You are here » Home » Companies » Company Overview » Sri Lakshmi Saraswathi Textiles (Arni) Ltd

Sri Lakshmi Saraswathi Textiles (Arni) Ltd.

BSE: 521161 Sector: Industrials
NSE: N.A. ISIN Code: INE456D01010
BSE 00:00 | 04 Mar 6.40 0.30
(4.92%)
OPEN

6.40

HIGH

6.40

LOW

6.40

NSE 05:30 | 01 Jan Sri Lakshmi Saraswathi Textiles (Arni) Ltd
OPEN 6.40
PREVIOUS CLOSE 6.10
VOLUME 75
52-Week high 10.75
52-Week low 6.10
P/E
Mkt Cap.(Rs cr) 2
Buy Price 6.40
Buy Qty 1125.00
Sell Price 6.68
Sell Qty 200.00
OPEN 6.40
CLOSE 6.10
VOLUME 75
52-Week high 10.75
52-Week low 6.10
P/E
Mkt Cap.(Rs cr) 2
Buy Price 6.40
Buy Qty 1125.00
Sell Price 6.68
Sell Qty 200.00

Sri Lakshmi Saraswathi Textiles (Arni) Ltd. (SRILAKSARARNI) - Auditors Report

Company auditors report

TO THE MEMBERS OF

SRI LAKSHMI SARASWATHI TEXTILES (ARNI) LIMITED

Report on the Standalone Ind AS financial statements

Opinion

We have audited the accompanying Standalone Ind AS financial statements of SriLakshmi Saraswathi Textiles (Arni) Limited (‘the Company') which comprise thebalance sheet as at 31st March 2019 the statement of profit and loss (including othercomprehensive income) the statement of cash flows and the statement of changes in equityfor the year then ended and a summary of the significant accounting policies and otherexplanatory information (hereinafter referred to as " Standalone Ind AS financialstatements"). In our opinion and to the best of our information and according to theexplanations given to us the aforesaid Standalone Ind AS financial statements give theinformation required by the Act in the manner so required and give a true and fair view inconformity with the accounting principles generally accepted in India of the state ofaffairs of the Company as at March 31 2019 and its loss total comprehensive income itscash flows and the changes in equity for the year ended on that date.

Basis for Opinion

We conducted our audit in accordance with the Standards on Auditing (SAs) specifiedunder Section 143(10) of the Companies Act 2013. Our responsibilities under thoseStandards are further described in the Auditor's Responsibilities for the Audit of theFinancial Statements section of our report. We are independent of the Company inaccordance with the Code of Ethics issued by the Institute of Chartered Accountants ofIndia together with the ethical requirements that are relevant to our audit of thefinancial statements under the provisions of the Companies Act 2013 and the Rulesthereunder and we have fulfilled our other ethical responsibilities in accordance withthese requirements and the Code of Ethics. We believe that the audit evidence we haveobtained is sufficient and appropriate to provide a basis for our opinion.

Emphasis of Matter:

We emphasise on the matter that the attached financial statements as on31stMarch2019 indicates that the accumulated losses amounting to Rs.2294.21 Lakhs has eroded thenet worth of the company. This financial results has been prepared on a going concernbasis based on the opinion of the management that the company would generate sufficientprofits in the foreseeable future.

Our opinion is unmodified in respect of this matter.

Key Audit Matters

Key audit matters are those matters that in our professional judgment were of mostsignificance in our audit of the consolidated financial statements of the current period.We have determined that there are no key audit matters to be communicated in our report.

Responsibility of Management for 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 Ind AS financial statements that give a true and fair view of thefinancial position financial performance including other comprehensive income cash flowsand changes in equity of the Company in accordance with the accounting principlesgenerally accepted in India including the Indian Accounting Standards (Ind AS) prescribedunder Section 133 of the Act read with rule 7 of the Companies (Accounts) Rules 2014.

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 Standalone IndAS financial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.

In preparing the financial statements management is responsible for assessing theCompany's ability to continue as a going concern disclosing as applicable mattersrelated to going concern and using the going concern basis of accounting unless managementeither intends to liquidate the Company or to cease operations or has no realisticalternative but to do so.

Those Board of Directors are also responsible for overseeing the company's financialreporting process.

Auditor's Responsibilities for the Audit of the Financial Statements

Our responsibility is to express an opinion on these Standalone Ind AS financialstatements based on our audit.

In conducting our audit we have considered 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 thereunder. We conducted our audit ofthe Standalone Ind AS financial statements in accordance with the Standards on Auditingspecified under Section 143(10) of the Act. Those Standards require that we comply withethical requirements and plan and perform the audit to obtain reasonable assurance aboutwhether the Standalone Ind AS financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the Standalone Ind AS financial statements. The procedures selecteddepend on the auditor's judgment including the assessment of the risks of materialmisstatement of the Standalone Ind AS financial statements whether due to fraud or error.In making those risk assessments the auditor considers internal financial controlrelevant to the Company's preparation of the Standalone Ind AS financial statements thatgive a true and fair view in order to design audit procedures that are appropriate in thecircumstances. An audit also includes evaluating the appropriateness of the accountingpolicies used and the reasonableness of the accounting estimates made by the Company'sDirectors as well as evaluating the overall presentation of the Standalone Ind ASfinancial statements.

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

Report on Other Legal and Regulatory Requirements

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 Companies Act 2013 we give in the "Annexure-A" a statement on thematters specified in paragraphs 3 and 4 of the Order to the extent applicable.

As required by Section 143(3) of the Act based on our audit we report to the extentapplicable 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 the Statement of Cash Flows and Statement of Changes in Equity dealt with by thisReport are in agreement with the books of account.

d) In our opinion the aforesaid Standalone Ind AS financial statements comply with theIndian Accounting Standards prescribed under section 133 of the Act.

e) On the basis of the written representations received from the directors as on March31 2019 taken on record by the Board of Directors none of the directors is disqualifiedas on March 31 2019 from being appointed as a director in terms of Section 164(2) of theAct.

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".

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 as amended inour opinion and to the best of our information and according to the explanations given tous:

i. The company does not have any pending litigations on its financial position.

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

iii. The Company is not required to transfer any amount to the Investor Education andProtection Fund.

for M/s.B.Purushottam & Co
CHARTERED ACCOUNTANTS
Reg. No. 002808S
(B.S. PURSHOTHAM)
Place: Chennai Parrtner
Date: May 28 2019 M.No.26785

"Annexure A" to the Independent Auditors' Report of even date on theFinancial Statements of SRI LAKSHMI SARASWATHI TEXTILES (ARNI) LIMITED

Referred to in Paragraph 2 under the heading ‘Report on Other Legal &Regulatory Requirement' of our report of even date:

(i) In respect of its fixed assets:

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

(b) These fixed assets have been physically verified by the Management at reasonableintervals and no material discrepancies were noticed on such verification.

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

(ii) According to the information and explanations given to us the Management hasconducted physical verification of inventory at reasonable intervals and no materialdiscrepancies were noticed.

(iii) According to the information and explanations given to us and on the basis of ourexamination of the books of accounts the company has not granted loans to a bodycorporate covered in the register maintained under Sec 189 of the Companies Act 2013 andhence clause (iii) (a) to (c) are not applicable to the company.

(iv) The company has complied with the provisions of sections 185 and 186 of theCompanies Act 2013 in respect of loans investments provided by the company. Thecompany has not provided any guarantee or security to any company covered under Section185.

(v) According to the information and explanations given to us the Company has notaccepted any deposits from the public to which the directives issued by the Reserve Bankof India and the provisions of Sections 73 to 76 of the Companies Act 2013 and the rulesframed thereunder are applicable.

(vi) According to information and explanations given to us the maintenance of CostRecords has been specified by the Central Government under sub-section (1) of Section 148of the Act in respect of the activities carried on by the company and such accounts havebeen made and maintained by the company.

(vii) (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 Employees StateInsurance Income-Tax Service Tax Excise Duty Duties of Customs Value added tax Cessand any other statutory dues with the appropriate authorities. According to theinformation and explanations given to us no undisputed amounts payable in respect of theabove were in arrears as at March 31 2019 for a period of more than six months from thedate on when they become payable.

(b) According to the information and explanation given to us the following dues ofEmployee's State Insurance have not been deposited by the company on account of disputeare given below:

Name of the Statute Nature of dues Amount involved (Rs. In Lakhs) Amount unpaid (Rs. In Lakhs) Forum where dispute is pending Period to which it relates
Employee's State Insurance Act 1948 Contribution to Employee's State Insurance Corporation 4.16 1.12 High Court 2000-01

(viii) In our opinion and according to the information and explanations given to usthe company has not defaulted in repayment of loans or borrowing to a financialinstitution bank Government or dues to debenture holders.

(ix) According to the information and explanations given to us the company has notraised moneys by way of initial public offer or further public offer including debtinstruments and term Loans. Accordingly clause (ix) of the Order is not applicable to theCompany.

(x) In our opinion and according to the information and explanations given to us thecompany has not noticed any fraud by the company or any fraud on the company by itsOfficers or employees or reported during the year.

(xi) According to the information and explanations given to us managerial remunerationpaid is in accordance with provisions of Section 197 read with schedule V of theCompanies Act.

(xii) The Company is not a Nidhi Company. Therefore Clause (xii) of the Order are notapplicable to the Company.

(xiii) In our opinion all transactions with the related parties are in compliance withsection 177 and 188 of Companies Act 2013 and the details have been disclosed in theStandalone Ind AS Financial Statements as required by the applicable accounting standards.

(xiv) According to the information and explanations given to us the company has notmade any preferential allotment or private placement of shares or fully or partlyconvertible debentures during the year under review. Accordingly Clause (xiv) of theOrder are not applicable to the Company.

(xv) According to the information and explanations given to us the company has notentered into any non-cash transactions with directors or persons connected with him.Accordingly clause (xv) of the Order 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 M/s.B.Purushottam & Co
CHARTERED ACCOUNTANTS
Reg. No. 002808S
(B.S. PURSHOTHAM)
Place: Chennai Parrtner
Date: May 28 2019 M.No.26785

"Annexure B" to the Independent Auditor's Report of even date on theFinancial Statements of SRI LAKSHMI SARASWATHI TEXTILES (ARNI) LIMITED

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 SriLakshmi Saraswathi Textiles (Arni) Limited ("the Company") as of March 312019 in conjunction with our audit of the Standalone Ind AS financial statements of theCompany 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 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") issued by the Institute of Chartered Accountants of Indiaand the Standards on Auditing prescribed under Section 143(10) of the Companies Act 2013to the extent applicable to an audit of internal financial controls. Those Standards andthe Guidance Note require that we comply with ethical requirements and plan and performthe audit to obtain reasonable assurance about whether adequate internal financialcontrols over financial reporting was established and maintained and if such controlsoperated 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 judgement including the assessment of the risks ofmaterial misstatement of the Standalone Ind AS financial statements whether due to fraudor 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 Standalone Ind AS financial statements for external purposes in accordancewith generally accepted accounting principles. A company's internal financial control overfinancial reporting 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 to permitpreparation of Standalone Ind AS financial statements in accordance with generallyaccepted accounting principles and that receipts and expenditures of the company arebeing made only in accordance with authorisations of management and directors of thecompany; and

(3) provide reasonable assurance regarding prevention or timely detection ofunauthorised acquisition use or disposition of the company's assets that could have amaterial effect on the Standalone Ind AS 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 material respects an adequate InternalFinancial Controls System over Financial Reporting and such Internal Financial Controlsover Financial Reporting were operating effectively as at March 31 2019 based on theInternal Control over Financial Reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note on Audit ofInternal Financial Controls Over Financial Reporting issued by ICAI.

for M/s.B.Purushottam & Co
CHARTERED ACCOUNTANTS
Reg. No. 002808S
(B.S. PURSHOTHAM)
Place: Chennai Parrtner
Date: May 28 2019 M.No.26785

.