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Lloyds Metals & Energy Ltd.

BSE: 512455 Sector: Metals & Mining
NSE: LLOYDMETAL ISIN Code: INE281B01032
BSE 00:00 | 25 Apr 12.62 -0.28
(-2.17%)
OPEN

12.91

HIGH

12.98

LOW

12.60

NSE 05:30 | 01 Jan Lloyds Metals & Energy Ltd
OPEN 12.91
PREVIOUS CLOSE 12.90
VOLUME 13954
52-Week high 18.60
52-Week low 10.50
P/E 12.37
Mkt Cap.(Rs cr) 281
Buy Price 12.61
Buy Qty 100.00
Sell Price 12.74
Sell Qty 500.00
OPEN 12.91
CLOSE 12.90
VOLUME 13954
52-Week high 18.60
52-Week low 10.50
P/E 12.37
Mkt Cap.(Rs cr) 281
Buy Price 12.61
Buy Qty 100.00
Sell Price 12.74
Sell Qty 500.00

Lloyds Metals & Energy Ltd. (LLOYDMETAL) - Auditors Report

Company auditors report

TO THE MEMBERS OF M/S LLOYDS METALS AND ENERGY LIMITED

Report on the Standalone Ind AS Financial Statements

We have audited the accompanying standalone Ind AS financial statements of M/s LloydsMetals and Energy ("the Company") which comprise the Balance Sheet as at 31stMarch 2018 the Statement of Profit and Loss (including Other Comprehensive Income) theCash Flow Statement and the Statement of Changes in Equity for the year then ended andother and a summary of significant explanatory information.

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 preparationand presentation of these standalone Ind AS financial statements that give a true and fairview of the state of affairs (financial position) profit or loss (financial performanceincluding other comprehensive income) and cash flows and changes in equity of theCompany in accordance with the accounting principles generally accepted in Indiaincluding the Indian Accounting Standards (Ind AS) specified in the Companies (IndianAccounting Standards) Rules 2015 (as Amended) under Section 133 of the Act Thisresponsibility also includes maintenance of adequate accounting records in accordance withthe provisions of the Act for safeguarding the assets of the Company and for preventingand detecting frauds and other irregularities; selection and application of appropriateaccounting policies; making judgments and estimates that are reasonable and prudent; anddesign implementation and maintenance of adequate internal financial controls that wereoperating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the standalone Ind AS financialstatements that give a true and fair view and are free from material misstatement whetherdue to fraud or error.

Auditor's Responsibility

Our responsibility is to express an opinion on these standalone Ind AS financialstatements based on our audit. We have taken into account the provisions of the Act theaccounting and auditing standards and matters which are required to be included in theaudit report under the provisions of the Act and the Rules made thereunder.

We conducted our audit of the Standalone Ind AS financial statements in accordance withthe Standards on Auditing specified under Section 143(10) of the Act. Those Standardsrequire that we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether the standalone Ind AS financial statements are freefrom material misstatement.

An audit involves performing procedures to obtain audit evidence on a test basisabout the amounts and disclosures in the standalone Ind AS financial statements. Theprocedures selected depend on the auditor's judgment including the assessment of therisks of material misstatement of the standalone Ind AS financial statements whether dueto fraud or error. In making those risk assessments the auditor considers internalfinancial control relevant to the Company's preparation of the standalone Ind AS financialstatements that give a true and fair view in order to design audit procedures that areappropriate in the circumstances. An audit also includes evaluating the appropriateness ofaccounting policies used and the reasonableness of the accounting estimates made by theCompany's management as well as evaluating the overall presentation of the standalone IndAS financial statements. We believe that the audit evidence we have obtained is sufficientand appropriate to provide a basis for our audit opinion on the standalone Ind ASfinancial statements.

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us the standalone Ind AS financial statements give the information required bythe 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:

(a) in the case of the Balance Sheet of the state of affairs (financial position) ofthe Company as at 31st March 2018;

(b) in the case of the Statement of Profit and Loss of the profit (financialperformance including other comprehensive income) for the year ended on that date;

(c) in the case of the Cash Flow Statement of the cash flows for the year ended onthat date; and

(d) in the case of the Statement of Changes in Equity of the changes in equity for theyear ended on that date.

Report on Other Legal and Regulatory Requirements

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 I' a statement on the mattersspecified in paragraphs 3 and 4 of the Order.

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 purpose 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 Company has no branch office and hence the company is not required to conductaudit under section 143 (8) of the Act;

d) 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 bythis Report are in agreement with the books of account;

e) In our opinion the aforesaid standalone Ind AS financial statements comply with theIndian Accounting Standards (Ind AS) prescribed in the Companies (Accounts) Rules 2014(as Amended) under Section 133 of the Act.

f) On the basis of the written representations received from the directors as on 31stMarch 2018 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2018 from being appointed as a director in terms of Section164 (2) of the Act;

g) 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 II". Our report expresses an unmodified opinion onthe adequacy and operating effectiveness of the Company's Internal Financial Controls overfinancial Reporting; and

h) 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 as per the Notes to Standalone Ind AS Financial Statement.

ii. The Company has made provision as required under the applicable law or IndianAccounting Standards (Ind AS) for material foreseeable losses as per Notes to theStandalone Ind AS Financial Statement.

iii. During the year no amounts were required to be transferred to the InvestorEducation and Protection Fund by the Company. The question of delay in transferring suchsums does not arise.

iv. The reporting on disclosures relating to Specified Bank Notes is not applicable tothe Company for the year ended 31st March 2018.

For VSS & Associates

Chartered Accountants

ICAI Firm Reg. no.: 105787W

Sanjay Jain

Partner

M.No.: 046565

Dated: 16th April 2018

ANNEXURE I TO AUDITORS' REPORT

[Referred to in above the Auditor's Report of even date to the Lloyds Metals and EnergyLimited on the Financial Statements for the year ended 31st March 2018]

1. (a) The Company is maintaining proper records showing full particulars includingquantitative details and situation of fixed assets

(b) As per the information and explanation given to us fixed assets are physicallyverified by the management according to a phased programme designed to cover all thelocations which in our opinion is reasonable having regard to the size of the company andthe nature of its assets. Pursuant to the programme the management during the yearphysically verified the fixed assets at certain locations and no material discrepancieswere noticed on such verification.

(c) According to the information and explanation given to us and on verification thetitle deeds of immovable properties are held in the name of the company except for theones kept as collateral security against the Cash Credit limit given by PMC Bank of ` 20crores below:

Plot no A-1 Ghugus Industrial Area Dist

Chandrapur admeasuring 40000 sq mtrs

Plot no A-2 Ghugus Industrial Area Dist

Chandrapur admeasuring 895200 sq mtrs

2. As per the information provided to us Inventory has been physically verified by themanagement during the year and no material discrepancies were noticed.

3. (a) According to information and explanation given to us the Company has notgranted any secured or unsecured loans to companies firms Limited Liability Partnershipsor other parties covered in the register maintained under Section 189 of the Act.

In view of the above provisions of clause 3(iii) (b) and (c) are not applicable to thecompany.

4. In our opinion and according to information and explanation given to us the companyhas in respect of loans investments guarantees and security provisions complied withsection 185 and 186 of the Companies Act 2013.

5. According to the information and explanation given to us the company has notaccepted any deposits whether the directives issued by the Reserve Bank of India and theprovisions of sections 73 to 76 or any other relevant provisions of the Companies Act2013. Hence the provisions of clause 3(v) are not applicable to the company.

6. Pursuant to the rules made by the Central Government the maintenance of CostRecords have been prescribed u/s. 148(1) of the Companies Act 2013. We are of the viewthat prima facie the prescribed accounts and records have been maintained. We have nothowever made a detailed examination of the records with a view to determine whether theyare accurate or complete.

7. (a) According to the books and records as produced and examined by us in accordancewith generally accepted auditing practices in India and also management representationsundisputed statutory dues in respect of Provident fund Employees' state insurance IncomeTax Sales Tax Service tax Custom duty Excise duty Value added tax GST Cess andother statutory dues if any applicable to it has been regularly deposited with theappropriate authorities.

(b) According to the records of the Company the disputed dues in respect of ExciseDuty of ` 589.66 Lakhs as at 31st March 2018 have not been deposited with appropriateauthorities and no provision has been made for the same:

Sr. No. Name of the Statute Amount (In Lakhs) Forum where dispute is pending
1 The Central Excise Act 1944 5.20 Supreme Court
2. The Central Excise Act 1944 584.46 CESTAT Mumbai
Total 589.66

8. In our opinion and according to the information and explanation given to us and thebooks of accounts verified by us the company has not defaulted in repayment of dues to afinancial institution bank Government or dues to debenture holders.

9. As per information given to us no money was raised by way of initial public offeror further public offer (including debt instruments) nor have any fresh term loans beentaken by the Company during the year. Hence the provisions of clause 3(ix) are notapplicable to the company.

10. During the course of our examination of the books of account carried in accordancewith the generally accepted auditing standards in India we have neither come across anyinstance of fraud on or by the Company either noticed or reported during the year norhave we been informed of such case by the Management.

11. According to the information and explanation given to us and the books of accountsverified by us the Managerial remuneration has been paid or provided in accordance withthe requisite approvals mandated by the provisions of section 197 read with Schedule V tothe Companies Act.

12. The Company is not a Nidhi Company hence the provision of clause 3(xii) are notapplicable to the company.

13. According to the information and explanation given to us all transactions enteredwith the related parties are in compliance with section 177 and 188 of Companies Act 2013and the details have been disclosed in the financial statements.

14. According to information and explanation given to us the Company during the yearhas not made any preferential allotment or private placement of shares or fully or partlyconvertible debentures hence the provision of clause 3(xiv) are not applicable to thecompany

15. According to the information and explanation given to us and the books of accountsverified by us the company has not entered into any non-cash transactions with directorsor persons connected with him.

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

For VSS & Associates

Chartered Accountants

ICAI Firm Reg. no.: 105787W

Sanjay Jain

Partner

M.No.: 046565

Dated: 16th April 2018

Place: Mumbai

ANNEXURE II TO THE INDEPENDENT AUDITOR'S REPORT OF EVEN DATE ON THE FINANCIALSTATEMENTS OF LLOYDS METALS AND ENERGY LIMTED AS ON 31ST MARCH 2018

Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143 of the Companies Act 2013 ("the Act")

To the Members of Lloyds Metals and Energy Limited We have audited the internalfinancial controls over financial reporting of Lloyds Metals and Energy Limited ("theCompany") as of 31st March 2018 in conjunction with our audit of the standalonefinancial 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 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. These responsibilities includethe design implementation and maintenance of adequate internal financial controls thatwere operating effectively for ensuring the orderly and efficient conduct of its businessincluding adherence to the 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 as specified under section143(10) of the Companies Act 2013 to the extent applicable to an audit of internalfinancial controls both applicable to an audit of Internal Financial Controls and bothissued by the Institute of Chartered Accountants of India. Those Standards and theGuidance Note require that we comply with ethical requirements and plan and perform theaudit to obtain reasonable assurance about whether adequate internal financial controlsover financial reporting was established and maintained and if such controls operatedeffectively 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 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.

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.

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 31st 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.

For VSS & Associates

Chartered Accountants

ICAI Firm Reg. no.: 105787W

Sanjay Jain

Partner

M.No.: 046565

Dated: 16th April 2018

Place: Mumbai