You are here » Home » Companies » Company Overview » Lime Chemicals Ltd

Lime Chemicals Ltd.

BSE: 507759 Sector: Industrials
NSE: N.A. ISIN Code: INE891G01011
BSE 11:50 | 19 Aug 24.00 -0.85
(-3.42%)
OPEN

24.00

HIGH

24.00

LOW

24.00

NSE 05:30 | 01 Jan Lime Chemicals Ltd
OPEN 24.00
PREVIOUS CLOSE 24.85
VOLUME 200
52-Week high 94.30
52-Week low 21.15
P/E 6.08
Mkt Cap.(Rs cr) 16
Buy Price 22.55
Buy Qty 122.00
Sell Price 25.90
Sell Qty 50.00
OPEN 24.00
CLOSE 24.85
VOLUME 200
52-Week high 94.30
52-Week low 21.15
P/E 6.08
Mkt Cap.(Rs cr) 16
Buy Price 22.55
Buy Qty 122.00
Sell Price 25.90
Sell Qty 50.00

Lime Chemicals Ltd. (LIMECHEMICALS) - Auditors Report

Company auditors report

Independent Auditor's Report

To the Members of Lime Chemicals Limited Report on the Financial Statements

We have audited the accompanying financial statements of Lime Chemicals Limited ('theCompany') which comprise the Balance Sheet as at 31st March 2018 thestatement 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 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 Ind AS financial statements that give a true and fair view ofthe financial position financial performance including other comprehensive income cashflows and changes in equity of the Company in accordance with the Indian AccountingStandards (Ind AS) prescribed under Section 133 of the Act read with relevant rulesissued thereunder. 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 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 of the Ind AS financial statements in accordance with theStandards on Auditing specified under Section 143(10) of the Act. Those Standards requirethat we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether the financial statements are free from materialmisstatement. An audit involves performing procedures to obtain audit evidence about theamounts and the disclosures in the Ind AS financial statements. The procedures selecteddepend on the auditor's judgment including the assessment of the risks of materialmisstatement of the Ind AS financial statements whether due to fraud or error. In makingthose risk assessments the auditor considers internal financial control relevant to theCompany's preparation of the Ind AS financial statements that give a true and fair view inorder to design audit procedures that are appropriate in the circumstances. An audit alsoincludes evaluating the appropriateness of the accounting policies used and thereasonableness of the accounting estimates made by the Company's Directors as well asevaluating the overall presentation of the Ind AS financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our qualified audit opinion on the Ind AS financial statements.

Basis for Qualified Opinion

In our opinion the qualification is material but not pervasive to the financialstatements.

As stated in Note No. 35 the management has decided not to provide for interestamounting to '3.01 lakh payable to parties registered under Micro Small & MediumEnterprises Act 2006. Consequently profit is overstated and liabilities are understatedby '12.84 lakh.

Qualified Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us except for the effects of the matter described in the Basis forQualified Opinion paragraph the aforesaid Ind AS financial statements give theinformation required by the Act in the manner so required and give a true and fair view inconformity with the accounting principles generally accepted in India of the state ofaffairs of the Company as at 31 March 2018 and its profit and its cash flows and thechanges in equity 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 subsection (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 including other comprehensiveincome the cash flow statement and the statement of changes in equity dealt with by thisReport are in agreement with the books of account;

(d) in our opinion the aforesaid Ind AS financial statements comply with theAccounting Standards specified under Section 133 of the Act.

(e) on the basis of the written representations received from the directors as on 31March 2018 taken on record by the Board of Directors none of the directors isdisqualified as on 31 March 2018 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". 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 30a to the financial statements;

(ii) The Company did not have any long-term contracts including derivative contractsfor which there were any material foreseeable losses;

(iii) There has not been an occasion in case of the Company during the year underreport to transfer any sums to the Investor Education and Protection Fund.

For A. N. Damania & Co.

Chartered Accountants Firm Registration No. 102077W

Ashvin Damania Proprietor

Membership No.040166

Mumbai 30th May 2018

Annexure - A to the Auditor's Report

The Annexure referred to in Independent Auditor's Report to the members of LimeChemicals Limited ("the Company") on the financial statements for the year ended31st March 2018

We report that:

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

(b) As explained to us the Company has a regular programme of physical verification ofits fixed assets by which fixed assets are verified in a phased manner over a period oftwo years. In accordance with this programme certain fixed assets were verified duringthe year and no material discrepancies were noticed on such verification. In our opinionthis periodicity of physical verification is reasonable having regard to the size of theCompany and the nature 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) In our opinion and according to the information and explanations given to usthere are no transactions as referred to in section 185 of the Act. In our opinion andaccording to the information and explanations given to us the Company has complied withthe provisions of 186 of the Act with respect to the loans and investments made.

(v) The Company has not accepted any deposits from the public. Hence paragraph 3(v) ofthe 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 dues includingprovident fund investor education and protection fund employees' state insuranceincome-tax sales tax wealth tax service tax customs duty excise duty goods andservice tax value added tax cess and other material statutory dues as applicable to itand no undisputed amounts payable in respect of the aforesaid dues were outstanding as at31st March 2018 for a period of more than six months from the date they became payableexcept sales tax amounting to ' 415.95 lakh provident fund amounting to ' 26.36 lakhincome tax amounting to ' 3.14 lakh property tax amounting to ' 1.13 lakh staffprofession tax amounting to ' 1.44 lakh excise/service tax amounting to ' 9.59 lakh good& service tax amounting to ' 30.15 lakh Gram Panchayat Tax ' 2.50 lakh and employees'state insurance amounting to ' 14.71 lakh.

(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 2018 are given below.

Name of Statute Nature of the Dues Amount ( Rs. ) Period to which amount relates Forum where dispute is pending
Income Tax Act 1961 Income Tax 2017000/- A.Y 1994-95 Delhi High Court
Income Tax Act 1961 Income Tax 469000/- A.Y 1997-98 Delhi High Court
Income Tax Act 1961 Income Tax 6410000/- A.Y 2005-06 Income Tax Appellate Tribunal
Income Tax Act 1961 Income Tax (penalty u/ s271(i)(C) 2515770/- A.Y 2005 -06 Commissioner of Income Tax (Appeals)
Income Tax Act 1961 Income Tax / FBT 5727000/- A.Y 2006-07 Rectification before ITO Ward 6(3) - 2 Mumbai
Income Tax Act 1961 Income Tax 33947880/- A.Y.2012-13 Commissioner of Income Tax (Appeals)
MVAT Act 2005/CST Act 1956 MVAT/CST 11483458/- F.Y 2005-06 Maharashtra Sales Tax Tribunal Mumbai
MVAT Act 2005/CST Act 1956 MVAT/CST 19984892/- F.Y 2006-07 Maharashtra Sales Tax Tribunal Mumbai
MVAT Act 2005/CST Act 1956 MVAT/CST 15646310/- F.Y 2007-08 Deputy Commissioner of Sales Tax (Appeals)
MVAT Act 2005/CST Act 1956 MVAT/CST 11429504/- F.Y 2007-08 Maharashtra Sales Tax Tribunal Mumbai
MVAT Act 2005/CST Act 1956 MVAT/CST 4952431/- F.Y 2008-09 Joint Commissioner of Sales Tax (Appeals)
MVAT Act 2005/CST Act 1956 MVAT/CST 2025951/- F.Y 2008-09 Maharashtra Sales Tax Tribunal Mumbai
MVAT Act 2005/CST Act 1956 MVAT/CST 11491241/- F.Y 2009-10 Maharashtra Sales Tax Tribunal Mumbai
MVAT Act 2005/CST Act 1956 MVAT/CST 2470571/- F.Y 2010-11 Maharashtra Sales Tax Tribunal Mumbai)
Employees PF & Misc. Provisions Act1952 Provident Fund 3036102/- Aug. 2011 to Sept. 2013 EPF Appellate Tribunal New Delhi
Employees PF & Misc. Provisions Act1952 Provident Fund 3760175/- Feb. 2014 to April 2016 EPF Appellate Tribunal Chandigarh Shimla High Court
Employees PF & Misc. Provisions Act1952 Provident Fund 1494776/- Jan. 2010 to May 2016 EPF Appellate Tribunal Mumbai
Employees PF & Misc. Provisions Act1952 Provident Fund 1732634/- March 2000 to June 2009 Bombay High Court

(viii) The Company does not have any loans or borrowings from any financialinstitution government or debenture holders during the year. The Company has notdefaulted in repayment of loans or borrowings to Bank.

(ix) The Company did not raise any money by way of initial public offer or furtherpublic offer (including debt instruments) and term loans during the year. Hence paragraph3 (ix) of the Order is not applicable.

(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 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) 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 given to us and based on ourexamination of the records of the Company the Company has made preferential allotment ofshares during the year under review complying with the provisions of section 42 of theCompanies Act 2013. The amount raised have been used for the purposes for which the fundswere 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.

or A. N. Damania & Co.

Chartered Accountants

Firm Registration No. 102077W

Ashvin Damania

Proprietor

Membership No.040166

Mumbai

30th May 2018

Annexure - B to the Auditor's 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 LimeChemicals Limited ("the Company") as of 31st March 2018 inconjunction with our audit of the Ind As financial statements of the Company for the yearended 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.

Auditor's 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 Ind AS 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 2018 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. or A. N. Damania & Co.

Chartered Accountants Firm Registration No. 102077W

Ashvin Damania Proprietor

Membership No.040166

Mumbai 30th May 2018