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Lime Chemicals Ltd.

BSE: 507759 Sector: Industrials
NSE: N.A. ISIN Code: INE891G01011
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OPEN 49.95
PREVIOUS CLOSE 49.95
VOLUME 100
52-Week high 49.95
52-Week low 18.30
P/E 4.67
Mkt Cap.(Rs cr) 24
Buy Price 49.95
Buy Qty 91407.00
Sell Price 0.00
Sell Qty 0.00
OPEN 49.95
CLOSE 49.95
VOLUME 100
52-Week high 49.95
52-Week low 18.30
P/E 4.67
Mkt Cap.(Rs cr) 24
Buy Price 49.95
Buy Qty 91407.00
Sell Price 0.00
Sell Qty 0.00

Lime Chemicals Ltd. (LIMECHEMICALS) - Auditors Report

Company auditors report

To the Members of Lime Chemicals Limited

Report on the Financial Statements

We have audited the accompanying financial statements of Lime Chemicals Limited ('theCompany') which comprise the Balance Sheet as at 31st March 2017 the statement of Profitand Loss Cash Flow Statement for the year then ended and a summary of significantaccounting policies and other explanatory information.

Management's Responsibility for the 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 preparationand presentation of these financial statements that give a true and fair view of thefinancial position financial performance and cash flows of the Company in accordance withthe accounting principles generally accepted in India including the Accounting Standardsspecified under Section 133 of the Act read with relevant rules issued thereunder. Thisresponsibility also includes maintenance of adequate accounting records in accordance withthe provisions of the Act for safeguarding the assets of the Company and for preventingand detecting frauds and other irregularities; selection and application of appropriateaccounting policies; making judgments and estimates that are reasonable and prudent; anddesign implementation 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 financial statements thatgive a true and fair view and are free from material misstatement whether due to fraud orerror.

Auditor's Responsibility

Our responsibility is to express an opinion on these financial statements based on ouraudit.

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 financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the financial statements. The procedures selected depend on theauditor's judgment including the assessment of the risks of material misstatement of thefinancial statements whether due to fraud or error. In making those risk assessments theauditor considers internal financial control relevant to the Company's preparation of thefinancial statements that give a true and fair view in order to design audit proceduresthat are appropriate in the circumstances. An audit also includes evaluating theappropriateness of the accounting policies used and the reasonableness of the accountingestimates made by the Company's Directors as well as evaluating the overall presentationof the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our qualified audit opinion on the financial statements.

Basis for Qualified Opinion

In our opinion the qualification is material but not pervasive to the financialstatements.

As stated in Note No.41 the management has decided not to provide for interestamounting to Rs.3.69 lakh payable to parties registered under Micro Small & MediumEnterprises Act 2006. Consequently profit is overstated and liabilities are understatedby Rs. 3.69 lakh.

Qualified Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us except for the effects of the matter described in the Basis for QualifiedOpinion paragraph the aforesaid financial statements give the information required by theAct 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 31 March 2017 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 we give in the Annexure A a statement on the matters specified in the paragraph3 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 and the cash flow statementdealt with by this Report are in agreement with the books of account;

(d) in our opinion the aforesaid financial statements comply with the AccountingStandards specified under Section 133 of the Act read with relevant rules issuedthereunder;

(e) on the basis of the written representations received from the directors as on 31March 2017 taken on record by the Board of Directors none of the directors isdisqualified as on 31 March 2017 from being appointed as a director in terms of Section164 (2) of the Act;

(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 B"; and

(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 financial statements - Refer Note 28 to the financial statements;

(ii) The Company did not have any long-term contracts including derivative contractsfor which there were any material foreseeable losses;

(iii) There has not been an occasion in case of the Company during the year underreport to transfer any sums to the Investor Education and Protection Fund.

(iv) The Company has provided requisite disclosures in its financial statements as toholdings as well as dealings in Specified Bank Notes during the period from 8 November2016 to 30 December 2016. Bases on audit procedures and relying on the managementrepresentation we report that the disclosures are in accordance with the books of accountsmaintained by the Company. Refer Note 45 to the financial statements.

For A. N. Damania & Co.
Chartered Accountants
Firm Registration No. 102077W
Ashvin Damania
Proprietor
Membership No.040166
Mumbai
30th May 2017

Annexure - A to the Auditor's Report

The Annexure referred to in Independent Auditor's Report to the members of LimeChemicals Limited ("the Company") on the financial statements for the year ended31st March 2017

We report that:

(i) (a) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.

(b) As explained to us the Company has a regular programme of physical verification ofits fixed assets by which fixed assets are verified in a phased manner over a period oftwo years. In accordance with this programme certain fixed assets were verified duringthe year and no material discrepancies were noticed on such verification. In our opinionthis periodicity of physical verification is reasonable having regard to the size of theCompany and the nature of its assets.

(c) As per the information and explanations provided to us the title deeds ofimmovable property except that of free hold land are held in the name of the Company.

(ii) As per the information and explanations provided to us the inventories have beenphysically verified by the management at reasonable interval and no material discrepancywas noticed on physical verification.

(iii) During the year the Company has not granted loans to any party covered in theregister maintained under section 189 of the Act. Hence paragraph 3(iii) of the Order isnot applicable.

(iv) In our opinion and according to the information and explanations given to usthere are no transactions as referred to in section 185 of the Act. In our opinion andaccording to the information and explanations given to us the Company has complied withthe provisions of 186 of the Act with respect to the loans and investments made.

(v) The Company has not accepted any deposits from the public. Hence paragraph 3(v) ofthe Order is not applicable.

(vi) According to the information and explanations given to us the Central Governmenthas prescribed maintenance of cost records u/s. 148(1) of the Companies Act 2013.However the Company has not maintained the cost records during the year.

(vii) (a) According to the information and explanations given to us and the records ofthe Company examined by us the Company has not been regular in depositing with theappropriate authorities undisputed dues including provident fund investor education andprotection fund employees' state insurance income-tax sales tax wealth tax servicetax customs duty excise duty cess and other material statutory dues as applicable to itand no undisputed amounts payable in respect of the aforesaid dues were outstanding as at31st March 2017 for a period of more than six months from the date they became payableexcept sales tax amounting to Rs. 557.86 lakh provident fund amounting to Rs. 45.63 lakhincome tax amounting to Rs. 5.82 lakh property tax amounting to Rs. 2.20 lakh staffprofession tax amounting to Rs. 1.47 lakh excise amounting to Rs. 27.69 lakh GramPanchayat Tax Rs. 2.50 lakh and employees' state insurance amounting to Rs. 14.51 lakh.

(b) According to the information and explanations given to us and the records of theCompany examined by us disputed amounts in respect of the aforesaid dues which have notbeen deposited as at 31st March 2017 are given below.

Name of Statute Nature of the Dues Amount (Rs.) Period to which amount relates Forum where dispute is pending
Income Tax Act 1961 Income Tax 2017000/- A.Y 1994-95 Delhi High Court
Income Tax Act 1961 Income Tax 469000/- A.Y 1997-98 Delhi High Court
Income Tax Act 1961 Income Tax 6410000/- A.Y 2005-06 Income Tax Appellate Tribunal
Income Tax Act 1961 Income Tax(penalty u/s271(i)(C) 2515770/- A.Y 2005 -06 Commissioner of Income Tax (Appeals)
Income Tax Act 1961 Income Tax / FBT 5727000/- A.Y 2006-07 Rectification before ITO Ward 6(3) - 2 Mumbai
Income Tax Act 1961 Income Tax 33947880/- A.Y.2012-13 Commissioner of Income Tax (Appeals)
MVAT Act 2005/CST Act 1956 MVAT/CST 22761636/- F.Y 2005-06 Joint Commissioner of Sales Tax (Appeals)
MVAT Act 2005/CST Act 1956 MVAT/CST 12975068/- F.Y 2006-07 Deputy Commissioner of Sales Tax (Appeals)

 

Name of Statute Nature of the Dues Amount (Rs.) Period to which amount relates Forum where dispute is pending
MVAT Act 2005/CST Act 1956 MVAT/CST 6589313/- F.Y 2007-08 Deputy Commissioner of Sales Tax (Appeals)
MVAT Act 2005/CST Act 1956 MVAT/CST 10447197/- F.Y 2007-08 Rectification before Asst. Commissioner of Sales Tax
MVAT Act 2005/CST Act 1956 MVAT/CST 4231970/- F.Y 2008-09 Joint Commissioner of Sales Tax (Appeals)
MVAT Act 2005/CST Act 1956 MVAT/CST 5188246/- F.Y 2009-10 Deputy Commissioner of Sales Tax (Appeals)
MVAT Act 2005/CST Act 1956 MVAT/CST 3728646/- F.Y 2010-11 Deputy Commissioner of Sales Tax (Appeals)
Employees PF & Misc. Provisions Act1952 Provident Fund 3036102/- Aug. 2011 to Sept. 2013 EPF Appellate Tribunal New Delhi
Employees PF & Misc. Provisions Act1952 Provident Fund 3760175/- Feb'2014 to April'2016 EPF Appellate Tribunal Chandigarh Shimla High Court

(viii) The Company does not have any loans or borrowings from any financialinstitution banks government or debenture holders during the year. Hence paragraph3(viii) of the Order is not applicable.

(ix) The Company did not raise any money by way of initial public offer or furtherpublic offer (including debt instruments) and term loans during the year. Hence paragraph3 (ix) of the Order is not applicable.

(x) According to the information and explanations given to us no material fraud by theCompany or on the Company by its officers or employees has been noticed or reported duringthe course of our audit.

(xi) According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has neither paid nor provided formanagerial remuneration. Hence paragraph 3(xi) of the Order is not applicable.

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

(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 applicable and details of suchtransactions have been disclosed in the financial statements as required by the applicableaccounting 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 plakhement of shares or fully or partly convertible debentures duringthe year.

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

(xvi) The Company is not required to be registered under section 45-IA of the ReserveBank of India Act 1934.

For A. N. Damania & Co.
Chartered Accountants
Firm Registration No. 102077W
Ashvin Damania
Proprietor
Membership No.040166
Mumbai
30th May 2017

Annexure - B to the Auditor's Report

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 LimeChemicals Limited ("the Company") as of 31st March 2017 in conjunction with ouraudit of the financial statements 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 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.

Auditor's 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 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 judgment 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 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.

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 31 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 A. N. Damania & Co.
Chartered Accountants
Firm Registration No. 102077W
Ashvin Damania
Proprietor
Membership No.040166
Mumbai
30th May 2017