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Ludlow Jute & Specialities Ltd.

BSE: 526179 Sector: Industrials
NSE: N.A. ISIN Code: INE983C01015
BSE 00:00 | 22 Sep 80.05 -3.80
(-4.53%)
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83.80

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83.80

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NSE 05:30 | 01 Jan Ludlow Jute & Specialities Ltd
OPEN 83.80
PREVIOUS CLOSE 83.85
VOLUME 16497
52-Week high 111.00
52-Week low 42.95
P/E 94.18
Mkt Cap.(Rs cr) 86
Buy Price 80.05
Buy Qty 35.00
Sell Price 80.05
Sell Qty 5.00
OPEN 83.80
CLOSE 83.85
VOLUME 16497
52-Week high 111.00
52-Week low 42.95
P/E 94.18
Mkt Cap.(Rs cr) 86
Buy Price 80.05
Buy Qty 35.00
Sell Price 80.05
Sell Qty 5.00

Ludlow Jute & Specialities Ltd. (LUDLOWJUTE) - Auditors Report

Company auditors report

To The Members of

Ludlow Jute & Specialities Limited

REPORT ON THE AUDIT OF THE FINANCIAL STATEMENTS Opinion

We have audited the accompanying financial statements of Ludlow Jute & SpecialitiesLimited (“the Company”) which comprises the Balance Sheet as at March 31 2020the Statement 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 and asummary of the significant accounting policies and other explanatory information(hereinafter referred to as “the financial statements'). In our opinion and to thebest of our information and according to the explanations given to us the aforesaidfinancial statements give the information required by the Companies Act 2013 (“theAct”) in the manner so required and give a true and fair view in conformity with theIndian Accounting Standards prescribed under section 133 of the Act read with theCompanies (Indian Accounting Standards) Rules 2015 as amended (“Ind AS”) andother accounting principles generally accepted in India of the state of affairs of theCompany as at March 31 2020 the profit total comprehensive income changes in equityand its cash flows for the year ended on that date. Basis for Opinion We conducted ouraudit of the financial statements in accordance with the Standards on Auditing specifiedunder section 143(10) of the Act. Our responsibilities under those Standards are furtherdescribed in the Auditor's Responsibility 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 theindependence requirements that are relevant to our audit of the financial statements underthe provisions of the Act and the Rules made thereunder and we have fulfilled our otherethical responsibilities in accordance with these requirements and the ICAI's Code ofEthics. We believe that the audit evidence obtained by us is sufficient and appropriate toprovide a basis for our audit opinion on the financial statements. Key Audit Matters Keyaudit matters are those matters that in our professional judgment were of mostsignificance in our audit of the Ind AS financial statements for the financial year endedMarch 31 2020. These matters were addressed in the context of our audit of the Ind ASfinancial statements as a whole and in forming our opinion thereon and we dco notprovide a separate opinion on these matters. For each matter below our description of howour audit addressed the matter is provided in that context.

Key audit matters How our audit addressed the key audit matter
Inventory Valuation & existence (Refer to note 11 to thei) financial statements) We completed a walkthrough of the inventory valuation process and assessed the design and implementation of the key controls addressing the risk
As described in the accounting policies in note 3.6 to the financial statements inventories are carried at the lowerof cost and net realisable value. Inventories valuation and existence is a significant audit risk. This could result in an overstatement of the value of the inventories if the cost is higher than the net realisable value. Furthermore the assessment and application of inventories provisions are subject to significant management judgment. ii) We assessed the adequacy of controls over the existence of Inventory of Finished goods and raw materials
ji) We also tested sample of inventories items to ensure they were held at the lower of cost and net realisable value.
Our Observation - Based on the audit procedures performed we did not identify any significant deviation to the process of Inventory valuation.
Assessment of litigations in respect of Taxes & Dutiesi) matter [Refer to note 38(i) to the financial statements] We obtained a detailed understanding assessed and tested the design and operating effectiveness of controls surrounding assessment of litigations.
The company has litigations in respect of Taxes & Duties matter which have been disclosed under Contingent liabilities as at 31st March 2020.
Significant management : judgment is required a to assess : these matters and to determine the probability of material outflow] of economic resources and whether a provision should be iii) recognized or disclosure to be made. We discussed with the management the recent developments and status of these matters. We have also gone through recent judicial pronouncements wherever relevant to establish appropriateness of disclosures. : :
We performed our assessment on the underlying calculations supporting the disclosure made in the _ financial statements.
iv) We assessed the adequacy of the Company's disclosures.
Our Observation - Based on the audit procedures performed we did not identify any significant deviation to the assessment made by the management in respect of disclosures made under
Contingent liabilities in respect of Taxes & Duties matters in the financial statements.

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 Board'sReport including Annexures to Board's Report and other Shareholder's Information butdoes not include the financial statements and our auditor's report thereon. Our opinion onthe financial statements does not cover the other information and we do not express anyform of assurance conclusion thereon. In connection with our audit of the financialstatements our responsibility is to read the other information and in doing so considerwhether the other information is materially inconsistent with the financial statements orour knowledge obtained in the course of our audit or otherwise appears to be materiallymisstated. 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. Management's Responsibility for the Financial StatementsThe Company's Board of Directors is responsible for the matters stated in section 134(5)of the Act with respect to the preparation of these financial statements that give a trueand fair view of the financial position financial performance total comprehensiveincome changes in equity and cash flows of the Company in accordance with the Ind AS andother accounting principles generally accepted in India. This responsibility also includesmaintenance of adequate accounting records in accordance with the provisions of the Actfor safeguarding of the assets of the Company and for preventing and detecting frauds andother irregularities; selection and application of appropriate accounting policies; makingjudgments and estimates that are reasonable and prudent; and the design implementationand maintenance of adequate internal financial controls that were operating effectivelyfor ensuring the accuracy and completeness of the accounting records relevant to thepreparation and presentation of the financial statements that give a true and fair viewand are free from material misstatement whether due to fraud or error. In preparing thefinancial statements management is responsible for assessing the Company's ability tocontinue as a going concern disclosing as applicable matters related to going concernand using the going concern basis of accounting unless management either intends toliquidate the Company or to cease operations or has no realistic alternative but to doso. The Board of Directors are also responsible for overseeing the Company's financialreporting process. Auditor's Responsibilities for the Audit of the Financial StatementsOur objectives are to obtain reasonable assurance about whether the financial statementsas a whole are free from material misstatement whether due to fraud or error and toissue an auditor's report that includes our opinion. Reasonable assurance is a high levelof assurance but is not a guarantee that an audit conducted in accordance with SAs willalways detect a material misstatement when it exists. Misstatements can arise from fraudor error and are considered material if individually or in the aggregate they couldreasonably be expected to influence the economic decisions of users taken on the basis ofthese financial statements. As part of an audit in accordance with SAs we exerciseprofessional judgment and maintain professional skepticism throughout the audit. We also:e Identify and assess the risks of material misstatement of the financial statementswhether due to fraud or error design and perform audit procedures responsive to thoserisks and obtain audit evidence that is sufficient and appropriate to provide a basis forour opinion. The risk of not detecting a material misstatement resulting from fraud ishigher than for one resulting from error as fraud may involve collusion forgeryintentional 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. e@ Evaluate the appropriateness of accounting policiesused and the reasonableness of accounting estimates and related disclosures made by themanagement.

@ = Conclude on the appropriateness of management's use of the going concern basis ofaccounting 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. e Evaluate the overall presentation structure and content of thefinancial statements including the disclosures and whether the financial statementsrepresent the underlying transactions and events in a manner that achieves fairpresentation. Materiality is the magnitude of misstatements in the financial statementsthat individually or in aggregate makes it probable that the economic decisions ofareasonably knowledgeable user of the financial statements may be influenced. We considerquantitative materiality and qualitative factors in (i) planning the scope of our auditwork and in evaluating the results of our work; and (ii) to evaluate the effect of anyidentified misstatements in the financial statements. We communicate with those chargedwith governance regarding among other matters the planned scope and timing of the auditand significant audit findings including any significant deficiencies in internal controlthat we identify during our audit. We also provide those charged with governance with astatement that we have complied with relevant ethical requirements regarding independenceand to communicate with them all relationships and other matters that may reasonably bethought to bear on our independence and where applicable related safeguards. From thematters communicated with those charged with governance we determine those matters thatwere of most significance in the audit of the Ind AS financial statements for thefinancial year ended March 31 2020 and are therefore the key audit matters. We describethese matters in our auditor's report unless law or regulation precludes public disclosureabout the matter or when in extremely rare circumstances we determine that a mattershould not be communicated in our report because the adverse consequences of doing sowould reasonably be expected to outweigh the public interest benefits of suchcommunication. 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 in terms of Section 143(11) of the Act we give in“Annexure A”a statement on the matters specified in paragraphs 3 and 4 of theOrder.

2. 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 Balance Sheet the Statement of Profit and Loss including the Statement of OtherComprehensive Income Statement of Changes in Equity and the Statement of Cash Flow dealtwith by this Report are in agreement with the relevant books of account;

d) In our opinion the aforesaid financial statements comply with the IndAS specifiedunder Section 133 of the Act read with Companies (Indian Accounting Standards) Rules2015 as amended from time to time;

e) On the basis of the written representations received from the directors as on March31 2020 taken on record by the Board of Directors none of the directors is disqualifiedas on March 31 2020 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 B” Our report expresses an unmodified opinion onthe adequacy and operating effectiveness of the Company's internal financial controls overfinancial reporting;

g) In our opinion and to the best of our information and according to the explanationsgiven to us the managerial remuneration paid/provided by the Company to its directorsduring the year is in accordance with the provisions of section 197 read with ScheduleV tothe Act; 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 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 financial statements Refer Note 38 (i);

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

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 ended 31stMarch 2020.

For JKVS & CO Chartered Accountants Firm Registration No. 318086E

Utsav Saraf Partner Membership No.: 306932 UDIN: 20306932AAAAAS4991

Kolkata

Dated: 15th June 2020

ANNEXURE ‘A' TO THE INDEPENDENT AUDITOR'S REPORT

(Referred to in paragraph 1 under ‘Report on Other Legal and RegulatoryRequirements' section of our Report to the Members of Ludlow Jute & SpecialitiesLimited of even date)

We report that

(a) The company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets;

(b) The management has physically verified fixed assets at reasonable intervals whichin our opinion is reasonable having regard to the size of the Company and the nature ofits business. No material discrepancies were noticed on such verification.

(c) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company the title deeds of immovable properties areheld in the name of the Company. The inventory has been physically verified at reasonableintervals during the year by the Management. The discrepancies noticed on verificationbetween the physical stock and the book stocks wherever ascertained were not significantand have been properly dealt in the books of accounts. In our opinion and according to theinformation and explanations given to us the Company has not granted any loan to partiescovered in the register maintained under section 189 of the Companies Act 2013. Thusparagraph 3(iii) of the Order is not applicable. In our opinion and according to theinformation and explanations given to us the Company has complied with the provisions ofsection 185 and 186 of the Act with respect to the loans and investments made. TheCompany has neither issued any guarantee nor has provided any security on behalf of anyparty. In our opinion and according to the information and explanations given to us theCompany did not receive any deposits covered under sections 73 to 76 of the Companies Actand the rules framed thereunder with regard to deposits accepted from the public duringthe year. vi. The Central Government has prescribed maintenance of cost records undersection 148 (1) of the Companies Act. We have broadly reviewed such accounts and recordsand are of the opinion that prima facie the prescribed accounts & records have beenmade & maintained but no detailed examination of such records and accounts have beencarried out by us. vii.

(a) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company amounts deducted/ accrued in the books ofaccount in respect of undisputed statutory dues including provident fund income taxsales tax service tax Goods & Service Tax duty of customs value added tax cessand other material statutory dues have been regularly deposited during the year by theCompany with the appropriate authorities. According to the information and explanationsgiven to us no undisputed amounts payable in respect of provident fund income tax salestax service tax duty of customs value added tax cess and other material statutory dueswere in arrears as at 31st March 2020 for a period of more than six months from the datethey became payable.

(b) According to the information and explanations given to us and the records of theCompany examined by us the dues of income tax sales tax wealth tax service tax dutyof customs duty of excise value added tax and cess as at 31st March 2020 which have notbeen deposited on account of any dispute and the forum where the disputes are pending areas under:

SINo Nature of Dues Gross Amount Outstanding (in = lakhs) Paid under protest (in = lakhs) Period to which the amount relates Forum where dispute is pending
1 Sales Tax as per 22.20 11.20 WBCT (A & R) Board
WBST Act 1994 1999-2000
2 CST Act 1956 1.54 NIL 8 2004-2005 WEBCT (A & R) Board
35.02 Nil WEBCT (A & R) Board &
2003 2005-2006 to Appellate Forum
4 CST Act 1956 900.57 55.97 2017-2018 WEBCT (A & R) Board &
3 WB VAT Act Appellate Forum

viii. According to the information and explanations given to us the company has notdefaulted in repayment of loans or borrowings from a financial institution bank etc.

According to the information and explanations given to us during the year no moneyhas been raised by way of initial public offer or further public offer. The Term loanswere applied for the purpose for which they were raised. According to the information andexplanations given to us no material fraud by the Company or on the Company by itsofficers or employees has been noticed or reported during the course of our audit. xi.According to the information and explanations given to us and based on our examination ofthe records of the Company the Company has paid/ provided for managerial remuneration inaccordance with the requisite approvals mandated by the provisions of section 197 readwith Schedule V to the Act.

xii. In our opinion and according to the information and explanations given to us theCompany is nota Nidhi company. Accordingly paragraph 3(xii) of the Order is notapplicable.

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 not made any preferentialallotment or private placement of shares or fully or partly convertible debentures duringthe year.

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 any non-cashtransactions with directors or persons connected with them. Accordingly paragraph 3(xv)of the Order is not applicable. xvi. According to the information and explanations givento us the Company is not required to be registered under section 45-IA of the ReserveBank of India Act 1934.

For JKVS & CO Chartered Accountants Firm Registration No. 318086E

Utsav Saraf Partner Membership No.: 306932 UDIN: 20306932AAAAAS4991

Kolkata

Dated: 15th June 2020

ANNEXURE ‘B' TO THE INDEPENDENT AUDITORS' REPORT

(Referred to in paragraph 2(f) under ‘Report on Other Legal and RegulatoryRequirements' section of our report to the Members of Ludlow Jute & SpecialitiesLimited 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 LUDLOW JUTE& SPECIALITIES LIMITED (“the Company”) as of March 31 2020 in conjunctionwith our audit 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 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.

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 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 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 of records that in reasonable detail accurately andfairly reflect the transactions and dispositions of the assets of the company;

(2) Provide reasonable assurance that transactions are recorded as necessary to permitpreparation of financial statements in accordance with generally accepted accountingprinciples and that receipts and expenditures of the company are being made only inaccordance with authorizations of management and directors of the company; and

(3) Provide reasonable assurance regarding prevention or timely detection ofunauthorised acquisition use or disposition of the company's assets that could have amaterial 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 March 31 2020 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.

For JKVS & CO Chartered Accountants Firm Registration No. 318086E

Utsav Saraf Partner Membership No.: 306932 UDIN: 20306932AAAAAS4991

Kolkata

Dated: 15th June 2020

.