Lloyd Rock Fibres Ltd.
|BSE: 531527||Sector: Industrials|
|NSE: N.A.||ISIN Code: INE640D01019|
|BSE 05:30 | 01 Jan||Lloyd Rock Fibres Ltd|
|NSE 05:30 | 01 Jan||Lloyd Rock Fibres Ltd|
|BSE: 531527||Sector: Industrials|
|NSE: N.A.||ISIN Code: INE640D01019|
|BSE 05:30 | 01 Jan||Lloyd Rock Fibres Ltd|
|NSE 05:30 | 01 Jan||Lloyd Rock Fibres Ltd|
TO THE MEMBERS OF LLOYD ROCKFIBRES LIMITED NEW DELHI
Report on the Standalone Financial Statements
We have audited the accompanying standalone financial statements of LLOYD ROCKFIBRESLIMITED ("the Company") which comprise the Balance Sheet as at 31st March2017 the Statement of Profit and Loss the the year then ended and a summary of thesignificant accounting policies and other explanatory information.
Managements Responsibility for the Standalone Financial Statements
The Companys Board of Directors is responsible for the matters stated in Section134(5) of theCompanies 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 (as amended). This responsibility also includes maintenance of adequateaccounting records in accordance with the provisions of the Act for safeguarding of theassets of the Company and for preventing and detecting frauds and other irregularities;selection and application of appropriate accounting policies; making judgments andestimates that are reasonable and prudent; and design implementation and maintenance ofadequate internal financial controls that were operating effectively for ensuring theaccuracy and completeness of the accounting records relevant to the preparation andpresentation of the 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 financial statements. The procedures selected depend on theauditors judgment including the assessment of the risks of material misstatement ofthe financial statements whether due to fraud or error. In making those risk assessmentsthe auditor considers internal financial control relevant to the Companyspreparation of the financial statements that give a true and fair view in order to designaudit procedures that are appropriate in the circumstances. An audit also includesevaluating the appropriateness of the accounting policies used and the reasonableness ofthe accounting estimates made by the Companys Directors as well as evaluating theoverall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for 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 2017 and its lossess and its cash flows for the year ended on thatdate.
Emphasis of Matter
Attention may be drawn to Notes Forming Part Of Accounts C- OtherNotes points 6 & 7 regarding complete erosion of Net Worth of the Company andaccumulated losses and cash losses.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditors Report) Order 2016 ("theOrder") issued by the Central Government of India in terms of sub-section (11) ofsection 143 of the Act we give in the Annexure a statement on the matters specified inthe paragraph 3 and 4 of the Order to the extent applicable.
2. As required by Section 143(3) of the Act we report that:
We have sought and obtained all the information and explanations which to the best ofour knowledge and belief were necessary for the purposes of our audit;
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;
The Balance Sheet the Statement of Profit and Loss and the Cash Flow Statement dealtwith by this Report are in agreement with the books of account;
In our opinion the aforesaid standalone financialstatements comply with the AccountingStandards specified under
Section 133 of the Act read with Rule 7 of the Companies (Accounts) Rules 2014 (asamended);
On the basis of the written representations received from the directors as on 31stMarch 2017 and taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2017 from being appointed as a director in terms of Section164 (2) of the Act;
With respect to the adequacy of the internal financial control over financial reportingof the Company and the operating effectiveness of such control refer to our separatereport in "Annexure B"; and
With respect to the other matters to be included in the Auditors 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 some pending litigation which may impact its financial position asmentioned in the Notes to Accounts point O asContingentLiability please refere to Notes to Accounts point O (i)point no ef&g.
2. The Company did not have any long-term contracts including derivative contracts forwhich there were any material foreseeable losses.
3. There were no amounts which were required to be transferred to the InvestorEducation and Protection Fund by the Company.
4. The Company has provided requisite disclosures in its financial statements as toholdings as well as dealings in Specified Bank Notes ( as defined in the MCA notificationG.S.R. 308 (E) dated March 312017 ) from 8th November 2016 to 30th December 2016 andthese are in accordance with the books of accounts. (Ref. point B 8 of SignificantAccounting Policies ).
Annexure A to the Independent Auditors Report
The Annexure referred to in our report to the members of LLOYD ROCKFIBRESLIMITED("the Company") for the year ended on 31st March 2017. We report that:
1. In Respect of Fixed Assets
The company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.
Fixed assets have been physically verified by the management at reasonable intervals;No material discrepancies were noticed on such verification.
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.
1. In Respect of Inventory
Physical verification of inventory has been conducted at reasonable intervals by themanagement and no material discrepancies were noticed at the time of verification.
a) Loans and advances granted to parties covered under section 189 of the CompaniesAct 2013
The company has not granted any loan secured or unsecured to companies firms or otherparties covered in the register maintained under Sec 189 of the Act. Accordingly theprovisions of clauses 3(iii)(a) 3(iii)(b) and 3(iii)(c) of the Order are not applicable.
b) The Company has accepted loan from NGP Industries Limited covered in the registermaintained under Sec 189 of the Companies Act 2013.The maximum amount involved during theyear was Rs. 35314373/- ( previous year Rs.29738313 /-) and the year end balance of loanstaken from such parties was Rs. 35314373/- (previous year Rs. 29738313 /-). c) In the caseof the loans accepted from the bodies corporate listed in the register maintained underSec 189 of the Act and it is repayable on demand .As informed the lenders have notdemanded repayment of any such loan during the year thus there has been no default onthe part of the Company.
Loans investments guarantees and security under section 185 and 186 of the CompaniesAct 2013
The company has neither given any loan nor made any investment or given any securitiesas per Sec 185 and 186 of the Act. Accordingly the provisions of clauses 4 of the Orderis not applicable.
Rules followed while accepting Deposits
The company has not accepted any deposit from public during the year. In our opinionand according to the information and explanation given to us the provisions of section 73to 76 or any other relevant provisions of the companies Act 2013 and companies(Acceptance of deposits) Rules 2014 with regard to deposits from the public is notapplicable in the current year. No order has been passed by Company Law Board or nationalcompany law tribunal or Reserve Bank of India or any court or any other tribunal in thisregard.
Maintenance of cost records
As per provisions of maintenance of cost records under sub-section (l) of section 148of the Companies Act 2013the Company is required to maintain Cost records and is alsorequired to get the same audited by a qualified Accountant. A compliance report is alsorequired to be filedwith the Central Government. During the current financial year theCompany had not undertaken any manufacturing activity.
According to the information and explanations given to us in respect of statutory dues
(a) The company is regular in depositing with appropriate authorities undisputedstatutory dues including income-tax sales-tax service tax duty of customs duty ofexcise value added tax cess andany other statutory dues to the appropriate authoritiesand other material statutory dues applicable to it.
(b) According to the information and explanations given to us no undisputed amountspayable in respect of income-tax Vat service tax or cess and any other statutory dueswith the appropriate authorities were in arrears as at 31st March 2017 for a period ofmore than six months from the date they became payable except as mentioned under the head Contingent liabilities under point O of notes forming part ofthe Balance Sheet.
Default in Repayment of Loans taken from Bank or Financial Institutions
The Company has not raised moneys by way of initial public offer or further publicoffer (including debt instruments) and term loans during the year. Accordingly theprovisions of clauses 9 of the Order is not applicable
whether any fraud by the company or any fraud on the Company by its officers oremployees has been noticed or reported during the year
According to the information and explanation given to us no fraud by the company orany fraud on the Company by its officers or employees has been noticed or reported duringthe year.
whether managerial remuneration has been paid or provided in accordance with therequisite approvals mandated by the provisions of section 197 read with Schedule V to theCompanies Act
According to the information and explanations give to us and based on our examinationof the records of the Company the Company has not paid/provided for managerialremuneration .
whether the Nidhi Company has complied with the Net Owned Funds to Deposits in theratio of 1: 20 to meet out the liability.
whether all transactions with the related parties are in compliance with sections 177and 188 of Companies Act 2013
According to the information and explanations give to us and based on our examinationof the records of the Company transaction with related parties are in compliance withSections 177 and 188 of the Act where applicable.Such transactions have been disclosed inthe financial statements as required by the applicable accounting standards.
The company has not made any preferential allotment or private placement of shares orfully or partly convertible debentures during the year under review thus the requirementof section 42 of the Companies Act 2013 need not to be complied with. Accordingly theprovisions of clauses 14 of the Order are not applicable.
The company has not entered into any non-cash transactions with directors or personsconnected with him as per the provisions of section 192 of the Act. Accordingly theprovisions of clauses 15 of the Order are not applicable.
The company is not required to be registered under section 45-IA of the Reserve Bank ofIndia Act 1934.
Annexure - B to the Auditors 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 ofLLOYDROCKFIBRES LIMITED ("the Company") as of 31 March 2017 in conjunction with ouraudit of the standalone financial on that date.
Managements Responsibility for Internal Financial Controls
The Companys 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 companys policies the safeguardingof its 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 Companys 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 ICAIand deemed to be prescribed under section 143(10) of the Companies Act 2013 to theextent applicable to an audit of internal financial audit of Internal Financial Controlsand both issued by the Institute of Chartered Accountants of India. Those Standards andthe Guidance Note require that we comply with ethical requirements and plan and performthe audit to obtain reasonable assurance about whether adequate internal financialcontrols over financial reporting was if such controls operated effectively in allmaterial 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 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 auditors judgment including the assessment of the risks of materialmisstatement of the financial statements whether due to fraud or error. We believe thatthe audit evidence we have obtained is sufficient and appropriate to provide a basis forour audit opinion on the Companys internal financial controls system over financialreporting.
Meaning of Internal Financial Controls over Financial Reporting
A companys internal financialcontrol over financialreporting is a processdesigned to provide reasonable assurance regarding the reliability of financial reportingand the preparation of financial statements for external purposes in accordance withgenerally accepted accounting principles. A companys internal financial control overfinancial reporting includes those policies and procedures that (1) pertain to themaintenance of records that in reasonable detail accurately and fairly reflect thetransactions and dispositions of the assets of the company; (2) provide reasonableassurance that transactions are statements inrecordedasnecessarytopermitpreparationoffinancial accordance with generally acceptedaccounting principles and that receipts and expenditures of the company are being madeonly in accordance with authorisations of management and directors of the company; and (3)provide reasonable assurance regarding prevention or timely detection of unauthorisedacquisition use or disposition of the companys assets that could have a materialeffect 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 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.