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Link Pharma Chem Ltd.

BSE: 524748 Sector: Industrials
NSE: N.A. ISIN Code: INE302F01011
BSE 00:00 | 18 Apr 21.85 0.90
(4.30%)
OPEN

22.90

HIGH

22.90

LOW

21.85

NSE 05:30 | 01 Jan Link Pharma Chem Ltd
OPEN 22.90
PREVIOUS CLOSE 20.95
VOLUME 95
52-Week high 47.05
52-Week low 18.10
P/E 7.61
Mkt Cap.(Rs cr) 10
Buy Price 20.40
Buy Qty 6.00
Sell Price 22.50
Sell Qty 100.00
OPEN 22.90
CLOSE 20.95
VOLUME 95
52-Week high 47.05
52-Week low 18.10
P/E 7.61
Mkt Cap.(Rs cr) 10
Buy Price 20.40
Buy Qty 6.00
Sell Price 22.50
Sell Qty 100.00

Link Pharma Chem Ltd. (LINKPHARMACHEM) - Auditors Report

Company auditors report

to The Members of LINK PHARMA CHEM LIMITED

REPORT ON THE STANDALONE FINANCIAL STATEMENTS

1. We have audited the attached financial statements of LINK PHARMACHEM LIMITED ( " The Company" ) which comprises the Balance Sheet as at 31stMarch 2018 the statement of Profit and Loss (Including Other Comprehensive Income)Statement of changes in Equity and Cash Flow Statement for the year then ended and asummary of significant accounting policies and other explanatory information.

Management Responsibility for the Financial Statements

2. The Company's Board of Directors is responsible for the mattersstated in sec 134(5) of the Company's Act 2013("the Act") with respect to thepreparation of these standalone financial statements that give a true and fair view of thefinancial position financial performance including other comprehensive income and cashflows and changes in equity of the company in accordance with the Indian AccountingStandards (Ind AS) prescribed under Sec 133 of the Act read with Companies IndianAccounting Standard Rule 2015 as amended and other accounting principles generallyaccepted in India .This responsibility also includes maintenance of adequate accountingrecords in accordance with 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 Standalone financial statements that give a true and fair view and are free frommaterial misstatements whether due to fraud or error.

Auditors' Responsibility

3. Our responsibility is to express an opinion on these Standalonefinancial statements based on our audit.

4. In conducting our audit we have taken into account the provisionsof the Act the Accounting and Auditing Standards and matters which are required to beincluded in the auditors report and the rules made there under and the Order issued undersection 43(11) of the Act .

5. We conducted our audit in accordance with the Standards on Auditingspecified under section 143(10) of the Act. Those standards require that we comply withethical requirements and plan and perform the audit to obtain reasonable assurances aboutwhether the standalone financial statements are free from material misstatement.

6. An audit involves performing procedures to obtain audit evidenceabout the amounts and the disclosures in standalone financial statements. The procedureselected depends on the auditor's judgment including the assessment of the risks ofmaterial misstatement of the financial statements whether due to fraud or error. Inmaking these risk assessments the auditor considers internal financial controls relevantto the company's preparation of the standalone financial statements that give true andfair view in order to design audit procedures that are appropriate in the circumstances.An Audit also includes evaluating the appropriateness of the accounting policies used andthe reasonableness of the accounting estimates made by the company's directors as wellas evaluating the overall presentation of the standalone financial statements.

7. We believe that the audit evidence we have obtained is sufficientand appropriate to provide a basis for our audit opinion.

Opinion

8. In our opinion and to the best of our information and according tothe explanations given to us the aforesaid standalone financial statements give theinformation required by the Act in the manner so required and give a true and fair view inconformity with the Ind AS and accounting principles generally accepted in India of thestate of affairs of the Company as at 31st march 2018 and its Profit total comprehensiveincome the changes inequity and its Cash flows for the year ended in that date.

Report on Other Legal and Regulatory Requirements

9. As required by section 143 of the Act based on our audit we reportthat 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 ouropinion proper books of accounts as required by law have been kept by the company so faras appears from our examination of those books ; c) the Balance Sheet the statement ofProfit & Loss account includes other comprehensive income statement of changes inEquity and the Cash Flow statement dealt with by this report are in agreement with thebooks of account. d) In our opinion the aforesaid Financial Statements comply with theIndian Accounting Standards prescribed under section 133 the Act. e) On the basis of thewritten representations received from the directors as on 31st March 2018 taken on recordby the Board of Directors none of the Directors is disqualified as on March 31st 2018from being appointed as a Director in terms of section 164(2) of the Act. f) With respectto the adequacy of the internal financial controls over financial reporting of the Companyand the operating effectiveness of such controls refer to our separate Report in AnnexureA. Our report expresses an unmodified opinion on the adequacy and operative effectivenessof the company's internal financial controls over financial reporting . g) With respect tothe other matters to be included in the Auditors Report in accordance with Rule 11 of theCompanies (Audit and Auditors) Rules 2014 as amended in our opinion and to the best ofour information and according to explanations given to us : i) The company has disclosedthe impact of pending litigations on its financial position in its standalone financialstatements in accordance with the generally accounting practice - also refer note 28 tothe standalone financial statement. ii) The Company did not have any long term contractsincluding Derivative contracts for which there were any material foreseeable losses. iii)There were no amounts which were required to be transferred to Investor Education andprotection Fund by the Company.

10. As required by the Companies ( Auditor Report) Order 2016 ("th Order") issued by the Central Government in terms of Section 143(11) of theAct we give in "Annexure B" a statement on the matters specified in paragraphs3 and 4 of the Order.

For Sanjay Soni & Associates

Chartered Accountants

ICAI Firm Registration No. 113251W

CA Sanjay Soni

Partner

Membership No. 040616

Place : Vadodara Date : 29.05.2018

ANNEXURE B TO THE INDEPENDENT AUDITOR'S REPORT

Referred to in paragraph 10 of the Independent Auditors' Report to themembers of Link Pharma Chem Limited on the standalone financial statements of the evendate.

i) (a) The Company has maintained proper records showing fullparticulars including quantitative details and situation of Property plant andEquipment.

(b) The property plant and Equipment were physically verified duringthe year by the management in accordance with the regular program of verification whichin our opinion provides for physical verification of all the property plant andequipment at reasonable intervals. According to the information and explanations given tous no material discrepancies were notice on such verification.

(c) With respect to the immovable properties of acquired land andbuildings according to the information and explanation given to us and the recordexamined by us and based on the examination of the Sale deed/ Transfer deed/Conveyancedeed we report that he Title Deeds of immovable properties as disclosed in the Notes ofProperty Plant & Equipment to the financial statements are held in the name of theCompany as at the balance sheet date.

ii) The physical verification of inventory excluding stocks in transithas been conducted at reasonable intervals by the Management during the year. In respectof inventory lying with third parties these have substantially been confirmed by them.The discrepancies noticed on physical verification of inventory as compared to bookrecords were not material and have been appropriately dealt with in the books of accounts.

iii) The Company has not granted any loans secured or unsecured to anycompanies firms limited liability partnerships or other parties covered in the registermaintained under section 189 of the Companies Act 2013.

iv) According to the records of the Company examined by us and theinformation and explanations given to us There are no loans investments made orguarantees and securities provided by the company as per provisions of section 185 and 186of the Companies Act 2013.

v) The Company has not accepted any deposits from public within themeaning of Sections 7374 and 76 of the Act .

vi) The Central Government has not prescribed the maintenance of costaccounts for the type of activities of the Company pursuant to the rules made by theCentral Government of India for the maintenance of cost records under clause (d) of subsection (1) of section 148 of the Act .

(a) According to the information and explanations given to us and therecords of the company examined by us in our opinion the Company is generally regular indepositing with appropriate authorities the undisputed statutory dues including providentfund employees' state insurance Income tax Goods and Service Tax Sales Tax servicetax duty of customs Value Added Tax duty of excise cess and other material statutorydues as applicable to it.

(b) Details of dues of VAT and CST which have not been deposited as on31st March 2018 on account of disputes are given below.

Nature of statute

Nature of Dues

Amount

Period for which it relates

Forum where dispute is pending

(Rs. In lacs)

Value Added

VAT

132.34

2008-09

Dy. Commissioner
Tax Laws
Central Sales

CST

46.86

2008-09

(Appeals) Vadodara
Tax

viii) According to the records of the Company examined by us and theinformation and explanations given to us the Company has not defaulted in repayment ofloans or borrowings to Banks. The Company did not have any loans or borrowings from anyfinancial institution or Government or debenture holders during the year.

ix) In our opinion and according to the information and explanationsgiven to us the term loans have been applied for the purposes for which they wereobtained.

x) During the course of our examination of the books and records of theCompany carried out in accordance with the generally accepted auditing practices in Indiaand according to the information and explanations give to us we have neither come acrossany instance of material fraud by the Company by its officers or employees noticed orreported during the year nor have we been informed of any such case by the management.

xi) In our opinion and according to the information and explanationsgiven to us the company has paid/provided managerial remuneration in accordance with therequisite approvals mandated by the provisions of section 197 read with schedule 5 to theCompanies Act 2013.

xii) As the Company is not a Nidhi Company and the Nidhi Rules 2014are not applicable to the provisions of Clause 3(xii) of the Order are not applicable tothe Company.

xiii) In our opinion and according to the information and explanationsgiven to us and based on our examination of the records of the company all transactionswith the related parties and details of related party transactions have been disclosed inthe standalone financial statement as required by the applicable Indian AccountingStandard.

xiv) The Company has not made preferential allotment or privateplacement of shares or debentures during the year under review.

xv) The Company has not entered into any non cash transactions with itsdirectors or associate company or persons connected with them.

xvi) The Company is not required to be registered under Section 45 -IAof The Reserve Bank of India Act 1934.

For Sanjay Soni & Associates

Chartered Accountants

ICAI Firm Registration No. 113251W

CA Sanjay Soni

Partner

Membership No. 040616

Place : Vadodara Date : 29.05.2018

ANNEXURE A TO INDEPENDENT AUDITORS' REPORT

Referred to in paragraph 9 (f) of the Independent Auditors' Report ofeven date to the members of Link Pharma Chem Limited on the standalone financialstatements of the even date.

Report on the Internal Financial Controls over financial reportingunder clause ( i ) of sub- section 3 of Section 143 of the Companies Act 2013 ( the"Act")

1. We have audited the internal financial controls over financialreporting of Link Pharma Chem Ltd. ( "the company") As of march 31 2018 inconjunction with our audit of the standalone Ind As financial statements of the Companyfor the year ended on that date.

Management's responsibility for internal Financial Controls

2. The Company's Management is responsible for establishing andmaintaining Internal financial controls based on the Internal Control over financialreporting criteria established by the Company considering the essential components ofinternal control stated in the Guidance Note on Audit of Internal Financial Controls overFinancial Reporting issued by the Institute of Chartered Accountants of India (ICAI).These responsibilities include the design implementation and maintenance of adequateinternal financial controls that were operating effectively for ensuring the orderly andefficient conduct 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 Act.

Auditors' Responsibility

3. Our responsibility is to express an opinion on the Company'sInternal financial controls over financial reporting based on our audit. We conducted ouraudit accordance with the Guidance Note on Audit of internal Financial Controls OverFinancial Reporting ( " the Guidance Note") and the Standards on Auditingprescribed under section 143 (10) of the Act to the extent applicable to an audit ofinternal financial controls both applicable to an audit of internal financial controlsand both issued by the ICAI. Those Standards and the Guidance Note require that we complywith ethical requirements and plan and perform the audit to obtain reasonable assuranceabout whether adequate internal financial controls over financial reporting wasestablished and maintained and if such controls operated effectively in all materialrespects.

4. Our audit involves performing audit procedures to obtain auditevidence about the adequacy of internal financial controls system over financial reportingand their operating effectiveness. Our audit of internal financial controls over financialreporting included obtaining effectiveness. Our audit of internal financial controls overfinancial reporting included obtaining and understanding of internal financial controlsover financial reporting assessing the risk that material weakness exists and testingand evaluating the design and operating effectiveness of internal control based on theassessed risk. The procedures selected depend on the auditor's judgement including theassessment of the risk of material misstatement of the financial statements whether due tofraud or error.

5. We believe that the audit evidence we have obtained is sufficientand appropriate to provide a basis for our audit opinion on the Company's internalfinancial controls system over financial reporting.

Meaning of Internal Financial Controls Over Financial Reporting

6. A company's internal financial control over financial reporting 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 overfinancial reporting includes those policies and procedures that

(1) Pertain to the maintenance of records that in reasonable detailaccurately and fairly reflect the transactions and dispositions of the assets of thecompany;

(2) Provide reasonable assurance that transactions are recorded asnecessary to permit preparation of financial statements in accordance with generallyaccepted accounting principles and that receipts and expenditures of the company are beingmade only in accordance with authorisations of management and directors of the company;and

(3) Provide reasonable assurance regarding prevention or timelydetection of unauthorised acquisition use or disposition of the company's assets thatcould have a material effect on the financial statements.

Inherent Limitations of Internal Financial Controls over FinancialReporting

7. Because of the inherent limitations of internal financial controlsover financial reporting including the possibility of collusion or improper managementoverride of controls material misstatements due to error or fraud may occur and not tobe detected . Also projections of any evaluation of the internal financial controls overfinancial reporting to future periods are subject to the risk that the internal financialcontrol over financial reporting may become inadequate because of changes in conditions orthat the degree of compliance with the policies or procedures may deteriorate.

Opinion

8. In our opinion the Company has in all material respect anadequate internal financial controls system over financial reporting and such internalfinancial controls over financial reporting criteria established by the Companyconsidering the essential components of internal control stated in the Guidance note onAudit of Internal Financial Controls over Financial reporting issued by the Institute ofChartered Accountants of India.

For Sanjay Soni & Associates

Chartered Accountants

ICAI Firm Registration No. 113251W

CA Sanjay Soni

Partner

Membership No. 040616

Place : Vadodara Date : 29.05.2018