To the Members of JK LAKSHMI CEMENT LIMITED
Report on the Standalone Financial Statements
We have audited the accompanying standalone financial statements of JK LAKSHMICEMENT LIMITED ("the Company") which comprise the Balance Sheet as at 31stMarch 2016 the Statement of Profit and Loss the Cash Flow Statement for the year thenended and a summary of the significant accounting policies and other explanatoryinformation.
Management's Responsibility for the Standalone Financial Statements
The Company's Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act 2013 ("the Act") with respect to the preparation ofthese standalone financial statements that give a true and fair view of the financialposition financial performance and cash flows of the Company in accordance with theaccounting principles generally accepted in India including the Accounting Standardsspecified under Section 133 of the Act read with Rule 7 of the Companies (Accounts)Rules 2014. This responsibility also includes maintenance of adequate accounting recordsin accordance with the provisions of the Act for safeguarding the assets of the Companyand for preventing and detecting frauds and other irregularities; selection andapplication of appropriate accounting policies; making judgments and estimates that arereasonable and prudent; and design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the accuracy andcompleteness of the accounting records relevant to the preparation and presentation ofthe standalone financial statements that give a true and fair view and are free frommaterial misstatement whether due to fraud or error.
Our responsibility is to express an opinion on these standalone financial statementsbased 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 there under.
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 financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the standalone financial statements. The procedures selected depend onthe auditor's judgment including the assessment of the risks of material misstatement ofthe standalone financial statements whether due to fraud or error. In making those riskassessments the auditor considers internal financial control relevant to the Company'spreparation of the standalone financial statements that give a true and fair view in orderto design audit procedures that are appropriate in the circumstances. An audit alsoincludes evaluating the appropriateness of the accounting policies used and thereasonableness of the accounting estimates made by the Company's Directors as well asevaluating the overall presentation of the standalone financial statements. We believethat the audit evidence we have obtained is sufficient and appropriate to provide a basisfor our audit opinion on the standalone financial statements.
In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid standalone financial statements give the information requiredby the Act in the manner so required and give a true and fair view in conformity with theaccounting principles generally accepted in India of the state of affairs of the Companyas at 31st March 2016 and its profit and its cash flows for the year 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 sub-section (11) of section 143 ofthe Act and on the basis of such checks of the books and records of the Company as weconsidered appropriate and according to the information and explanations given to usduring the course of audit we give in the Annexure 'A' a statement on the mattersspecified in the paragraphs 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 thebest of our knowledge and belief were necessary for the purposes of our audit.
(b) In ouropinion 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 and the Cash Flow Statementdealt with by this Report are in agreement with the books of account.
(d) In our opinion the aforesaid standalone financial statements comply with theAccounting Standards specified under Section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014.
(e) On the basis of the written representations received from the directors as on 31stMarch 2016 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2016 from being appointed as a director in terms of Section164 (2) of the Act.
(f) As required by section 143(3)(0 of the Companies Act 201 3 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 financial statements - refer Note no. 32 33 34 & 37 tothe standalone 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 includingderivatives contracts.
iii. There has been no delay in transferring amounts required to be transferred tothe Investor Education and Protection Fund by the Company.
For LODHA & CO
Firm's Registration No. 301051E
Membership No. 85155
Place : New Delhi
Dated : 18th May 2016
Annexure "A" referred to in paragraph 1 under the heading "Report onOther Legal and Regulatory Requirements" of our report of even date on the StandaloneFinancial Statements of JK LAKSHMI CEMENT LIMITED for the year ended 31st March 2016
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 Verification of its Fixed assets bywhich fixed asset have been verified by the management according to the programe ofperiodical physical verification 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 verification 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 footnote (b) of Note No. 12 of thestandalone financial statement.
2. The inventories of the Company (except stock lying with the third parties and intransit for which confirmations have been received / materials received) have beenphysically verified by the management at reasonable intervals. In our opinion theprocedures of physical verification 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 verification of inventory as compared to book records were notmaterial.
3. The Company has not granted any loans secured or unsecured to companies firmsLimited 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. 44 ofthe Standalone 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 Companies Act 2013.
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 to76 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 fora period of more than six monthsfrom the date they become payable as at 31st March 2016.
(b) According to the records and information & explanations given to us there areno dues in respect of income tax that have not been deposited with the appropriateauthorities to the extent applicable on account of any dispute and the dues in respect ofservice tax duty of customs duty of excise and value added tax that have not beendeposited with the appropriate authorities on account of any dispute and the forum wherethe 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 || |
| || ||1992-1994 ||45.80 ||H igl i Cuu 11 |
|Sale Tax Act ||Sale Tax ||2005-2006 ||473.85 || |
| || ||1995-2000 ||42.14 || |
| || ||1997-1998 ||5.21 || |
| || ||2007-2008 ||201.85 ||Joint Commissioner (Appeals) |
| || ||2008-2009 ||58.15 || |
| || ||2003-2009 ||11949.02 ||Rajasthan Tax Board |
| || ||2002-2016 ||6906.06 ||Supreme Court |
|Rajasthan || ||2012-2015 ||71.41 ||High Court |
|Tax on El iLi y of Goods || ||2007-2008 ||228.47 ||Dy. Comm. (App.) |
|areas Act || ||2013-2014 ||38.84 || |
|1999 ||Entry ||2012-2013 ||39.31 || |
|The Uttar Pradesh Tax on Entry of Goods Act2000 ||Tax ||2007-2010 ||267.84 ||Supreme Court |
|West Bengal Entry Tax || ||2015-2016 ||29.96 ||High Court |
| || ||1996-1998 ||186.52 || |
| || ||2009-2015 ||109.29 || |
|Central ||Excise ||2007-2008 ||9.86 || |
| || ||2005-2010 ||4.92 || |
| || ||2012-2014 ||9.52 ||Comm. (App.) |
|Custom Act ||Custom Duty ||2011-2012 ||111.26 ||CESTAT |
| || ||2012-2013 ||505.90 || |
| || ||2013-2014 ||522.63 || |
|Finance ||Service ||2004-2008 ||19.72 || |
|Act 1994 ||Tax ||2012-2014 ||404.63 || |
| || ||2007-2008 ||117.82 ||Excise Commissioner |
| || ||2012-2013 ||7.06 ||Comm. (App.) |
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 officers 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. 54(ii)(a)&(iii) of thestandalone financial statement.
12. 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.
13. According to 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 records details of relatedparty transactions have been disclosed in the standalone financial statements as per theapplicable 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 him. 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.
| ||For LODHA & CO |
| ||Chartered Accountants |
| ||Firm's Registration No. 301051E |
|Place : New Delhi ||N.K.Lodha |
|Dated : 18th May 2016 ||Partner |
| ||Membership No. 85155 |
ANNEXURE'B'TOTHE INDEPENDENT AUDITOR'S REPORT OF EVEN DATE ON THE STANDALONE FINANCIALSTATEMENTS 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 JKLAKSHMI CEMENT LIMITED ("the Company") as of March 31 2016 in conjunctionwith our audit of the standalone 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). These responsibilitiesinclude the design implementation and maintenance of adequate internal financial controlsthat were operating effectively for ensuring the orderly and efficient conduct of itsbusiness including adherence to Company's policies the safeguarding of its assets theprevention and detection of frauds and errors the accuracy and completeness of theaccounting records and the timely preparation of reliable financial information asrequired 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 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 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 authorizations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorized 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 March 31 2016 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.
| ||For LODHA & CO |
| ||Chartered Accountants |
| ||Firm's Registration No. 301051E |
|Place : New Delhi ||N.K.Lodha |
|Dated: 18th May 2016 ||Partner |
| ||Membership No. 85155 |