TO THE MEMBERS OF JK LAKSHMI CEMENT LIMITED
Report on the Standalone Ind AS Financial Statements
We have audited the acCompanying standalone Ind AS financial statements of JKLAKSHMI CEMENT LIMITED (the Company) which comprise the Balance Sheet asat 31st March 2017 the Statement of Profit and Loss (including Other ComprehensiveIncome) the Cash Flows statement and the Statement of Changes in Equity for the year thenended and a summary of the significant accounting policies and other explanatoryinformation (herein after referred to as standalone Ind AS financialstatements).
Management's Responsibility for the Standalone 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 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 relevant rules issued thereunder.
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.
Our responsibility is to express an opinion on these standalone Ind AS financialstatements based on 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 in accordance with the Standards on Auditing specified underSection 143(10) of the Act. Those Standards require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetherthe 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 we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the standalone Ind AS financial statements.
In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid standalone Ind AS financial statements give the informationrequired by the Act in the manner so required and give a true and fair view in conformitywith the accounting principles generally accepted in India including the Ind AS of thefinancial position of the Company as at 31stMarch 2017 and its financial performanceincluding other comprehensive income its cash flows and the changes in equity for theyear 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 section 143(11) of the Act and onthe basis of such checks of the books and records of the Company as we consideredappropriate and according to the information and explanations given to us during thecourse of audit we give in the Annexure A a statement on the matters specified in theparagraph 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 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 flow statement and statement of changes in equity dealtwith by this Report are in agreement with the books of account;
(d) In our opinion the aforesaid standalone Ind AS financial statements comply withthe Accounting Standards specified under Section 133 of the Act read with relevant rulesissued thereunder;
(e) On the basis of the written representations received from the directors as on31stMarch 2017 taken on record by the Board of Directors none of the directors isdisquali ed as on 31st March 2017 from being appointed as a director in terms of Section164 (2) of the Act;
(f) As required by section 143(3)(i) of the Companies Act 2013 and based on thechecking of the books and records of the Company as we considered appropriate andaccording to the information and explanations given to us our separate report withrespect to the adequacy of the internal financial controls over financial reporting of theCompany and the operating effectiveness of such controls is as per 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 in our opinionand to the best of our information and according to the explanations given to us:
i. The Company has disclosed the impact of pending litigations on its financialposition in its standalone Ind AS financial statements Refer Note 51 52 53 54 and 56 tothe standalone Ind AS financial statements;
ii. The Company has made provision as required under the applicable law or accountingstandards for material foreseeable losses if any on long term contracts includingderivative contracts
iii. There has been no delay in transferring amounts required to be transferred tothe Investor Education and Protection Fund by the Company; and
iv. the Company has provided requisite disclosures in its standalone Ind AS financialstatements as to holdings as well as dealings in Speci ed Bank Notes during the periodfrom 8 November 2016 to 30 December 2016 and these are in accordance with the books ofaccounts maintained by the Company. Refer Note 47 to the standalone Ind AS financialstatements.
Annexure A referred to in paragraph 1 under the heading Report onother legal and regulatory requirements of our report of even date on the standaloneInd As financial statements of JK LAKSHMI CEMENT LIMITED for the year ended 31st March2017
1. (a) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.
(b) The Company has a regular programme of Physical Veri cation of its Fixed assets bywhich fixed asset have been verified by the management according to the programe ofperiodical physical veri cation in a phased manner which in our opinion is reasonablehaving regard to the size of the Company and the nature of its fixed assets. Thediscrepancies noticed on such physical veri cation were not material.
(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 except as stated in Note No. 2(b) of the standalone Ind ASfinancial statements.
2. The inventories of the Company (except stock lying with the third parties and intransit for which con rmations have been received / materials received) have beenphysically verified by the management at reasonable intervals. In our opinion and theprocedures of physical veri cation of inventory followed by the Management are reasonablein relation to the size of the Company and nature of its business. The discrepanciesnoticed on such physical veri cation of inventory as compared to book records were notmaterial.
3. The Company has not granted any loans secured or unsecured to companies rmsLimited Liability Partnerships or other parties covered in the register maintained undersection 189 of the Companies Act 2013. Accordingly we are not offering any comment onthe provisions of Clause 3(iii) (a) (b) & (c) of the Order. Read with Note No. 63 ofthe standalone Ind AS financial statements.
4. According to the information explanations and representations provided by themanagement and based upon audit procedures performed we are of the opinion that inrespect of loans investments guarantees and security the Company has complied with theprovisions of the Section 185 and 186 of the Act.
5. In our opinion and according to the information and explanations given to us theCompany has complied with the directive issued by the Reserve Bank of India and theprovisions of Section 73 to 76 of the Act or any other relevant provisions of the Act andthe rules framed there under (to the extent applicable) with regard to deposits acceptedfrom public. We have been informed that no order has been passed by the Company Law Boardor
National Company Law Tribunal or Reserve Bank of India or any Court or other Tribunalin this regard.
6. We have broadly reviewed the books of account maintained by the Company pursuant tothe rules made by the Central Government for the maintenance of cost records under section148(1) of the Act in respect of the Company's products to which the said rules are madeapplicable and are of the opinion that prima facie the prescribed records have been madeand maintained. We have however not made a detailed examination of the said records witha view to determine whether they are accurate or complete.
7. (a) According to the records of the Company the Company is regular in depositingundisputed statutory dues including provident fund employees' state insurance incometax sales-tax service tax duty of customs duty of excise value added tax cess andother material statutory dues with the appropriate authorities to the extent applicableand there are no undisputed statutory dues payable for a period of more than six monthsfrom the date they become payable as at 31st March 2017.
(b) According to the records and information & explanations given to us certaindues in respect of income tax sales tax service tax duty of customs duty of excise andvalue added tax that have not been deposited with the appropriate authorities on accountof any dispute and the forum where the dispute is pending are given below:
|Name of The Statute ||Nature of the Dues ||Period (Financial Year) ||Amount (Rs. In Lacs) ||Forum where dispute is pending |
| || ||2006-2014 ||370.76 || |
| || ||1997-2001 ||239.06 || |
| || ||1995 -1998 ||63.12 ||High Court |
| || ||1992-1998 ||45.80 || |
|Sale Tax Act ||Sale ||2005-2006 ||473.85 || |
| ||Tax ||1995-2006 ||42.14 || |
| || ||1997-1998 ||5.21 ||Joint |
| || ||2007-2008 ||201.85 ||Commissioner (Appeals) |
| || ||2003-2009 ||11949.02 ||Rajasthan |
| || || || ||Tax Board |
|The Rajasthan || ||2002-2016 ||7421.68 ||Supreme |
|Tax on Entry of Goods into ||Entry ||2012-2015 ||72.03 ||Court High Court |
|local areas Act 1999 ||Tax ||2007-2008 ||272.08 ||Dy. Comm. (Appeal) |
| || ||2013-2014 ||38.84 ||CTO (AE) |
|The Uttar || ||2012-2013 ||39.31 ||CTO (AE) |
|Pradesh Tax on Entry of Goods Act2000 ||Entry Tax ||2007-2010 ||267.84 ||Supreme Court |
|West Bengal || ||2015-2016 ||38.15 ||High Court |
|Entry Tax || || || || |
|Gujarat Entry || ||2007-2008 ||58.15 ||Joint |
|Tax || || || ||Com.(Appeal) |
| || ||2009-2015 ||93.45 || |
|Central Excise Act ||Excise ||2008 ||9.86 ||CESTAT |
| ||Duty ||2005-2010 ||0.95 || |
| || ||2012-2015 ||9.52 ||Com.(Appeal) |
|Custom Act ||Custom ||2011-2012 ||111.226 ||CESTAT |
| ||Duty ||2012-2013 ||505.90 || |
| || ||2013-2014 ||522.63 ||CESTAT |
| || ||2012-2014 ||688.26 || |
|Finance Act ||Service ||2007-2009 ||117.82 ||Excise |
| ||Tax || || ||Commissioner |
| || ||2012-2013 ||7.06 ||Commissioner ( Appeal ) |
|Income Tax ||Income ||2012-2013 ||367.41 ||Commissioner |
|Act 1961 ||Tax and Interest || || ||(A) Kolkata |
8. In our opinion on the basis of audit procedures and according to the informationand explanations given to us the Company has not defaulted in repayment of loans andborrowings to financial institutions banks government and dues to debenture holders.
9. On the basis of information and explanations given to us term loan were applied forthe purpose for which the loans were obtained. No moneys have been raised during the yearby way of initial public offer or further public offer.
10. Based on the audit procedure performed and on the basis of information andexplanations provided by the management no fraud by the Company and no fraud on theCompany by its of cers or employees has been noticed or reported during the course of theaudit.
11. According to the information and explanations given to us and based on ourexamination of the records of the Company managerial remuneration has been paid/ providedin accordance with the requisite approvals mandated by the provisions of section 197 readwith Schedule V to the Companies Act. Read with Note no. 68(ii)&(iii) of thestandalone Ind AS financial statements.
12. In our opinion and according to the information and explanations given to us theCompany is not a nidhi Company. Accordingly the provision of clause 3(xii) of the Orderis not applicable.
13. As per the information and explanations and records made available by themanagement of the Company and audit procedure performed for transactions with the relatedparties during the year the Company has complied with the provisions of Section 177 and188 of the Act where applicable. As explained and as per the records / details of relatedparty transactions have been disclosed in the standalone Ind AS financial statements asrequired by the applicable Accounting Standards.
14. According to the information and explanations given to us the Company has not madeany preferential allotment or private placement of shares or fully or partly convertibledebentures during the year. Accordingly we are not offering any comment with respect tocompliance of requirement of Section 42 of the Act and utilisation of the money.
15. On the basis of records made available to us and according to information andexplanations given to us the Company has not entered into non-cash transactions with thedirectors or persons connected with them. Accordingly we are not offering comment withrespect to compliance of Section 192 of the Act.
16. The Company is not required to be registered under section 45-IA of the ReserveBank of India Act 1934.
Annexure B' to the Independent Auditor's Report of even date on the standaloneInd AS financial statements of JK LAKSHMI CEMENT LIMITED
Report on the Internal Financial Controls over Financial Reporting under Clause (i) ofSub-section 3 of Section 143 of the Companies Act 2013 (the Act)
We have audited the internal financial controls over financial reporting of JK LAKSHMICEMENT LIMITED (the Company) as of 31st March 2017 in conjunction with ouraudit of the standalone Ind AS financial statements of the Company for the year ended onthat 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.
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 auditinvolves performing procedures to obtain audit evidence about the adequacy of the internalfinancial controls system over financial reporting and their operating effectiveness. Ouraudit of internal financial controls over financial reporting included obtaining anunderstanding of internal financial controls over financial reporting assessing the riskthat a material weakness exists and testing and evaluating the design and operatingeffectiveness of internal control based on the assessed risk. 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.
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 (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.
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 31st March 2017 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 the Institute of CharteredAccountants of India.
| ||For LODHA & CO. |
| ||Chartered Accountants |
| ||ICAI Firm Registration No.: 301051E |
| ||N. K. LODHA |
|Place: New Delhi ||(Partner) |
|Date: 17 May 2017 ||Membership No. 085155 |