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Lords Chloro Alkali Ltd.

BSE: 500284 Sector: Industrials
NSE: MODIALKALI ISIN Code: INE846D01012
BSE 00:00 | 25 Apr 58.25 0.10
(0.17%)
OPEN

58.20

HIGH

58.25

LOW

58.20

NSE 05:30 | 01 Jan Lords Chloro Alkali Ltd
OPEN 58.20
PREVIOUS CLOSE 58.15
VOLUME 215
52-Week high 91.40
52-Week low 41.85
P/E 6.55
Mkt Cap.(Rs cr) 147
Buy Price 58.15
Buy Qty 500.00
Sell Price 60.90
Sell Qty 58.00
OPEN 58.20
CLOSE 58.15
VOLUME 215
52-Week high 91.40
52-Week low 41.85
P/E 6.55
Mkt Cap.(Rs cr) 147
Buy Price 58.15
Buy Qty 500.00
Sell Price 60.90
Sell Qty 58.00

Lords Chloro Alkali Ltd. (MODIALKALI) - Auditors Report

Company auditors report

To the Members of Lords Chloro Alkali Limited Report on the lnd AS Financial Statements

We have audited the accompanying Ind AS financial statements of Lords Chloro AlkaliLimited ("the Company") which comprise the Balance Sheet as at March 31 2018the 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 "Ind AS financial statements").

Management's Responsibility for the lnd AS 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 Ind AS financial statements that give a true and fair view of the state of affairs(financial position) profit & loss (financial performance including othercomprehensive income) cash flows and changes in equity of the Company in accordance withthe accounting principles generally accepted in India including the Indian AccountingStandards (lnd AS) prescribed under Section 133of the Act read with the companies (Indianaccounting Standards) Rule 2015 as amended.

This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding the assets of the Company andfor preventing and detecting frauds and other irregularities; selection and application ofappropriate accounting policies; making judgments and estimates that are reasonable andprudent; and design implementation and maintenance of adequate internal financialcontrols that were operating effectively for ensuring the accuracy and completeness ofthe accounting records relevant to the preparation and presentation of the lnd ASfinancial 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 Ind AS financial statements basedon 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 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 Ind AS financial statements are free from materialmisstatement.

An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the Ind AS financial statements. The procedures selected depend on theauditor's judgment including the assessment of the risks of material misstatement of thelnd AS financial statements whether due to fraudor error. In making those riskassessments the auditor considers internal financial control relevant to the Company'spreparation of the Ind AS financial statements that give a true and fair view in order todesign audit procedures that are appropriate in the circumstances. An audit also includesevaluating the appropriateness of the accounting policies used and the reasonableness ofthe accounting estimates made by the Company's Directors as well as evaluating theoverall 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 audit opinion on the Ind AS financial statements.

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid 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 of the state ofaffairs (financial position) of the Company as at March 312018 and its Profit (financialperformance including other comprehensive income) its cash flows and the changes inequity for the year ended on that date.

Other Matter

The comparative financial information of the Company for the year ended March 31 2017and the transition date opening balance sheet as at April 01 2016 included in these IndAS financial statements are based on the previously issued statutory financial statementsprepared in accordance with the Companies (Accounting Standards) Rules 2006as adjustedfor the differences in the accounting principles adopted by the Company on transition tothe Ind AS which have been audited by us. Our opinion is not modified in respect of thismatter.

Report on Other Legal and Regulatory Requirements

1. 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 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 the IndianAccounting Standards prescribed under Section 133 of the Act read with relevant rulesissued thereunder;

(e) On the basis of written representations received from the directors as on March312018 taken on record by the Board of Directors none of the directors is disqualifiedas on March 312018 from being appointed as a director in terms of Section 164(2) of theAct;

(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 A"; and

(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 as amended inour opinion and to the best of our information and according to the explanations given tous:

i. The Company has disclosed the impact of pending litigations on its financialposition in its Ind AS financial statements- Refer Note 45A to the lnd AS financialstatements;

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

iii. There has been delay in transferring the amounts which was required to betransferred to the investor education and protection fund by the company- Refer Note 46 tothe Ind AS financial statements.

2. As required by the Companies (Auditor's Report) Order 2016 ("the Order")issued by the Central Government of India in terms of section 143(11) of the Act we givein the "Annexure B" a statement on the matters specified in paragraphs 3 and 4of the said Order.

For Gupta Vigg & Co.

Chartered Accountants

Firm's Registration Number: 001393N

(CA. Deepak Pokhriyal)

Partner

Membership Number: 524778

Place of Signature: New Delhi

Date: May 16 2018

Annexure ‘A' To the Independent Auditors' Report

(Referred to in paragraph 1(f) under ‘Report on Other Legal and RegulatoryRequirements' section of our report of even date to the Members of the Company)

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 LordsChloro Alkali Limited ("the Company") as of March 312018 in conjunction withour audit of the lnd AS financial statements of the Company for the year ended on thatdate.

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 (‘ICAl'). 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 Company's policies the safeguarding ofits assets the prevention and detection of frauds and errors the accuracy andcompleteness of the accounting records and the timely preparation of reliable financialinformation as required under the Companies Act 2013.

Auditors' 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 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 ofthe inherent limitations of internal financial controls over financial reportingincluding the possibility of collusion or improper management override of controlsmaterial misstatements due to error or fraud may occur and not be detected. Alsoprojections of any evaluation of the internal financial controls over financial reportingto future periods are subject to the risk that the internal financial control overfinancial reporting may become inadequate because of changes in conditions or that thedegree 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 March 31 2018 based on "the internalcontrol over financial reporting criteria established by the Company considering theessential components of internal control stated in the Guidance Note on Audit of InternalFinancial Controls Over Financial Reporting issued by the Institute of CharteredAccountants of India.

For Gupta Vigg & Co.

Chartered Accountants

Firm's Registration Number: 001393N

(CA. Deepak Pokhriyal)

Partner

Membership Number: 524778

Place of Signature: New Delhi

Date: May 16 2018

Annexure ‘B' To the Independent Auditors' Report

The Annexure referred to in Independent Auditors' Report to the members of the Companyon the Ind AS financial statements for the year ended March 31 2018 we report that:

(i) In respect of fixed assets:

(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 verification of fixed assets. All the fixedassets have been physically verified by the management during the year which in ouropinion is reasonable having regard to size of the Company and nature of fixed assets. Nomaterial discrepancies were noticed on such verification.

(c) On the basis of information and explanation provided by the management the titledeeds of immovable properties are held in the name of the Company.

(ii) On the basis of information and explanation provided by the managementinventories have been physically verified by the management during the year. In ouropinion the frequency of such verification is reasonable. No material discrepancies werenoticed on physical verification of inventories by the management.

(iii) According to the information and explanations given to us the Company has notgranted any loan secured or unsecured to companies firms Limited Liability Partnerships(LLPs) or other parties covered in the register maintained under Section 189 of the Act.Accordingly the provisions of paragraphs 3(iii)(a) 3(iii)(b) and 3(iii)(c) of the Orderare not applicable to the Company.

(iv) According to the information and explanations given to us the Company has notentered into any transaction covered under Sections 185 of the Act. The company hascomplied with the provisions of Sections 186 of the Act in respect of investments made.The Company has not granted any loans and has not provided any guarantees or securitiesto parties covered under Section 186 of the Act.

(v) In our opinion and according to the information and explanation given to us theCompany has not accepted any deposits from the public in accordance with the provisions ofSections 73 to 76 of the Act and the rules framed there under. Accordingly paragraph 3(v)of the Order is not applicable to the Company.

(vi) We have broadly reviewed the books of account maintained by the Company pursuantto the rules prescribed by the Central Government for the maintenance of cost recordsunder subsection (I) of Section 148 of the Act and are of the opinion that prima faciethe prescribed accounts and records have been made and maintained. However we have notmade a detailed examination of the records.

(vii) According to the information and explanations given to us in respect ofstatutory dues:

(a) The Company is generally regular in depositing undisputed statutory dues includingprovident fund employees' state insurance income tax sales tax service tax valueadded tax duty of excise duty of customs goods and service tax cess and otherapplicable statutory dues with the appropriate authorities though there have been delaysin a few cases.

There were no undisputed amounts payable in respect of provident fund employees' stateinsurance income tax sales tax service tax value added tax duty of excise duty ofcustoms goods and service tax cess and other applicable statutory dues in arrears as atMarch 31 2018 for a period of more than six months from the date they became payableexcept below:

S. No. Nature of Dues Amount (Rs. in Lakhs)
1 Investor Education and Protection 11.64
Fund (11.64)
Note- Figures in bracket relates to the previous year.

(b) There are no dues of income tax sales tax value added tax service tax goods andservice tax duty of customs duty of excise which have not been deposited with theappropriate authorities on account of any dispute other than those mentioned as under:

Name of the Statue Nature of Dues Period to which the amount relates Amount (Rs. in lakhs) Forum Where Dispute is pending
Central Excise Excise Duty 1995-99 64.76 Commissioner
Act 1944 (64.76) (Appeals) Jaipur/ CESTAT New Delhi
Central Excise Excise Duty 1996-97 Nil CESTAT New Delhi
Act 1944 (145.62)
Central Excise Excise Duty 1996-99 Nil Hon'ble High Court
Act 1944 (110.72) Rajasthan
Central Excise Excise Duty 2003-04 Nil CESTAT New Delhi
Act 1944 (6.32)
Central Excise Excise Duty 2011-12 1.53 Additional
Act 1944 (1.53) Commissioner Jaipur
Income Tax Act Income Tax A/Y 1996-97 Nil ITAT Jaipur
1961 (287.17)
Custom Tariff Custom 2002-03 Nil Hon'ble High Court
Act1975 Duty (5.00) Delhi
Total 66.29
(621.12)

Note- Figures in brackets relates to the previous year.

(viii) Based on our audit procedures and according to the information and explanationsgiven by the management the Company has not defaulted in repayment of dues to any bank orto any financial institution. The Company has not borrowed any loan from Government. TheCompany has not issued any debentures.

(ix) The Company has not raised any money by way of initial public offer or furtherpublic offer (including debt instruments). Based on our audit procedures and on theinformation given by the management we report that term loans have been utilized for thepurpose for which they have been raised.

(x) According to the information and explanations given to us no fraud by the Companyor on the Company by its officers or employees has been noticed or reported during theyear.

(xi) The Company has paid or provided for managerial remuneration in accordance withthe requisite approvals mandated by the provisions of section 197 read with Schedule V toAct.

(xii) The Company is not a nidhi Company. Accordingly paragraph 3(xii) of the Order isnot applicable to the Company.

(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 section 177 and 188 of the Act where applicable and details of suchtransactions have been disclosed in the Ind AS financial statements as required by theapplicable Indian Accounting Standards.

(xiv) The Company has not made any preferential allotment or private placement ofshares or fully or partly convertible debentures during the year. Accordingly paragraph3(xiv) of the Order is not applicable to the Company.

(xv) According to the information and explanations given to us and based on ourexamination of the records the Company has not entered into non-cash transactions withdirectors or persons connected with him. Accordingly paragraph 3(xv) of the Order is notapplicable to the Company.

(xvi) The Company is not required to be registered under section 45-IA of the ReserveBank of India Act 1934. Accordingly paragraph 3(xvi) of the Order is not applicable tothe Company.

For Gupta Vigg & Co.

Chartered Accountants

Firm's Registration Number: 001393N

(CA. Deepak Pokhriyal)

Partner

Membership Number: 524778

Place of Signature: New Delhi

Date: May 16 2018