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Veejay Lakshmi Engineering Works Ltd.

BSE: 522267 Sector: Industrials
NSE: N.A. ISIN Code: INE466D01019
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NSE 05:30 | 01 Jan Veejay Lakshmi Engineering Works Ltd
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VOLUME 2
52-Week high 80.00
52-Week low 36.00
P/E 28.01
Mkt Cap.(Rs cr) 28
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Sell Price 0.00
Sell Qty 0.00
OPEN 55.00
CLOSE 53.00
VOLUME 2
52-Week high 80.00
52-Week low 36.00
P/E 28.01
Mkt Cap.(Rs cr) 28
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Veejay Lakshmi Engineering Works Ltd. (VEEJAYLAKENG) - Auditors Report

Company auditors report

To the Members of

VEEJAY LAKSHMI ENGINEERING WORKS LIMITED

REPORT ON THE AUDIT OF THE STANDALONE IND AS FINANCIAL STATEMENTS

Opinion

We have audited the accompanying standalone Ind AS financial statementsof VEEJAY LAKSHMI ENGINEERING WORKS LIMITED ("the Company") which comprise theBalance Sheet as at March 31 2021 and the Statement of Profit and Loss (including OtherComprehensive Income) the Statement of Changes in equity and the Statement of cash flowsfor the year then ended and notes to the standalone Ind AS Financial statementsincluding a summary of significant accounting policies and other explanatory information.

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 Companies Act 2013 (the "Act") in the manner sorequired and give a true and fair view in conformity with the accounting principlesgenerally accepted in India of their state of affairs of the Company as at March 312021 the loss and Total comprehensive income changes in equity and its cash flows forthe year ended on that date.

Basis for Opinion

We conducted our audit in accordance with the Standards on Auditing(SAs) specified under section 143(10) of the Companies Act 2013. Our responsibilitiesunder those Standards are further described in the Auditor's Responsibilities for theAudit of the Financial Statements section of our report. We are independent of the Companyin accordance 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 thestandalone Ind AS Financial statements under the provisions of the Companies Act 2013 andthe Rules there under and we have fulfilled our other ethical responsibilities inaccordance with these requirements and the Code of Ethics. We believe that the auditevidence we have obtained is sufficient and appropriate to provide a basis for our opinionon the standalone Ind AS financial statements.

Key Audit Matters

Key audit matters are those matters that in our professional judgmentwere of most significance in our audit of the standalone Ind AS Financial statements ofthe current period. These matters were addressed in the context of our audit of thestandalone Ind AS Financial statements as a whole and in forming our opinion thereon andwe do not provide a separate opinion on these matters.

We have determined the matter described below to be the Key Auditmatter to be communicated in our report. We have fulfilled the responsibilities describedin the Auditor's responsibilities for the audit of the Standalone Ind AS financialstatements' section of our report including in relation to these matters.Accordingly our audit included the performance of procedures designed to respond to ourassessment of the risks of material misstatement of the Standalone Ind AS financialstatements. The results of our audit procedures including the procedures performed toaddress the matters below provide the basis for our audit opinion on the accompanyingStandalone Ind AS financial statements.

Key Audit Matter Response to Key Audit Matter
Litigations - Contingencies Principal Audit Procedures:
The Company has ongoing litigations with various authorities and third parties which could have a significant impact on the results if the potential exposures were to materialize. Our audit approach was a combination of test of controls and substantive procedures including:
• Assessing the appropriateness of the design and implementation of the Company's controls over the assessment of litigations and completeness of disclosures.
The amounts involved are significant and the application of accounting standards to determine the amount of any to be provided as a liability or disclosed as a contingent liability is inherently subjective. • We tested the design and operating effectiveness of the Company's key controls over the identification estimation monitoring accounting/ disclosure of Provision for disputed matters and contingent liabilities.
Claims against the Company not acknowledged as debts are disclosed in the Financial Statements by the Company after a careful evaluation of the facts and legal aspects of the matter involved. • For Significant cases where the Company has recognized provision we assessed the determination of amounts recognized.
The outcome of such litigation is uncertain and the position taken by management involves significant judgment and estimation to determine the likelihood and/or timing of cash outflows and the interpretation of preliminary and pending court rulings.
Refer Note. 27 to the Standalone Financial Statements. • For cases where provision was not recognized by the Company we assessed the disclosure made in the financial statements.

Emphasis of Matter

We draw attention to note 34 to the standalone Ind AS financialstatements which describes The Company has considered the possible effects that mayresult from the global pandemic relating to COVID-19 on the standalone financialstatements of the Company. In developing the assumptions relating to the possible futureuncertainties in the global economic conditions because of this pandemic the Company asat the date of approval of these standalone financial statements has used internal andexternal sources of information. The Company has performed an analysis on the assumptionsused and based on current estimates expects that the carrying amount of its assets will berecovered. The impact of COVID-19 on the Company's standalone financial statementsmay differ from that estimated as at the date of approval of these standalone financialstatements.

Our Conclusion is not modified in respect of the above matter.

Information Other Than The Standalone Ind As Financial Statements AndAuditor's Report Thereon

The Company's Board of Directors is responsible for the otherinformation. The other information comprises the information included in the Board'sReport including Annexures thereto but does not include the standalone Ind AS financialstatements and our auditor's report thereon.

Our opinion on the standalone Ind AS financial statements does notcover the other information and we do not express any form of assurance conclusionthereon.

In connection with our audit of the standalone Ind AS financialstatements our responsibility is to read the other information identified above and indoing so consider whether the other information is materially inconsistent with thestandalone Ind AS financial statements or our knowledge obtained in the audit orotherwise appears to be materially misstated. If based on the work we performed weconclude that there is a material misstatement of this other information we are requiredto report the fact. We have nothing to report in this regard.

Management's Responsibility for the Standalone ind AS FinancialStatements

The Company's Board of Directors is responsible for the mattersstated in section 134(5) of the Companies Act 2013 with respect to the preparation ofthese Standalone Ind AS Financial statements that give a true and fair view of thefinancial position financial performance Changes in equity and cash flows of the Companyin accordance with the accounting principles generally accepted in India including theaccounting Standards specified under section 133 of the Act. This responsibility alsoincludes maintenance of adequate accounting records in accordance with the provisions ofthe Act for safeguarding of the assets of the Company and for preventing and detectingfrauds and other irregularities; selection and application of appropriate accountingpolicies; making judgments and estimates that are reasonable and prudent; and designimplementation and maintenance of adequate internal financial controls that wereoperating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the standalone Ind AS financialstatements that give a true and fair view and are free from material misstatement whetherdue to fraud or error.

In preparing the standalone Ind AS financial statements management isresponsible for assessing the ability to continue as a going concern disclosing asapplicable matters related to going concern and using the going concern basis ofaccounting unless management either intends to liquidate the Company or to ceaseoperations or has no realistic alternative but to do so. The Board of Directors are alsoresponsible for overseeing the company's financial reporting process.

Auditor's Responsibilities for the Audit of the standalone ind ASFinancial Statements

Our objectives are to obtain reasonable assurance about whether thestandalone Ind AS financial statements as a whole are free from material misstatementwhether due to fraud or error and to issue an auditor's report that includes ouropinion. Reasonable assurance is a high level of assurance but is not a guarantee that anaudit conducted in accordance with SAs will always detect a material misstatement when itexists. Misstatements can arise from fraud or error and are considered material ifindividually or in the aggregate they could reasonably be expected to influence theeconomic decisions of users taken on the basis of these standalone Ind AS financialstatements.

As part of an audit in accordance with SAs we exercise professionaljudgment and maintain professional skepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of the standalone Ind ASfinancial statements whether due to fraud or error design and perform audit proceduresresponsive to those risks and obtain audit evidence that is sufficient and appropriate toprovide a basis for our opinion. The risk of not detecting a material misstatementresulting from fraud is higher than for one resulting from error as fraud may involvecollusion forgery intentional omissions misrepresentations or the override of internalcontrol.

• Obtain an understanding of internal control relevant to the audit in order todesign audit procedures that are appropriate in the circumstances. Under section 143(3)(i)of the Companies Act 2013 we are also responsible for expressing our opinion on whetherthe company has adequate internal financial controls system in place and the operatingeffectiveness of such 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 concernbasis of accounting and based on the audit evidence obtained whether a materialuncertainty exists related to events or conditions that may cast significant doubt on theCompany's ability to continue as a going concern. If we conclude that a materialuncertainty exists we are required to draw attention in our auditor's report to therelated disclosures in the standalone Ind AS financial statements or if such disclosuresare inadequate to modify our opinion. Our conclusions are based on the audit evidenceobtained up to the date of our Auditor's report. However future events or conditionsmay cause the Company to cease to continue as a going concern.

• Evaluate the overall presentation structure and content of the standalone IndAS financial statements including the disclosures and whether the standalone Ind ASfinancial statements represent the underlying transactions and events in a manner thatachieves fair presentation.

We communicate with those charged with governance regarding amongother matters the planned scope and timing of the audit and significant audit findingsincluding any significant deficiencies in internal control that we identify during ouraudit.

We also provide those charged with governance with a statement that wehave complied with relevant ethical requirements regarding independence and tocommunicate with them all relationships and other matters that may reasonably be thoughtto bear on our independence and where applicable related safeguards.

From the matters communicated with those charged with governance wedetermine those matters that were of most significance in the audit of the standalone IndAS financial statements of the current period and are therefore the key audit matters. Wedescribe these matters in our auditor's report unless law or regulation precludespublic disclosure about the matter or when in extremely rare circumstances we determinethat a matter should not be communicated in our report because the adverse consequences ofdoing so would reasonably be expected to outweigh the public interest benefits of suchcommunication.

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 of the Companies Act 2013 we give in 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 we report that:

(i) 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.

(ii) 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.

(iii) The Balance Sheet the Statement of Profit and Loss (including othercomprehensive income) The Statement of Changes in Equity and the Cash Flow Statementdealt with by this Report are in agreement with the books of account.

(iv) In our opinion the aforesaid standalone Ind AS financial statements comply withthe Accounting Standards specified under Section 133 of the Act.

(v) On the basis of the written representations received from the directors as on 31stMarch 2021 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2021 from being appointed as a director in terms of Section164(2) of the Act.

(vi) 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".

(vii) 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: In our opinionand to the best of our information and according to the explanations given to us themanagerial remuneration paid by the Company to its directors during the year is inaccordance with the provisions of section 197 of the Act.

(viii) 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:

1) The Company has disclosed the impact of pending litigations on its financialposition in its standalone Ind AS financial statements - Refer Note no. 27 to thestandalone Ind AS financial statements;

2) The Company didn't have any long term contracts including derivative contractsas such the question of commenting on any material foreseeable losses thereon does notarise; and

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

ANNEXURE A TO THE INDEPENDENT AUDITORS' REPORT ON THE STANDALONEIND AS FINANCIAL STATEMENTS

The Annexure referred to in paragraph 1 under the heading "Reporton Other Legal and Regulatory Requirements" of our Independent Auditors' Reportto the members of VEEJAY LAKSHMI ENGINEERING WORKS LIMITED for the year ended March 312021 we report that:

(i) (a) The Company is maintaining proper records showing full particulars includingquantitative details and situation of fixed assets;

(b) The Company has a regular program of physical verification of its fixed assets bywhich fixed assets are verified in a phased manner on a rotational basis. In accordancewith this program certain fixed assets were verified during the year and no materialdiscrepancies were noticed on such verification. In our opinion this periodicity ofphysical verification is reasonable having regard to the size of the Company and thenature of its assets; and

(c) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company the title deeds of immovable properties areheld in the name of the Company.

(ii) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company we are of the opinion that the management hasconducted the physical verification of inventory at reasonable intervals during the year.There are no material discrepancies noticed between book stock and physical stock onphysical verification conducted by the management.

(iii) The Company has not granted any loans to parties covered in the registermaintained under section 189 of the Act during the year. Accordingly paragraph 3(iii)(a)(b) and (c) of the Order is not applicable.

(iv) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company the company has not granted loans andguarantees to any parties covered under Section 185 of the Act. In our opinion andaccording to the information and explanations given to us the Company has complied withthe provisions of Section 186 of the Act.

(v) The Company has not accepted any deposits from the public within the meaning ofsections 73 to 76 of the Act and the rules framed there under to the extent notified.Therefore the provisions of clause (v) of the Companies (Auditors' Report) Order2016 are not applicable to the Company.

(vi) We have broadly reviewed the cost records maintained by the Company as specifiedby the Central Government under Section 148(1) of the Act and are of the opinion thatprima facie the prescribed cost records have been maintained. We have however not made adetailed examination of the cost records with a view to determine whether they areaccurate or complete.

(vii) (a) In our opinion and according to the information and explanations given to usand on the basis of our examination of the records of the Company amounts deducted /accrued in the books of account in respect of undisputed statutory dues includingProvident Fund Employees' State Insurance Professional Tax Income-tax CustomsDuty Goods and Service tax Cess and other statutory dues have generally been regularlydeposited during the year by the company with the appropriate authorities.

According to the information and explanations given to us and on thebasis of our examination of the records of the Company no undisputed amounts payable inrespect of Provident Fund Employees' State Insurance Professional Tax Income-taxCustoms Duty Goods and Service tax Cess were in arrears as at March 31 2021 for aperiod of more than six months from the date they became payable; and

(b) As per the information and explanations given to us there are no statutory dueswhich have not been deposited by the Company on account of disputes.

(viii)According to the information and explanations given to us and on the basis of ourexamination of the books of account the Company has not defaulted in repayment of loansor borrowings to any financial institutions or banks.

(ix) During the year the Company did not raise any money by way of initial public offeror further public offer (including debt instruments) and term loan. Accordingly paragraph3(ix) of the order is not applicable.

(x) During the course of our examination of the books and records of the Companycarried out in accordance with the generally accepted auditing principles in india andaccording to the information and explanations given to us we have neither come across anyinstance of fraud by the company or any fraud on the company by its officers or employeeshas been noticed or reported during the year nor we have been informed of such case bythe management.

(xi) According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has paid/provided for managerialremuneration in accordance with the requisite approvals mandated by the provisions ofSection 197 read with Schedule V to the Act.

(xii) In our opinion and according to the information and explanations given to us theCompany is not a Nidhi company. Accordingly paragraph 3(xii) of the Order is notapplicable.

(xiii)According to the information and explanations given to us and based on ourexamination of the records of the Company transactions with the related parties are incompliance with sections 177 and 188 of the Act where ever applicable and the details ofsuch transactions have been disclosed in the standalone Ind AS financial statements asrequired by the applicable accounting standards.

(xiv)According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has not made any preferentialallotment or private placement of shares or fully or partly convertible debentures duringthe year. Accordingly paragraph 3(xiv) of the Order is not applicable.

(xv) According to the information and explanations given to us and based on ourexaminations of the records of the Company the Company has not entered into non-cashtransactions with directors or persons connected with them. Accordingly paragraph 3(xv)of the Order is not applicable.

(xvi)In our opinion and according to the information and explanations given to us thecompany is not required to be registered under Section 45-IA of the Reserve Bank of IndiaAct 1934. Accordingly paragraph 3(xvi) of the Order is not applicable.

ANNEXURE B TO THE INDEPENDENT AUDITOR'S REPORT ON THE STANDALONEIND AS FINANCIAL STATEMENTS

Report on the Internal Financial Controls under Clause (i) ofsub-section (3) of Section 143 of the companies Act 2013 ("the Act")

We have audited the internal financial controls over financialreporting of VEEJAY LAKSHMI ENGINEERING WORKS LIMITED ("the Company") as ofMarch 31 2021 in conjunction with our audit of the standalone Ind AS financialstatements 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 andmaintaining internal financial controls based on the internal control over financialreporting criteria established by the Company considering the essential components ofinternal control stated in the Guidance Note on Audit of Internal Financial Controls overFinancial Reporting issued by the Institute of Chartered Accountants of India("ICAI"). These responsibilities include the design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the orderly and efficient conduct of its business including adherence tocompany's policies the safeguarding of its assets the prevention and detection offrauds and errors the accuracy and completeness of the accounting records and the timelypreparation of reliable financial information as required under the Act.

Auditors' Responsibility

Our responsibility is to express an opinion on the Company'sinternal financial controls over financial reporting based on our audit. We conducted ouraudit in accordance with the Guidance Note on Audit of Internal Financial Controls OverFinancial Reporting ("the Guidance Note") and the Standards on Auditing issuedby ICAI and deemed to be prescribed under section 143(10) of the Act 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 aboutthe adequacy of the internal financial controls system over financial reporting and theiroperating effectiveness. Our audit of internal financial controls over financial reportingincluded obtaining an understanding of internal financial controls over financialreporting assessing the risk that a material weakness exists and testing and evaluatingthe design and operating effectiveness of internal control based on the assessed risk. Theprocedures selected depend on the auditors' judgment including the assessment of therisks of material misstatement of the standalone Ind AS financial statements whether dueto fraud or error.

We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our audit opinion on the Company's internalfinancial controls system over financial reporting.

Meaning of Internal Financial Controls over Financial Reporting

A company's internal financial control over financial reporting isa process designed to provide reasonable assurance regarding the reliability of financialreporting and the preparation of standalone Ind AS financial statements for externalpurposes in accordance with generally accepted accounting principles. A company'sinternal financial control over financial reporting includes those policies and proceduresthat:

(i) pertain to the maintenance of records that in reasonable details 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 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 authorizations of management and directors of theCompany; and

(iii) provide reasonable assurance regarding prevention or timely detection ofunauthorized acquisition use or disposition of the company's assets that could havea material effect on the standalone Ind AS financial statements.

Inherent Limitations of internal Financial Controls over FinancialReporting

Because of the inherent limitations of internal financial controls overfinancial reporting including the possibility of collusion or improper managementoverride of controls material misstatements due to error or fraud may occur and not bedetected. Also projections of any evaluation of the internal financial controls overfinancial reporting to future periods are subject to the risk that the internal financialcontrol over financial reporting may become inadequate because of changes in conditionsor that the degree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion the Company has in all material respects an adequateinternal financial controls system over financial reporting and such internal financialcontrols over financial reporting were operating effectively as at March 31 2021 basedon the internal control over financial reporting criteria established by the Companyconsidering the essential components of internal control stated in the Guidance Note onAudit of Internal Financial Controls Over Financial Reporting issued by the Institute ofChartered Accountants of India.

For MANOHAR CHOWDHRY & ASSOCIATES
Chartered Accountants
Firm Registration No.: 001997S
(sd/-) M.s.N.M. santosh Partner
Place : Chennai Membership No. 221916
Date : July 292021 UDIN: 21221916AAAAEU9486

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