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Lime Chemicals Ltd.

BSE: 507759 Sector: Industrials
NSE: N.A. ISIN Code: INE891G01011
BSE 00:00 | 20 May 28.30 1.85
(6.99%)
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27.00

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NSE 05:30 | 01 Jan Lime Chemicals Ltd
OPEN 27.00
PREVIOUS CLOSE 26.45
VOLUME 4366
52-Week high 42.25
52-Week low 20.40
P/E
Mkt Cap.(Rs cr) 18
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 27.00
CLOSE 26.45
VOLUME 4366
52-Week high 42.25
52-Week low 20.40
P/E
Mkt Cap.(Rs cr) 18
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Lime Chemicals Ltd. (LIMECHEMICALS) - Auditors Report

Company auditors report

To the Members of Lime Chemicals Limited

Report on the Financial Statements

Opinion

We have audited the accompanying financial statements of Lime Chemicals Limited("the Company") which comprise the Balance Sheet as at 31st March 2021 theStatement of Profit and Loss(including Other Comprehensive Income) the Statement ofChanges in Equity and the Statement of Cash Flows for the year ended on that date andnotes to the financial statements including a summary of significant accounting policiesand other explanatory information (hereinafter referred to as "the financialstatements").

In our opinion and to the best of our information and according to the explanationsgiven to usthe aforesaid financial statements give the information required by theCompanies Act 2013("the Act")in the manner so required and give a true and fairview in conformity with the Indian Accounting Standards(Ind AS) specified under section133 of the Act and other accounting principles generally accepted in India of the stateof affairs of the Company as at 31st March 2021 and net Profit including OtherComprehensive Income changes in equity and its cash flows for the year ended on thatdate.

Basis for Opinion

We conducted our audit in accordance with the Standards on Auditing specified undersection 143(10) of the Act. Our responsibilities under those Standards are furtherdescribed in the Auditor's Responsibilities for the Audit of the Financial Statementssection of our report. We are independent of the Company in accordance with the Code ofEthics issued by the Institute of Chartered Accountants of India (ICAI) together with theethical requirements 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 qualified opinion.

Emphasis of Matter

We draw your attention to the following matter:-

In Note No.37A(c) to the statement regarding non provision of interest of Rs. 3.00lakhs payable to party registered under Micro Small & Medium Enterprises Act 2006and also liability of Rs. 21.85 lakhs not accounted.

Note No. 48 regarding to impact of Covid-19 on the financial statement of the companygiven the uncertainties associated with its nature and duration.

Note No. 53 to the financial statement regarding the Company continues to disclose itsfinancial statement on the concept of going concern in spite of the fact of erosion of100% of its net worth as the management expects to wipe off the accumulated losses bytaking steps of rationalization of expenses and considering measures to increase revenue.

Our opinion is not modified in respect of the above matter.

Key Audit Matters

Key audit matters are those matters that in our professional judgment were of mostsignificance in 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. Based on the circumstances and facts of the Audit there areno key audit matters to be reported.

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

The Company's Board of Directors is responsible for the preparation of the otherinformation. The other information comprises the information included in the AnnualReport but does not include the financial statements 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.

Responsibilities of Management for the Financial Statements

The Company's Board of Directors is responsible for the matters stated in section134(5) of the Act with respect to the preparation of these financial statements that givea true and fair view of the financial position financial performance total comprehensiveIncome changes in equity and cash flows of the Company in accordance with the accountingprinciples generally accepted in India including the Ind AS specified under section 133of the Act. This responsibility also includes maintenance of adequate accounting recordsin accordance 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 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.

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 also responsible for overseeing the company's financialreporting process.

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 withStandards on Auditing will always detect a material misstatement when it exists.Misstatements can arise from fraud or error and are considered material if individuallyor in the aggregate they could reasonably be expected to influence the economic decisionsof users taken on the basis of these financial statements.

As part of an audit in accordance with Standards on Auditing we exercise professionaljudgment and maintain professional skepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of the financialstatements whether due to fraud or error design and perform audit procedures responsiveto those risks and obtain audit evidence that is sufficient and appropriate to provide abasis for our opinion. The risk of not detecting a material misstatement resulting fromfraud is higher than for one resulting from error as fraud may involve collusionforgery intentional omissions misrepresentations or the override of internal control.

• Obtain an understanding of internal financial controls relevant to the audit inorder to design audit procedures that are appropriate in the circumstances. Under section143(3)(i) of the Act we are also responsible for expressing our opinion on whether theCompany has adequate internal financial controls system in place and the operatingeffectiveness of such controls.

• Evaluate the appropriateness of accounting policies used and the reasonablenessof accounting estimates and related disclosures made by management.

• Conclude on the appropriateness of management's use of the going concern basisof accounting 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 financialstatements including the disclosures and whether the financial statements represent theunderlying transactions and events in a manner that achieves fair presentation.

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 ourauditor's report unless law or regulation precludes public disclosure about the matter orwhen in extremely rare circumstances we determine that a matter should not becommunicated in our report because the adverse consequences of doing so would reasonablybe expected to outweigh the public interest benefits of such communication.

Report on Other Legal and Regulatory Requirements

1. As required by Section 197(16) of the Act we report that the Company has notpaid/provided any remuneration to its directors during the year.

2. As required by the Companies (Auditor's Report) Order 2016 ("the Order")issued by the Central Government in terms of Section 143(11) of the Act we give in"Annexure A" a statement on the matters specified in paragraph 3 and 4 of theOrder.

3. As required by Section 143 (3) of the Act based on our audit 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 financial statements dealt with by this report are in agreement with the booksof accounts.

d. In our opinion the aforesaid financial statements comply with the Ind AS specifiedunder 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 of theCompany as on 31st March 2021 taken on record by the Board of Directors none of thedirectors is disqualified as on 31st March 2021 from being appointed as a director interms of Section 164 (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". Our report expresses an unmodified opinion onthe adequacy and operating effectiveness of the Company's internal financial controls overfinancial reporting.

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 37 to the financial statements.

ii. The Company has made provision as required under the applicable law or accountingstandards for material foreseeable losses if any on long-term contracts. We areinformed that the company did not have any pending derivative contracts.

iii. There has been no delay in transferring amounts required to be transferred tothe Investor Education and Protection Fund by the Company during the year ended31/03/2021.

ANNEXURE - A TO THE INDEPENDENT AUDITOR'S REPORT

(Referred to in paragraph 1 under "Report on Other Legal and RegulatoryRequirements' section of our report of even date)

Based on the audit procedures performed for the purpose of reporting a true and fairview on the financial statements of the Company and taking into consideration theinformation and explanations given to us and the books of account and other recordsexamined by us in the normal course of audit and to the best of our knowledge and beliefwe report that:

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

(b) The Company has a regular programme of physical verification of its fixed assets bywhich fixed assets are verified in a phased manner over a period of two years. Inaccordance with this programme certain fixed assets were verified during the year and nomaterial discrepancies were noticed on such verification. In our opinion this periodicityof physical verification is reasonable having regard to the size of the Company and thenature of its assets.

(c) As per the information and explanations provided to us the title deeds ofimmovable property except that of free hold land are held in the name of the Company.

ii. As per the information and explanations provided to us the inventories have beenphysically verified by the management at reasonable interval and no material discrepancywas noticed on physical verification.

iii. During the year the Company has not granted loans to any party covered in theregister maintained under section 189 of the Act. Hence paragraph 3(iii) of the Order isnot applicable.

iv. There are no transactions as referred to in section 185 of the Act. In our opinionand according to the information and explanations given to us the Company has compliedwith the provisions of 186 of the Act with respect to the loans and investments made.

v. The Company has not accepted any deposits within the meaning from section 73 to 76of the Act and the companies (Acceptance of Deposit) Rules 2014 (as amended) during theyear. Hence paragraph 3(v) of the Order is not applicable.

vi. According to the information and explanations given to us the Central Governmenthas prescribed maintenance of cost records u/s. 148(1) of the Companies Act 2013.However the Company has not maintained the cost records during the year.

vii. (a) According to the information and explanations given to us and the records ofthe Company examined by us the Company has

not been regular in depositing with the appropriate authorities undisputed duesincluding provident fund employees' state insurance income-tax sales tax service taxgoods and service tax value added tax cess and other material statutory dues asapplicable to it. The undisputed amounts payable in respect of the aforesaid duesoutstanding as at 31st March 2021 for a period of more than six months from the date theybecame payable were sales tax Rs. 20.75 lakhs provident fund Rs. 15.72 lakhs GST Rs.4.23lakh employees' state insurance Rs.9.72 lakhs.

(b) According to the information and explanations given to us and the records of theCompany examined by us disputed amounts in respect of the aforesaid dues which have notbeen deposited as at 31st March 2021 are given below.

Name of Statute Nature of the Dues Amount (Rs.) in lakhs Period to which amount relates Forum where dispute is pending
Income Tax Act 1961 Income Tax / FBT 57.27 A.Y 2006-07 Rectification before ITO Ward 6(3) - 2 Mumbai
Employees PF & Misc. Provisions Act1952 Provident Fund 40.05 Feb. 2008 to May 2008 EPF Appellate Tribunal Mumbai
Employees PF & Misc. Provisions Act1952 Provident Fund 28.88 March 2000 to June 2009 Bombay High Court
Employees PF & Misc. Provisions Act1952 Provident Fund 30.36 August 2011 to Sept 2013 CGIT Chandigarh
Employees PF & Misc. Provisions Act1952 Provident Fund 24.38 February 2014 to April 2016 CGIT Chandigarh
Employees PF & Misc. Provisions Act1952 Provident Fund 14.95 January 2010 to May 2016 Shimla High Court

viii. The Company has not defaulted in repayment of loans or borrowings to anyfinancial institution or a bank. The Company did not have any loans or borrowings fromgovernment during the year.

ix. The Company did not raise any money by way of initial public offer or furtherpublic offer (including debt instruments). However the Company has taken term loans fromBanks/Financial Institution and has been applied for the purpose for which has beenraised.

x. No material fraud by the Company or on the Company by its officers or employees hasbeen noticed or reported during the 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 neither paid nor provided formanagerial remuneration. Hence paragraph 3(xi) of the Order is not applicable.

xii. In our opinion and according to the information and explanations given to us theCompany is not a nidhi company. Hence paragraph 3(xii) of the Order is not applicable.

xiii. In our opinion transactions with the related parties are in compliance withsections 177 and 188 of the Act where applicable and details of such transactions havebeen disclosed in the financial statements as required by the applicable Ind AS.

xiv. The Company has made preferential allotment of shares during the year under reviewcomplying with the provisions of section 42 of the Companies Act 2013. The amount raisedhas been used for the purposes for which the funds were raised.

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. Hence paragraph 3(xv) of theOrder is not applicable.

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

Annexure - B TO THE INDEPENDENT AUDITOR'S REPORT

(Referred in Para 3(f) under "Report on Other Legal and Regulatory Requirements'section of our report of even date)

Report on the Internal Financial Controls Over Financial Reporting under Clause (i) ofSub-section 3 of Section 143 of the Companies Act 2013 ("the Act")

We have audited the internal financial controls over financial reporting of LimeChemicals Limited ("the Company") as of 31stMarch 2021 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 Board of Directors of the Company is responsible for establishing and maintaininginternal financial controls based on the internal control over financial reportingcriteria established by the Company considering the essential components of internalcontrol stated in the Guidance Note on Audit of Internal Financial Controls Over FinancialReporting issued by the Institute of Chartered Accountants of India. 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 respective 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 ofreliable financial information as required under the Companies Act 2013.

Auditor's Responsibility

Our responsibility is to express an opinion on the internal financial controls overfinancial reporting of the Company based on our audit. We conducted our audit inaccordance with the Guidance Note on Audit of Internal Financial Controls Over FinancialReporting (the "Guidance Note") issued by the Institute of Chartered Accountantsof India and the Standards on Auditing prescribed under Section 143(10) of the CompaniesAct 2013 to the extent applicable to an audit of internal financial controls. ThoseStandards and the Guidance Note require that we comply with ethical requirements and planand perform the audit to obtain reasonable assurance about whether adequate internalfinancial controls over financial reporting was established and maintained and if suchcontrols 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 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 internal financial controls system overfinancial reporting of the Company.

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.

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 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 31st March 2021 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.

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