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Sri Lakshmi Saraswathi Textiles (Arni) Ltd.

BSE: 521161 Sector: Industrials
NSE: N.A. ISIN Code: INE456D01010
BSE 00:00 | 19 Aug 51.15 1.05
(2.10%)
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56.50

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NSE 05:30 | 01 Jan Sri Lakshmi Saraswathi Textiles (Arni) Ltd
OPEN 56.50
PREVIOUS CLOSE 50.10
VOLUME 2016
52-Week high 79.50
52-Week low 15.20
P/E 11.12
Mkt Cap.(Rs cr) 17
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 56.50
CLOSE 50.10
VOLUME 2016
52-Week high 79.50
52-Week low 15.20
P/E 11.12
Mkt Cap.(Rs cr) 17
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

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 audit of Standalone Ind AS Financial Statements Qualified Opinion

We have audited the accompanying Standalone Ind AS Financial Statements of Sri LakshmiSaraswathi Textiles (Arni) Limited ("the Company") which comprise the BalanceSheet as at March 31 2022 and the Statement of Profit and Loss (including OtherComprehensive Income) Statement of Changes in Equity and the Statement of Cash Flow forthe year ended on that date and Notes to the Financial Statements including a summary ofthe Significant Accounting Policies and other explanatory information.

In our opinion and to the best of our information and according to the explanationsgiven to us except for the possible effects of matter given in the basis for qualifiedopinion paragraph the aforesaid standalone financial statements give the informationrequired by the Act in the manner so required and give the true and fair view inconformity with the accounting principles generally accepted in India of the State ofAffairs of the Company as at 31st March 2022 and its profit totalcomprehensive income its cash flows and the changes in equity for the year ended on thatdate.

Basis for Opinion

The Company's net worth has been completely eroded. The accumulated losses in thereporting year amounts to Rs 3113.11 Lakhs (Previous Year Rs. 3549.18 Lakhs). Theturnover during the period ended 31st March 2022 is Rs 15013.70 Lakhs(Previous Year Rs. 8601.65 Lakhs) as per the books of accounts maintained.

In the absence of external confirmation of balance in a few cases of advances tosuppliers we are unable to comment on the quality of the specified assets.

A sum of Rs 785000 incurred under staff welfare expenses and Rs 150000 incurredunder selling expenses have not been supported by proper documents.

Emphasis of Matter

We draw attention to Note: 37 of the financial statements which describes the effectsof the COVID-19 pandemic on the Company's operations and compliances which does not haveany significant impact on the company's overall performance during the period under thereview.

It is not appropriate to estimate the duration and severity of these consequences aswell as their impact on the financial position and results of the company for futureperiods.

Key Audit Matters

Key audit matters are those matters that in our professional judgement were of mostsignificance in our audit of the Financial Statements of the current period. These matterswere addressed in the context of our audit of Financial Statements as a whole and informing our opinion thereon and we do not provide a separate opinion on these matters. Wehave determined the matters described below to be the key audit matters to be communicatedin our report.

Key Audit Matters Response to Key Audit Matters & Conclusion
We have observed that advances to the extent of Rs 3415936 have been given for the purchase of machinery which are outstanding for more than one year. The Company will receive the machinery in the financial year 2022-23.
We have observed that the company has debtors to the extent of Rs. 1742858 which are outstanding for more than one year. The Company is following up with the parties concerned and is confident of recovering the amount.

Information Other Than the Financial Statements and Auditor's Report Thereon

The Company's Board of Directors is responsible for the other information. The otherinformation comprises the Information included in the Annual Report but does not includethe standalone financial statements and our auditor's report thereon.

Our opinion on the standalone financial statements does not cover the other informationand we do not express any form of assurance conclusion thereon.

In connection with our audit of the standalone financial statements our responsibilityis to read the other information and in doing so consider whether the other informationis materially inconsistent with the standalone financial statements or our knowledgeobtained during the course of our audit or otherwise appears to be materially misstated.If based on the work we have performed we conclude that if there is a materialmisstatement of this other information we are required to report that fact. We havenothing to report in this regard.

Management Responsibility for the Standalone Financial Statements

The Company's Board of Directors is responsible for the matters stated in Section134(5) of the Act with respect to the preparation of these Standalone Financial Statementsthat give a true and fair view of the Financial Position Financial Performance (includingOther Comprehensive Income) Changes in Equity and Cash Flows of the Company in accordancewith Ind AS and other accounting principles generally accepted in India. Thisresponsibility also includes maintenance of adequate accounting records in accordance withthe provisions of the Act for the safeguarding of the assets of the Company and forpreventing and detecting frauds and other irregularities; selection and application ofappropriate implementation and maintenance of accounting policies; making judgments andestimates that are reasonable and prudent; and design implementation and maintenance ofadequate internal financial controls that were operating effectively for ensuring theaccuracy and completeness of the accounting records relevant to the preparation andpresentation of Standalone Ind AS Financial Statements that give a true and fair view andare free from material misstatement 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.

The Board of Directors is also responsible for overseeing the Company's financialreporting process.

Auditor's Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financialstatements as a whole are free from material misstatement whether due to fraud or errorand to issue an auditor's report that includes our opinion. Reasonable assurance is a highlevel of assurance but is not a guarantee that an audit conducted in accordance with SAswill always detect a material misstatement when it exists. Misstatements can arise fromfraud or error and are considered material if individually or in the aggregate theycould reasonably be expected to influence the economic decisions of users taken on thebasis of these Financial Statements.

As part of an audit in accordance with SAs we exercise professional judgment andmaintain professional scepticism throughout the audit.

We also:

• Identify and assess the risks of material misstatement of the FinancialStatements whether due to fraud or error design and perform audit procedures responsiveto those risks and obtain audit evidence that is sufficient and appropriate to provide abasis for our opinion. The risk of not detecting a material misstatement resulting fromfraud is higher than for one resulting from error as fraud may involve collusionforgery intentional omissions misrepresentations or the override of internal control.

• Obtain an understanding of internal controls relevant to the audit in order todesign audit procedures that are appropriate in the circumstances. Under section 143(3)(i)of the Act we are also responsible for expressing our opinion on whether the Company hasan adequate Internal Financial Controls system in place and the operating effectiveness ofsuch controls.

• Evaluate the appropriateness of accounting policies used and the reasonablenessof accounting estimates and related disclosures made by management.

• Conclude on the appropriateness of management's use of the going concern basisof accounting and based on the audit evidence obtained whether a material uncertaintyexists related to events or conditions that may cast significant doubt on the Company'sability to continue as a going concern. If we conclude that a material uncertainty existswe are required to draw attention in our auditor's report to the related disclosures inthe standalone financial statements or if such disclosures are inadequate to modify ouropinion. Our conclusions are based on the audit evidence obtained up to the date of ourauditor's report. However future events or conditions may cause the Company to cease tocontinue as a going concern.

• Evaluate the overall presentation structure and content of the FinancialStatements including the disclosures and whether the Financial Statements represent theunderlying transactions and events in a manner that achieves fair presentation.

Materiality is the magnitude of misstatements in the standalone financial statementsthat individually or in aggregate make it probable that the economic decisions of areasonably knowledgeable user of the Financial Statements may be influenced. We considerquantitative materiality and qualitative factors in

(i) planning the scope of our audit work and evaluating the results of our work; and

(ii) evaluating the effect of any identified misstatements in the Financial Statements.

We communicate with those charged with governance regarding among other matters theplanned scope and timing of the audit and significant audit findings including anysignificant deficiencies in Internal Control that we identify during our audit.

We also provide those charged with governance with a statement that we have compliedwith relevant ethical requirements regarding independence and to communicate with themall relationships and other matters that may reasonably be thought to bear on ourindependence and where applicable related safeguards.

Report on Other Legal and Regulatory Requirements

1. 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 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 Changes in Equity and the Cash Flow Statement dealt with by thisReport are in agreement with the books of accounts.

d. In our opinion the aforesaid standalone Ind AS financial statements complies withthe Indian Accounting Standards prescribed under Section 133 of the Act read with Rule 7of the Companies (Accounts) Rules 2014.

e. Based on the written representations received from the Directors as on 31st March2022 taken on record by the Board of Directors none of the Directors is disqualified ason 31st March 2022 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 A".

g. With respect to the other matters to be included in the Auditor's Report inaccordance with the requirements of section 197(16) of the Act as amended.

h. In our opinion and to the best of our information and according to the explanationsgiven to us the remuneration paid by the Company to its directors during the year is inaccordance with the provisions of section 197 of the Act.

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

- The Company has disclosed the impact of pending litigations on its financial positionin its Ind AS financial statements.

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

- There has been no delay in transferring the amounts required to be transferred to theInvestor Education and Protection Fund by the company.

2. As required by the Companies (Auditors' Report) Order 2020 ("the Order")issued by the Central Government in terms of Section 143(11) of the Act we give in"Annexure B" a statement on the matters specified in paragraphs 3 and 4 of theOrder.

ANNEXURE "A" TO THE INDEPENDENT AUDITOR'S REPORT OF EVEN DATE ON THESTANDALONE IND AS FINANCIAL STATEMENTS OF SRI LAKSHMI SARASWATI 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 SRI LAKSHMISARASWATI TEXTILES (ARNI) LIMITED ("the Company") as of March 31 2022 inconjunction with our audit of the Standalone Ind AS Financial Statements of the Companyfor 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 Controlstated in the Guidance Note on Audit of Internal Financial Controls Over FinancialReporting issued 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 the Company's policies the safeguardingof its 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 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 ICAI. Those Standards and the Guidance Noterequire that we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether adequate Internal Financial Controls over FinancialReporting were established and maintained and if such controls operated effectively in allmaterial 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 Auditors' judgement 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 FinancialReporting includes those policies and 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 the 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 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 2022 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.

ANNEXURE "B" TO THE INDEPENDENT AUDITORS' OF EVEN DATE ON THE STANDALONE INDAS FINANCIAL STATEMENTS OF SRI LAKSHMI SARASWATI TEXTILES (ARNI) LIMITED

The Annexure referred to in Paragraph 2 under the heading 'Report on Other Legal andRegulatory Requirements' of our Report of even date:

To the best of our information and according to the explanations provided to us by theCompany and the books of account and records examined by us in the normal course of theaudit we state that:

1. In respect of the Company's property Plant and Equipment and Intangible Assets:

a. i. The Company has maintained proper records showing full particulars includingquantitative details and situation of Property Plant and Equipment.

ii. The Company has maintained proper records showing full particulars of intangibleassets.

b. These Property Plant and Equipment have been physically verified by the managementat reasonable intervals and no material discrepancies were noticed during suchverification.

c. Based on our examination of the property tax receipts registered sale deed/transfer deed/ conveyance deed and confirmation from the bank for the title deed held withthem provided to us we report that the title in respect of self-constructed buildings andtitle deeds of all other immovable properties disclosed in the financial statementsinclude under Property Plant and Equipment are held in the name of the Company as at thebalance sheet date.

d. The Company has not revalued any of its Property Plant and Equipment and intangibleassets during the year.

e. No proceedings have been initiated during the year or are pending against theCompany as at March 31 2022 for holding any Benami property under the Benami Transactions(Prohibition) Act 1988 (as amended in 2016) and rules made thereunder.

2. The company has a physical verification program so to cover all inventories once ayear which in our opinion is reasonable having regard to the size of the company and thenature of its inventories. Pursuant to the program the inventories were physicallyverified by the management during the year and the coverage and procedure of suchverification by the management are appropriate. Discrepancies of 10% or more were notnoticed.

a. The Company has not been sanctioned any working capital limits in excess of Rs. 5crores in aggregate during the year from banks on the basis of security of currentassets.

3. a. During the year the Company has not made any investments in provided anyguarantee or security or granted any loans or advances in the nature of loans secured orunsecured to companies firms LLPs or any other party and hence reporting under Clause3(iii)(a) and 3(iii)(b) are not applicable

b. The company has not granted any loans. Hence reporting under clause 3(iii)(c) ofthe Order is not applicable.

c. The company has not granted any loan during the reporting period. Hence reportingunder clause 3(iii)(d) of the Order is not applicable.

d. The company has not granted any loans or renewed or extended or fresh loans grantedto settle the overdue existing loans given to the same parties. Hence reporting underclause 3(iii)(e) of the Order is not applicable.

e. The Company has not granted any loans or advances in the nature of loans eitherrepayable on demand or without specifying terms or period of repayment during the year.Hence reporting under clause 3(iii)(f) is not applicable.

4. The Company has complied with the provisions of Sections 185 and 186 of theCompanies Act 2013 in respect of investments made by the company. The company has notprovided any guarantee or security to any company covered under Section 185.

5. The Company has not accepted any deposit or amounts which are deemed to be deposits.Hence reporting under clause 3(v) of the Order is not applicable.

6. The maintenance of cost records has been specified by the Central Government undersub-section (1) of section 148 of the Companies Act 2013. We have broadly reviewed thebooks of accounts maintained by the company pursuant to the rules made by the CentralGovernment for the maintenance of cost records under section 148 of the Act and are ofthe opinion that prima facie the prescribed and such accounts and records have been madeand maintained.

7. In respect of statutory dues

a. In our opinion the Company has generally been regular in depositing undisputedstatutory dues including Goods and Services Tax Provident Fund employees' StateInsurance Income Tax Sales Tax Service Tax Duty of Custom Duty of Excise Value AddedTax Cess and other material statutory dues applicable to it with the appropriateauthorities.

8. There were no transactions relating to previously unrecorded income that have beensurrendered or disclosed as income during the year in the tax assessments under the IncomeTax Act 1961 (43 of 1961).

9. a. The Company has borrowings from Indian Overseas Bank outstanding as on 31stMarch 2022.

The company has not defaulted on its repayment schedule during the year.

b. The Company has not been declared a willful defaulter by any bank or financialinstitution or government or any government authority.

c. The Company as regards the loans taken have used the funds for the object for whichthey have been obtained as per the information and explanations given to us.

d. On an overall examination of the financial statements of the Company funds have notbeen raised on a short-term basis. Hence reporting under clause 3(ix)(d) is notapplicable.

e. On an overall examination of the financial statements of the Company the Companyhas no subsidiaries. Hence reporting under clause 3(ix)(e) is not applicable.

f. The Company has not raised any loans during the year by pledging securities held inthe name of subsidiaries joint ventures or associate companies and hence reporting onclause 3(ix)(f) of the Order is not applicable.

10. a. The Company has not raised money by way of an initial public offer or furtherpublic offer (including debt instruments) during the year and hence reporting under clause3(x)(a) of the Order is not applicable.

b. During the year the Company has not made any preferential allotment or privateplacement of shares or convertible debentures (fully or partly or optionally) and hencereporting under clause 3(x)(b) of the Order is not applicable.

11. a. No fraud by the Company and no material fraud on the Company has been noticed orreported during the year.

b. No report under sub-section (12) of section 143 of the Companies Act has been filedin Form ADT-4 as prescribed under rule 13 of Companies (Audit and Auditors) Rules 2014with the Central Government during the year and up to the date of this report.

c. The company has not received any whistle-blower complaints during the year (and upto the date of this report) while determining the nature timing and extent of our auditprocedure.

12. The Company is not a Nidhi Company and hence reporting under clause 3(xii) of theOrder is not applicable.

13. In our opinion the Company is in compliance with Section 177 and 188 of theCompanies Act 2013 with respect to applicable transactions with the related parties andthe details of related party transactions have been disclosed in the standalone financialstatements as required by the applicable accounting standards.

14. a. In our opinion the Company has an adequate internal audit system commensuratewith the size and the nature of its business.

b. We have considered the internal audit reports for the year under audit issued tothe Company during the year and to date.

15. In our opinion during the year the Company has not entered into any non-cashtransactions with its Directors or persons connected with its directors and hence theprovision of section 192 of the Companies Act 2013 is not applicable to the Company.

16. a. In our opinion the Company is not required to be registered under section 45-IAof the Reserve Bank of India Act 1934. Hence reporting under clauses 3(xvi)(a) (b) and(c) of the Order is not applicable.

b. In our opinion there is no core investment company within the Group (as defined inthe Core Investment Companies (Reserve Bank) Directions 2016) and accordingly reportingunder clause 3(xvi)(d) of the Order is not applicable.

17. The Company has not incurred cash losses during the financial year covered by ouraudit and the immediately preceding financial year.

18. There has been no resignation of the statutory auditors of the Company during theyear.

19. On the basis of the financial ratios ageing and expected dates of realisation offinancial assets and payments of financial liabilities other information accompanying thefinancial statements and our knowledge of the Board of Directors and Management plans andbased on our examination of the evidence supporting the assumptions nothing has come toour attention which causes us to believe that any material uncertainty exists as on thedate of the audit report indicating that Company is not capable of meeting its liabilitiesexisting at the date of the balance sheet as and when they fall due within a period of oneyear from the balance sheet date. We however state that this is not an assurance as tothe future viability of the Company. We further state that our reporting is based on thefacts up to the date of the audit report and we neither give any guarantee nor anyassurance that all liabilities falling due within a period of one year from the balancesheet date will get discharged by the Company as and when they fall due.

20. a. The Company is not required to transfer funds to projects specified in ScheduleVII as Section 135 of the Companies Act 2013 is not applicable. Accordingly reportingunder clause 3(xx)(a) of the Order is not applicable.

b. There are no ongoing projects toward Corporate Social Responsibility (CSR). Hencereporting under clause 3(xx)(b) of the Order is not applicable.

21. The Company has no subsidiary and hence not required to present a ConsolidatedFinancial Statement. Accordingly reporting under clause 3(xxi) is not applicable.

for M/s.S B S B and Associates
Firm No.012192S
(D.SHARAT KUMAR )
Member Ship .No.024568
Partner
Place: Chennai CHARTERED ACCOUNTANTS
Date : May 30 2022 UDIN: 22024568AJVRHD1074

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