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Ludlow Jute & Specialities Ltd.

BSE: 526179 Sector: Industrials
NSE: N.A. ISIN Code: INE983C01015
BSE 00:00 | 25 Apr 61.40 0.70
(1.15%)
OPEN

60.40

HIGH

61.95

LOW

59.75

NSE 05:30 | 01 Jan Ludlow Jute & Specialities Ltd
OPEN 60.40
PREVIOUS CLOSE 60.70
VOLUME 102
52-Week high 103.00
52-Week low 53.35
P/E 68.22
Mkt Cap.(Rs cr) 66
Buy Price 60.50
Buy Qty 1.00
Sell Price 61.80
Sell Qty 25.00
OPEN 60.40
CLOSE 60.70
VOLUME 102
52-Week high 103.00
52-Week low 53.35
P/E 68.22
Mkt Cap.(Rs cr) 66
Buy Price 60.50
Buy Qty 1.00
Sell Price 61.80
Sell Qty 25.00

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

Company auditors report

To

The Members of

Ludlow Jute & Specialities Limited

REPORT ON THE STANDALONE INDIAN ACCOUNTING STANDARDS (IND AS) FINANCIAL STATEMENTS

We have audited the accompanying standalone Ind AS financial statements of Ludlow Jute& Specialities Limited ("the Company") which comprise the Balance Sheet asat March 31st 2018 the Statement of Profit and Loss (including Other ComprehensiveIncome) the Statement of Cash Flows the Statement of Changes in Equity for the year thenended and a summary of the significant accounting policies and other explanatoryinformation.

MANAGEMENT'S RESPONSIBILITY FOR THE STANDALONE Ind 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 standalone Ind AS financial statements that give a true and fair view of thefinancial position financial performance including other comprehensive income cash flowsand changes in equity of the Company in accordance with the Indian Accounting Standards(Ind AS) prescribed under section 133 of the Act read with the Companies (IndianAccounting Standards) Rules 2015 as amended and other accounting principles generallyaccepted in India.

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 standalone IndAS 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 standalone financial statementsbased on our audit. We have taken into account the provisions of the Act the accountingand auditing standards and matters which are required to be included in the audit reportunder the provisions of the Act and the Rules made thereunder.

We conducted ouraudit of the standalone Ind AS financial statements in accordance withthe Standards on Auditing specified under Section 143(10) of the Act and other applicableauthoritative announcements issued by Institute of Chartered Accountants of India. ThoseStandards and pronouncements require that we comply with ethical requirements and plan andperform the audit to obtain reasonable assurance about whether the standalone Ind ASfinancial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the standalone Ind AS financial statements. The procedures selecteddepend on the auditor's judgment including the assessment of the risks of materialmisstatement of the standalone Ind AS financial statements whether due to fraud or error.In making those risk assessments the auditor considers internal financial controlrelevant to the Company's preparation of the standalone Ind AS financial statements thatgive a true and fair view in order to design audit procedures that are appropriate in thecircumstances. An audit also includes evaluating the appropriateness of the accountingpolicies used and the reasonableness of the accounting estimates made by the Company'sDirectors.as well as evaluating the overall presentation of the standalone Ind ASfinancial statements.

We believe that the audit evidence obtained by us is sufficient and appropriate toprovide a basis for our audit opinion on the standalone Ind AS financial statements.

OPINION

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid standalone Ind AS financial statements give the informationrequired by the Act in the manner so required and give a true and fair view in conformitywith the accounting principles generally accepted in India of the state of affairs of theCompany as at 31st March 2018 and its profit total comprehensive income its cash flowsand the changes in equity for the year ended on that date.

OTHER MATTER

Attention is drawn to the fact that the comparative figure for the year ended 31stMarch 2017 are based on the previously issued standalone financial statement prepared inaccordance with the IGAAP that were audited by the predecessor Auditor. The audit reportdated 28th April 2017 on the audited standalone financial statement of the Company forthe year ended 31st March 2017 issued by predecessor auditor expressed an un-modifiedopinion.

Our opinion is not modified in respect of this matter.

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 Other ComprehensiveIncome the Statement of Cash Flow and Statement of Changes in Equity dealt with by thisReport are in agreement with the books of account.

d) in our opinion the aforesaid standalone Ind AS financial statements comply with theIndian Accounting Standards prescribed under Section 133 of the Act.

e) on the basis of the written representations received from the directors of theCompany as on March 31st 2018 taken on record by the Board of Directors none of thedirectors is disqualified as on March 31st 2018 from being appointed as a director interms of Section 164(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".

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 standalone Ind AS financial statements. (Refer Note No. -38(i) (a) &(b))

ii. The Company did not have any material foreseeable losses on long term contractsincluding derivative contracts.

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 31st March18.

For JITENDRA K AGARWAL & ASSOCIATES
Chartered Accoun tan ts
Firm Registration No. 318086E
Supriyo Ghatak
Place: Kolkata Partner
Date: 7th May 2018 Membership No. 051889

Annexure referred to in paragraph 1 under the heading "Report on Other Legal andRegulatory Requirements" of our Independent Auditors' Report of even date in respectto statutory audit of Ludlow Jute & Specialities Limited for the year ended 31st March2018 we report that:

i. (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.

ii. The inventory has been physically verified at reasonable intervals during the yearby the Management/ Internal Auditors. The discrepancies noticed on verification betweenthe physical stock and the book stocks wherever ascertained were not significant and havebeen properly dealt in the books of accounts.

iii. In our opinion and according to the information and explanations given to us theCompany has not granted any loan to parties covered in the register maintained undersection 189 of the Companies Act 2013. Thus paragraph 3(iii) of the Order is notapplicable.

iv. In our opinion and according to the information and explanations given to us theCompany has complied with the provisions of section 185 and 186 of the Act with respectto the loans and investments made. The Company has neither issued any guarantee nor hasprovided any security on behalf of any party.

v. 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 there under with regard to deposits accepted from the public duringthe year.

vi. The Central Government has prescribed maintenance of cost records under section 148(1) of the Companies Act. We have broadly reviewed such accounts and records and are ofthe opinion that prima facie the prescribed accounts & records have been made &maintained but no detailed examination of such records and accounts have been carried outby us.

vii. (a) According to the information and explanations given to us and on the basis ofour examination 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 duty of customs value added tax cess and other materialstatutory dues have been regularly deposited during the year by the Company with theappropriate authorities. According to the information and explanations given to us noundisputed amounts payable in respect of provident fund income tax sales tax servicetax duty of customs value added tax cess and other material statutory dues were inarrears as at 31st March 2018 for a period of more than six months from the date theybecame 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 2018 which have notbeen deposited on account of any dispute and the forum where the disputes are pending areas under:

Nature of Dues Gross Amount Outstanding Paid under protest Period to which the amount relates Forum where dispute is pending
 

(in Rs. lakhs)

 

(in Rs. lakhs)

Sales Tax as per WBST Act 1994 22.20 11.20 1999-00 WBCT (A & R) Board
CST Act 1956 1.54 NIL & 2004-05 WBCT (A & R) Board
WB VAT Act 2003 83.28 Nil WBCT (A & R) Board & Appellate Forum
CST Act 1956 994.95 27.36 2005-06 to 2014- 15 WBCT (A & R) Board & Appellate Forum
Entry Tax Act 2012 1.12 Nil WBCT (A & R) Board & 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.Government.

ix. According to the information and explanations given to us during the year nomoney has been raised by way of initial public offer or further public offer. The Termloans were applied for the purpose for which they were raised.

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 paid/ provided for managerialremuneration in accordance with the requisite approvals mandated by the provisions ofsection 197 read with Schedule V to the Act.

xii. In our opinion and according to the information and explanations given to us theCompany is not a 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 given to us the Company is notrequired to be registered under section 45-IA of the Reserve Bank of India Act 1934.

For JITENDRA K AGARWAL & ASSOCIATES
Chartered Accountants
Firm Registration No. 318086E
Supriyo Ghatak
Place: Kolkata Partner
Date : 7th May 2018 Membership No. 051889

(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 31st 2018 in conjunctionwith our audit of the standalone 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. These responsibilities includethe design implementation and maintenance of adequate internal financial controls thatwere operating effectively for ensuring the orderly and efficient conduct of its businessthe safeguarding of its assets the prevention and detection of frauds and errors theaccuracy and completeness of the accounting records and the timely preparation ofreliable financial information 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 judgement 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 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 Ind AS financial statements in accordance with generally acceptedaccounting principles and that receipts and expenditures of the company are being madeonly in accordance with authorisations 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 Ind AS 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 31st 2018 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 JITENDRA K AGARWAL & ASSOCIATES
Chartered Accoun tan ts
Firm Registration No. 318086E
Supriyo Ghatak
Place: Kolkata Partner
Date: 7th May 2018 Membership No. 051889