Mar 31, 2023
JK LAKSHMI CEMENT LIMITED Report on the Audit of the Standalone Financial Statements
Opinion
We have audited the accompanying standalone financial statements of JK Lakshmi Cement Limited ("the Company"), which comprise the balance sheet as at March 31,2023, the statement of profit and loss (including other comprehensive loss), the statement of changes in equity and the cash flows statement for the year then ended, and a summary of the significant accounting policies and other explanatory information (hereinafter referred to as the "standalone financial statements").
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone financial statements give the information required by the Companies Act, 2013 (the Act'') in the manner so required and give a true and fair view in conformity with the Indian Accounting Standards (''Ind AS'') prescribed under section 133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015, as amended, and other accounting principles generally accepted in India, of the state of affairs of the Company as at March 31, 2023, its profit including other comprehensive loss, changes in equity and its cash flows for the year ended on that date.
Basis for opinion
We conducted our audit of the standalone financial statements in accordance with the Standards on Auditing (SAs) specified under section 143(10) of the Act. Our responsibilities under those Standards are further described in the Auditor''s Responsibilities for the Audit of the
standalone financial statements section of our report. We are independent of the Company in accordance with the ''Code of Ethics'' issued by the Institute of Chartered Accountants of India (ICAI) together with the independence requirements that are relevant to our audit of the standalone financial statements under the provisions of the Act and the Rules made thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the ICAI''s Code of Ethics. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the standalone financial statements.
Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the standalone financial statements for the financial year ended March 31,2023. These matters were addressed in the context of our audit of the standalone financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.
We have determined the matters described below to be the key audit matters to be communicated in our report. We have fulfilled the responsibilities described in the Auditor''s responsibilities for the audit of the standalone financial statements section of our report, including in relation to these matters. Accordingly, our audit included the performance of procedures designed to respond to our assessment of the risks of material misstatement of the standalone financial statements. The results of our audit procedures, including the procedures performed to address the matters below, provide the basis for our audit opinion on the accompanying financial statements.
Key Audit Matters |
||
1 |
Revenue recognition - Discounts, incentives, |
Our procedures included: |
rebates etc. |
For recognition of revenue: |
|
⢠Recognition, measurement, presentation and disclosure |
⢠We performed walkthroughs to understand the |
|
as per Ind AS-115 "Revenue from Contracts with |
key processes and identify key controls related |
|
Customers". |
Ind AS 115 "Revenue from Contracts with |
|
(Refer Sub-note No III. (13) of Note 1 of Accounting Policy). |
Customers" ⢠We performed revenue cut-off testing, by |
|
⢠Revenue is measured net of discounts, incentives, |
reference to bill dates of sales recorded either |
|
rebates etc. given to the customers on the Company''s |
side of the financial year end had legally |
|
sales. |
completed; and ⢠Selected a sample of sales contracts and read, |
|
⢠Due to the Company''s presence different marketing |
analyze and identified the distinct performance |
|
regions within the country and the competitive business |
obligations in these contracts. |
Key Audit Matters |
||
environment, the assessment of the various types of discounts, incentives and rebate schemes, is material and considered to be complex and judgmental. ⢠Therefore, there is a risk of revenue being misstated as a result of faulty estimations over discounts, incentives, and rebates. ⢠Given the judgement required to estimate the amount of provisions, this is a key audit matter. |
For Recoanition of discount, incentive, and rebate ⢠Assessing the appropriateness of the Company''s accounting policies relating to discounts, incentives, rebates, etc by comparing with applicable accounting standards. ⢠Assessing the design and testing the i mplementation and operating effectiveness of Company''s internal controls over the approvals, calculation, provision and disbursement of discounts, incentives and rebates. ⢠Obtaining management''s calculations for discounts, incentives and rebates accruals under applicable schemes on a sample basis and comparing the accruals made with the approved schemes. ⢠Obtaining and inspecting, on a sample basis, supporting documentation for discounts, i ncentives and rebates recorded and disbursed during the year as well as credit notes issued after the year end date to determine whether these were recorded appropriately. ⢠Comparing the historical trend of payments and reversal of discounts, incentives and rebates to provisions made to determine the appropriateness of current year provisions. ⢠Examining manual journals posted to discounts, rebates and incentives to identify unusual or i rregular items. Based on our audit procedures we have concluded that revenue, discount, incentive and rebates is appropriately recognized, and that there was no evidence of management bias. |
|
2 |
Evaluation of uncertain civil and indirect tax positions |
Our Procedure included: |
and recoverability of amount deposited under |
||
protest as recoverable |
Obtained details of completed tax assessments of |
|
earlier years and demands as on March 31, 2023 |
||
The Company has material uncertain civil and indirect tax |
from management. We have done assessment of the |
|
positions including matters under dispute which involves |
managements underlying assumptions in estimating |
|
significant judgment to determine the possible outcome |
the tax provision and the possible outcome of the |
|
of these disputes. |
disputes. |
|
The eventual outcome of these litigations is uncertain, |
Based on management estimates and Independent |
|
and the positions taken by the management are based |
legal opinion taken by Management of the |
|
on the application of significant judgement and |
Company, the liability against these matters are not |
|
estimation. The review of these matters requires |
yet certain hence the same has been shown as |
|
application and interpretation of tax laws and reference |
contingent liability in the current financial |
|
to applicable judicial pronouncements. |
statements. |
|
Based on management judgement and the advice from |
Our procedures on verification of the management''s |
|
legal and tax consultants and considering the merits |
assessment of these matters included: |
Key Audit Matters |
||
of the case, the Company has recognized provisions wherever required and for the balance matters, where the management expects favourable outcome, these litigations have been disclosed as contingent liabilities in the financial statements unless the possibility of out flow of resources is considered to be remote. Given the uncertainty and application of significant judgment in this area in terms of the eventual outcome of litigations, we determined this to be a key audit matter. |
⢠Understanding and evaluating process and controls designed and implemented by the management including testing of relevant controls. ⢠Gaining an understanding of the civil and tax related litigations through discussions with the management, including the significant developments, additions and settlements during the year and subsequent to 31 March 2023. ⢠Inspecting demand notices received from various tax authorities and evaluating the Company''s written responses to those matters. ⢠Evaluating the management''s assessment on the 1 ikely outcome and potential magnitude by i nvolving experts on complex or significant matters as considered necessary; and ⢠Assessing the adequacy of the Company''s disclosures. We did not identify any significant exceptions to the management''s assessment of the ongoing civil, income tax and indirect tax litigations as a result of the above procedures. |
Information Other than the Standalone Financial Statements and Auditor''s Report Thereon
The Company''s Board of Directors is responsible for the preparation of the other information. The other information comprises the information included in the Company''s Annual Report but does not include the standalone financial statements and our auditor''s report thereon.
Our opinion on the standalone financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.
In connection with our audit of the standalone financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.
Management''s Responsibility for the Standalone Financial Statements
The 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 standalone financial statements that give a true and fair view of the financial position, financial performance, total comprehensive income, changes in equity and cash flows of the Company in accordance with the Ind AS
and other accounting principles generally accepted in India. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the standalone financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
In preparing the standalone financial statements, management is responsible for assessing the Company''s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.
The Board of Directors is responsible for overseeing the Company''s financial reporting process.
Auditor''s Responsibilities for the Audit of the Standalone Financial Statements
Our objectives are to obtain reasonable assurance about whether the standalone financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor''s report that includes our
opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with SAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material, if individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these standalone financial statements.
As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:
⢠Identify and assess the risks of material misstatement of the standalone financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
⢠Obtain an understanding of internal financial controls relevant to the audit in order to design audit procedures that are appropriate in the circumstances. Under section 143(3)(i) of the Act, we are also responsible for expressing our opinion on whether the Company has adequate internal financial controls system in place and the operating effectiveness of such controls.
⢠Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
⢠Conclude on the appropriateness of management''s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company''s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor''s report to the related disclosures in the standalone 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''s report. However, future events or conditions may cause the Company to cease to continue as a going concern.
⢠Evaluate the overall presentation, structure and content of the standalone financial statements, including the disclosures, and whether the standalone financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
We communicate with those charged with governance regarding, among other matters, the planned scope and
timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the standalone financial statements for the year ended March 31, 2023, and are therefore the key audit matters. We describe these matters in our auditor''s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.
Report on Other Legal and Regulatory Requirements
1 As required by the Companies (Auditor''s Report) Order, 2020 ("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 the Order.
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 best of 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 the Company so far as it appears from our examination of those books;
c) The balance sheet, the statement of profit and loss including other comprehensive income/(loss), statement of changes in equity and the statement of cash flows dealt with by this Report are in agreement with the relevant books of accounts;
d) In our opinion, the aforesaid standalone financial statements comply with the Accounting Standards specified under Section 133 of the Act, read with relevant rules made thereunder, as amended and other accounting principles generally accepted in India;
e) On the basis of the written representations received from the directors as on March 31,2023, taken on record by the Board of Directors, none of
the directors is disqualified as on March 31,2023, from being appointed as a director in terms of Section 164 (2) of the Act;
f) With respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate Report in "Annexure B". Our report expresses an unmodified opinion on the adequacy and operating effectiveness of the Company''s internal financial controls over financial reporting;
g) In our opinion, the managerial remuneration for the year ended March 31, 2023, has been paid / provided by the Company to its directors in accordance with the provisions of Section 197 read with Schedule V to the Act;
h) With respect to the other matters to be included in the Auditor''s Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, as amended in our opinion and to the best of our information and according to the explanations given to us:
i. The Company has disclosed the impact of pending litigations as at March 31, 2023, on its financial position in its standalone financial statements- Refer note 54, 55, 56 and 57;
ii. The Company has made provision, as required under the applicable law or accounting standards, for material foreseeable losses, if any, on long-term contracts including derivative contracts.
iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company.
iv. a) The management has represented that, to
the best of its knowledge and belief, no funds have been advanced or loaned or invested by the Company to or in any other person or entities, including foreign entities ("Intermediaries"), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall, whether, directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company ("Ultimate Beneficiaries") or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries;
b) The management has represented that, to the best of its knowledge and belief, no
funds have been received by the Company from any person or entity, including foreign entities ("Funding Parties"), with the understanding, whether recorded in writing or otherwise, that the Company shall, whether, directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party ("Ultimate Beneficiaries") or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries; and
c) Based on such audit procedures that were considered reasonable and appropriate in the circumstances, nothing has come to our notice that has caused us to believe that the representations under sub-clause iv (a) and iv (b) contain any material misstatement.
v. a) The final dividend relating to financial year
2021-22 declared or paid during the year ended March 31, 2023, by the Company is in compliance with section 123 of the Act.
b) As stated in Note 50 to the accompanying standalone financial statements, the Board of Directors of the Company have proposed final dividend for the year ended March 31, 2023, which is subject to the approval of the members at the ensuing Annual General Meeting. The dividend declared is in accordance with section 123 of the Act to the extent it applies to declaration of dividend.
vi. Proviso to Rule 3(1) of the Companies (Accounts) Rules, 2014 for maintaining books of account using accounting software which has a feature of recording audit trail (edit log) facility is applicable to the Company with effect from April 1, 2023, and accordingly, reporting under Rule 11(g) of Companies (Audit and Auditors) Rules, 2014 is not applicable for the financial year ended March 31,2023.
For S. S. KOTHARI MEHTA & COMPANY
Chartered Accountants
ICAI Firm Registration No. 000756N
Partner
Membership No:- 087294
Place: New Delhi
Date: May 19, 2023
UDIN: 23087294BGTGTT4900
Mar 31, 2022
Opinion
We have audited the accompanying standalone financial statements of JK Lakshmi Cement Limited ("the Company"), which comprise the balance sheet as at March 31,2022, the statement of profit and loss (including other comprehensive income), the statement of changes in equity and the cash flows statement for the year then ended, and a summary of the significant accounting policies and other explanatory information (hereinafter referred to as "the standalone financial statements").
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone financial statements give the information required by the Companies Act, 2013 (the ''Act'') in the manner so required and give a true and fair view in conformity with the Indian Accounting Standards (''Ind AS'') prescribed under section 133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015, as amended, and other accounting principles generally accepted in India, of the state of affairs of the Company as at March 31, 2022, its profit including other comprehensive loss, changes in equity and its cash flows for the year ended on that date.
Basis for opinion
We conducted our audit of the standalone financial statements in accordance with the Standards on Auditing (SAs) specified under section 143(10) of the Act. Our responsibilities under those Standards are further described in the Auditor''s Responsibilities for the Audit of the
standalone financial statements section of our report. We are independent of the Company in accordance with the ''Code of Ethics'' issued by the Institute of Chartered Accountants of India (ICAI) together with the independence requirements that are relevant to our audit of the standalone financial statements under the provisions of the Act and the Rules made thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the ICAI''s Code of Ethics. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the standalone financial statements.
Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the standalone financial statements for the financial year ended March 31, 2022. These matters were addressed in the context of our audit of the standalone financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.
We have determined the matters described below to be the key audit matters to be communicated in our report. We have fulfilled the responsibilities described in the Auditor''s responsibilities for the audit of the standalone financial statements section of our report, including in relation to these matters. Accordingly, our audit included the performance of procedures designed to respond to our assessment of the risks of material misstatement of the standalone financial statements. The results of our audit procedures, including the procedures performed to address the matters below, provide the basis for our audit opinion on the accompanying financial statements.
Key Audit Matters |
||
1 |
Revenue recognition - Discounts, incentives, |
Our procedures included: |
rebates etc. |
For recognition of revenue: |
|
- Recognition, measurement, presentation and disclosure |
⢠We performed walkthroughs to understand the |
|
as per Ind AS-115 "Revenue from Contracts with |
key processes and identify key controls related |
|
Customers". |
1 nd AS 115 "Revenue from Contracts with |
|
(Refer Sub-note No III. (13) of Note 1 of Accounting Policy). |
Customers" ⢠On a sample basis we performed testing to verify |
|
- Revenue is measured net of discounts, incentives, |
physical deliveries of product in the year to |
|
rebates etc. given to the customers on the Company''s |
ascertain transfer of control. |
|
sales. |
⢠We performed revenue cut-off testing, by reference to bill dates of sales recorded either |
|
- Due to the Company''s presence different marketing |
side of the financial year end had legally |
|
regions within the country and the competitive business |
completed; and |
Key Audit Matters |
||
environment, the assessment of the various types of |
⢠Selected a sample of sales contracts and read, |
|
discounts, incentives and rebate schemes, is material |
analysed and identified the distinct performance |
|
and considered to be complex and judgmental. |
obligations in these contracts. |
|
- Therefore, there is a risk of revenue being misstated as |
For Recognition of discount, incentive and rebate |
|
a result of faulty estimations over discounts, incentives, |
⢠Assessing the appropriateness of the Company''s |
|
and rebates. |
accounting policies relating to discounts, i ncentives, rebates, etc by comparing with |
|
- Given the judgement required to estimate the amount |
applicable accounting standards. |
|
of provisions, this is a key audit matter. |
⢠Assessing the design and testing the i mplementation and operating effectiveness of Company''s internal controls over the approvals, calculation, provision and disbursement of discounts, incentives and rebates. ⢠Obtaining management''s calculations for discounts, incentives and rebates accruals under applicable schemes on a sample basis and comparing the accruals made with the approved schemes. ⢠Obtaining and inspecting, on a sample basis, supporting documentation for discounts, i ncentives and rebates recorded and disbursed during the year as well as credit notes issued after the year end date to determine whether these were recorded appropriately. ⢠Comparing the historical trend of payments and reversal of discounts, incentives and rebates to provisions made to determine the appropriateness of current year provisions. ⢠Examining manual journals posted to discounts, rebates and incentives to identify unusual or i rregular items. Based on our audit procedures we have concluded that revenue, discount, incentive and rebates is appropriately recognized, and that there was no evidence of management bias. |
|
2 |
Evaluation of uncertain civil and indirect tax any positions and recoverability of amount deposited under |
Our Procedure included: |
protest as recoverable |
Obtained details of completed tax assessments of earlier years and demands as on March 31,2022 |
|
The Company has material uncertain civil and indirect tax |
from management. We have done assessment of the |
|
positions including matters under dispute which involves |
managements underlying assumptions in estimating |
|
significant judgment to determine the possible outcome |
the tax provision and the possible outcome of the |
|
of these disputes. |
disputes. |
|
The eventual outcome of these litigations is uncertain, |
Based on management estimates and Independent |
|
and the positions taken by the management are based |
legal opinion taken by Management of the |
|
on the application of significant judgement and |
Company, the liability against these matters are not |
|
estimation. The review of these matters requires |
yet certain hence the same has been shown as |
|
application and interpretation of tax laws and reference |
contingent liability in the current financial |
|
to applicable judicial pronouncements. |
statements. |
Key Audit Matters |
||
Based on management judgement and the advice from legal and tax consultants and considering the merits of the case, the Company has recognized provisions wherever required and for the balance matters, where the management expects favourable outcome, these litigations have been disclosed as contingent liabilities in the financial statements unless the possibility of out flow of resources is considered to be remote. Given the uncertainty and application of significant judgment in this area in terms of the eventual outcome of litigations, we determined this to be a key audit matter. |
Our procedures on verification of the management''s assessment of these matters included: ⢠Understanding and evaluating process and controls designed and implemented by the management including testing of relevant controls. ⢠Gaining an understanding of the civil and tax related litigations through discussions with the management, including the significant developments, additions and settlements during t he year and subsequent to 31 March 2022. ⢠Inspecting demand notices received from various tax authorities and evaluating the Company''s written responses to those matters. ⢠Evaluating the management''s assessment on the 1 ikely outcome and potential magnitude by i nvolving experts on complex or significant matters as considered necessary; and ⢠Assessing the adequacy of the Company''s disclosures. We did not identify any significant exceptions to the management''s assessment of the ongoing civil, income tax and indirect tax litigations as a result of the above procedures. |
Information Other than the Standalone Financial Statements and Auditor''s Report Thereon
The Company''s Board of Directors is responsible for the preparation of the other information. The other information comprises the information included in the Company''s annual report but does not include the standalone financial statements and our auditor''s report thereon.
Our opinion on the standalone financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.
In connection with our audit of the standalone financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.
Management''s Responsibility for the Standalone Financial Statements
The 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 standalone financial statements that
give a true and fair view of the financial position, financial performance, total comprehensive income, changes in equity and cash flows of the Company in accordance with the Ind AS and other accounting principles generally accepted in India. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the standalone financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
In preparing the standalone financial statements, management is responsible for assessing the Company''s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.
The Board of Directors is responsible for overseeing the Company''s financial reporting process.
Auditor''s Responsibilities for the Audit of the Standalone Financial Statements
Our objectives are to obtain reasonable assurance about whether the standalone financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor''s report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with SAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material, if individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these standalone financial statements.
As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:
⢠Identify and assess the risks of material misstatement of the standalone financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
⢠Obtain an understanding of internal financial controls relevant to the audit in order to design audit procedures that are appropriate in the circumstances. Under section 143(3)(i) of the Act, we are also responsible for expressing our opinion on whether the Company has adequate internal financial controls system in place and the operating effectiveness of such controls.
⢠Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
⢠Conclude on the appropriateness of management''s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company''s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor''s report to the related disclosures in the standalone 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
d) In our opinion, the aforesaid standalone financial statements comply with the Accounting Standards specified under Section 133 of the Act, read with Companies (Indian Accounting Standards) Rules, 2015, as amended;
e) On the basis of the written representations received from the directors as on March 31,2022 taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2022 from being appointed as a director in terms of Section 164 (2) of the Act;
f) With respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate Report in "Annexure B". Our report expresses an unmodified opinion on the adequacy and operating effectiveness of the Company''s internal financial controls over financial reporting;
g) In our opinion, the managerial remuneration for the year ended March 31, 2022 has been paid / provided by the Company to its directors in accordance with the provisions of Section 197 read with Schedule V to the Act;
h) With respect to the other matters to be included in the Auditor''s Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, as amended in our opinion and to the best of our information and according to the explanations given to us:
i. The Company has disclosed the impact of pending litigations as at March 31, 2022 on its financial position in its standalone financial statements- Refer note 57, 58, 59, 60 and 62.
ii. The Company has made provision, as required under the applicable law or accounting standards, for material foreseeable losses, if any, on long-term contracts including derivative contracts.
iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company.
iv. a) The management has represented that, to the
best of its knowledge and belief, no funds have been advanced or loaned or invested by the company to or in any other person or entities, including foreign entities ("Intermediaries"), with the understanding, whether recorded in writing or otherwise, that
auditor''s report. However, future events or conditions may cause the Company to cease to continue as a going concern.
⢠Evaluate the overall presentation, structure and content of the standalone financial statements, including the disclosures, and whether the standalone financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the standalone financial statements for the year ended March 31, 2022 and are therefore the key audit matters. We describe these matters in our auditor''s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.
Report on Other Legal and Regulatory Requirements
1 As required by the Companies (Auditor''s Report) Order, 2020 ("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 the Order.
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 best of 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 the Company so far as it appears from our examination of those books;
c) The balance sheet, the statement of profit and loss including other comprehensive income, statement of changes in equity and the statement of cash flows dealt with by this Report are in agreement with the relevant books of accounts;
the Intermediary shall, whether, directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the company ("Ultimate Beneficiaries") or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries;
b) The management has represented that, to the best of its knowledge and belief, no funds have been received by the company from any person or entity, including foreign entities ("Funding Parties"), with the understanding, whether recorded in writing or otherwise, that the company shall, whether, directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party ("Ultimate Beneficiaries") or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries; and
c) Based on such audit procedures that were considered reasonable and appropriate in the circumstances, nothing has come to our notice that has caused us to believe that the representations under sub-clause iv (a) and iv (b) contain any material misstatement.
v. a) The dividend declared or paid during the year by the Company is in compliance with section 123 of the Act.
b) As stated in Note 49 to the accompanying standalone financial statements, the Board of Directors of the Company have proposed final dividend for the year ended March 31, 2022 which is subject to the approval of the members at the ensuing Annual General Meeting. The dividend declared is in accordance with section 123 of the Act to the extent it applies to declaration of dividend.
For S. S. KOTHARI MEHTA & COMPANY
Chartered Accountants
ICAI Firm Registration No. 000756N
Partner
Membership No:- 087294
Place: New Delhi
Date: May 18, 2022
UDIN: 22087294AJEEWM4314
Mar 31, 2018
INDEPENDENT AUDITORS'' REPORT
To the Members of JK LAKSHMI CEMENT LIMITED Report on the Standalone Ind AS Financial Statements
We have audited the accompanying standalone Ind AS financial statements of JK LAKSHMI CEMENT LIMITED ("the Company"), which comprise the balance sheet as at March 31, 2018, the statement of profit and loss, including the statement of other comprehensive income, the statement of cash flow and the statement of changes in equity for the year then ended, and a summary of the significant accounting policies and other explanatory information (herein after referred to as "standalone Ind AS financial statements"). Management''s Responsibility for the Standalone Ind AS Financial Statements
The Company''s Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 ("the Act") with respect to the preparation of these standalone Ind AS financial statements that give a true and fair view of the financial position, financial performance including other comprehensive income, cash flows and changes in equity of the Company in accordance with accounting principles generally accepted in India, including the Indian Accounting Standards (Ind AS) specified under section 133 of the Act, read with Companies (Indian Accounting Standards) Rules, 2015 as amended.
This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and the design, implementation and maintenance of adequate internal financial control that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the standalone Ind AS financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
Auditor''s Responsibility
Our responsibility is to express an opinion on these standalone Ind AS financial statements based on our audit. We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made there under.
We conducted our audit of the standalone Ind AS financial statements in accordance with the Standards on Auditing, issued by the Institute of Chartered Accountants of India, as specified under Section 143(10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the standalone Ind AS financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the standalone Ind AS financial statements. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the standalone Ind AS financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Company''s preparation of the standalone Ind AS financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by the Company''s Directors, as well as evaluating the overall presentation of the standalone Ind AS financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide 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 explanations given to us, the aforesaid standalone Ind AS financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Company as at March 31, 2018, its profit including other comprehensive income, its cash flows and the changes in equity for the year ended on that date.
Other matter
The Comparative financial information of the Company for the year ended March 31, 2017 have been audited by predecessor auditor (Lodha & Co. Chartered Accountants having firm registration number 301051E). The report of the predecessor auditor dated May 17, 2017 on the comparative financial information expressed an unmodified opinion.
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 of India in terms of Section 143(11) of the Act, we give in the "Annexure A" a statement on the matters specified in paragraphs 3 and 4 of the Order.
2. 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 best of 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 the Company so far as it appears from our examination of those books;
c. The balance sheet, statement of profit and loss including statement of other comprehensive income, the statement of cash flow and statement of changes in equity dealt with by this Report are in agreement with the books of account;
d. In our opinion, the aforesaid standalone Ind AS financial statements comply with the Accounting Standards specified under Section 133 of the Act, read with the Companies (Indian Accounting Standards) Rules, 2015 as amended;
e. On the basis of the written representations received from the directors as on March 31, 2018 taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2018 from being appointed as a director in terms of Section 164 (2) of the Act;
f. With respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate report in "Annexure B"; and
g. With respect to the other matters to be included in the Auditor''s Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us:
i. The Company has disclosed the impact of pending litigations as at March 31, 2018 on its financial position in its standalone Ind AS financial statements- Refer note 54, 55, 56, 57 and 59;
ii. The Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses and
iii. There has been no delay in transferring amounts required to be transferred to the Investor Education and Protection Fund by the Company during the year ended March 31, 2018.
Annexure A to the Independent Auditor''s Report to the Members of JK LAKSHMI CEMENT LIMITED on its standalone Ind AS financial statements dated May 16, 2018
Report on the matters specified in paragraph 3 of the Companies (Auditor''s Report) Order, 2016 ("the Order") issued by the Central Government of India in terms of section 143(11) of the Companies Act, 2013 ("the Act") as referred to in paragraph 1 of ''Report on Other Legal and Regulatory Requirements'' section.
i. (a) The Company has maintained proper records showing full particulars including quantitative details and situation of fixed assets.
(b) The Company has a regular program of physical verification of its fixed assets by which fixed asset have been verified by the management according to the program of periodical physical verification in a phased manner which in our opinion is reasonable having regard to the size of the Company and the nature of its fixed assets. The discrepancies noticed on such physical verification were not material.
(c) According to the information and explanations given to us and on the basis of our examination of the records of the Company, the title deeds of immovable properties are held in the name of the Company except as stated in Note No. 2 of the standalone financial statements.
ii. The inventories of the Company (except stock lying with the third parties and in transit for which confirmations have been received / materials received) have been physically verified by the management at reasonable intervals. In our opinion and the procedures of physical verification of inventory followed by the Management are reasonable in relation to the size of the Company and nature of its business. The discrepancies noticed on such physical verification of inventory as compared to book records were not material.
iii. The Company has granted unsecured loan to one subsidiary party covered in the register maintained under section 189 of the Act. Read with Note No. 67(a) of the standalone Ind AS financial statements.
a) In respect of the aforesaid loans, the terms and conditions under which such loans were granted are not prejudicial to the Company''s interest.
b) In respect of the aforesaid loans, the schedule of repayment of principal and payment of interest has been stipulated, and the parties are repaying the principal amounts, as stipulated, and are also regular in payment of interest as applicable.
c) In respect of the aforesaid loans, there is no amount which is overdue for more than ninety days.
iv. According to the information, explanations and representations provided by the management and based upon audit procedures performed, we are of the opinion that in respect of loans, investments, guarantees and security, the Company has complied with the provisions of the Section 185 and 186 of the Act.
v. In our opinion and according to the information and explanations given to us, the Company has complied with the directive issued by the Reserve Bank of India and the provisions of Section 73 to76 of the Act or any other relevant provisions of the Act and the rules framed there under (to the extent applicable) with regard to deposits accepted from public. We have been informed that no order has been passed by the Company Law Board or National Company Law Tribunal or Reserve Bank of India or any Court or other Tribunal in this regard.
vi. We have broadly reviewed the books of account maintained by the company pursuant to the rules made by the Central Government for the maintenance of cost records under section 148(1) of the Act in respect of the company''s products to which the said rules are made applicable and are of the opinion that prima facie, the prescribed records have been made and maintained. We have, however, not made a detailed examination of the said records with a view to determine whether they are accurate or complete.
vii. (a) According to the information and explanations given to us and the records of the Company examined by us, in our opinion, the Company is generally regular in depositing undisputed statutory dues including provident fund, employees'' state insurance, income-tax, sales-tax, service tax, duty of customs, duty of excise, value added tax, Goods and Service tax, cess and other material statutory dues, as applicable, with the appropriate authorities and there are no such undisputed amounts payable which have remained outstanding as at March 31, 2018 for a period of more than six months from the date they became payable.
(b) According to the records and information & explanations given to us, certain dues in respect of Income tax, sales tax, service tax, duty of customs, duty of excise and value added tax that have not been deposited with the appropriate authorities on account of dispute and the forum where the dispute is pending are given below:
Name of |
Nature |
Period |
Amount |
Forum where |
The Statute |
of the |
(Financial |
('' In |
dispute is |
Dues |
Year) |
Crore) |
pending |
|
2006-2014 |
3.71 |
|||
1997-2001 |
2.39 |
|||
1995 -1998 |
0.63 |
High Court |
||
1992-1998 |
0.46 |
|||
Sale Tax Act |
Sale |
2005-2006 |
4.74 |
|
Tax |
1995-2006 |
0.42 |
||
1997-1998 |
0.05 |
Joint |
||
2007-2008 |
1.92 |
Commissioner (Appeals) |
||
2003-2009 |
2.71 |
Rajasthan Tax Board |
||
2002-2016 |
73.52 |
Supreme |
||
The Rajasthan |
Court |
|||
Tax on Entry of |
Entry |
2012-2015 |
0.79 |
High Court |
Goods into |
Tax |
2007-2008 |
2.72 |
Dy. Comm. |
local areas |
(Appeal) |
|||
Act, 1999 |
2013-2014 |
0.39 |
||
2012-2013 |
0.39 |
CTO (AE) |
||
2015-2017 |
0.87 |
Name of The Statute |
Nature of the Dues |
Period (Financial Year) |
Amount ('' In Crore) |
Forum where dispute is pending |
The Uttar Pradesh Tax on Entry of Goods Act, 2000 |
Entry Tax |
2007-2010 |
2.68 |
Supreme Court |
West Bengal Entry Tax |
2015-2016 |
0.38 |
High Court |
|
Gujarat Entry Tax |
2007-2008 |
0.01 |
Joint Com.(Appeals) |
|
Central Excise Act |
Excise Duty |
2007-2008 |
0.02 |
CESTAT |
2005-2010 |
0.01 |
|||
1996-1998 |
1.87 |
|||
2012-2015 |
0.10 |
Com.(Appeal) |
||
Custom Act |
Custom Duty |
2011-2012 |
1.11 |
CESTAT |
Finance Act, 1994 |
Service Tax |
2007-2009 |
1.18 |
Excise Commissioner |
2012-2014 |
0.25 |
CESTAT |
||
2012-2013 |
0.07 |
Commissioner (Appeal) |
||
Income Tax Act, 1961 |
Income Tax and Interest |
2012-2013 |
3.67 |
Commissioner (A), Kolkata |
2013-2014 |
1.46 |
viii. In our opinion, on the basis of audit procedures and according to the information and explanations given to us, the Company has not defaulted in repayment of loans and borrowings to financial institutions, banks, government and dues to debenture holders.
ix. In our opinion, and according to the information and explanations given to us, the Company has not raised any money by way of initial public offer / further public offer and term loans hence, reporting under clause (ix) is not applicable to the Company.
x. During the course of our examination of the books and records of the Company carried out in accordance with the generally accepted auditing practices in India, we have neither come across any instance of fraud on or by the Company or any fraud on the Company by its officers or employees has been noticed or reported during the year, nor have we been informed of such case by the management.
xi. According to the information and explanations given to us, the company paid/accrued remuneration amounting of '' 10.56 crore to its Managing Directors. As the Company did not have adequate profits in the financial year ended March 31, 2018, an amount of '' 4.10 crore is in excess of the limits specified in section 197 of Act read with Schedule V thereto. The Company is in the process of complying with statutory requirement prescribed to regularize such excess payments, including seeking approval of shareholders/Central Government, as necessary. Read with note no 52(ii) and (iii) of the standalone Ind As financial statements.
xii. As the Company is not a Nidhi Company, the provision of clause 3(xii) of the Order are not applicable to the Company.
xiii. As per the information and explanations and records made available by the management of the Company and audit procedure performed, for transactions with the related parties during the year, the Company has complied with the provisions of Section 177 and 188 of the Act, where applicable. As explained and as per records/ details, the related party transactions have been disclosed in the standalone Ind AS financial statements as required by the applicable accounting standards.
xiv. The company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year under review. Accordingly, the provisions of clause 3 (xiv) of the Order are not applicable to the Company.
xv. In our opinion and on the basis of information and explanations given to us, the company has not entered into non-cash transactions with directors and persons connected with him. Hence, the provisions of section 192 of Act are not applicable.
xvi. According to the information and explanations given to us, the provisions of section 45-IA of the Reserve Bank of India Act, 1934 are not applicable to the Company.
Annexure B to the Independent Auditor''s Report to the members of JK LAKSHMI CEMENT LIMITED dated May 16, 2018 on its Ind AS standalone financial statements
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 ("the Act") as referred to in paragraph 2(f) of ''Report on Other Legal and Regulatory Requirements'' section.
We have audited the internal financial controls over financial reporting of JK LAKSHMI CEMENT LIMITED("the Company") as of March 31, 2018 in conjunction with our audit of the standalone Ind AS financial 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 internal financial controls based on "the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India". These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to the Company''s policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013.
Auditors'' Responsibility
Our responsibility is to express an opinion on the Company''s internal financial controls over financial reporting based on our audit.
We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (the "Guidance Note") and the Standards on Auditing as specified under section 143(10) of the Act, to the extent applicable to an audit of internal financial controls, both applicable to an audit of Internal Financial Controls and, both issued by the Institute of Chartered Accountants of India. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness.
Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the Ind AS financial statements, whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Company''s internal financial controls system over financial reporting.
Meaning of Internal Financial Controls over Financial Reporting
A company''s internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of standalone Ind AS financial statements for external purposes in accordance with generally accepted accounting principles. A company''s internal financial control over financial reporting includes those policies and procedures that:
a) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company;
b) provide reasonable assurance that transactions are recorded as necessary to permit preparation of Ind AS standalone financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and
c) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company''s assets that could have a material effect on the standalone Ind AS financial statements.
Inherent Limitations of Internal Financial Controls Over Financial Reporting
Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate. Opinion
In our opinion to the best of our information and according to explanation given to us, the Company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at March 31, 2018, based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India.
For S. S. KOTHARI MEHTA & CO.
Chartered Accountants
Firm Registration No. 000756N
SUNIL WAHAL
Place: New Delhi Partner
Date: 16th May, 2018 Membership No:- 087294
Mar 31, 2017
TO THE MEMBERS OF JK LAKSHMI CEMENT LIMITED
Report on the Standalone Ind AS Financial Statements
We have audited the accompanying standalone Ind AS financial statements of JK LAKSHMI CEMENT LIMITED (âthe Companyâ), which comprise the Balance Sheet as at 31st March 2017, the Statement of Profit and Loss (including Other Comprehensive Income), the Cash Flows statement and the Statement of Changes in Equity for the year then ended, and a summary of the significant accounting policies and other explanatory information (herein after referred to as âstandalone Ind AS financial statementsâ).
Management''s Responsibility for the Standalone Ind AS Financial Statements
The Company''s Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 (âthe Actâ) with respect to the preparation of these standalone Ind AS financial statements that give a true and fair view of the financial position, financial performance including other comprehensive income, cash flows and changes in equity of the Company in accordance with the accounting principles generally accepted in India, including the Indian Accounting Standards (Ind AS) prescribed under Section 133 of the Act, read with relevant rules issued there under.
This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the standalone Ind AS financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
Auditor''s Responsibility
Our responsibility is to express an opinion on these standalone Ind AS financial statements based on our audit.
We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made there under.
We conducted our audit in accordance with the Standards on Auditing specified under Section 143(10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the standalone Ind AS financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the standalone Ind AS financial statements. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the standalone Ind AS financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Company''s preparation of the standalone Ind AS financial statements that give a true and fair 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 and the reasonableness of the accounting estimates made by the Company''s Directors, as well as evaluating the overall presentation of the standalone Ind AS financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide 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 explanations given to us, the aforesaid standalone Ind AS financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India including the Ind AS, of the financial position of the Company as at 31stMarch, 2017, and its financial performance including other comprehensive income, its cash flows and the changes in equity for the year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2016 (âthe Orderâ) issued by the Central Government of India in terms of section 143(11) of the Act, and on the basis of such checks of the books and records of the Company as we considered appropriate and according to the information and explanations given to us during the course of audit, we give in the Annexure A, a statement on the matters specified in the paragraph 3 and 4 of the order.
2. 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 best of 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 the Company so far as it appears from our examination of those books;
(c) The Balance Sheet, the Statement of Profit and Loss (including other comprehensive income), the statement of cash flow statement and statement of changes in equity dealt with by this Report are in agreement with the books of account;
(d) In our opinion, the aforesaid standalone Ind AS financial statements comply with the Accounting Standards specified under Section 133 of the Act read with relevant rules issued there under;
(e) On the basis of the written representations received from the directors as on 31stMarch 2017 taken on record by the Board of Directors, none of the directors is disqualified as on 31st March 2017 from being appointed as a director in terms of Section 164 (2) of the Act;
(f) As required by section 143(3)(i) of the Companies Act, 2013, and based on the checking of the books and records of the Company as we considered appropriate and according to the information and explanations given to us, our separate report with respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls is as per Annexure ''B''
(g) With respect to the other matters to be included in the Auditor''s Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and 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 financial position in its standalone Ind AS financial statements -Refer Note 51, 52, 53, 54 and 56 to the standalone Ind AS financial statements;
ii. The Company has made provision, as required under the applicable law or accounting standards, for material foreseeable losses, if any, on long term contracts including derivative contracts
iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company; and
iv. the Company has provided requisite disclosures in its standalone Ind AS financial statements as to holdings as well as dealings in Specified Bank Notes during the period from 8th November 2016 to 30th December 2016 and these are in accordance with the books of accounts maintained by the Company. Refer Note 47 to the standalone Ind AS financial statements.
Annexure âAâ referred to in paragraph 1 under the heading âReport on other legal and regulatory requirementsâ of our report of even date on the standalone Ind As financial statements of JK LAKSHMI CEMENT LIMITED for the year ended 31st March 2017
1. (a) The Company has maintained proper records showing full particulars including quantitative details and situation of fixed assets.
(b) The Company has a regular programme of Physical Verification of its Fixed assets by which fixed asset have been verified by the management according to the programe of periodical physical verification in a phased manner which in our opinion is reasonable having regard to the size of the Company and the nature of its fixed assets. The discrepancies noticed on such physical verification were not material.
(c) According to the information and explanations given to us and on the basis of our examination of the records of the Company, the title deeds of immovable properties are held in the name of the Company except as stated in Note No. 2(b) of the standalone Ind AS financial statements.
2. The inventories of the Company (except stock lying with the third parties and in transit for which confirmations have been received / materials received) have been physically verified by the management at reasonable intervals. In our opinion and the procedures of physical verification of inventory followed by the Management are reasonable in relation to the size of the Company and nature of its business. The discrepancies noticed on such physical verification of inventory as compared to book records were not material.
3. The Company has not granted any loans, secured or unsecured to companies, firms, Limited Liability Partnerships or other parties covered in the register maintained under section 189 of the Companies Act, 2013. Accordingly, we are not offering any comment on the provisions of Clause 3(iii) (a), (b) & (c) of the Order. Read with Note No. 63 of the standalone Ind AS financial statements.
4. According to the information, explanations and representations provided by the management and based upon audit procedures performed, we are of the opinion that in respect of loans, investments, guarantees and security, the Company has complied with the provisions of the Section 185 and 186 of the Act.
5. In our opinion and according to the information and explanations given to us, the Company has complied with the directive issued by the Reserve Bank of India and the provisions of Section 73 to 76 of the Act or any other relevant provisions of the Act and the rules framed there under (to the extent applicable) with regard to deposits accepted from public. We have been informed that no order has been passed by the Company Law Board or National Company Law Tribunal or Reserve Bank of India or any Court or other Tribunal in this regard.
6. We have broadly reviewed the books of account maintained by the Company pursuant to the rules made by the Central Government for the maintenance of cost records under section 148(1) of the Act in respect of the Company''s products to which the said rules are made applicable and are of the opinion that prima facie, the prescribed records have been made and maintained. We have, however, not made a detailed examination of the said records with a view to determine whether they are accurate or complete.
7. (a) According to the records of the Company, the
Company is regular in depositing undisputed statutory dues including provident fund, employees'' state insurance, income tax, sales-tax, service tax, duty of customs, duty of excise, value added tax, cess and other material statutory dues with the appropriate authorities to the extent applicable and there are no undisputed statutory dues payable for a period of more than six months from the date they become payable as at 31st March, 2017.
(b) According to the records and information & explanations given to us, certain dues in respect of income tax, sales tax, service tax, duty of customs, duty of excise and value added tax that have not been deposited with the appropriate authorities on account of any dispute and the forum where the dispute is pending are given below:
Name of The Statute |
Nature of the Dues |
Period (Financial Year) |
Amount (Rs. In Lacs) |
Forum where dispute is pending |
Sale Tax Act |
Sale Tax |
2006-2014 |
370.76 |
High Court |
1997-2001 |
239.06 |
|||
1995 -1998 |
63.12 |
|||
1992-1998 |
45.80 |
|||
2005-2006 |
473.85 |
|||
1995-2006 |
42.14 |
|||
1997-1998 |
5.21 |
Joint Commissioner (Appeals) |
||
2007-2008 |
201.85 |
|||
2003-2009 |
11949.02 |
Rajasthan Tax Board |
||
The Rajasthan Tax on Entry of Goods into local areas Act, 1999 |
Entry Tax |
2002-2016 |
7421.68 |
Supreme Court |
2012-2015 |
72.03 |
High Court |
||
2007-2008 |
272.08 |
Dy. Comm. (Appeal) |
||
2013-2014 |
38.84 |
CTO (AE) |
Name of The Statute |
Nature of the Dues |
Period (Financial Year) |
Amount (Rs. In Lacs) |
Forum where dispute is pending |
Entry Tax |
2012-2013 |
39.31 |
CTO (AE) |
|
The Uttar Pradesh Tax on Entry of Goods Act,2000 |
2007-2010 |
267.84 |
Supreme Court |
|
West Bengal Entry Tax |
2015-2016 |
38.15 |
High Court |
|
Gujarat Entry Tax |
2007-2008 |
58.15 |
Joint Com.(Appeal) |
|
Central Excise Act |
Excise Duty |
2009-2015 |
93.45 |
CESTAT |
2008 |
9.86 |
|||
2005-2010 |
0.95 |
|||
2012-2015 |
9.52 |
Com.(Appeal) |
||
Custom Act |
Custom Duty |
2011-2012 |
111.226 |
CESTAT |
Finance Act, |
Service Tax |
2012-2013 |
505.90 |
CESTAT |
2013-2014 |
522.63 |
|||
2012-2014 |
688.26 |
|||
2007-2009 |
117.82 |
Excise Commissioner |
||
2012-2013 |
7.06 |
Commissioner ( Appeal ) |
||
Income Tax Act, 1961 |
Income Tax and Interest |
2012-2013 |
367.41 |
Commissioner (A), Kolkata |
8. In our opinion, on the basis of audit procedures and according to the information and explanations given to us, the Company has not defaulted in repayment of loans and borrowings to financial institutions, banks, government and dues to debenture holders.
9. On the basis of information and explanations given to us, term loan were applied for the purpose for which the loans were obtained. No moneys have been raised during the year by way of initial public offer or further public offer.
10. Based on the audit procedure performed and on the basis of information and explanations provided by the management, no fraud by the Company and no fraud on the Company by its officers or employees has been noticed or reported during the course of the audit.
11. According to the information and explanations given to us and based on our examination of the records of the Company, managerial remuneration has been paid/ provided in accordance with the requisite approvals mandated by the provisions of section 197 read with Schedule V to the Companies Act. Read with Note no. 68(ii)&(iii) of the standalone Ind AS financial statements.
12. In our opinion and according to the information and explanations given to us, the Company is not a nidhi Company. Accordingly, the provision of clause 3(xii) of the Order is not applicable.
13. As per the information and explanations and records made available by the management of the Company and audit procedure performed, for transactions with the related parties during the year, the Company has complied with the provisions of Section 177 and 188 of the Act, where applicable. As explained and as per the records / details of related party transactions have been disclosed in the standalone Ind AS financial statements as required by the applicable Accounting Standards.
14. According to the information and explanations given to us, the Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year. Accordingly, we are not offering any comment with respect to compliance of requirement of Section 42 of the Act and utilization of the money.
15. On the basis of records made available to us and according to information and explanations given to us, the Company has not entered into non-cash transactions with the directors or persons connected with them. Accordingly, we are not offering comment with respect to compliance of Section 192 of the Act.
16. The Company is not required to be registered under section 45-IA of the Reserve Bank of India Act 1934.
Annexure âBâ to the Independent Auditorâs Report of even date on the standalone Ind AS financial statements of JK LAKSHMI CEMENT LIMITED
Report on the Internal Financial Controls over Financial Reporting under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 (âthe Actâ)
We have audited the internal financial controls over financial reporting of JK LAKSHMI CEMENT LIMITED (âthe Companyâ) as of 31st March 2017 in conjunction with our audit of the standalone Ind AS financial statements of the Company for the year ended on that date.
Managementâs Responsibility for Internal Financial Controls
The Company''s management is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued by the Institute of Chartered Accountants of India (''ICAI''). These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to Company''s policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013.
Auditorsâ Responsibility
Our responsibility is to express an opinion on the Company''s internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls over Financial Reporting (the âGuidance Noteâ) and the Standards on Auditing, issued by ICAI and deemed to be prescribed under section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls, both applicable to an audit of Internal Financial Controls and, both issued by the Institute of Chartered Accountants of India. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the standalone Ind AS financial statements, whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Company''s internal financial controls system over financial reporting.
Meaning of Internal Financial Controls over Financial Reporting
A Company''s internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A Company''s internal financial control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the Company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the Company are being made only in accordance with authorizations of management and directors of the Company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the Company''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 financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate. Opinion
In our opinion, the Company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at 31st March 2017, based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India.
For LODHA & CO.,
Chartered Accountants
ICAI Firm Registration No.: 301051E
N. K. LODHA
Place: New Delhi (Partner)
Date: 17th May, 2017 Membership No. 085155
Mar 31, 2016
We have audited the accompanying standalone financial statements of JK
LAKSHMI CEMENT LIMITED ("the Company"), which comprise the Balance
Sheet as at 31st March, 2016, the Statement of Profit and Loss, the
Cash Flow Statement for the year then ended, and a summary of the
significant accounting policies and other explanatory information.
Management''s Responsibility for the Standalone Financial Statements
The Company''s Board of Directors is responsible for the matters stated
in Section 134(5) of the Companies Act, 2013 ("the Act") with respect
to the preparation of these standalone financial statements that give a
true and fair view of the financial position, financial performance and
cash flows of the Company in accordance with the accounting principles
generally accepted in India, including the Accounting Standards
specified under Section 133 of the Act, read with Rule 7 of the
Companies (Accounts) Rules, 2014. This responsibility also includes
maintenance of adequate accounting records in accordance with the
provisions of the Act for safeguarding the assets of the Company and
for preventing and detecting frauds and other irregularities; selection
and application of appropriate accounting policies; making judgments
and estimates that are reasonable and prudent; and design,
implementation and maintenance of adequate internal financial controls,
that were operating effectively for ensuring the accuracy and
completeness of the accounting records, relevant to the preparation and
presentation of the standalone financial statements that give a true
and fair view and are free from material misstatement, whether due to
fraud or error.
Auditor''s Responsibility
Our responsibility is to express an opinion on these standalone
financial statements based on our audit.
We have taken into account the provisions of the Act, the accounting
and auditing standards and matters which are required to be included in
the audit report under the provisions of the Act and the Rules made
there under.
We conducted our audit in accordance with the Standards on Auditing
specified under Section 143(10) of the Act. Those Standards require
that we comply with ethical requirements and plan and perform the audit
to obtain reasonable assurance about whether the standalone financial
statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and the disclosures in the standalone financial statements.
The procedures selected depend on the auditor''s judgment, including the
assessment of the risks of material misstatement of the standalone
financial statements, whether due to fraud or error. In making those
risk assessments, the auditor considers internal financial control
relevant to the Company''s preparation of the standalone financial
statements that give a true and fair 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
and the reasonableness of the accounting estimates made by the
Company''s Directors, as well as evaluating the overall presentation of
the standalone financial statements. We believe that the audit
evidence we have obtained is sufficient and appropriate to provide a
basis for our audit opinion on the standalone financial statements.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid standalone financial statements
give the information required by the Act in the manner so required and
give a true and fair view in conformity with the accounting principles
generally accepted in India, of the state of affairs of the Company as
at 31st March, 2016, and its profit and its cash flows for the year
ended on that date.
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 of India in terms of
sub-section (11) of section 143 of the Act, and on the basis of such
checks of the books and records of the Company as we considered
appropriate and according to the information and explanations given to
us during the course of audit, we give in the Annexure ''A'' a statement
on the matters specified in the paragraphs 3 and 4 of the Order.
2. 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 best of 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 the Company so far as it appears from our examination of
those books.
(c) The Balance Sheet, the Statement of Profit and Loss, and the Cash
Flow Statement dealt with by this Report are in agreement with the
books of account.
(d) In our opinion, the aforesaid standalone financial statements
comply with the Accounting Standards specified under Section 133 of the
Act, read with Rule 7 of the Companies (Accounts) Rules, 2014.
(e) On the basis of the written representations received from the
directors as on 31st March, 2016 taken on record by the Board of
Directors, none of the directors is disqualified as on 31st March, 2016
from being appointed as a director in terms of Section 164 (2) of the
Act.
(f) As required by section 143(3)(i) of the Companies Act, 201 3, and
based on the checking of the books and records of the Company as we
considered appropriate and according to the information and
explanations given to us, our separate report with respect to the
adequacy of the internal financial controls over financial reporting of
the Company and the operating effectiveness of such controls is as per
Annexure ''B''.
(g) With respect to the other matters to be included in the Auditor''s
Report in accordance with Rule 11 of the Companies (Audit and Auditors)
Rules, 2014, in our opinion and 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
financial position in its standalone financial statements - refer Note
no. 32, 33, 34 & 37 to the standalone financial statements.
ii. The Company has made provision, as required under the applicable
law or accounting standards, for material foreseeable losses, if any,
on long term contracts including derivatives contracts.
iii. There has been no delay in transferring amounts, required to be
transferred, to the Investor Education and Protection Fund by the
Company.
Annexure "A" referred to in paragraph 1 under the heading "Report on
Other Legal and Regulatory Requirements" of our report of even date on
the Standalone Financial Statements of JK LAKSHMI CEMENT LIMITED for
the year ended 31st March 2016
1. (a) The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
(b) The Company has a regular programme of Physical Verification of its
Fixed assets by which fixed asset have been verified by the management
according to the programe of periodical physical verification in a
phased manner which in our opinion is reasonable having regard to the
size of the Company and the nature of its fixed assets. The
discrepancies noticed on such physical verification were not material.
(c) According to the information and explanations given to us and on
the basis of our examination of the records of the Company, the title
deeds of immovable properties are held in the name of the Company
except as stated in footnote (b) of Note No. 12 of the standalone
financial statement.
2. The inventories of the Company (except stock lying with the third
parties and in transit for which confirmations have been received /
materials received) have been physically verified by the management at
reasonable intervals. In our opinion, the procedures of physical
verification of inventory followed by the Management are reasonable in
relation to the size of the Company and nature of its business. The
discrepancies noticed on such physical verification of inventory as
compared to book records were not material.
3. The Company has not granted any loans, secured or unsecured to
companies, firms, Limited Liability Partnerships or other parties
covered in the register maintained under section 189 of the Companies
Act, 2013. Accordingly, We are not offering any comment on the
provisions of Clause 3(iii) (a), (b) & (c) of the Order. Read with Note
No. 44 of the Standalone Financial Statements.
4. According to the information, explanations and representations
provided by the management and based upon audit procedures performed,
we are of the opinion that in respect of loans, investments, guarantees
and security, the Company has complied with the provisions of the
Section 185 and 186 of the Companies Act, 2013.
5. In our opinion and according to the information and explanations
given to us, the Company has complied with the directive issued by the
Reserve Bank of India and the provisions of Section 73 to76 of the Act
or any other relevant provisions of the Act and the rules framed there
under (to the extent applicable) with regard to deposits accepted from
public. We have been informed that no order has been passed by the
Company Law Board or National Company Law Tribunal or Reserve Bank of
India or any Court or other Tribunal in this regard.
6. We have broadly reviewed the books of account maintained by the
company pursuant to the rules made by the Central Government for the
maintenance of cost records under section 148(1) of the Act in respect
of the company''s products to which the said rules are made applicable
and are of the opinion that prima facie, the prescribed records have
been made and maintained. We have, however, not made a detailed
examination of the said records with a view to determine whether they
are accurate or complete.
7. (a) According to the records of the Company, the Company is regular
in depositing undisputed statutory dues including provident fund,
employees'' state insurance, income tax, sales- tax, service tax, duty
of customs, duty of excise, value added tax, cess and other material
statutory dues with the appropriate authorities to the extent
applicable and there are no undisputed statutory dues payable for a
period of more than six months from the date they become payable as at
31st March, 2016.
(b) According to the records and information & explanations given to
us, there are no dues in respect of income tax that have not been
deposited with the appropriate authorities to the extent applicable on
account of any dispute and the dues in respect of service tax, duty of
customs, duty of excise and value added tax that have not been
deposited with the appropriate authorities on account of any dispute
and the forum where the dispute is pending are given below: -
Period
Name of Nature of (Financial Amount Forum where
The Statute the Dues (Year) (Rs. in
Lacs) dispute is pending
2006-2014 370.76
1997-2001 239.06
1995-1998 63.12
High Court
1992-1994 45.80
2005-2006 473.85
Sale Tax Act Sale Tax
1995-2000 42.14
1997-1998 5.21
2007-2008 201.85 Joint Commissioner
(Appeals)
2008-2009 58.15
2003-2009 11949.02 Rajasthan Tax Board
2002-2016 6906.06 Supreme Court
The
Rajasthan 2012-2015 71.41 High Court
Tax on Entry
of Goods 2007-2008 228.47 Dy. Comm. (App.)
into local
areas Act, 2013-2014 38.84
1999 CTO (AE)
2012-2013 39.31
Entry
The Uttar Tax
Pradesh Tax
on Entry 2007-2010 267.84 Supreme Court
of Goods
Act,2000
West Bengal 2015-2016 29.96 High Court
Entry Tax
1996-1998 186.52
2009-2015 109.29
Central Excise CESTAT
2007-2008 9.86
Excise Act Duty
2005-2010 4.92
2012-2014 9.52 Comm. (App.)
Custom Act Custom 2011-2012 111.26 CESTAT
Duty
2012-2013 505.90
2013-2014 522.63 CESTAT
Finance Service 2004-2008 19.72
Act,1994 Tax 2012-2014 404.63
2007-2008 117.82 Excise Commissioner
2012-2013 7.06 Comm. (App.)
8. In our opinion, on the basis of audit procedures and according to
the information and explanations given to us, the Company has not
defaulted in repayment of loans and borrowings to financial
institutions, banks, government and dues to debenture holders.
9. On the basis of information and explanations given to us, term loan
were applied for the purpose for which the loans were obtained. No
moneys have been raised during the year by way of initial public offer
or further public offer.
10. Based on the audit procedure performed and on the basis of
information and explanations provided by the management, no fraud by
the Company and no fraud on the Company by its officers or employees
has been noticed or reported during the course of the audit.
11. According to the information and explanations given to us and
based on our examination of the records of the Company, managerial
remuneration has been paid/ provided in accordance with the requisite
approvals mandated by the provisions of section 197 read with Schedule
V to the Companies Act. Read with Note no. 54(ii)(a)&(iii) of the
standalone financial statement.
12. In our opinion and according to the information and explanations
given to us, the Company is not a nidhi company. Accordingly, paragraph
3(xii) of the Order is not applicable.
13. According to the information and explanations and records made
available by the management of the Company and audit procedure
performed, for transactions with the related parties during the year,
the Company has complied with the provisions of Section 177 and 188 of
the Act, where applicable. As explained and as per records, details of
related party transactions have been disclosed in the standalone
financial statements as per the applicable Accounting Standards.
14. According to the information and explanations given to us, the
Company has not made any preferential allotment or private placement of
shares or fully or partly convertible debentures during the year.
Accordingly, we are not offering any comment with respect to compliance
of requirement of Section 42 of the Act and utilisation of the money.
15. On the basis of records made available to us and according to
information and explanations given to us, the Company has not entered
into non-cash transactions with the directors or persons connected with
him. Accordingly, we are not offering comment with respect to
compliance of Section 192 of the Act.
16. The Company is not required to be registered under section 45-IA
of the Reserve Bank of India Act 1934.
For LODHA & CO,
Chartered Accountants
Firm''s Registration No. 301051E
Place : New Delhi N.K.Lodha
Dated : 18th May 2016 Partner
Membership No. 85155
Mar 31, 2013
Report on the financial statements
We have audited the accompanying financial statements of JK Lakshmi
Cement Limited, which comprise the Balance Sheet as at 31st March 2013,
and the Statement of the Profit and Loss and the Cash Flow Statement
for the year then ended, and a summary of the significant accounting
policies and other explanatory information.
Management''s responsibility for the financial statements
Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position,
financial performance and cash flows of the Company in accordance with
the accounting principles generally accepted in India including
accounting standards referred to in sub section (3C) of section 211 of
the Companies Act, 1956 ("the Act"). This responsibility includes the
design, implementation and maintenance of internal control relevant to
the preparation and presentation of the financial statements that give
a true and fair view and free from material misstatement, whether due
to fraud or error.
Auditor''s responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by Institute of Chartered
Accountants of India. Those standards require that we comply with the
ethical requirements and plan and perform the audit to obtain the
reasonable assurance about whether the financial statements are free
from material misstatements.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditor''s judgment, including assessment of
risks of material misstatement of the financial statements, whether due
to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the company''s preparation and
fair presentation of the financial statements in order to design audit
procedures that are appropriate in the circumstances. An audit also
includes evaluating the appropriateness of accounting policies used and
the reasonableness of the accounting estimates made by the management,
as well as evaluating the overall presentation of the financial
statements.
We believe that the audit evidence we have obtained are sufficient and
appropriate to provide a basis for audit opinion.
Opinion
In our opinion and best to our information and according to the
explanations given to us, the financial statements give the information
required by Act in the manner so require and give a true and fair view
in conformity with the accounting principles generally accepted in
India:
a. In the case of the Balance Sheet, of the state of the affairs of
the Company as at 31st March 2013,
b. In case of the Statement of the Profit and Loss, of the profit for
the year ended on that date, and
c. In case of the Cash Flow Statement, of the cash flows for the year
ended on that date.
Report on other legal and the regulatory requirements :
1. As required by the Companies (Auditor''s Report) Order, 2003 ("the
Order") issued by the Central Government of India in terms of
sub-section (4A) of section 227 of the Act, we give in the Annexure a
statement on the matters specified in the paragraphs 4 and 5 of the
order.
2. As required by section 227(3) of the Act, we report that :
a. We have obtained all the information and explanations which, to the
best of 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 the Company so far as appears from our examination of
those books;
c. The Balance Sheet, Statement of Profit & Loss and Cash Flow
Statement referred to in this report are in agreement with the books of
account;
d. In our opinion, the Balance Sheet, Statement of Profit & Loss and
Cash Flow Statement referred to in this report comply with the
Accounting Standards referred to in sub-section (3C) of section 211 of
Companies Act, 1956;
e. On the basis of the written representations received from the
Directors and taken on records by the Board of Directors, we report
that none of the directors of the Company is disqualified as on 31st
March 2013 from being appointed as a Director of the Company in terms
of clause (g) of sub-section (1) of section 274 of the Companies Act,
1956.
Annexure referred to in paragraph 1 under the heading "Report on other
legal and regulatory requirements" of our report of even date
1. a) The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
b) The fixed assets have been physically verified by the Management
according to the programme of periodical verification in phased manner
which in our opinion is reasonable having regard to the size of the
Company and the nature of its fixed assets. The discrepancies noticed
on such physical verification were not material.
c) As per the records and information and explanations given to us,
fixed assets disposed off during the year were not substantial.
2. a) The inventory of the Company (except stock lying with the third
parties and in transit) has been physically verified by the management
at reasonable intervals.
b) The procedures of physical verification of inventory followed by the
Management are reasonable and adequate in relation to the size of the
Company and nature of its business.
c) The Company is maintaining proper records of inventory. The
discrepancies noticed on such physical verification of inventory as
compared to book records were not material.
3. The Company has neither granted nor taken any loans, secured or
unsecured to and from companies, firms or other parties as covered in
the register maintained under section 301 of the Companies Act, 1956.
Accordingly, the provisions of clause 4 (iii) (b) to (d), (f) & (g) of
the Order are not applicable, read with Note 46 of Financial
Statements.
4. In our opinion and according to the information and explanation
given to us, there are adequate internal control system commensurate
with the size of the Company and the nature of its business for the
purchase of inventory and fixed assets and for the sale of goods and
services. Based on the audit procedure performed and on the basis of
information and explanations provided by the management, during the
course of our audit we have not observed any continuing failure to
correct major weaknesses in internal control system.
5. According to the information and explanations provided by the
management and based upon audit procedures performed, we are of the
opinion that the particular of contracts or arrangements referred to in
Section 301 of the Act have been entered in the register required to be
maintained under that section; and the transactions made in pursuance
of such contracts or arrangements (exceeding the value of Rs. 5 lacs in
respect of each party during the financial year) have been made at
prices which are generally reasonable having regard to prevailing
market prices at the relevant time.
6. In our opinion and according to the information and explanations
given to us, the Company has complied with the directives issued by the
Reserve Bank of India and the provisions of Section 58A and 58AA of the
Act or any other relevant provisions of the Act and the rules framed
there under with regard to deposits accepted from the public. We have
been informed that no order has been passed by the Company Law Board or
National Company Law Tribunal or Reserve Bank of India or any Court or
other Tribunal in this regard.
7. In our opinion, the Company has an internal audit system
commensurate with the size of the Company and nature of its business.
8. We have broadly reviewed the books of account maintained by the
Company pursuant to the rules made by the Central Government for the
maintenance of cost records under Section 209(1)(d) of the Act in
respect of the Company''s products to which the said rules are made
applicable and are of the opinion that prima facie, the prescribed
records have been made and maintained. We have, however, not made a
detailed examination of the said records with a view to determine
whether they are accurate or complete.
9. (a) According to the records of the Company, the Company is regular
in depositing undisputed statutory dues including Provident Fund,
Investor Education and Protection Fund, Employees'' State Insurance,
Income Tax, Sales Tax, Wealth Tax, Service Tax, Custom Duty, Excise
Duty, Cess and other material statutory dues with the appropriate
authorities to the extent applicable and there are no undisputed
statutory dues payable for a period of more than six months from the
date they become payable as at 31st March, 2013.
(b) According to the records and information & explanations given to
us, there are no dues in respect of income tax and wealth tax that have
not been deposited with the appropriate authorities on account of any
dispute and the dues in respect of service tax, sales tax, excise duty,
custom duty and cess that have not been deposited with the appropriate
authority on account of dispute and the forum where the dispute is
pending are given below: -
Nature of statute Nature of Amount Period to Forum where
dues (Rs. in
lacs) which the dispute is
amount pending
relates
Sales Tax Act Sales Tax 45.80 1992-94 High Court
42.14 1995-00
457.23 1997-01
63.12 1996-98
5.21 1997-98 Jt. Comm.
(Appeals)
113.64 2009-11 CTO, AE
15.00 2003-04 Jt. Comm. Of
201.85 2007-08 Commercial
58.15 2008-09 Taxes
The Rajasthan Tax on Entry Tax 4902.68 2002-13 High Court
Entry of Goods into
Local Area Act, 1999 147.76 2007-08 CTO, AE
The Uttar Pradesh Tax Entry Tax 267.84 2007-10 High Court
on Entry of Goods
Act, 2000
10. The Company does not have accumulated losses at the end of
financial year and has not incurred cash losses during the current
financial year and in the immediately preceding financial year.
11. In our opinion, on the basis of audit procedures and according to
the information and explanations given to us, the Company has not
defaulted in repayment of dues to financial institutions, banks and
debenture holders.
12. According to the information and explanations given to us, the
Company has not granted any loans and advances on the basis of security
by way of pledge of shares, debentures and other securities.
13. The Company is not a chit fund or a nidhi /mutual benefit fund
/society, therefore, the provisions of clause 4 (xiii) of the said
Order are not applicable to the Company.
14. According to the information and explanations given to us, the
Company is not dealing in or trading in shares, securities, debentures
and other investments.
15. According to the information and explanations given to us, the
Company has not given any guarantee for loans taken by others from
banks or financial institutions.
16. On the basis of information and explanations given to us, the term
loans have been applied for the purposes for which they were obtained.
17. On the basis of information and explanations given to us and on an
overall examination of the financial statements of the Company, we are
of the opinion that no funds raised on short-term basis have been used
for long-term investment.
18. According to the information and explanations given to us, the
Company has not made any preferential allotment of shares during the
year to any parties or companies covered in the register maintained
under Section 301 of the Companies Act, 1956.
19. On the basis of records made available to us and according to
information and explanations given to us, the Company has created
adequate securities in respect of Debentures outstanding at the year
end.
20. The Company has not raised any money through a public issue during
the year.
21. Based on the audit procedure performed and on the basis of
information and explanations provided by the management, no fraud on or
by the Company has been noticed or reported during the course of the
audit.
For LODHA & CO.
Chartered Accountants
Firm Registration Number: 301051E
SAURABH CHHAJER
Place: New Delhi (Partner)
Date: 29th May, 2013 Membership No: 403325
Mar 31, 2012
We have audited the attached Balance Sheet of JK LAKSHMI CEMENT
LIMITED, as at 31st March 2012, Statement of Profit and Loss and also
the Cash Flow Statement for the year ended on that date annexed
thereto. These financial statements are the responsibility of the
Company's management. Our responsibility is to express an opinion on
these financial statements based on our audit.
We conducted our audit in accordance with the auditing standards
generally accepted in India. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatements. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
1. As required by the Companies (Auditors' Report) Order, 2003 (as
amended) (The Order) issued by the Central Government of India in terms
of Section 227 (4A) of the Companies Act, 1956 (The Act), we enclose in
the Annexure a statement on the matters specified in paragraphs 4 and 5
of the said Order.
2. Further to our comments in the Annexure referred to in Paragraph 1
above, we report that :
(a) We have obtained all the information and explanations, which to the
best of 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 the Company so far as appears from our examination of
those books;
(c) The Balance Sheet, Statement of Profit & Loss and Cash Flow
Statement dealt with by this report are in agreement with the books of
account;
(d) In our opinion, the Balance Sheet, Statement of Profit & Loss and
Cash Flow Statement dealt with by this report comply with the
Accounting Standards referred to in Section 211 (3C) of the Companies
Act, 1956;
(e) As per the information and explanations given to us, none of the
directors of the Company is disqualified from being appointed as a
director under Clause (g) of sub section (1) of section 274 of the
Companies Act, 1956;
In our opinion and to the best of our information and according to the
explanations given to us, the said accounts read together with
Significant Accounting Policies and Notes thereon, give the information
required by the Act in the manner so required and give a true and fair
view in conformity with the accounting principles generally accepted in
India :
i) In the case of Balance Sheet, of the state of affairs of the Company
as at 31st March 2012;
ii) In the case of Statement of Profit & Loss, the Profit for the year
ended on that date; and
iii) In the case of Cash Flow Statement, of the Cash Flow for the year
ended on that date.
ANNEXURE TO THE AUDITORS' REPORT
(Referred to in paragraph (1) of our Report of even date of JK LAKSHMI
CEMENT LIMITED for the year ended 31st March 2012)
1. (a) The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
(b) The fixed assets have been physically verified by the Management
according to the programme of periodical verification in phased manner
which in our opinion is reasonable having regard to the size of the
Company and the nature of its Fixed Assets. The discrepancies noticed
on such physical verification were not material.
(c) As per the records and information and explanations given to us,
fixed assets disposed off during the year were not substantial.
2. (a) The inventory of the Company (except stock lying with the third
parties and in transit) has been physically verified by the management
at reasonable intervals.
(b) The procedures of physical verification of inventory followed by
the Management are reasonable and adequate in relation to the size of
the Company and nature of its business.
(c) The Company is maintaining proper records of inventory. The
discrepancies noticed on such physical verification of inventory as
compared to book records were not material.
3. The Company has neither granted nor taken any loans, secured or
unsecured to and from companies, firms or other parties as covered in
the register maintained under section 301 of the Companies Act, 1956.
Accordingly, the provisions of clause 4 (iii) (b) to (d), (f) & (g) of
the Order are not applicable, read with Note 46 of Financial
Statements.
4. In our opinion and according to the information and explanations
given to us, there is adequate internal control system commensurate
with the size of the Company and the nature of its business for the
purchase of inventory and fixed assets and for the sale of goods and
services. Based on the audit procedure performed and on the basis of
information and explanations provided by the management, during the
course of our audit we have not observed any continuing failure to
correct major weaknesses in internal control system.
5. According to the information and explanations provided by the
management and based upon audit procedures performed, we are of the
opinion that the particular of contracts or arrangements referred to in
Section 301 of the Act have been entered in the register required to be
maintained under that section; and the transactions made in pursuance
of such contracts or arrangements (exceeding the value of Rs 5 lacs in
respect of each party during the financial year) have been made at
prices which are generally reasonable having regard to prevailing
market prices at the relevant time.
6. In our opinion and according to the information and explanations
given to us, the Company has complied with the directives issued by the
Reserve Bank of India and the provisions of Section 58A and 58AA of the
Act or any other provisions of the Act and the rules framed thereunder
with regard to deposits accepted from the public. We have been informed
that no order has been passed by the Company Law Board or National
Company Law Tribunal or Reserve Bank of India or any Court or other
Tribunal in this regard.
7. In our opinion, the Company has an internal audit system
commensurate with the size of the Company and nature of its business.
8. We have broadly reviewed the books of account maintained by the
Company pursuant to the rules made by the Central Government for the
maintenance of cost records under Section 209(1)(d) of the Act in
respect of the Company's products to which the said rules are made
applicable and are of the opinion that prima facie, the prescribed
records have been made and maintained. We have, however, not made a
detailed examination of the said records with a view to determine
whether they are accurate or complete.
9. (a) According to the records of the Company, the Company is regular
in depositing undisputed statutory dues including Provident Fund,
Investor Education and Protection Fund, Employees' State Insurance,
Income Tax, Sales Tax, Wealth Tax, Service Tax, Custom Duty, Excise
Duty, Cess and other material statutory dues with the appropriate
authorities to the extent applicable and there are no undisputed
statutory dues payable for a period of more than six months from the
date they become payable as at 31st March 2012.
(b) According to the records and information & explanations given to
us, there are no dues in respect of custom duty and wealth tax that
have not been deposited with the appropriate authorities on account of
any dispute and the dues in respect of service tax, sales tax, excise
duty, income tax and cess that have not been deposited with the
appropriate authority on account of dispute and the forum where the
dispute is pending are given below:
Nature of Nature of Amount Period to Forum where
statute dues (Rs in
lacs) which the dispute is
amount pending
relates
Sales Tax Act Sales Tax 3.80 1987-89 Assessing
Authority
22.66 2008-09 Asstt. Comm,
Comml. Tax
Pali
45.80 1992-94 High Court
42.14 1995-00
807.88 1995-06
457.23 1997-01
352.02 1995-12
5.21 1997-98 Jt. Comm.
25.95 1998-99 (Appeals)
5.40 2001-02
15.00 2003-04 Jt. Comm. of
201.85 2007-08 Commercial
58.15 2008-09 Taxes
The Rajasthan Entry Tax 4811.18 2002-12 High Court
Tax on Entry
of Goods into
Local Area
Act, 1999
The Uttar Entry Tax 267.84 2007-10 High Court
Pradesh Tax
on Entry of
Goods Act,
2000
Central Excise Excise duty 46.00 1976-83 High Court
Act,1944
2.08 1984-85
186.51 1996-98
232.92 1996-97 Tribunal
Income Tax Income Tax 154.62 2004-05 CIT (Appeals)
Act, 1961
303.68 2007-08
225.37 2008-09
Customs Act, Custom 16.28 1999-00 Asstt. Comm.
1962 Duty 18.71 2009-10 Customs
Minerals Cess 13.38 1994-95 High Court
(Validation)
Act, 1992
Orissa Water Cess 8.42 1992 High Court
Municipality
The Rajasthan Environment 887.17 2008-11 High Court
Finance Act, and Health
2008 Cess
Finance Act, Service Tax 35.68 2007-09 Excise Comm.
1994 69.05 2008-09 Jaipur II
117.82 2007-09
9.50 Mar, 2008 Dy. Comm. Jodhpur
10. The Company does not have accumulated losses at the end of
financial year and has not incurred cash losses during the current
financial year and in the immediately preceding financial year.
11. In our opinion, on the basis of audit procedures and according to
the information and explanations given to us, the Company has not
defaulted in repayment of dues to financial institutions, banks and
debenture holders.
12. According to the information and explanations given to us, the
Company has not granted any loans and advances on the basis of security
by way of pledge of shares, debentures and other securities.
13. The Company is not a chit fund or a nidhi /mutual benefit fund
/society, therefore, the provisions of clause 4 (xiii) of the said
Order are not applicable to the Company.
14. According to the information and explanations given to us, the
Company is not dealing in or trading in shares, securities, debentures
and other investments.
15. According to the information and explanations given to us, the
Company has not given any guarantee for loans taken by others from
banks or financial institutions.
16. On the basis of information and explanations given to us, the term
loans have been applied for the purposes for which they were obtained.
17. On the basis of information and explanations given to us and on an
overall examination of the financial statements of the Company, we are
of the opinion that no funds raised on short-term basis have been used
for long-term investment.
18. According to the information and explanations given to us, the
Company has not made any preferential allotment of shares during the
year to any parties or companies covered in the register maintained
under Section 301 of the Companies Act, 1956.
19. On the basis of records made available to us and according to
information and explanations given to us, the Company has created
securities as stated in footnote (2) of Note 4 of financial statements
in respect of Debentures outstanding at the year end.
20. The Company has not raised any money through a public issue during
the year.
21. Based on the audit procedure performed and on the basis of
information and explanations provided by the management, no fraud on or
by the Company has been noticed or reported during the course of the
audit.
For LODHA & CO.
Chartered Accountants
N. K. LODHA
Partner
Place : New Delhi Firm's Registration No. 301051E
Date : 16th May, 2012 Membership No. 85155
Mar 31, 2011
We have audited the attached Balance Sheet of JK LAKSHMI CEMENT
LIMITED, as at 31st March 2011, the Profit and Loss Account and also
the Cash Flow Statement for the year ended on that date annexed
thereto. These financial statements are the responsibility of the
Companys management. Our responsibility is to express an opinion on
these financial statements based on our audit.
We conducted our audit in accordance with the auditing standards
generally accepted in India. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatements. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
1. As required by the Companies (Auditors Report) Order, 2003 (as
amended) (The Order) issued by the Central Government of India in terms
of Section 227 (4A) of the Companies Act 1956 (The Act), we enclose in
the Annexure a statement on the matters specified in paragraphs 4 and 5
of the said Order.
2. Further to our comments in the Annexure referred to in Paragraph 1
above, we report that:
(a) We have obtained all the information and explanations, which to the
best of 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 the Company so far as appears from our examination of
those books;
(c) The Balance Sheet, Profit & Loss Account and Cash Flow Statement
dealt with by this report are in agreement with the books of account;
(d) In our opinion, the Balance Sheet, Profit & Loss Account and Cash
Flow Statement dealt with by this report comply with the Accounting
Standards referred to in Section 211 (3C) of the Companies Act 1956;
(e) As per the information and explanations given to us, none of the
directors of the Company is disqualified from being appointed as a
director under Clause (g) of sub section (1) of section 274 of the
Companies Act 1956;
In our opinion and to the best of our information and according to the
explanations given to us, the said accounts read together with
Significant Accounting Policies and Notes thereon, give the information
required by the Act in the manner so required and give a true and fair
view in conformity with the accounting principles generally accepted in
India:
i) In the case of Balance Sheet, of the state of affairs of the Company
as at 31st March 2011;
ii) In the case of the Profit & Loss Account, of the Profit for the
year ended on that date; and
iii) In the case of Cash Flow Statement, of the Cash Flow for the year
ended on that date.
ANNEXURE TO THE AUDITORS REPORT
(Referred to in paragraph (1) of our Report of even date of JK LAKSHMI
CEMENT LIMITED for the year ended 31st March 2011)
1. (a) The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
(b) The fixed assets have been physically verified by the Management
according to the programme of periodical verification in phased manner
which in our opinion is reasonable having regard to the size of the
Company and the nature of its Fixed Assets. The discrepancies noticed
on such physical verification were not material.
(c) As per the records and information and explanations given to us,
fixed assets disposed off during the year were not substantial.
2. (a) The inventory of the Company (except stock lying with the third
parties and in transit) has been physically verified by the management
at reasonable intervals.
(b) The procedures of physical verification of inventory followed by
the Management are reasonable and adequate in relation to the size of
the Company and nature of its business.
(c) The Company is maintaining proper records of inventory. The
discrepancies noticed on such physical verification of inventory as
compared to book records were not material.
3. The Company has neither granted nor taken any loans, secured or
unsecured to and from companies, firms or other parties as covered in
the register maintained under section 301 of the Companies Act 1956.
Accordingly, the provisions of clause 4 (iii) (b) to (d), (f) & (g) of
the Order are not applicable, read with note no.17Ã Schedule 19B.
4. In our opinion and according to the information and explanations
given to us, there is adequate internal control system commensurate
with the size of the Company and the nature of its business for the
purchase of inventory and fixed assets and for the sale of goods and
services. Based on the audit procedure performed and on the basis of
information and explanations provided by the management, during the
course of our audit we have not observed any continuing failure to
correct major weaknesses in internal control system.
5. According to the information and explanations provided by the
management and based upon audit procedures performed, we are of the
opinion that the particular of
contracts or arrangements referred to in Section 301 of the Act have
been entered in the register required to be maintained under that
section; and the transactions made in pursuance of such contracts or
arrangements (exceeding the value of Rs. 5 lacs in respect of each
party during the financial year) have been made at prices which are
generally reasonable having regard to prevailing market prices at the
relevant time.
6. In our opinion and according to the information and explanations
given to us, the Company has complied with the directives issued by the
Reserve Bank of India and the provisions of Section 58A and 58AA of the
Act or any other provisions of the Act and the rules framed thereunder
with regard to deposits accepted from the public. We have been informed
that no order has been passed by the Company Law Board or National
Company Law Tribunal or Reserve Bank of India or any Court or other
Tribunal in this regard.
7. In our opinion, the Company has an internal audit system
commensurate with the size of the Company and nature of its business.
8. We have broadly reviewed the books of account maintained by the
Company pursuant to the rules made by the Central Government for the
maintenance of cost records under Section 209(1)(d) of the Act in
respect of the Companys products to which the said rules are made
applicable and are of the opinion that prima facie, the prescribed
records have been made and maintained. We have, however, not made a
detailed examination of the said records with a view to determine
whether they are accurate or complete.
9. (a) According to the records of the Company, the Company is
generally regular in depositing undisputed statutory dues including
Provident Fund, Investor Education and Protection Fund, Employees
State Insurance, Income Tax, Sales Tax, Wealth Tax, Service Tax, Custom
Duty, Excise Duty, Cess and other material statutory dues with the
appropriate authorities to the extent applicable and there are no
undisputed statutory dues payable for a period of more than six months
from the date they become payable as at 31st March 2011.
(b) According to the records and information & explanations given to
us, there are no dues in respect of custom duty and wealth tax that
have not been deposited with the appropriate authorities on account of
any dispute and the dues in respect of service tax, sales tax, excise
duty, income tax and cess that have not been deposited with the
appropriate authority on account of dispute and the forum where the
dispute is pending are given below:-
Nature of Nature Amount Period Forum where
statute of dues (Rs. in lacs) to which dispute is
the amount pending
relates
Sales Tax Act Sales Tax 3.80 1987-88 Assessing
Authority
1988-89
45.80 1992-93 High Court
1993-94
42.14 1995-96 to
1999-00
807.88 1995-96 to
2005-06
457.23 1997-98 to
2000-01
5.21 1997-98 Jt. Comm.
(Appeals)
25.95 1998-99
5.40 2001-02
The Rajasthan Entry Tax 3623.71 2002-03 to High Court
Tax on Entry 2010-11
of Goods into
Local Area
Act, 1999
The Uttar Entry Tax 817.94 2007-08 to High Court
Pradesh Tax 2009-10
on Entry of
Goods
Act, 2000
Central Excise Excise 46.00 1976-77 to High Court
Act,1944 Duty 1982-83
2.08 1984-85
186.51 1996-97
1997-98
232.92 1996-97 Tribunal
Income Tax Income 1755.00 2006-07 ITAT
Act, 1961 Tax
154.62 2004-05 CIT (A)
276.56 2007-08
Minerals Cess 13.38 1994-95 High Court
(Validation)
Act, 1992
Orissa Water 8.42 1992 High Court
Municipality Cess
The Rajasthan Environ
ment 620.25 2008-09 to High Court
Finance and
Health 2010-11
Act, 2008 Cess
Finance Service 35.68 2007-08 Excise Comm.
Act, 1994 Tax 2008-09 Jaipur II
69.05 2008-09
117.82 2007-08
2008-09
9.50 Mar 2008 Dy. Comm.
Jodhpur
10. The Company does not have accumulated losses at the end of
financial year and has not incurred cash losses during the current
financial year and in the immediately preceding financial year.
11. In our opinion, on the basis of audit procedures and according to
the information and explanations given to us, the Company has not
defaulted in repayment of dues to financial institutions, banks and
debenture holders.
12. According to the information and explanations given to us, the
Company has not granted any loans and advances on the basis of security
by way of pledge of shares, debentures and other securities.
13. The Company is not a chit fund or a nidhi /mutual benefit fund
/society, therefore, the provisions of clause 4 (xiii) of the said
Order are not applicable to the Company.
14. According to the information and explanations given to us, the
Company is not dealing in or trading in shares, securities, debentures
and other investments.
15. According to the information and explanations given to us, the
Company has not given any guarantee for loans taken by others from
banks or financial institutions.
16. On the basis of information and explanations given to us, the term
loans have been applied for the purposes for which they were obtained.
17. On the basis of information and explanations given to us and on an
overall examination of the financial statements of the Company, we are
of the opinion that no funds raised on short-term basis have been used
for long-term investment.
18. According to the information and explanations given to us, the
Company has not made any preferential allotment of shares during the
year to any parties or companies covered in the register maintained
under Section 301 of the Companies Act 1956.
19. On the basis of records made available to us and according to
information and explanations given to us, the Company has created
securities as stated in footnote (2) of Schedule 3 in respect of
Debentures outstanding at the year end.
20. The Company has not raised any money through a public issue during
the year.
21. Based on the audit procedure performed and on the basis of
information and explanations provided by the management, no fraud on or
by the Company has been noticed or reported during the course of the
audit.
For LODHA & CO,
Chartered Accountants
N.K. LODHA
Partner
Firms Registration No. 301051E
Membership No. 85155
Place : New Delhi
Date : 25th May, 2011
Mar 31, 2010
We have audited the attached Balance Sheet of JK LAKSHMI CEMENT
LIMITED, as at 31st March 2010, the Profit and Loss Account and also
the Cash Flow Statement for the year ended on that date annexed
thereto. These financial statements are the responsibility of the
CompanyÃs management. Our responsibility is to express an opinion on
these financial statements based on our audit.
We conducted our audit in accordance with the auditing standards
generally accepted in India. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatements. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
1. As required by the Companies (Auditorsà Report) Order, 2003 (as
amended) (The Order) issued by the Central Government of India in terms
of Section 227 (4A) of the Companies Act, 1956 (The Act), we enclose in
the Annexure a statement on the matters specified in paragraphs 4 and 5
of the said Order.
2. Further to our comments in the Annexure referred to in Paragraph 1
above, we report that:
(a) We have obtained all the information and explanations, which to the
best of 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 the Company so far as appears from our examination of
those books;
(c) The Balance Sheet, Profit & Loss Account and Cash Flow Statement
dealt with by this report are in agreement with the books of account;
(d) In our opinion, the Balance Sheet, Profit & Loss Account and Cash
Flow Statement dealt with by this report comply with the Accounting
Standards referred to in Section 211 (3C) of the Companies Act, 1956;
(e) As per the information and explanations given to us, none of the
directors of the Company is disqualified from being appointed as a
director under Clause (g) of sub section (1) of section 274 of the
Companies Act, 1956;
In our opinion and to the best of our information and according to the
explanations given to us, the said accounts read together with Notes
thereon, give the information required by the Act in the manner so
required and give a true and fair view in conformity with the
accounting principles generally accepted in India:
i) In the case of Balance Sheet, of the state of affairs of the Company
as at 31st March 2010;
ii) In the case of the Profit & Loss Account, of the Profit for the
year ended on that date; and
iii) In the case of Cash Flow Statement, of the Cash Flows for the year
ended on that date.
ANNEXURE TO THE AUDITORSÃ REPORT
(Referred to in paragraph (1) of our Report of even date of JK LAKSHMI
CEMENT LIMITED for the year ended 31st March 2010.)
1. (a) The Company has maintained proper records
showing full particulars including quantitative details and situation
of fixed assets.
(b) The fixed assets have been physically verified by the Management
according to the programme of periodical verification in phased manner
which in our opinion is reasonable having regard to the size of the
Company and the nature of its Fixed Assets. The discrepancies noticed
on such physical verification were not material.
(c) As per the records and information and explanations given to us,
fixed assets disposed off during the year were not substantial.
2. (a) The inventory of the Company (except stock lying
with the third parties and in transit) has been physically verified by
the management at reasonable intervals.
(b) The procedures of physical verification of inventory followed by
the Management are reasonable and adequate in relation to the size of
the Company and nature of its business.
(c) The Company is maintaining proper records of inventory. The
discrepancies noticed on such physical verification of inventory as
compared to book records were not material.
3. The Company has neither granted nor taken any loans, secured or
unsecured to and from companies, firms or other parties as covered in
the register maintained under section 301 of the Companies Act, 1956.
Accordingly, the provisions of clause 4 (iii) (b) to (d), (f) & (g) of
the Order are not applicable, read with note no. 18 Ã Schedule 19.
4. In our opinion and according to the information and explanations
given to us, there is adequate internal control system commensurate
with the size of the Company and the nature of its business for the
purchase of inventory and fixed assets and for the sale of goods and
services. Based on the audit procedure performed and on the basis of
information and explanations provided by the management, during the
course of our audit we have not observed any continuing failure to
correct major weaknesses in internal control system.
5. According to the information and explanations provided by the
management and based upon audit procedures performed, we are of the
opinion that the particular of contracts or arrangements referred to in
Section 301 of the Act have been entered in the register required to be
maintained under that section; and the transactions made in pursuance
of such contracts or arrangements (exceeding the value of Rs. 5 lacs in
respect of each party during the financial year) have been made at
prices which are generally reasonable having regard to prevailing
market prices at the relevant time.
6. In our opinion and according to the information and explanations
given to us, the Company has complied with the directives issued by the
Reserve Bank of India and the provisions of Section 58A and 58AA of the
Act or any other provisions of the Act and the rules framed thereunder
with regard to deposits accepted from the public. We have been informed
that no order has been passed by the Company Law Board or National
Company Law Tribunal or Reserve Bank of India or any Court or other
Tribunal in this regard.
7. In our opinion, the Company has an internal audit system
commensurate with the size of the Company and nature of its business.
8. We have broadly reviewed the books of account maintained by the
Company pursuant to the rules made by the Central Government for the
maintenance of cost records under Section 209(1)(d) of the Act in
respect of the CompanyÃs products to which the said rules are made
applicable and are of the opinion that prima facie, the prescribed
records have been made and maintained. We have, however, not made a
detailed examination of the said records with a view to determine
whether they are accurate or complete.
9. (a) According to the records of the Company, the
Company is generally regular in depositing undisputed statutory dues
including Provident Fund, Investor Education and Protection Fund,
Employeesà State Insurance, Income Tax, Sales Tax, Wealth Tax, Service
Tax, Custom Duty, Excise Duty, Cess and other material statutory dues
with the appropriate authorities to the extent applicable and there are
no undisputed statutory dues payable for a period of more than six
months from the date they become payable as at 31st March 2010.
(b) According to the records and information & explanations given to
us, there are no dues in respect of custom duty and wealth tax that
have
not been deposited with the appropriate authorities on account of any
dispute and the dues in respect of service tax, sales tax, excise duty,
income tax and cess that have not been deposited with the appropriate
authority on account of dispute and the forum where the dispute is
pending are given below: -
Nature of Nature Amount Period Forum where
statute of dues (Rs. in lacs) dispute is pending
Sales Tax Act Sales Tax 3.80 1987-89 Assessing authority
45.80 1992-94 High Court
42.14 1995-00
807.88 1995-06
457.23 1997-01
4.53 1997-98 Jt. Comm. (Appeals)
25.95 1998-99 Jt. Comm. (Appeals)
5.40 2001-02 Jt. Comm. (Appeals)
The Rajasthan Entry Tax 3063.44 2002-10 High Court
Tax on Entry
of Goods into
Local Area Act
1999
The Uttar Entry Tax 817.94 2007-10 High Court
Pradesh Tax
on Entry of
Goods
Act, 2000
Central Excise 46.00 1976-83 High Court
Excise Act duty 2.08 1984-85
186.51 1996-98
232.92 1996-97 Tribunal
Income Tax Income 2655.00 2006-07 Commissioner
Act, 1961 Tax (Appeals)
Minerals Cess 13.38 1994-95 High Court
(Validation)
Act, 1992
Orissa Water 8.42 1992 High Court
Municipality Cess
The Rajasthan Environ- 373.37 2008-10 High Court
Finance ment and
Act, 2008 Heath
Cess
Finance Service 35.68 2007-09 Excise Comm.
Act, 1994 Tax 69.05 2008-09 Jaipur II
117.82 2007-09
9.49 Mar 2008 Dy. Comm. Jodhpur
10. The Company does not have accumulated losses at the end of
financial year and has not incurred cash losses during the current
financial year and in the immediately preceding financial year.
11. In our opinion, on the basis of audit procedures and according to
the information and explanations given to us, the Company has not
defaulted in repayment of dues to financial institutions, banks and
debenture holders.
12. According to the information and explanations given to us, the
Company has not granted any loans and advances on the basis of security
by way of pledge of shares, debentures and other securities.
13. The Company is not a chit fund or a nidhi/mutual benefit
fund/society, therefore, the provisions of clause 4 (xiii) of the said
Order are not applicable to the Company.
14. According to the information and explanations given to us, the
Company is not dealing in or trading in shares, securities, debentures
and other investments.
15. According to the information and explanations given to us, the
Company has not given any guarantee for loans taken by others from
banks or financial institutions.
16. On the basis of information and explanations given to us, the term
loans have been applied for the purposes for which they were obtained.
17. On the basis of information and explanations given to us and on an
overall examination of the financial statements of the Company, we are
of the opinion that no funds raised on short-term basis have been used
for long-term investment.
18. According to the information and explanations given to us, the
Company has not made any preferential allotment of shares during the
year to any parties or companies covered in the register maintained
under Section 301 of the Companies Act, 1956.
19. On the basis of records made available to us and according to
information and explanations given to us, securities in respect of
privately placed Non-Convertible Debenture has since been created.
20. The Company has not raised any money through a public issue during
the year.
21. Based on the audit procedure performed and on the basis of
information and explanations provided by the management, no fraud on or
by the Company has been noticed or reported during the course of the
audit.
For LODHA & CO.
Chartered Accountants
N. K. LODHA
Partner
FirmÃs Registration No.:- 301051E
Membership No.:- 85155
New Delhi
Date : 18th May, 2010