We have audited the attached Balance Sheet of Coimbatore Lakshmi
Investment and Finance Company Limited, Coimbatore, as at 31st March,
2012 and also the statement of Profit and Loss for the year ended on
that date annexed thereto and the cash flow statement for the period
ended on that date. These financial statements are the responsibility
of the Company''s Management Our responsibility is to express an opinion
on these financial statements based on our audit
We conducted our audit in accordance with auditing standards generally
accepted in India. These standards require that we plan and perform the
audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by the management as well as evaluating the over all financial
statement presentation. We believe that our audit provides a reasonable
basis for our opinion.
As required by the Companies (Auditor''s Report) Order, 2003 issued by
the Central Government of India in terms of subsection (4A) of section
227 of the Companies Act, 1956, we enclose in the Annexure a statement
on the matters specified in paragraph 4 and 5 of the said Order.
Further to our comments in the Annexure referred to above, we report
1) We have obtained all the information and explanation, which to the
best of our knowledge and belief were necessary for the purposes of our
2) In our opinion, proper books of account as required by law have been
kept by the Company so far as appears from our examination of those
3) The Balance Sheet and the statement of Profit and Loss dealt with by
this report are in agreement with the books of account.
4) In our opinion the Balance Sheet and statement of Profit and Loss
dealt with by this report comply with the Accounting Standards referred
to in sub-section (3C) of Section 211 of the Companies Act, 1956.
5) On the basis of the written representation received from the
Directors, as on 31st March, 2012 and taken on record by the Board of
Directors, we report that none of the Directors is disqualified as on
31st March, 2012 from being appointed as a Director in terms of Clause
(g) of Subsection (l) of Section 274 of the Companies Act, 1956.
6) In our opinion and to the best of our information, and According to
the explanation given to us, the said financial statements, give the
information required by the Companies Act, 1956, in the manner so
required and subject to:
a) Note Number 19 regarding Non-reconciliation of Bank accounts the
aggregate amount of difference as of 31st March 2012 is Rs. 1,15,750/-,
the exact impact of which on the working results of the company is not
ascertainable as the company is yet to complete the reconciliation.
b) Note Number 20 regarding non-reconciliation of certain subsidiary
records, the exact impact of which on the working results of the
company is not ascertainable as the company is yet to complete the
c) Note Number 25 regarding non receipt of confirmation of Balances
d) Non compliance of the Reserve Bank of India Guidelines in respect of
Statutory Liquidity Ratio and Capital Adequacy Ratio.
e) Note Number 15 regarding the non-recognition of disposal of
Bangalore Branch assets, the quantum of which have not been identified
and determined by the Company.
give a true and fair view in conformity with the accounting principles
generally accepted in India:
i. In the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March 2012
ii. In the case of the statement of Profit and Loss, of the Loss for
the year ended on that date, and
iii. in the case of cash flow statement, of the cash flows for the
year ended on that date.
Annexure to Auditor'' Report to the Member of Coimbatore Lakshmi
Investment and Finance Company Limited, Coimbatore
1. The fixed assets of the company have been written off, consequent to
2. The company has neither taken nor granted any loans, secured or
unsecured to or from companies, firms or other parties covered in the
register maintained under section 301 of the Companies Act, 1956.
3. There are adequate internal system procedures commensurate with the
size of the company and the nature of its business, for the purchase of
fixed assets and for the services rendered. During the course of our
audit, we have not observed any major weaknesses in internal control
4. We are of the opinion that the transactions that need to be entered
in the register maintained u/s 301 of the Companies Act, 1956, have
been so entered.
5. The company has not accepted any deposits from public during the
year. The Company law Board had passed an order dated 31.3.1999,
regarding repayment of deposit and interest.
6. The company has an internal audit system commensurate with its size
and the nature of its business.
7. The company is generally regular in depositing with the appropriate
authorities undisputed statutory dues including -Provident Fund,
Employees'' State Insurance, and Sales-tax. According to the information
and explanation given to us, no undisputed arrears of statutory dues
were outstanding as at 31st March, 2012 for a period of more than six
months from the date they became payable.
8. The accumulated losses of the Company as at 31st March 2012 are more
than fifty per cent of its net worth and the company has incurred cash
losses during the financial year covered by our audit and also in the
immediately preceding financial year.
9 a. The company is dealing in shares, securities and other
investments and the company has maintained proper records of
transactions and contracts thereon.
b. The Company has made timely entries of the above transactions.
c. The shares, securities and other securities have been held by the
company in its own name.
10. The Company has not given any guarantee for loans taken by others
from bank or financial institutions.
11. According to the information and the explanation given to us and on
an overall examination of the balance sheet of the company, we report
that no funds raised on short-term basis have been used for long-term
12. According to the information and the explanation given to us and
the books and records examined by us, no fraud on or by the company has
been noticed or reported during the year.
13. The other clauses of the order are not applicable to the company.
For Suri & Co.,
Firm Registration No 4283S
M. No. 211916
Place : Coimbatore
Date : 30.05.2012