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Lancor Holdings Ltd.

BSE: 509048 Sector: Infrastructure
NSE: N.A. ISIN Code: INE572G01025
BSE 00:00 | 18 Oct 8.45 0.31
(3.81%)
OPEN

8.40

HIGH

8.50

LOW

7.74

NSE 05:30 | 01 Jan Lancor Holdings Ltd
OPEN 8.40
PREVIOUS CLOSE 8.14
VOLUME 15640
52-Week high 22.50
52-Week low 6.50
P/E 42.25
Mkt Cap.(Rs cr) 34
Buy Price 7.95
Buy Qty 500.00
Sell Price 8.45
Sell Qty 33.00
OPEN 8.40
CLOSE 8.14
VOLUME 15640
52-Week high 22.50
52-Week low 6.50
P/E 42.25
Mkt Cap.(Rs cr) 34
Buy Price 7.95
Buy Qty 500.00
Sell Price 8.45
Sell Qty 33.00

Lancor Holdings Ltd. (LANCORHOLDINGS) - Auditors Report

Company auditors report

TO THE MEMBERS OF LANCOR HOLDINGS LIMITED

We have audited the accompanying standalone financial statements of Lancor HoldingsLimited ("the Company") which comprise the Balance Sheet as at March 312018the Statement of Profit and Loss (including Other Comprehensive Income) the Cash FlowStatement and the Statement of Changes in Equity for the year then ended and a summary ofthe significant accounting policies and other explanatory information (hereinafterreferred to as “the standalone financial statements”).

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 including other comprehensive income cash flows andstatement of changes in equity of the Company in accordance with the accounting principlesgenerally accepted in India including the Indian Accounting Standards (Ind AS) specifiedunder Section 133 of the Act read with relevant rule of the Companies (Accounts) Rulesissued there in. This responsibility also includes maintenance of adequate accountingrecords in accordance with the provisions of the Act for safeguarding the assets of theCompany and 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 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 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 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 including the Ind AS of the state ofaffairs of the Company as at March 312018 and its profit including (other comprehensiveincome) its cash flows and the changes in equity for the year ended on that date.

The comparative financial information of the Company as on April 1 2016 and March 312017 prepared in accordance with the Ind AS included in these financial statements havebeen audited by the predecessor auditor. The report of the predecessor auditor on thiscomparative financial information dated May 28 2016 and May 29 2017 expressed anunmodified conclusion.

Emphasis of Matter

We draw your attention to

a) Note no. 4.12 (b) to the audited standalone financial statement relating tocircumstances which have been considered for determining the period for capitalization ofborrowing cost.

b) Note no. 4.02 (a) regarding pending litigation to one of the Commercial Propertyaccounted as investment property having carrying value of Rs 3424.09 lakhs.

Our report is not qualified in respect of the above matters.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor's Report) Order 2016 (“the Order”)issued by the Central Govern ment of India in terms of section 143(11) of the Act we givein the Annexure a statement on the matters specified in paragraph 3 and 4 of the saidOrder 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 Statementand statement of changes in equity dealt with by this Report are in agreement with thebooks of account.

(d) In our opinion the aforesaid standalone financial statements comply with theIndian Accounting Standards specified under Section 133 of the Act read with relevantrules issued there under.

(e) On the basis of the written representations received from the directors as on March312018 and taken on record by the Board of Directors none of the directors isdisqualified as on March 312018 from being appointed as a director in terms of Section164(2) of the Act.

(f) With respect to adequacy of internal financial controls with reference to financialstatements of the Company and operating effectiveness of such controls we give 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 litigation on its financial positionin its financial statement. Refer note number 4.02 to the financial statement.

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

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

For Nayan Parikh & Co.
Chartered Accountants
Firm Registration No.107023W
Sd/-
K.Y. Narayana
Chennai Partner
Dated: May 14 2018 Membership No. 060639

ANNEXURE 'A' TO THE AUDITOR'S RPEORT

Referred to in Paragraph 3 of our report of even date

i. (a) The Company has maintained proper records showing full particulars includingquantitative details and situation of property plant & equipment and investmentproperty.

(b) As per the plan and programme of the management property plant & equipmentinvestment property have been physically verified. The programme of physical verificationof property plant & equipment investment property in our opinion is consideredreasonable having regard to the size of the Company and nature of its assets. No materialdiscrepancies were noticed on such verification.

(c) The title deeds of the Immovable Properties classified under the head propertyplant & equipment and investment property are held in the name of the Company.However in one case with respect to a commer cial property which is classified underinvestment property having gross block value Rs.3626.02 lakhs & net block value Rs.3424.09 lakhs as on March 312018 the dispute with the landowner relating to the land onwhich the property is situated the single bench of the Hon'ble High Court of Madras hasset aside the invali dation of the sale deed. Subsequently the landowners have filed anappeal before the division bench of Hon'ble High court of Madras and the matter ispending. We refer to the note no. 4.02 (a) regard ing this matter.

ii. The inventories have been physically verified during the year by the management. Inour opinion the frequency of verification is reasonable and adequate in relation to thesize of the Company and to nature of its business. We have been informed that no materialdiscrepancies were noticed on verification between the physical stocks and the book ofaccounts.

iii. The Company has granted unsecured loans to one firm covered in the registermaintained under Section 189 of the Companies Act 2013.

a) In our opinion and according to the information and explanation provided to us theterms and conditions of on which the loan has been granted are not prima facie prejudicialto the interest of the Company.

b) In the case of the firm as per the information and explanation given to us norepayment schedule has been specified and accordingly the regularity in repayment ofprincipal and interest amount wherever applicable does not arise.

c) As stated in sub clause (b) as no repayment schedule has been specified thequestion of total amount over due for more than 90 days and reasonable step taken forrecovery in this regard does not arise.

iv. In our opinion and according to the information and explanation provided to us inrespect to loans investments guarantees and securities provisions of section 185 and186 of the Companies Act 2013 has been complied with.

v. In our opinion and according to the information and explanation given to us theCompany has not accepted deposits from the public and therefore the provisions containedin sections 73 to 76 or any other relevant provisions of the Act and Rules framed thereunder are not applicable to the Company. We have been informed that no order has beenpassed by Company Law Board or National Company Law Tribunal or Reserve Bank of India orany Court or any other Tribunal.

vi. We have broadly reviewed the books of account and records maintained by the Companyrelating to construction and development activity pursuant to the Companies (Cost Recordsand Audit) Rules 2014 made by the Central Government for the maintenance of cost recordunder section 148(1) of the Companies Act 2013 and are of the opinion that prima faciethe prescribed accounts and records have been made and maintained. We have however notmade a detailed examination of the cost records with a view to determin ing whether theyare accurate or complete.

vii. a) Based on the record produced to us the Company has generally been regular indepositing with the appropriate authorities undisputed dues including provident fundemployees' state insurance income-tax sales tax service tax goods and service taxduty of customs cess and other material statutory dues applicable to it. According to theinformation and explanations given to us no undisputed amount payable in respect ofoutstanding statutory dues were in arrears as at March 312018 for a period of more thansix months from the date they became payable.

b) According to the information and explanation given to us there are no dues ofincome tax goods and of service tax sales tax duty of customs duty of excise valueadded tax or cess have not been deposited on account dispute except for service taxinterest on service tax and penalty as on March 312018 which has been provided below.

S.No. Name of the Statute Nature of Dues Period to which the amount relates Forum where the dispute is pending Amount (Rs.)
1 Finance Act 1994 Penalty and Interest on Service Tax February 2009 to June 2009 Customs Excise and Service tax Appellate Tribunal Not Yet Determined
2 Finance Act 1994 Service Tax October 2007 to August 2009 Customs Excise and Service tax Appellate Tribunal 15610334 (Note -1)

Note - 1: The amount is excluding interest and penalty

viii. According to the information and explanations given to us and on the basis of ourexamination of the books of account the Company has not defaulted in repayment of dues toany financial institution or bank. The Company has not received any loan from Governmentand also has not issued any debenture. Accordingly reporting relating to default inrepayment of dues to Government and debenture holders does not arise.

ix. In our opinion and according to the information and explanations given to us theCompany has not raised any money by way of initial public offer or further public offer(including debt instruments). The term loans obtained have been applied for the purposefor which the loans were obtained.

x. During the course of our examination of the books and records of the Companycarried out in accordance with the generally accepted auditing practices in India andaccording to the information and explanations given to us no fraud by the Company or anyfraud on the Company by its officers or employees has been noticed or reported during theyear nor have we been informed of such case by the management.

xi. According to the information and explanations given to us and on the basis of ourexamination of the books of account the Company has not paid any managerial remuneration.Accordingly the reporting regarding compliance with the provision of section 197 read withschedule V of the Companies Act 2013 does not arise.

xii. The Company is not a Nidhi Company. Therefore the provisions of paragraph 3 (xii)of the Order are not applicable to the Company.

xiii. According to the information and explanation provided to us and in our opinionthe related party transactions are entered in to by the Company are in compliance withsection 177 and section 188 of the Companies Act 2013 and the same has been disclosed inthe financial statements as required by the applicable Indian 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 paid convertible debenturesduring the year. Accordingly the paragraph 3 (xiv) of the Order are not applicable to theCompany.

xv. According to the information and explanation provided to us and based on theexamination of the books of account the Company has not entered in to any non- cashtransaction with the director or person connected with him. Accordingly the paragraph 3(xv) of the Order is not applicable to the Company.

xvi. As per the information and explanation provided to us the Company is not requiredto register u/s 45-IA of the Reserve Bank of India Act 1934.

For Nayan Parikh & Co.
Chartered Accountants
Firm Registration No. 107023W
Sd/-
K.Y. Narayana
Chennai Partner
Dated: May 14 2018 Membership No. 060639

Annexure 'B' to the Independent Auditor's Report

Referred to paragraph 2(f) under the heading ‘Report on other Legal and RegulatoryRequirements' of our report on even date to the financial statements of the Company forthe year ended March 312018

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 with reference to financial statementsof Lancor Holdings Limited (the “Company”) as of March 312018 in conjunctionwith our audit of the standalone financial statements of the company for the year ended onthat date.

Management's Responsibility for Internal Financial Controls

The Company's management is responsible for establishing and maintaining internalfinancial controls based on internal control with reference to financial statementscriteria established by the Company considering the essential components of internalcontrol stated in the Guidance Note on Audit of Internal Financial Controls over FinancialReporting (the Guidance note) issued by the Institute of Chartered Accountants of India(ICAI). These responsibilities include the design implementation and maintenance ofadequate internal financial controls that were operating effectively for ensuring theorderly and efficient conduct of its business including adherence to Company's policiesthe safe guarding of its assets the prevention and detection of frauds and errors theaccuracy and completeness of the accounting records and the timely preparation ofreliable financial information as required under the Companies Act 2013.

Auditor's Responsibility

Our responsibility is to express an opinion on the Company's internal financialcontrols with reference to financial statements based on our audit. We conducted our auditin accordance with the Guidance Note on Audit of Internal Financial Controls overFinancial Reporting (“Guidance Note”) and the Standards on auditing issued byICAI and deemed to be prescribed under section 143(10) of the Companies Act 2013 to theextent applicable to an audit of internal financial controls. Those standards and guidancenote require that we comply with ethical requirements and plan and perform the audit toobtain reasonable assurance about whether adequate internal financial controls withreference to financial statements were established and maintained and if such controlsoperated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls system with reference to financial statements and theiroperating effectiveness. Our audit of internal financial controls with reference tofinancial statements included obtaining an understanding of internal financial controlswith reference to financial statements assessing the risk that a material weaknessexists and testing and evaluating the design and operating effectiveness of internalcontrol based on the assessed risk. The procedures selected depend on the auditor'sjudgement including the assessment of the risks of material misstatement of the financialstatements whether due to fraud or error.

We believe that the audit evidence we obtained is sufficient and appropriate to providea basis for our opinion on the company's internal financial control with reference tofinancial statements.

Meaning of Internal Financial Controls with reference to Financial Statements

A Company's internal financial control with reference to financial statements is aprocess designed to provide reasonable assurance regarding the reliability of financialreporting and the preparation of financial statements for external purposes in accordancewith generally accepted accounting principles. A Company's internal financial control withreference to financial statements includes those policies and procedures that (1) pertainto the maintenance of records that in reasonable detail accurately and fairly reflectthe transactions and dispositions of the assets of the Company; (2) provide reasonableassurance that transactions are recorded as necessary to permit preparation of financialstatements in accordance with generally accepted accounting principles and that receiptsand expenditures 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 with reference to FinancialStatements

Because of the inherent limitations of internal financial controls with reference tofinancial statements including the possibility of collusion or improper managementoverride of controls material misstatements due to error or fraud may occur and not bedetected. Also projections of any evaluation of the internal financial control withreference to financial statements to future periods are subject to the risk that theinternal financial control with reference to financial statements may become inadequatebecause of changes in conditions or that the degree of compliance with policies orprocedures may deteriorate.

Opinion

In our opinion the Company has in all material aspects an adequate internalfinancial controls system with reference to financial statements and such internalfinancial controls with reference to financial statements were operating effectively as atMarch 31 2018 based on the internal control with reference to financial statementscriteria established by the Company considering the essential components of the internalcontrol stated in the Guidance Note on Audit of Internal Financial Controls Over FinancialReporting issued by the Institute of Chartered Accountants of India.

For Nayan Parikh & Co.
Chartered Accountants
Firm Registration No.107023W
Sd/-
K.Y. Narayana
Chennai Partner
Dated: May 14 2018 Membership No. 060639