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3M India Ltd.

BSE: 523395 Sector: Others
NSE: 3MINDIA ISIN Code: INE470A01017
BSE LIVE 15:45 | 21 Sep 14510.30 -40.90
(-0.28%)
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14755.35

HIGH

14850.00

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NSE 15:45 | 21 Sep 14575.75 -57.65
(-0.39%)
OPEN

14749.95

HIGH

14750.00

LOW

14325.05

OPEN 14755.35
PREVIOUS CLOSE 14551.20
VOLUME 514
52-Week high 14912.20
52-Week low 10055.00
P/E 66.18
Mkt Cap.(Rs cr) 16,353
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 14755.35
CLOSE 14551.20
VOLUME 514
52-Week high 14912.20
52-Week low 10055.00
P/E 66.18
Mkt Cap.(Rs cr) 16,353
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

3M India Ltd. (3MINDIA) - Auditors Report

Company auditors report

To the Members of 3M India Limited

Report on the Ind AS Financial Statements

We have audited the accompanying Ind AS financial statements of 3M India Limited("the Company") which comprise the Balance Sheet as at 31 March 2017 thestatement of Profit and Loss (including other comprehensive income) the statement of cashflows and the statement of changes in equity for the year then ended and a summary of thesignificant accounting policies and other explanatory information (herein after referredto as "Ind AS financial statements")

Management's Responsibility for the Financial Statements

The Company's Board of Directors is responsible for the matters stated in Section134(5) of the Companies Act 2013 ("the Act") with respect to the preparation ofthese Ind AS financial statements that give a true and fair view of the financialposition financial performance including other comprehensive income cash flows andchanges in equity of the Company in accordance with the accounting principles generallyaccepted in India including the Indian Accounting Standards (Ind AS) prescribed underSection 133 of the Act read with relevant rules issued thereunder.

This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding the assets of the Company andfor preventing and detecting frauds and other irregularities; selection and application ofappropriate accounting policies; making judgments and estimates that are reasonable andprudent; and design implementation and maintenance of adequate internal financialcontrols that were operating effectively for ensuring the accuracy and completeness ofthe accounting records relevant to the preparation and presentation of the Ind ASfinancial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.

Auditor's Responsibility

Our responsibility is to express an opinion on these Ind AS financial statements basedon our audit.

We have taken into account the provisions of the Act the accounting and auditingstandards and matters which are required to be included in the audit report under theprovisions of the Act and the Rules made thereunder.

We conducted our audit of the Ind AS financial statements in accordance with theStandards on Auditing specified under Section 143(10) of the Act. Those Standards requirethat we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether the Ind AS financial statements are free from materialmisstatement.

An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the Ind AS financial statements. The procedures selected depend on theauditor's judgment including the assessment of the risks of material misstatement of theInd AS financial statements whether due to fraud or error. In making those riskassessments the auditor considers internal financial control relevant to the Company'spreparation of the Ind AS financial statements that give a true and fair view in order todesign audit procedures that are appropriate in the circumstances. An audit also includesevaluating the appropriateness of the accounting policies used and the reasonableness ofthe accounting estimates made by the Company's Directors as well as evaluating theoverall presentation of the Ind AS financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide 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 explanationsgiven to us the aforesaid Ind AS financial statements give the information required bythe Act in the manner so required and give a true and fair view in conformity with theaccounting principles generally accepted in India including the Ind AS of the financialposition of the Company as at 31 March 2017 and its financial performance including othercomprehensive income its cash flows and the changes in equity for the year ended on thatdate.

Other matters

The comparative financial information of the Company for the year ended 31 March 2016and the transition date opening balance sheet as at 1 April 2015 included in these Ind ASfinancial statements are based on the previously issued statutory financial statementsprepared in accordance with the Companies (Accounting Standards) Rules 2006 audited bythe predecessor auditor whose report for the year ended 31 March 2016 and 31 March 2015dated 27 May 2016 and 29 May 2015 respectively expressed an unmodified opinion on thosefinancial statements as adjusted for the differences in the accounting principles adoptedby the Company on transition to the Ind AS which have been audited by us.

Our opinion is not modified in respect of this matter.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor's Report) Order 2016 ("the Order")issued by the Central Government in terms of section 143(11) of the Act we give in the"Annexure A" a statement on the matters specified in the paragraph 3 and 4 ofthe 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 bestof our knowledge and belief were necessary for the purposes of our audit;

(b) In our opinion proper books of account as required by law have been kept by theCompany so far as it appears from our examination of those books;

(c) The Balance Sheet the statement of Profit and Loss the statement of Cash Flowsand the statement of changes in equity dealt with by this Report are in agreement with thebooks of account;

(d) In our opinion the aforesaid Ind AS financial statements comply with the IndiaAccounting Standards specified under Section 133 of the Act read with relevant rulesissued thereunder;

(e) On the basis of the written representations received from the Directors as on 31March 2017 taken on record by the Board of Directors none of the Directors isdisqualified as on 31 March 2017 from being appointed as a Director in terms of Section164 (2) of the Act;

(f) With respect to the adequacy of the internal financial controls over financialreporting of the Company and the operating effectiveness of such controls refer to ourseparate report in "Annexure B"; and

(g) With respect to the other matters to be included in the Auditor's Report inaccordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 in our opinionand 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 financialposition in its Ind AS financial statements - Refer note 36 and 39 to the Ind AS financialstatements.

ii. The Company did not have any long-term contracts including derivative contracts forwhich there were any material foreseeable losses - Refer note 36 to the Ind AS financialstatements.

iii. There were no amounts which were required to be transferred to the InvestorEducation and Protection Fund by the Company.

iv. The Company has provided requisite disclosures in the financial statements as toholdings as well as dealings in Specified Bank Notes during the period from 8 November2016 to 30 December 2016. Based on audit procedures and relying on the managementrepresentation we report that the disclosures are in accordance with books of accountmaintained by the Company and as produced to us by the Management - Refer note 34.

For B S R & Co. LLP
Chartered Accountants
Firm Registration No: 101248W/W-100022
Amit Somani
Place : Mumbai Partner
Date : May 26 2017 Membership Number: 060154

ANNEXURE - A TO THE AUDITOR'S REPORT

With reference to the Annexure A referred to in paragraph 1 in Report on Other Legaland Regulatory Requirements of the Independent Auditor's Report to the Members of theCompany on the Ind AS financial statements for the year ended 31 March 2017 we reportthat:

(i) (a) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.

(b) The Company has a regular programme of physical verification of its fixed assets bywhich all fixed assets are physically verified in a phased manner over a period of threeyears. In our opinion the periodicity of physical verification is reasonable havingregard to the size of the Company and the nature of its assets. Pursuant to the programmecertain fixed assets have been physically verified during the year and no materialdiscrepancies were observed on such verification.

(c) In our opinion and according to the information and explanations given to us and onthe basis of our examination of the records of the Company the title deeds of immovableproperties are held in the name of the Company. Also refer explanatory note (a) of Note 4to the Ind AS financial statements.

(ii) The inventory except goods-in-transit and stocks lying with third parties hasbeen physically verified by the Management during the year. In our opinion the frequencyof such physical verification is reasonable. The discrepancies noticed on physicalverification between the physical stock and the book records were not material. For stockslying with third parties at the year end written confirmations have been obtained by themanagement.

(iii) The Company has not granted any loans secured or unsecured to companies firmslimited liability partnerships or other parties covered in the register maintained underSection 189 of the Act. Accordingly paragraph 3 (iii) of the Order is not applicable tothe Company.

(iv) In our opinion and according to the information and explanations given to us theCompany has not granted any loans or made any investments or provided any guarantees orsecurity to parties covered under the provisions of Section 185 and 186 of the Act.Accordingly paragraph 3(iv) of the Order is not applicable to the Company.

(v) According to information and explanations given to us the Company has not acceptedany deposits from the public in accordance with the provisions of Sections 73 to 76 or anyother relevant provisions of the Act and the rules framed there under.

(vi) We have broadly reviewed the books of account maintained by the Company pursuantto the rules prescribed by the Central Government of India for maintenance of cost recordsunder section 148(1) of the Act in respect of products manufactured and are of the opinionthat prima facie the prescribed accounts and records have been made and maintained.However we have not made a detailed examination of the records.

(vii) (a) According to the information and explanations given to us and on the basis ofour examination of the records of the

Company amounts deducted/ accrued in the books of account in respect of undisputedstatutory dues including Provident fund Employees' State Insurance Income-taxSales-tax Service tax Duty of customs Duty of excise Value added tax Cess and anyother material statutory dues have generally been regularly deposited during the year bythe Company with the appropriate authorities.

According to the information and explanations given to us no undisputed amountspayable in respect of Provident fund Employees' State Insurance Income-tax Sales-taxService-tax Duty of customs Duty of excise Value added tax Cess and any other materialstatutory dues were in arrears as at 31 March 2017 for a period of more than six monthsfrom the date they became payable except dues in relation to tax deducted at source asshown in the Statement below:

Statement of arrears of statutory dues outstanding for more than six months:

Name of the Statute Nature of the dues Amount (Rs in Lakhs) Period to which the amount relates Due date Date of payment
Income-tax Act 1961 Tax deducted at source (TDS) 15.94 2013-14 to 2016-17 Various dates Not paid

(b) According to the information and explanations given to us the particulars of duesof Income-tax Sales-tax Service-tax Duty of customs Duty of excise and Value added taxas at 31 March 2017 which have not been deposited by the Company on account of disputesare mentioned in Appendix-1.

(viii) The Company does not have any loans or borrowings from any financial institutionor banks or Government nor has it issued any debentures. Accordingly para 3(viii) of theOrder is not applicable.

(ix) The Company did not raise any money by way of initial public offer or furtherpublic offer (including debt instrument) and term loans during the year.

(x) According to the information and explanations given to us no material fraud on theCompany by its officers and employees or fraud by the Company has been noticed or reportedduring the course of our audit.

(xi) According to the information and explanations given to us and based on examinationof the records of the Company the Company has paid/ provided for managerial remunerationin accordance with the requisite approvals mandated by the provisions of Section 197 readwith Schedule V to the Act.

(xii) According to the information and explanations given to us in our opinion theCompany is not a Nidhi Company as prescribed under Section 406 of the Act. Accordinglypara 3(xii) of the Order is not applicable.

(xiii) According to the information and explanations given to us and based on ourexamination of the records of the Company all transactions with the related parties arein compliance with Section 177 and 188 of the Act where applicable and details of suchtransactions have been disclosed in the Ind AS financial statements as required by theapplicable accounting standards.

(xiv) According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has not made any preferentialallotment or private placement of shares or issued fully or partly convertible debenturesduring the year. Accordingly para 3(xiv) of the Order is not applicable.

(xv) According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has not entered into non-cashtransactions with Directors or persons connected with him. Accordingly para 3(xv) of theOrder is not applicable.

(xvi) According to the information and explanations given to us and in our opinion theCompany is not required to be registered under section 45-IA of the Reserve Bank of IndiaAct 1934.

For B S R & Co. LLP
Chartered Accountants
Firm Registration No: 101248W/W-100022
Amit Somani
Place : Mumbai Partner
Date : May 26 2017 Membership Number: 060154

Appendix 1 to the Annexure A to the Independent Auditor's Report

Statute / Nature of dues Demand amount (Rs. in lakhs) Payment under protest Net amount (Rs. in lakhs) Period to which it pertains Forum where the dispute is pending
1579.57 566.25 1013.32 2005-2013 Income Tax appellate tribunal
Income tax 4955.52 544.85 4410.67 2010-2015 Commissioner of Income Tax (Appeals)
Sales tax/ 18930.16 1032.07 17898.09 2005-2012 Deputy Commissioner of Commercial taxes
Value added tax / 8523.30 227.83 8295.47 2007-2014 Assistant Commissioner of Commercial Taxes
Central Sales tax 343.27 196.59 146.68 2003-2011 Joint / Senior commissioner of Commercial taxes / Appeals
724.64 - 724.64 2010-2012 Value Added Tax Officer
916.65 418.63 498.02 2011-2013 Sales Tax appellate tribunal
1019.84 - 1019.84 2010-2013 Excise and Taxation Officer - cum Assessing Authority
Excise (including service tax) 1803.52 215.37 1588.15 2009-2015 Customs Excise and service tax appellate tribunal
1961.51 - 1961.51 2005-2010 Customs Excise and service tax appellate tribunal
Custom duty 8007.49 50.00 7957.49 2011-2014 Directorate of Revenue Intelligence

Annexure B to the Independent Auditor's Report of even date on the Ind AS financialstatements of 3M India Limited

Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143 of the Companies Act 2013 ("the Act")

We have audited the internal financial controls over financial reporting of 3M IndiaLimited ("the Company") as of 31 March 2017 in conjunction with our audit of theInd 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 internalfinancial controls based on the internal control over financial reporting criteriaestablished by the Company considering the essential components of internal control statedin the Guidance Note on Audit of Internal Financial Controls over Financial Reporting("Guidance Note") issued by the Institute of Chartered Accountants of India(ICAI). These responsibilities include the design implementation and maintenance ofadequate internal financial controls that were operating effectively for ensuring theorderly and efficient conduct of its business including adherence to Company's policiesthe safeguarding of its assets the prevention and detection of frauds and errors theaccuracy and completeness of the accounting records and the timely preparation ofreliable financial information as required under the Act.

Auditors' Responsibility

Our responsibility is to express an opinion on the Company's internal financialcontrols over financial reporting based on our audit. We conducted our audit in accordancewith the Guidance Note and the Standards on Auditing issued by ICAI and deemed to beprescribed under section 143(10) of the Act to the extent applicable to an audit ofinternal financial controls both applicable to an audit of Internal Financial Controlsand both issued by the ICAI. Those Standards and the Guidance Note require that we complywith ethical requirements and plan and perform the audit to obtain reasonable assuranceabout whether adequate internal financial controls over financial reporting wasestablished and maintained and if such controls operated effectively in all materialrespects.

Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls system over financial reporting and their operatingeffectiveness. Our audit of internal financial controls over financial reporting includedobtaining an understanding of internal financial controls over financial reportingassessing the risk that a material weakness exists and testing and evaluating the designand operating effectiveness of internal control based on the assessed risk. The proceduresselected depend on the auditor's judgement including the assessment of the risks ofmaterial misstatement of the Ind AS financial statements whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Company's internal financial controls systemover financial reporting

Meaning of Internal Financial Controls over Financial Reporting

A company's internal financial control over financial reporting is a process designedto provide reasonable assurance regarding the reliability of financial reporting and thepreparation of Ind AS financial statements for external purposes in accordance withgenerally accepted accounting principles. A company's internal financial control overfinancial reporting includes those policies and procedures that:

(i) pertain to the maintenance of records that in reasonable detail accurately andfairly reflect the transactions and dispositions of the assets of the company;

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

(iii) provide reasonable assurance regarding prevention or timely detection ofunauthorised acquisition use or disposition of the company's assets that could have amaterial effect on the financial statements.

Inherent Limitations of Internal Financial Controls over Financial Reporting

Because of the inherent limitations of internal financial controls over financialreporting including the possibility of collusion or improper management override ofcontrols material misstatements due to error or fraud may occur and not be detected.Also projections of any evaluation of the internal financial controls over financialreporting to future periods are subject to the risk that the internal financial controlover financial reporting may become inadequate because of changes in conditions or thatthe degree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion the Company has in all material respects an adequate internalfinancial controls system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at 31 March 2017 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note issued by ICAI.

For B S R & Co. LLP
Chartered Accountants
Firm Registration No: 101248W/W-100022
Amit Somani
Place : Mumbai Partner
Date : May 26 2017 Membership Number: 060154