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Ludlow Jute & Specialities Ltd.

BSE: 526179 Sector: Industrials
NSE: N.A. ISIN Code: INE983C01015
BSE LIVE 15:40 | 23 Aug 83.55 -2.45
(-2.85%)
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NSE 05:30 | 01 Jan Stock Is Not Traded.
OPEN 86.00
PREVIOUS CLOSE 86.00
VOLUME 599
52-Week high 132.00
52-Week low 62.10
P/E 12.34
Mkt Cap.(Rs cr) 90
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 86.00
CLOSE 86.00
VOLUME 599
52-Week high 132.00
52-Week low 62.10
P/E 12.34
Mkt Cap.(Rs cr) 90
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Ludlow Jute & Specialities Ltd. (LUDLOWJUTE) - Auditors Report

Company auditors report

Independent Auditors' Report

To the Members of

Ludlow Jute & Specialities Limited

REPORT ON THE STANDALONE FINANCIAL STATEMENTS

We have audited the accompanying standalone financial statements of LUDLOW JUTE& SPECIALITIES LIMITED ('the Company') which comprise the Balance Sheet as at 31March 2016 the Statement of Profit and Loss and the Cash Flow Statement for the year thenended and a summary of significant accounting policies and other explanatory information.

MANAGEMENT'S RESPONSIBILITY FOR THE STANDALONE 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 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.

AUDITOR'S RESPONSIBILITY

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 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 judgement 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 standalone financial statements.

OPINION

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 31 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 we give in the Annexure 'A' a statement on the matters specified in paragraph 3and 4 of the Order to the extent applicable.

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 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 and taken on record by the Board of Directors none of the Directors aredisqualified as on 31st 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';

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 2.27 to the financial statements;

ii. The Company did not have any material foreseeable losses on long term contractsincluding derivative contracts;

iii. There has been no delay in transferring amounts required to be transferred tothe Investor Education and Protection Fund by the Company.

For SINGHI & CO.
Chartered Accountants
Firm Registration No.302049E
1-B Old Post Office Street M. L. Shukla
Kolkata Partner
Dated the 9th day of May 2016 Membership No. 051505

ANNEXURE-A TO THE INDEPENDENT AUDITORS' REPORT

Annexure referred to in paragraph 1 under the heading "Report on Other Legal andRegulatory Requirements" of our

Independent Auditors' Report of even date in respect to statutory audit of Ludlow Jute& Specialities Limited for the

year ended 31st March 2016 we report that:

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

of fixed assets;

(b) The management has physically verified fixed assets at reasonable intervals whichin our opinion is reasonable having regard to the size of the Company and the nature ofits business. No material discrepancies were 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. The inventory has been physically verified at reasonable intervals during the yearby the Management/ Internal Auditors. The discrepancies noticed on verification betweenthe physical stock and the book stocks wherever ascertained were not significant and havebeen properly dealt in the books of accounts.

iii. In our opinion and according to the information and explanations given to us theCompany has not granted any loan to parties covered in the register maintained underSection 189 of the Companies Act 2013. Thus paragraph 3(iii) of the Order is notapplicable.

iv. In our opinion and according to the information and explanations given to us theCompany has complied with the provisions of Section 185 and 186 of the Companies Act 2013with respect to the loans and investments made. The Company has neither issued anyguarantee nor has provided any security on behalf of any party.

v. In our opinion and according to the information and explanations given to us theCompany did not receive any deposits covered under Sections 73 to 76 of the Companies Act2013 and the Rules framed there under with regard to deposits accepted from the publicduring the year.

vi. The Central Government has prescribed maintenance of cost records under Section 148(1) of the Companies Act 2013. We have broadly reviewed such accounts and records and areof the opinion that prima facie the prescribed accounts & records have been made& maintained but no detailed examination of such records and accounts have beencarried out by us.

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 of account in respect ofundisputed statutory dues including provident fund income tax sales tax service taxduty of customs value added tax cess and other material statutory dues have beenregularly deposited during the year by the Company with the appropriate authorities.According to the information and explanations given to us no undisputed amounts payablein respect of provident fund income tax sales tax service tax duty of customs valueadded tax cess and other material statutory dues were in arrears as at 31st March 2016for a period of more than six months from the date they became payable;

(b) According to the information and explanations given to us and the records of theCompany examined by us the dues of income tax sales tax wealth tax service tax dutyof customs duty of excise value added tax and cess as at 31st March 2016 which have notbeen deposited on account of dispute and the forum where the disputes are pending are asunder:

Sl. No. Nature of Dues Gross Amount Outstanding Paid under protest Period to which the amount relates Forum where dispute is pending
1 a) Excise Duty 43 - 1964 to 1969 Calcutta High Court
b) Excise Duty 1780 300 1986-87 to 1991-92 Appellate Authority
2 a) Sales Tax 2536 1120 1999-00 and 2004-05 WBCT (A & R) Board
b) Sales Tax 139958 3715 2005-06 to 2012-13 SR/Add. Joint Commissioner (CD) And WBCT (A & R) Board

viii. According to the information and explanations given to us the Company has notdefaulted in repayment of loans or borrowings from a financial institution bank orGovernment.

ix. According to the information and explanations given to us during the year nomoney have been raised by way of initial public offer or further public offer. The Termloans were applied for the purpose for which they were raised.

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 paid/ provided for managerialremuneration in accordance with the requisite approvals mandated by the provisions ofSection 197 read with Schedule V to the Companies Act 2013.

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 Companies Act 2013 where applicable anddetails of such transactions have been disclosed in the financial statements as requiredby the applicable Accounting 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 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 them. Accordingly paragraph 3(xv)of the 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 SINGHI & CO.
Chartered Accountants
Firm Registration No.302049E
1-B Old Post Office Street M. L. Shukla
Kolkata Partner
Dated the 9th day of May 2016 Membership No. 051505

ANNEXURE - B TO THE INDEPENDENT AUDITORS' REPORT

The Annexure referred to in paragraph 2 (f) under the heading "Report on OtherLegal and Regulatory Requirements" of our Independent Auditors' Report of even datein respect to the internal financial control over financial reporting under clause (i) ofsub-section 3 of Section 143 of the Companies Act 2013 of Ludlow Jute & SpecialitiesLimited for the year ended 31st March 2016 we report that:

We have audited the internal financial controls over financial reporting of Ludlow Jute& Specialities Limited ("the Company") as of 31st March 2016 in conjunctionwith our audit 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.

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 extent applicableto an audit of internal financial controls both applicable to an audit of InternalFinancial Controls and both issued by ICAI. Those Standards and the Guidance Note requirethat we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether adequate internal financial controls over financialreporting was established and maintained and 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 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.

OPINION

In our opinion the Company has in all material respects an adequate internalfinancial control system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at 31st 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 ICAI.

For SINGHI & CO.
Chartered Accountants
Firm Registration No.302049E
1-B Old Post Office Street M. L. Shukla
Kolkata Partner
Dated the 9th day of May 2016 Membership No. 051505