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Lords Chloro Alkali Ltd.

BSE: 500284 Sector: Industrials
NSE: MODIALKALI ISIN Code: INE846D01012
BSE LIVE 19:04 | 19 Oct 43.00 -2.20
(-4.87%)
OPEN

43.00

HIGH

43.00

LOW

43.00

NSE 05:30 | 01 Jan Stock Is Not Traded.
OPEN 43.00
PREVIOUS CLOSE 45.20
VOLUME 5
52-Week high 52.00
52-Week low 27.20
P/E 41.35
Mkt Cap.(Rs cr) 108
Buy Price 43.00
Buy Qty 245.00
Sell Price 44.95
Sell Qty 200.00
OPEN 43.00
CLOSE 45.20
VOLUME 5
52-Week high 52.00
52-Week low 27.20
P/E 41.35
Mkt Cap.(Rs cr) 108
Buy Price 43.00
Buy Qty 245.00
Sell Price 44.95
Sell Qty 200.00

Lords Chloro Alkali Ltd. (MODIALKALI) - Auditors Report

Company auditors report

TO THE MEMBERS OF

LORDS CHLORO ALKALI LIMITED

Report on the Financial statements

We have audited the accompanying financial statements of Lords Chloro Alkali Limited(‘the Company') which comprise the balance sheet as at 31 March 2016 the statementof profit and loss and the cash flow statement for the year then ended and a summary ofsignificant accounting 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 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 financial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.

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 audit opinion on the financial statements.

Basis of Qualified Opinion

We draw attention to:

(a) Note 34 of the financial statements which describes to the fact that balances ofcurrent assets sundry loans and advances other long term liabilities including securitydeposits and current liabilities including sundry creditors are subject to confirmationand adjustments necessary upon reconciliation thereof. The effect of the adjustmentarising from the reconciliation/confirmation that may arise is not ascertainable.

(b) Note 36 of the financial statements which describes to the fact that Company hasnot transferred an amount of Rs.11.64 lacs (previous year Rs.11.64 lacs) to the"Investor Education and Protection Fund" as required. This is the contraventionof the provisions of the section 205C of the Companies Act 1956.

Qualified Opinion

Subject to our comments in the para above in our opinion and to the best of ourinformation and according to the explanations given to us the aforesaid financialstatements give the information required by the Act in the manner so required and give atrue and fair view in conformity with the accounting principles generally accepted inIndia of the state of affairs of the Company as at 31 March 2016 and its profit and itscash 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 Rule 7 of the Companies(Accounts) Rules 2014;

(e) On the basis of the written representations received from the directors as on 31March 2016 taken on record by the Board of Directors none of the directors isdisqualified as on 31 March 2016 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 statement- Refer Note 32 to the financial statements;

II. The Company did not have any long-term contracts including derivative contracts forwhich there were any material foreseeable losses;

III. There has been delay in transferring the amounts which was required to betransferred to the investor education and protection fund by the Company- Refer Note 36 tothe financial statements.

For Gupta Vigg & Co. Chartered Accountants
Firm's Registration No.: 001393N
CA. Deepak Pokhriyal
Place: New Delhi Partner
Date: 27.05.2016 Membership Number: 524778

ANNEXURE - A TO THE AUDITORS’ REPORT

The Annexure referred to in Independent Auditors' Report to the members of the Companyon the financial statements for the year ended 31 March 2016 we report that:

(i) (a) The Company has maintained proper records to show full particulars includingquantitative details and situations of fixed assets.

(b) The Company has a regular programme of verification of fixed assets. All the fixedassets have been physically verified by the management which in our opinion is reasonablehaving regard to size of the Company and nature of fixed assets. No material discrepancieswere noticed on such verification.

(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.

(ii) According to the information and explanations given to us the inventories havebeen physically verified during the year by the management at reasonable intervals. Nomaterial discrepancies were noticed on physical verification of inventories by themanagement.

(iii) The Company has not granted any loans to companies firms Limited LiabilityPartnerships or other parties covered in the register maintained under section 189 of theCompanies Act 2013. Thus paragraph 3(iii) of the Order is not applicable to the Company.

(iv) In our opinion and according to the information and explanations given to us theCompany has not made any loans guarantees and security under the provisions of section185 of the Companies Act 2013. According to the information and explanations given to usthe Company has complied with the provisions of section 186 of the Act with respect tothe investments made.

(v) According to the information and explanations given to us the Company has notaccepted any deposits from the public. Therefore paragraph 3(v) of the Order is notapplicable to the Company.

(vi) According to the information and explanations given to us the Companies (CostRecords and Audit) Rules 2014 prescribed by the Central Government under Section 148 (1)of the Companies Act 2013 are not applicable to the Company. Therefore paragraph 3(vi)of the Order is not applicable to the Company.

(vii) (a) According to the information and explanations given to us and on the basis ofour examination of the records of the Company amounts deducted/ accrued in the books ofaccount in respect of undisputed statutory dues including provident fund employees' stateinsurance income-tax sales tax service tax duty of customs duty of excise valueadded tax cess and other material statutory dues have been regularly deposited during theyear by the Company with the appropriate authorities.

According to the information and explanations given to us no undisputed amountspayable in respect of provident fund employees' state insurance sales tax service taxduty of customs duty of excise value added tax cess and other material statutory dueswere in arrears as at 31 March 2016 for a period of more than six months from the datethey became payable except below.

s. No. Nature of Dues Amount (Rs. in Lakhs)
1 Income Tax (TDS) 1.33
2 Wealth Tax 6.58
3 Investor Education and Protection Fund 11.64

(b) According to the information and explanations given to us there are no dues ofsales tax or duty of customs or duty of excise or value added tax which have not beendeposited with the appropriate authorities on account of any dispute. However accordingto information and explanations given to us the following dues of duty of excise duty ofcustoms and income tax have not been deposited by the Company on account of disputes:

(Rs. In Lakhs)

Name of the Statue Nature of Dues Period to which the amount relates Amount (Rs.) Forum Where Dispute is Pending
Central Excise Act 1944 Excise Duty 1995-99 64.76 Commissioner
(64.76) (Appeals) JAIPUR/ CESTAT New Delhi
Central Excise Act 1944 Excise Duty 1996-97 145.62 CESTAT NEW DELHI
(145.62)
Central Excise Act 1944 Excise Duty 1996-99 110.72 HIGH COURT JAIPUR
(110.72)
Central Excise Act 1944 Excise Duty 2003-04 6.32 CESTAT NEW DELHI
(12.63)
Central Excise Act 1944 Excise Duty 2011-12 1.53 Addl. Commissioner Jaipur
(1.53)
Income Tax Act 1961 Income Tax A/Y 1996-97 287.17 ITAT JAIPUR
(287.17)
Custom Tariff Act1975 Custom Duty 2002-03 5.00 HIGH COURT DELHI
(35.00)

Note- Figures in brackets relates to the previous year.

(viii) Based on our audit procedures and according to the information and explanationsgiven by the management the Company has not defaulted in repayment of dues to any banksor to any financial institution. The Company did not have any outstanding debenturesduring the year.

(ix) The Company did not raise any money by way of initial public offer or furtherpublic offer (including debt instruments). Based on our audit procedures and on theinformation given by the management we report that term loans have been utilized for thepurpose for which they have been raised.

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

(xi) According to the information and explanations give to us and based on ourexamination of the records of the Company the Company has paid/ provided for managerialremuneration in accordance with the requisite approvals mandated by the provisions ofsection 197 read with Schedule V to the Act.

(xii) 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.

(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 give to us and based on ourexamination of the records of the Company the Company has not made any preferentialallotment or private placement 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. Accordingly paragraph 3(xv) ofthe Order is not applicable.

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

For Gupta Vigg & Co.
Chartered Accountants
Firm's Registration No.: 001393N
CA. Deepak Pokhriyal
Place: New Delhi Partner
Date: 27.05.2016 Membership Number: 524778

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 of LordsChloro Alkali Limited (‘the Company') as of 31 March 2016 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'). 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.

Auditors’ 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 2016 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 Gupta Vigg & Co.
Chartered Accountants
Firm's Registration No.: 001393N
CA. Deepak Pokhriyal
Place: New Delhi Partner
Date: 27.05.2016 Membership Number: 524778