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Laffans Petrochemicals Ltd.

BSE: 524522 Sector: Industrials
NSE: N.A. ISIN Code: INE919B01011
BSE 00:00 | 24 Sep 35.50 -0.70
(-1.93%)
OPEN

38.00

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38.00

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NSE 05:30 | 01 Jan Laffans Petrochemicals Ltd
OPEN 38.00
PREVIOUS CLOSE 36.20
VOLUME 16732
52-Week high 38.00
52-Week low 12.46
P/E 18.88
Mkt Cap.(Rs cr) 28
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 38.00
CLOSE 36.20
VOLUME 16732
52-Week high 38.00
52-Week low 12.46
P/E 18.88
Mkt Cap.(Rs cr) 28
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Laffans Petrochemicals Ltd. (LAFFANSPETROCH) - Auditors Report

Company auditors report

To the Members of LAFFANS PETROCHEMICALS LIMITED

Report on the Audit of the Financial Statements Opinion

We have audited the accompanying financial statements of LAFFANS PETROCHEMICALSLIMITED ("the Company") which comprise the Balance Sheet as at 31st March2020 and the statement of Profit and Loss (including

Other Comprehensive Income) Statement of Changes in Equity and the Statement of CashFlows ended on that date and a summary of significant accounting policies and otherexplanatory information (hereinafter referred to statements") asthe"financial

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid financial statements give the information required by CompaniesAct 2013 (the "Act") in the manner so required and give a true and fair view inconformity with the Indian Accounting Standards prescribed under section 133 of the Actread with the Companies (Indian Accounting Standards) Rules 2015 as amended ("IndAS") and other accounting principles generally accepted in India of the state ofaffairs of the Company as at March 31 2020 the loss and total comprehensive incomechanges in equity and its cash flows for the year ended on that date.

Basis for Opinion

We conducted our audit of the financial statements in accordance with the Standards onAuditing ("SA"s) specified under section 143(10) of the Act. Ourresponsibilities under those Standards are further described in the Auditor'sResponsibilities for the Audit of the Financial Statements section of our report. We areindependent of the Company in accordance with the Code of Ethics issued by the Instituteof Chartered Accountants of India ("ICAI") together with the ethicalrequirements that are relevant to our audit of the financial statements under theprovisions of the Act and the Rules thereunder and we have fulfilled our other ethicalresponsibilities in accordance with these requirements and the Code of Ethics. We believethat the audit evidence we have obtained is sufficient and appropriate to provide a basisfor our opinion on the financial statements.

Key Audit Matters

Key audit matters are those matters that in our professional judgement were of mostsignificancein our audit of the financial statements of the current period. These matterswere addressed in the context of our audit of the financial statements as a whole and informing our opinion thereon and we do not provide a separate opinion on these matters. Wehave determined the matters described below to be key audit matters to be communicated inour report.

Sr. No. Key Audit Matter Auditor's Response
1 Evaluation of uncertain tax Positions Principal Audit Procedures:
The Company has material uncertain tax positions including matters under dispute which involves sig- nificant judgement to determine the possible outcome of these disputes. Obtained details of tax assessment and demands for the year ended March 31 2020 from management.
We involved our experts to verify the management underlying assumptions in estimating the tax pro- vision and the possible outcome of the disputes.
2 Recoverability of Direct / Indirect Tax receivables Principal Audit Procedures:-
As at March 31 2020 Other Current Assets in respect of Income tax and GST Inputs recoverable amount to Rs. 54.67 Lakh and Rs.33.52 Lakh respectively. We have involved our experts to review the nature of the amount recoverable the sustainability and likelihood of recoverability upon final

Information Other than the Financial Statements and Auditor's Report Thereon

The Company's Board of Directors is responsible for the other information. The otherinformation comprises the information included in the Management Discussion and AnalysisBoard's Report including Annexure to Board's Report Business Responsibility ReportCorporate Governance and Shareholder's Information but does not include the financialstatements and our auditor's report thereon.

Our opinion on the financial statements does not cover the other information and we donot express any form of assurance conclusion thereon.

In connection with our audit of the financial statements our responsibility is to readthe other information and in doing so consider whether the other information ismaterially inconsistent with the financial statements or our knowledge obtained during thecourse of our audit or otherwise appears to be materially misstated.

If based on the work we have performed we conclude that there is a materialmisstatement of this other information we are required to report that fact. We havenothing to report in this regard.

Management's Responsibilities 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 preparation of these financialstatements that give a true and fair view of the financial position financialperformance including other comprehensive income changes in equity and cash flows of theCompany in accordance with the Ind AS and other accounting principles generally acceptedin India. This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding of the assets of the Companyand for preventing and detecting frauds and other irregularities; selection andapplication of appropriate accounting policies; making judgements 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.

In preparing the financial statements management is responsible for assessing theCompany's ability to continue as a going concern disclosing as applicable mattersrelated to going concern and using the going concern basis of accounting unless managementeither intends to liquidate the Company or to cease operations or has no realisticalternative but to do so.

The Board of Directors are responsible for overseeing the Company's financial reportingprocess.

Auditor's Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financialstatements as a whole are free from material misstatement whether due to fraud or errorand to issue an auditor's report that includes our opinion. Reasonable assurance is a highlevel of assurance but is not a guarantee that an audit conducted in accordance with SAswill always detect a material misstatement when it exists. Misstatements can arise fromfraud or error and are considered material if individually or in the aggregate theycould reasonably be expected to influence the economic decisions of users taken on thebasisofthesefinancialstatements.

As part of an audit in accordance with SAs we exercise professional judgement andmaintain professional scepticism throughout the audit. We also:

Identify and assess the risks of material misstatement of the financial statementswhether due to fraud or error design and perform audit procedures responsive to thoserisks and obtain audit evidence that is sufficient and appropriate to provide a basis forour opinion. The risk of not detecting a material misstatement resulting from fraud ishigher than for one resulting from error as fraud may involve collusion forgeryintentional omissions misrepresentations or the override of internal control.

Obtain an understanding of internal control relevant to the audit in order to designaudit procedures that are appropriate in the circumstances. Under section 143(3)(i) of theAct we are also responsible for expressing our opinion on whether the company hasadequate internal financial controls system in place and the operating effectiveness ofsuch controls.

Evaluate the appropriateness of accounting policies used and the reasonableness ofaccounting estimates and related disclosures made by management.

Conclude on the appropriateness of management's use of the going concern basis ofaccounting and based on the audit evidence obtained whether a material uncertaintyexists related to events or conditions that may cast significant doubt on the Company'sability to continue as a going concern. If we conclude that a material uncertainty existswe are required to draw attention in our auditor's report to the related disclosures inthe financial statements or if such disclosures are inadequate to modify our opinion.Our conclusions are based on the audit evidence obtained up to the date of our auditor'sreport. However future events or conditions may cause the Company to cease to continue asa going concern.

Evaluate the overall presentation structure and content of the financial statementsincluding the and whether the financial statements represent the underlying transactionsand events in a manner that achieves fair presentation.

Materiality is the magnitude of misstatements in the financial statements thatindividually or in it probable that the economic decisions of a reasonably knowledgeableuser of the financial statements may be influenced. We consider quantitative materialityand qualitative factors in (i) planning the scope of our audit work and in evaluating theresults of our work; and (ii) to evaluate the effect of any identified misstatements inthe financial statements.

We communicate with those charged with governance regarding among other matters theplanned scope and timing of the audit and significant audit findings including anysignificant deficiencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have compliedwith relevant ethical requirements regarding independence and to communicate with themall relationships and other matters that may reasonably be thought to bear on ourindependence and where applicable related safeguards.

From the matters communicated with those charged with governance we determine thosematters that were of most significance in the audit of the financial statements of thecurrent period and are therefore the key audit matters.

We describe these matters in our auditor's report unless law or regulation precludespublic disclosure about the matter or when in extremely rare circumstances we determinethat a matter should not be communicated in our report because the adverse consequences ofdoing so would reasonably be expected to outweigh the public interest benefits of suchcommunication

Report on Other Legal and Regulatory Requirements

1. As required by Section 143(3) of the Act we report that: a) We have sought andobtained all the information and explanations which to the best of our knowledge andbelief were necessary for the purposes of our audit. b) In our opinion proper books ofaccount as required by law have been kept by the Company so far as it appears from ourexamination of those books. c) The Balance Sheet the Statement of Profit and Loss andthe

Report are in agreement with the books of account. d) In our opinion the aforesaidfinancial statements comply with the Accounting Standards specified

Section 133 of the Act. e) On the basis of the written representations received fromthe directors as on 31st March 2020 taken on record by the Board of Directors none ofthe directors is disqualified as on 31st March 2020 from being appointed as a director interms of Section 164 (2) of the Act. f) With respect to the adequacy of the internalfinancial controls over financial reporting of the Company and the operating effectivenessof such controls refer to our separate Report in "Annexure A". Our reportexpresses an unmodified opinion on the adequacy and operating effectiveness of theCompany's internal financial controls over financial reporting.

g) With respect to the other matters to be included in the Auditor's Report inaccordance with the requirements of section 197(16) of the Act as amended: In our opinionand to the best of our information and according to the explanations given to us theremuneration paid by the Company to its directors during the year is in accordance withthe provisions of section 197 of the Act. h) With respect to the other matters to beincluded in the Auditor's Report in accordance with Rule 11 of the Companies (Audit andAuditors) Rules 2014 in our opinion and to the best of our information and according tothe explanations given to us: i. The Company has disclosed the impact of pendinglitigations on its financial position in its financial statements ii. The Company has madeprovision as required under the applicable law or accounting standards for materialforeseeable losses if any on long-term contracts including derivative contracts; iii.There has been no delay in transferring amounts required to be transferred to theInvestor Education and Protection Fund by the Company

2. 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 Companies Act 2013 we give in the "Annexure

B" a statement on the matters specified in paragraphs 3 and 4 of the Order tothe extent applicable.

For Pushp K. Sahu & Co.
Chartered Accountants
Firm Registration No. 128013W
Pushp Kant Sahu
Proprietor
Membership No. 112502
Place: Mumbai
Date: 20th July 2020
UDIN No.: 20112502AAAAAD3606

ANNEXURE"A" TO THE INDEPENDENT AUDITORS' REPORT

(Referred to in paragraph 1 (f) under ‘Report on Other Legal and RegulatoryRequirements' section of our report to the Members of Laffans Petrochemicals Limited ofeven date)

Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143 of the Companies Act2013 ("the Act ")

We have audited the internal financial controls over financial reporting ofLAFFANSPETROCHEMICALS LIMITED ("the Company") as of March 31 2020 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

Guidance Note on Audit of Internal Financial Controls over Financial Reporting issuedby the Institute of Chartered Accountants of India (the "ICAI").Theseresponsibilities include the design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the orderly andefficientconduct of its business including adherence to company's policies thesafeguarding of its assets the prevention and detection of frauds and errors theaccuracy and completeness of the accounting records and the timely preparation of reliablefinancial information as required under the Companies Act2013.

Auditors' Responsibility

Our responsibility is to express an opinion on the Company's internal financialcontrols over the financial reporting based on our audit. We conducted our audit inaccordance with the Guidance Note on Audit of Internal Financial Controls over FinancialReporting (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 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 of India. Those Standards and the Guidance Noterequire that 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 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. Webelieve that the audit evidence we have obtained is sufficient and appropriate to providea basis for our audit opinion on the Company`s internal financial controls system overfinancial 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 of records that in reasonable detail accurately andfairly reflect the transactions and dispositions of the assets of the company;

2) provide reasonable assurance that transactions are recorded as necessary to permitpreparation of financial statements in accordance with generally accepted accountingprinciples and that receipts and expenditures of the company are being made only inaccordance with authorities of management and directors of the company; and 3) providereasonable assurance regarding prevention or timely detection of unauthorized acquisitionuse or disposition of the company's assets that could have a material effect on thefinancial statements.

Inherent Limitations of Internal Financial Controls over Financial Reporting

Because of the inherent limitations of the 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 the changes in conditions orthat the degree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion to the best of our information and according to the explanations givento us the Company has in all material respects an adequate internal financial controlssystem over financial reporting and such internal financial controls over financialreporting were operating effectively as at 31 March 2020 based on the internal controlover financial reporting criteria established by the Company considering the essentialcomponents of internal control stated in the Guidance Note on Audit of Internal FinancialControls Over Financial Reporting issued by the Institute of Chartered Accountants ofIndia.

For Pushp K. Sahu & Co.
Chartered Accountants
Firm Registration No. 128013W
Pushp Kant Sahu
Proprietor
Membership No. 112502
Place: Mumbai
Date: 20th July 2020
UDIN No.: 20112502AAAAAD3606

ANNEXURE "B" TO THE INDEPENDENT AUDITOR'S REPORT

(Referred to in paragraph 2 under ‘Report on Other Legal and RegulatoryRequirements' section of our report to the Members of Laffans Petrochemicals Limited ofeven date) i) In respect of the Company's fixed assets:

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

(b) The Company has a program of verification to cover all the items of fixed assets ina phased manner which in our opinion is reasonable having regard to the size of theCompany and the nature of its assets.

Pursuant to the program certain fixed assets were physically verified by themanagement during the year.

According to the information and explanations given to us no material discrepancieswere noticed on such verification.

(c) In our opinion and according to the information and explanations given to us in ouropinion and according to the information and explanations given to us the title deeds ofthe immovable properties of the company are held in the name of the company. ii) Inrespect of its Inventories there is no closing stock on the reporting date. Also theCompany has done all high sea sales transaction during the year and hence physicalverification of goods could not be performed.

Stating all the facts this clause does not apply to the company. iii) According to theinformation and explanations given to us the Company has not granted loan to any partycovered in register u/s. 2(76) hence clause iii (a) (b) and (c) are not applicable. iv)In respect of loans investments and guarantees in our opinion and according to theinformation and explanations given to us provisions of Section 185 and 186 had beencomplied with. v) In our opinion and according to the information and explanation given tous the company has not accepted deposits from the public as per section 73 to 76 or anyother relevant provisions of the Companies Act 2013. vi) According to information andexplanation given to us the maintenance of cost records has not been prescribed by theCentral Government sub section (1) of section 148 of the Companies Act 2013. vii)According to the information and explanations given to us in respect of statutory andother dues: (a) The Company has generally been regular in depositing undisputed statutorydues including Provident Fund Employees' State Insurance Income Tax Goods and ServiceTax Customs Duty Cess and other material statutory dues applicable to it with theappropriate authorities.

(b) There were no undisputed amounts payable in respect of Provident Fund Employees'State Insurance Income Tax Goods and Service Tax Customs Duty Cess and other materialstatutory dues in arrears except for Profession Tax of employee of Rs. 32150 and companyof Rs.2500 as at March 31 2020 for a period of more than six months from the date theybecame payable.

(c) Details of dues of Income Tax Sales Tax Service Tax Excise Duty and Value AddedTax which have not been deposited as at March 31 2020 on account of dispute are givenbelow:

Nature of the Statute Nature of dues Forum where Dis- pute is pending Period to which the Amount Relates Amount `
The Income Tax Act 1961 Income Tax Appeal is pending AY 2017-18 4342296
The Sales Tax Act Sales tax Appeal is pending FY 2008-09 9733201

viii) The Company has taken Cash Credit limit from bank but has not issued anydebentures. The Company has not defaulted in repayment of borrowing from bank.

ix) The Company has not raised moneys by way of initial public offer or further publicoffer (including debt instruments) or term loans and hence reporting under clause 3 (ix)of the Order is not applicable to the Company. x) To the best of our knowledge and beliefand according to the information and explanations given to us no fraud by the Company orno material fraud on the Company by its officers or employees has been noticed or reportedduring the period. xi) In our opinion and according to the information and explanationsgiven to us the managerial remuneration has been paid/provided in accordance with therequisite approvals mandated by the provisions of section 197 read with schedule V to thecompanies Act. xii) The Company is not a Nidhi Company and hence reporting under clause 3(xii) of the Order is not applicable to the Company. xiii) In our opinion and according tothe information and explanations given to us all transactions with the related partiesare incompliance with Section 188 and 177 of Companies Act 2013 and the relevant detailshave been disclosed in the financial statements as required by the applicable accountingstandards. xiv) During the year the Company has not made any preferential allotment orprivate placement of shares or fully or partly paid convertible debentures and hencereporting under clause 3 (xiv) of the Order is not applicable to the Company. xv) In ouropinion and according to the information and explanations given to us during the year theCompany has not entered into any non- cash transactions with directors or personsconnected to its directors and hence provisions of Section 192 of the Companies Act 2013are not applicable to the Company. xvi) The Company is not required to be registered undersection 45-IA of the Reserve Bank of India Act 1934.

For Pushp K. Sahu & Co.
Chartered Accountants
Firm Registration No. 128013W
Pushp Kant Sahu
Proprietor
Membership No. 112502
Place: Mumbai
Date: 20th July 2020
UDIN No.: 20112502AAAAAD3606

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