 of the Ind AS financial statements in accordance with theStandards on

Auditing 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 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 ASfinancial statements. The procedures selected depend on theauditor's judgment including the assessment of the risks of material misstatement of theInd ASfinancial statements whether due to fraud or error. In making those riskassessments the auditor considers internal financial control relevant to the Company'spreparation of theInd 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 financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Ind ASfinancial 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 total comprehensive income (comprising loss and other comprehensiveincome) its cash flows and the changes in equity for the year ended 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 of India in terms of sub-section (11) of section 143 ofthe Act we give in "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 ourknowledge 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 ofProfit and Loss(including other comprehensive income)and the Cash Flow Statement and theStatement of Changes in Equity dealt with by this Report are in agreement with the booksof account. d. In our opinion the aforesaidInd AS financial statements comply with theIndian Accounting Standards specified under Section 133 of the Act read with Rule 7 ofthe Companies (Accounts) Rules 2014. e. On the basis of written representations receivedfrom the directors as on 31st March2018 and taken on record by the Board of Directorsnone of the directors is disqualified as on 31st March 2018 from being appointed as adirector in terms of Section 164(2) of the Act.

f. With respect to the adequacy of the internal financial controls over financialreporting of the company and operating effectiveness of such controls refer to ourseparate report in "Annexure B". Our report expresses an unmodified opinion onthe adequacy and operating effectiveness of the Company's internal financial controls overfinancial reporting. g. With respect to the other matters to be included in the Auditor'sReport in accordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 inour opinion and to the best of our information and according to the explanations given tous :

I As informed to us the Company does not have any pending litigations which wouldimpact its financial position; ii. The Company did not have any long-term contractsincluding derivative contracts during the year ended on 31st March 2018 for which therewere any material foreseeable losses; iii. There were no amounts which were required to betransferred to the Investor Education and Protection Fund by the Company.

For Vijay Moondra & Co.
Chartered Accountants
(Firm Reg. No. 112308W)
(CA Vinit Moondra)
Place: Ahmedabad Partner
Date: 30/05/2018 M.No. 119398

Annexure "A" to Independent Auditors' Report

Referred to in Paragraph 1 under the heading of "report on other legal andregulatory requirements" of our report of even date

(i) In respect of its Property Plant & Equipment :a. The Company has maintainedproper records showing full particulars includingquantitative details and situation ofthe fixed assets.

b. As explained to us all the fixed assets have been physically verified by themanagement in a phased periodical manner which in our opinion is reasonable havingregard to the size of the Company and nature of its assets. No material discrepancies werenoticed on such physical verification.

c. The title deeds of immoveable properties are held in the name of the company.

(ii) In respect of its inventories:

As explained to us the inventory has been physically verified at reasonable intervalsduring the year by the management. In our opinion the frequency of verification isreasonable. The discrepancies noticed on verification between the physical stocks and thebook records were not material. The discrepencies have been properly dealt with in thebooks of accounts.

(iii) According to the information and explanations given to us the Company has notgranted loans secured or unsecured to any Companies Firms Limited LiabilityPartnerships or other parties covered in the register maintained under section 189 of theAct. Accordingly the provisions of clause (iii) (a) (iii) (b) & (iii) (c) ofparagraph 3 of the Order are not applicable to the Company.

(iv) The company has not given any loans investments guarantees and security. Hencethe provisions of Clause (iv) of paragraph 3 of the Order are not applicable to theCompany

(v) According to the information and explanations given to us the Company has notaccepted any deposit from the public during the year. Therefore the provisions of Clause(v) of paragraph 3 of the Order are not applicable to the Company.No order has been passedby the Company Law Board or National Company Law Tribunal or Reserve Bank of India or anycourt or any other tribunal.

(vi) We have broadly reviewed the cost records maintained by the Company pursuant tothe Companies (Cost Records and Audit) Rules 2014 read with Companies (Cost Records andAudit) Amendment Rules 2014 prescribed by the Central Government under Section 148 of theCompanies Act 2013 and are of the opinion that prima facie the prescribed cost recordshave been made and maintained. We have however not made a detailed examination of thecost records with a view to determine whether they are accurate or complete.

(vii) According to the information and explanations given to us 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 taxduty of customs duty of excise value added tax goods & services taxcess and anyother material statutory dues with the appropriate authorities. There were no undisputedstatutory dues in arrears as on 31st March 2018 for a period of more than six months fromthe date they became payable.

b) There are no amounts payable in respect of income tax service tax sales tax dutyof customs duty of excise or value added taxgoods & services tax or cess which havenot been deposited on account of disputes.

(viii) Based on our audit procedures and according to the information and explanationsgiven to us we are of the opinion that the Company has not defaulted in repayment of duesto Banks. The Company does not have any outstanding dues to financial institutionsGovernment or by way of debentures.

(ix) The company has not raised moneys by way of initial public offer or further publicoffer (including debt instrument). However the moneys were raised by way of term loanswhich were applied for the purposes for which those were raised.

(x) To the best of our knowledge and according to the information and explanationsgiven to us no fraud by the company or any fraud on the company by its officers oremployees has been noticed or reported during the course of our audit that causes thefinancial statements to be materially misstated.

(xi) In our opinion and according to the information and explanations given to us thecompany has paid / provided managerial remuneration in accordance with the requisiteapprovals mandated by the provisions of section 197 read with Schedule V to the CompaniesAct 2013.

(xii) The company is not a Nidhi Company hence the provisions of clause (xii) ofparagraph 3 of the Order are not applicable to the Company.

(xiii) Based upon the audit procedures performed and according to the information andexplanations given to us all transactions with related parties are in compliance withsections 177 and 188 of Companies Act 2013 where applicable and the details have beendisclosed in the Financial statements etc. as required by the applicable accountingstandards.

(xiv) The company has not made any preferential allotment or private placement ofshares or fully or partly convertible debentures during the year under review.Accordingly the provisions of clause (xiv) of paragraph 3 of the Order are not applicableto the Company.

(xv) The company has not entered into any non-cash transactions with directors orpersons connected with him. Hence the provisions of clause (xv) of paragraph 3 of theOrder are not applicable to the Company.

(xvi) The company is not required to be registered under section 45-IA of the ReserveBank of India Act 1934.

For Vijay Moondra & Co.
Chartered Accountants
(Firm Reg. No. 112308W)
(CA Vinit Moondra)
Place: Ahmedabad Partner
Date: 30/05/2018 M.No. 119398

Annexure "B" to Independent Auditors' Report

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

Report on the Internal Financial Controls under section 143(3)(If the Act

We have audited the internal financial controls over financial reporting of LippiSystems Limited("the Company") as of 31st March 2018 in conjunction with ouraudit of the financial statements of the Company for the year ended on that 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.These responsibilities include the design implementation and maintenance of adequateinternal financial controls that were operating effectively for ensuring the orderly andefficient conduct of its business including adherence to the company's policies thesafeguarding 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 under the Companies Act 2013 ("theAct").

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 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 both applicable to an audit ofInternal Financial Controls and both issued by the Institute of Chartered Accountants ofIndia. Those Standards and the Guidance Note require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetheradequate internal financial controls 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 issufficient and appropriate toprovide a basis for our auditopinion on the Company's internal financial controls systemoverfinancial 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.

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 Vijay Moondra & Co.
Chartered Accountants
(Firm Reg. No. 112308W)
(CA Vinit Moondra)
Place: Ahmedabad Partner
Date: 30/05/2018 M.No. 119398