To the Members of Lime Chemicals Limited Report on the Financial Statements Opinion
We have audited the accompanying financial statements of Lime Chemicals Limited
("the Company") which comprise the Balance Sheet as at 31st March,
2023, the Statement of Profit and Loss (including Other Comprehensive Income), the
Statement of Changes in Equity and the Statement of Cash Flows for the year ended on that
date, and notes to the financial statements, including a summary of significant accounting
policies and other explanatory information (hereinafter referred to as "the financial
statements").
In our opinion and to the best of our information and according to the explanations
given to us, the aforesaid 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) specified under
section 133 of the Act and other accounting principles generally accepted in India, of the
state of affairs of the Company as at 31st March, 2023, and Profit including
Other Comprehensive Income, changes in equity and its cash flows for the year ended on
that date.
Basis for Opinion
We conducted our audit in accordance with the Standards on Auditing specified under
section 143(10) of the Act. Our responsibilities under those Standards are further
described in the Auditors Responsibilities for the Audit of the 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
ethical requirements that are relevant to our audit of the financial statements under the
provisions of the Act and the Rules thereunder, and we have fulfilled our other ethical
responsibilities in accordance with these requirements and the Code of Ethics. We believe
that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our opinion.
Emphasis of Matter
We draw attention to the following matters in notes to the financial statements: -
In Note 35A(c) to the financial statement regarding non provision of interest of
Rs.3.00 lakhs payable to party registered under Micro, Small & Medium Enterprise Act,
2006 and also liability of Rs.27.85 Lakhs not accounted.
Note No. 46 to the financial statement regarding the impact of Covid-19 on the
financial statement of the Company, given the uncertainties associated with its nature and
duration.
Our opinion is not modified in respect of the above matter.
Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most
significance in our audit of the financial statements of the current period. These matters
were addressed in the context of our audit of the financial statements as a whole, and in
forming our opinion thereon. Based on the circumstances and facts of the Audit, there are
no key audit matters to be reported.
Information Other than the Financial Statements and Auditors Report thereon
The Companys Board of Directors is responsible for the preparation of the other
information. The other information comprises the information included in the Annual
Report, but does not include the financial statements and our auditors report thereon.
Our opinion on the 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 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 during the
course of our 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.
Responsibilities of Management for the Financial Statements
The Companys Board of Directors is responsible for the matters stated in section
134(5) of the Act with respect to the preparation of these financial statements that give
a 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 accounting
principles generally accepted in India, including the Ind AS specified under section 133
of the Act. 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 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 financial statements that give a true and fair view and are free from material
misstatement, whether due to fraud or error.
In preparing the financial statements, management is responsible for assessing the
Companys 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 are also responsible for overseeing the companys financial
reporting process.
Auditors Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial
statements as a whole are free from material misstatement, whether due to fraud or error,
and to issue an auditors 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
Standards on Auditing 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 financial statements.
As part of an audit in accordance with Standards on Auditing, we exercise professional
judgment and maintain professional skepticism throughout the audit. We also:
• Identify and assess the risks of material misstatement of the 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 managements 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 Companys
ability to continue as a going concern. If we conclude that a material uncertainty exists,
we are required to draw attention in our auditors report to the related disclosures in
the 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 auditors
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 financial
statements, including the disclosures, and whether the financial statements represent the
underlying transactions and events in a manner that achieves fair presentation.
Materiality is the magnitude of misstatements in the standalone financial statements
that, individually or in aggregate, makes it probable that the economic decisions of a
reasonably knowledgeable user of the standalone financial statements may be influenced. We
consider quantitative materiality and qualitative factors in (i) planning the scope of our
audit work and in evaluating the results of our work; and (ii) to evaluate the effect of
any identified misstatements in the standalone financial statements.
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 financial statements of the
current period and are therefore the key audit matters. We describe these matters in our
auditors 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 (Auditors 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 paragraph 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 financial statements dealt with by this report are in agreement with the books
of accounts.
d. In our opinion, the aforesaid financial statements comply with the Ind AS specified
under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014.
e. The matter described in paragraph relating to Emphasis of Matter may have an adverse
effect on the functioning of the company.
f. On the basis of the written representations received from the directors of the
Company as on 31st March, 2023 taken on record by the Board of Directors, none
of the directors are disqualified as on 31st March, 2023 from being appointed
as a director in terms of Section 164 (2) of the Act.
g. 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".
h. As required by section 197(16) of the Act, we report that the Company has not
paid/provided remuneration to its Director during the year.
i. With respect to the other matters to be included in the Auditors 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 financial statements (Refer Note 35 to the 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. We are
informed that the company did not have any pending 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,
other than of Rs.76.61 Lakhs, no funds
(which are material either individually or in the aggregate) have been advanced or
loaned or invested (either from borrowed funds or share premium or any other sources or
kind of funds) by the Company to or in any other person or entity, including foreign
entity ("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 (which are material either individually or in the aggregate) have been received by
the Company from any person or entity, including foreign entity ("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;
(c) Based on the audit procedures that have been 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 (i) and (ii) of Rule 11(e), as provided under (a) and
(b) above, contain any material misstatement.
v. The Company has neither declared nor paid the dividend during the year.
| For N. S. Shetty & Co. |
| Chartered Accountants |
| FRNo. : 0110101W |
| N. S. Shetty |
| Partner |
| M. No. 035083 |
| Place : Mumbai |
| Date : 30th May, 2023 |
| UDIN : 23035083BGYFMA9293 |
ANNEXURE - A TO THE INDEPENDENT AUDITORS REPORT
(Referred to in paragraph 1 under "Report on Other Legal and Regulatory
Requirements section of our report of even date)
Based on the audit procedures performed for the purpose of reporting a true and fair
view on the financial statements of the Company and taking into consideration the
information and explanations given to us and the books of account and other records
examined by us in the normal course of audit, and to the best of our knowledge and belief,
we report that:
i. In respect of the Companys Property, Plant and Equipment and intangible assets
(a) (A) The Company has maintained proper records showing full particulars, including
quantitative details and situation of property, plant and equipment, capital
work-in-progress, investment properties and relevant details of right of use assets.
(B) The Company has maintained proper records showing full particulars of intangible
assets.
(b) The Company has a regular programme of physical verification of its fixed assets by
which all fixed assets are verified in a phased manner over a period of three years.
Pursuant to the programme, certain fixed assets were physically verified during the year.
In our opinion, this periodicity of physical verification is reasonable having regard to
the size of the Company and the nature of its assets.
(c) As per the information and explanations provide to us, the title deeds of immovable
property and lease hold property are held in the name of the Company.
(d) The Company has not revalued its property, plant and equipment or intangible
assets during the year.
(e) No proceedings initiated or pending against the company for holding any benami
property under Benami Transaction (prohibition) Act, 1988 and rules made thereunder.
ii. (a) The management has conducted physical verification of Inventory at reasonable
intervals. In our opinion the frequency of such verification is reasonable. The
discrepancies noticed on such verification between the physical stock and book records
were not material and have been properly dealt in the books of account.
(b) According to the information and explanations given to us, at any point of time of
the year, the Company has not been sanctioned any working capital facility from banks or
financial institutions on the basis of security of current assets, and hence reporting
under clause (ii)(b) of the Order is not applicable.
iii. The Company has made investment in, companies, firms, limited liability
partnership and granted unsecured loans to other parties, during the year, in respect of
which:
a) During the year, the Company has given loan to Company is as follows:
- Loan amount granted/provided during the year to Company - NIL
- Balance outstanding as at the balance sheet date in respect of the loan granted
during the year - NIL
b) In our opinion, the investments made and the terms and conditions of the grant of
loans, during the year are, prima facie, not prejudicial to the Companys interest.
c) The Company has granted loans during the year to companies, firms, Limited Liability
Partnerships or any other parties where the schedule of repayment of principal and payment
of interest has not been stipulated.
d) In respect of loans granted by the Company, there is no overdue amount remaining
outstanding as at the balance sheet date.
e) No loan granted by the Company which has fallen due during the year, has been
renewed or extended or fresh loans granted to settle the over dues of existing loans given
to the same parties.
iv. The Company has not granted any loans or provided any guarantees or security to the
parties covered in Section 185 of the Act. The company has complied with the provisions of
Section 186 of the Act in respect of investments made.
v. The Company has not accepted any deposits within the meaning from Section 73 to 76
of the Act and the Companies (Acceptance of Deposits) Rules 2014 (as amended) during the
year. Hence, reporting under clause 3(v) of the Order is not applicable to the company.
vi. The Central Government has not prescribed the maintenance of cost records under
Section 148 (1) of the Act, for any of the services rendered by the Company.
vii. According to the information and explanations given to us in respect of Statutory
dues :
(a) The Company has generally been regular in depositing undisputed statutory dues,
including Provident Fund, Employees State Insurance, Income Tax, Goods and Service Tax,
Customs Duty, Cess and other material statutory dues applicable to it with the appropriate
authorities.
(b) There were no undisputed amounts payable in respect of Provident Fund, Employees
State Insurance, Income Tax, Goods and Service Tax, Customs Duty, Cess and other material
statutory dues in arrears as at 31st March, 2023 for a period of more than six
months from the date they became payable other than ESIC of Rs. 0.15 Lakhs and TDS of Rs.
0.29 Lakhs.
(c) Details of disputed Sales Tax, Service Tax, Luxury Tax and Value Added Tax which
have not been deposited as at 31st March, 2023 are as under:
| Name of the statute |
Nature of Dues |
Amount (in lakhs)* |
Period to which the amount relates |
Forum where dispute is pending |
| Income Tax Act, 1961 |
Income Tax/FBT |
57.27 |
AY 2006-07 |
Rectification before ITO ward 6(3)-2 Mumbai |
| Employees PF & Misc. Provisions Act, 1952 |
Provident Fund |
40.05 |
Feb. 2008 to May 2008 |
EPF Appellate Tribunal, Mumbai |
| Employees PF & Misc. Provisions Act, 1952 |
Provident Fund |
28.88 |
March 2000 to June 2009 |
Bombay High Court |
| Employees PF & Misc. Provisions Act, 1952 |
Provident Fund |
30.36 |
August 2011 to Sept 2013 |
CGIT Chandigarh |
| Employees PF & Misc. Provisions Act, 1952 |
Provident Fund |
24.38 |
February 2014 to April 2016 |
CGIT Chandigarh |
| Employees PF & Misc. Provisions Act, 1952 |
Provident Fund |
14.95 |
January 2010 to May 2016 |
CGIT Chandigarh |
viii. There were no transactions relating to previously unrecorded income that were
surrendered or disclosed as income in the tax assessments under the Income Tax Act, 1961
during the year.
ix. ( a) The Company has not defaulted in repayment of loans / dues to banks and
financial institutions.
(b) As explained, The Company has not been declared willful defaulter by any bank or
financial institution or government or any government authority.
(c) The company has not availed any loan from banks or financial institution during the
year. Hence, the requirement to report on clause (ix) (c) of the Order is not applicable
to the Company.
(d) On an overall examination of the financial statements of the Company, no funds
raised on short-term basis have been used for long-term purposes by the Company.
(e) The Company has not taken any funds from any entity or person on account of or to
meet the obligations of its subsidiaries or associate companies.
(f) The Company has not raised loans during the year on the pledge of securities held
in its subsidiaries or associate companies. Hence, the requirement to report on clause
(ix) (f) of the Order is not applicable to the Company.
x. The Company has not raised moneys by way of initial public offer or further public
offer (including debt instruments) during the year and hence reporting under clause
3(x)(a) and (b) of the Order is not applicable.
xi. ( a) No material fraud by the Company or on the Company by its officers or
employees has been noticed or reported during the period covered by our audit.
(b) During the year and upto the date of this audit report, no report under sub-section
(12) of section 143 of the Companies Act, 2013 has been filed in Form ADT-4 as prescribed
under rule 13 of Companies (Audit and Auditors) Rules, 2014 with the Central Government.
(c) As informed to us, The Company has not received any complaints from the whistle
blower.
xii. The Company is not a nidhi company. Hence reporting under clause 3 (xii) of the
order is not applicable to the company.
xiii. In our opinion all transactions with the related parties are in compliance with
Section 177 and 188 of the Act, where applicable, and the requisite details have been
disclosed in the financial statements as required by the applicable Indian Accounting
Standards.
xiv. (a) In our opinion the Company has an adequate internal audit system commensurate
with the size and the nature of its business. (b) We have considered, the internal audit
reports issued to the Company during the year.
xv. During the year the Company has not entered into non cash transaction with its
directors or person connected with directors and hence provisions of section 192 of the
Companies Act, 2013 are not applicable to the Company.
xvi. (a) The Company is not required to be registered under Section 45-IA of the
Reserve Bank of India Act 1934. Hence reporting under
clause 3(xvi)(a) to (c) of the order are not applicable.
(b) There is no core investment company within the Group (as defined in the Core
Investment Companies (Reserve Bank) Directions, 2016) and accordingly reporting under
clause 3(xvi)(d) of the Order is not applicable.
xvii. The Company has not incurred cash loss in current and in previous year.
xviii. There has been no resignation of statutory auditor of the Company.
xix. On the basis of the financial ratios, ageing and expected dates of realization of
financial assets and payment of financial liabilities, other information accompanying the
financial statements and our knowledge of the Board of Directors and Management plans and
based on our examination of the evidence supporting the assumptions, there is no material
uncertainty exists.
We, however, state that this is not an assurance as to the future viability of the
Company. We further state that our reporting is based on the facts up to the date of the
audit report and we neither give any guarantee nor any assurance that all liabilities
falling due within a period of one year from the balance sheet date, will get discharged
by the Company as and when they fall due.
xx. The company does not fall under the criteria of Section 135 of Companies Act, 2013
read with the Companies (Corporate Social
Responsibility Policy) Rules, 2014, hence the said provision is not applicable to the
Company.
Annexure - B TO THE INDEPENDENT AUDITORS REPORT
(Referred in Para 2(g) under "Report on Other Legal and Regulatory Requirements
section of our report of even date)
Report on the Internal Financial Controls Over Financial Reporting under Clause (i) of
Sub-section 3 of Section 143 of the Companies Act, 2013 ("the Act")
We have audited the internal financial controls over financial reporting of Lime
Chemicals Limited ("the Company") as of 31st March, 2023 in
conjunction with our audit of the financial statements of the Company for the year ended
on that date.
Managements Responsibility for Internal Financial Controls
The Board of Directors of the Company 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 respective companys 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 internal financial controls over
financial reporting of the Company 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") issued by the Institute of Chartered Accountants
of India and the Standards on Auditing prescribed under Section 143(10) of the Companies
Act, 2013, to the extent applicable to an audit of internal financial controls. 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 auditors judgement, including the assessment of the risks of
material misstatement of the 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 internal financial controls system over
financial reporting of the Company.
Meaning of Internal Financial Controls Over Financial Reporting
A companys 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 companys 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
companys assets that could have a material effect on the financial statements.
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 the explanations 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 31st March, 2023, 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 N. S. Shetty & Co. |
| Chartered Accountants |
| FRNo. : 0110101W |
| N. S. Shetty |
| Partner |
| M. No. 035083 |
| Place : Mumbai |
| Date : 30th May, 2023 |
| UDIN : 23035083BGYFMA9293 |
+91-9892691696
