TO THE MEMBERS OF LLOYD ROCKFIBRES LIMITED, NEW DELHI
Report on the Ind AS Financial Statements
We have audited the accompanying Ind AS financial statements of LLOYD ROCKFIBRES
LIMITED ("the Company"), which comprises the Balance Sheet as at 31st March,
2018, the Statement of Profit and Loss, including the statement of Other Comprehensive
Income, the Cash Flow Statement and the Statement of Changes in Equity for the year then
ended, and a summary of significant accounting policies and other explanatory information,
which we signed under reference to this report.
Managements Responsibility for the Ind AS Financial Statements
The Companys 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 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) specified under
Section 133 of the Act, read with the Companies (Indian Accounting Standards) Rules, 2015
(as amended).
This responsibility also includes the 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 the 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 controls, that were operating effectively for ensuring the accuracy and
completeness of the accounting records, relevant to the preparation and presentation of
the Ind AS financial statements that give a true and fair view and are free from material
misstatement, whether due to fraud or error.
Auditors Responsibility
Our responsibility is to express an opinion on these 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 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 financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and
disclosures in the financial statements. The procedures selected depend on the auditors
judgment, including the assessment of the risks of material misstatement of the Ind AS
financial statements, whether due to fraud or error. In making those risk assessments, the
auditor considers internal financial control relevant to the Companys preparation of the
Ind AS financial statements that give 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 Companys Directors, as well as evaluating the overall presentation of
the 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 Ind AS financial statements.
Opinion
In our opinion and to the best of our information and according to the explanations
given to us, the 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 31st
March, 2018, its comprehensive income as per the statement of Profit & Loss, its cash
flows and the changes in equity for the year ended on that date.
Emphasis of matter
Attention may be drawn to ‘Notes Forming Part of Accounts, ‘C-Other Notes
Point 5 & 6 regarding complete erosion of Net Worth of the Company due to
accumulated losses and cash losses.
Report on other Legal and Regulatory requirements
1. As required by the Companies (Auditors Report) Order, 2016 ("the Order"),
as amended, issued by the Central Government of India in terms of sub-section (11) of
section 143 of the Act, we give in the "Annexure –A" statement on
the matters Specified in paragraphs 3 and 4 of the Order, to the extent applicable.
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 the Statement of Other
Comprehensive Income, the 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 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 written
representations received from the directors as on 31 March, 2018 and taken on record by
the Board of Directors, none of the directors is disqualified as on 31 March, 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 control over financial
reporting of the Company and the operating effectiveness of such control, refer to our
separate report in
"Annexure B".
g) In our opinion and to the best of our information and according to the explanations
given to us, we report as under with respect to other matters to be included in the
Auditors Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules,
2014:
(a) The Company has some pending litigations which may impact its financial position as
mentioned in the ‘Notes to Accounts – Point ‘O as ‘Contingent
Liability please refer to ‘Notes on Accounts – Point ‘O(i) Point no. e, f
& g.
(b) The Company did not have any long-term contracts including derivatives contracts
for which there were any material foreseeable losses.
(c) There were no amounts which were required to be transferred by the Company to the
Investor Education and Protection Fund.
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For Barry and Company |
|
Chartered Accountants |
|
FRN – 017988N |
|
(K. Yash Barry) |
| Place : New Delhi |
F.C.A. (Prop.) |
| Dated : 22.05.2018 |
M. No. – 012513 |
‘Annexure – A referred to in our Independent Auditors Report of even date
to the members of LLOYD ROCKFIBRES LIMITED ("the Company") for the year ended 31st
March, 2018.
On the basis of such checks as we considered appropriate and according to the
information and explanation given to us during the course of our audit, we report that:
(i) In respect of Fixed Assets
(a) The company has maintained proper records showing full particulars including
quantitative details of its fixed assets.
(b) As explained to us, fixed assets have been physically verified by the
management at reasonable intervals; no material discrepancies were noticed on such
verification.
(c) In our opinion and 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.
(ii) In respect of Inventory
According to the information & explanations provided by the management physical
verification of inventory has been conducted at reasonable intervals by the management and
no material discrepancies were noticed at the time of verification.
(iii) (a) Loans and advances granted to parties covered under section 189 of the
Companies Act, 2013
According to the information & explanations provided by the management the company
has not granted any loan, secured or unsecured to companies, firms or other parties
covered in the register maintained under Section 189 of the Act. Accordingly, the
provisions of clauses 3(iii)(a), 3(iii)(b) and 3(iii)(c) of the Order are not applicable.
(b) The Company has accepted loan from NGP Industries Limited covered in the
register maintained under Section 189 of the Companies Act, 2013. The maximum amount
involved during the year was Rs. 2,48,56,210/- (Previous Year Rs. 3,53,14,373/-) and the
year end balance of loans taken from such parties was Rs. 2,48,56,210/- (Previous Year Rs.
3,53,14,373/-). During the year Company has reversed the interest provided but not paid
till date aggregating to Rs. 1,19,44,005/- (Excluding TDS) to M/s. NGP Industries Ltd.
(c) In the case of the loans accepted from the bodies corporate listed in the
register maintained under Section 189 of the Act and it is repayable on demand. As
informed, the lenders have not demanded repayment of any such loan during the year, thus
there has been no default on the part of the company. (iv) In our opinion and
according to the information and explanations given to us, the company has neither given
any loan, nor made any investment or given any guarantee or securities as per Section 185
and 186 of the Act, the provisions of clauses 4 of the Order is not applicable.
(v) The company has not accepted any deposits from public during the year. In our
opinion and according to the information and explanation given to us the provisions of
section 73 to 76 or any other relevant provisions of the Companies Act, 2013 and Companies
(Acceptance of Deposits) Rules, 2014 with regard to deposits from public is not applicable
in Current Year. No order has been passed by Company Law Board or National Company Law
Tribunal or Reserve Bank of India or any court or any other tribunal in this regard.
(vi) Since the Company is not doing any commercial production, inour opinion, the
provisions of clause 3(vi) of the Order are not applicable to the Company.
(vii) (a) According to the records of the company and information and
explanations given to us, the Company has been regular in depositing undisputed statutory
dues with appropriate authorities, including Income-tax, Value Added Tax (VAT), Service
Tax, Custom Duty, Excise Duty, Cess and other material statutory dues applicable to it,
with the appropriate authorities.
(b) According to the information and explanations given to us, no undisputed
amounts payable in respect of income-tax, services tax or cess or any other statutory dues
with the appropriate authorities were in arrears, as at 31st March, 2018 for a
period of more than six months from the date they became payable, except as mentioned
under the head ‘Contingent Liabilities under Notes on Account Point ‘O forming
part of the Balance Sheet.
(viii) In our opinion and according to the information and explanations given to
us, the Company has not taken any loan from Banks or Financial Institutions. Accordingly
provision of clause 3(viii) is not applicable to the company.
(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 or further public
offer (including debt instruments) and term loans during the year. Accordingly, the
provision of clause 9 of the Order is not applicable.
(x) According to the information and explanations given by the management, we
report that no fraud by the Company or any fraud on the Company by the officers and
employees of the Company has been noticed or reported during the year.
(xi) According to the information and explanations given to us and based on our
examination of the records of the company, the Company has not paid/provided managerial
remuneration under section 197 read with Schedule V of the Companies Act, 2013.
(xii) In our opinion, the Company is not a Nidhi company. Therefore, the provisions
of clause 3(xii) of the order are not applicable to the Company.
(xiii) According to the information and explanations given to us and based on our
examination of the records of the Company, transactions with the related parties are in
compliance with sections 177 and 188 of the Act wherever applicable and details have been
disclosed in the Financial Statements as required by the applicable accounting standards.
(xiv) According to the information and explanations given to us and based on our
examination of the records, the Company has not made any preferential allotment or private
placement of shares or fully or partly convertible debentures during the year under review
hence reporting requirements under section 42 of the Companies Act, 2013 need not be
compiled with. Accordingly, the provisions of clause 3(xiv) of the Order are not
applicable to the Company.
(xv) According to the information and explanations given to us and based on our
examination of the records of the Company, the Company has not entered into non-cash
transactions with directors or persons connected with him as per provisions of section 192
of the Act. Accordingly, clause 3(xv) of the Order is not applicable.
(xvi) Based on audit procedures, the Company is not required to be registered under
section 45- IA of the Reserve Bank of India Act, 1934 and accordingly, the provisions of
clause 3(xvi) of the Order is not applicable to the Company.
|
For Barry and Company |
|
Chartered Accountants |
|
FRN: 017988N |
|
(K. Yash Barry) |
| Place: New Delhi |
FCA (Prop.) |
| Date:22.05.2018 |
M. No. : 012513 |
Annexure - B to the Independent Auditors Report
Report on the Internal Financial Controls 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 LLOYD
ROCKFIBRES LIMITED ("the Company") as of 31st March, 2018 in conjunction
with our audit of the standalone financial statements of the Company for the year ended on
that date.
Managements Responsibility for Internal Financial Controls
The Companys 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 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 Companys 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, 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 auditors judgment, 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 Companys internal financial controls system over
financial reporting.
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 authorisations of
management and directors of the company; and (3) provide reasonable assurance regarding
prevention or timely detection of unauthorised acquisition, use, or disposition of the
companys 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 31 March 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 Barry and Company |
|
Chartered Accountants |
|
FRN: 017988N |
|
(K. Yash Barry) |
| Place: New Delhi |
FCA (Prop.) |
| Date:22.05.2018 |
M. No. : 012513 |
+91-9892691696
