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3M India Ltd.

BSE: 523395 Sector: Others
NSE: 3MINDIA ISIN Code: INE470A01017
BSE LIVE 15:52 | 09 Dec 10959.75 -39.70
(-0.36%)
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11005.00

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11149.90

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NSE LIVE 15:31 | 09 Dec 10980.45 -12.40
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OPEN

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OPEN 11005.00
PREVIOUS CLOSE 10999.45
VOLUME 5143
52-Week high 15200.00
52-Week low 9405.00
P/E 55.40
Mkt Cap.(Rs cr) 12351.64
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 11005.00
CLOSE 10999.45
VOLUME 5143
52-Week high 15200.00
52-Week low 9405.00
P/E 55.40
Mkt Cap.(Rs cr) 12351.64
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 Financial Statements

1. We have audited the accompanying financial statements of 3M India Limited ("theCompany") which comprise the Balance Sheet as at March 31 2016 the Statement ofProfit and Loss the Cash Flow Statement for the year then ended and a summary of thesignificant accounting policies and other explanatory information.

Management's Responsibility for the Financial Statements

2. 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 financial statements to give a true and fair view of the financial positionfinancial performance and cash lows of the Company in accordance with the accountingprinciples generally accepted in India including the Accounting Standards specified underSection 133 of the Act read with Rule 7 of the Companies (Accounts) Rules 2014. Thisresponsibility also includes maintenance of adequate accounting records in accordance withthe provisions of the Act for safeguarding of the assets of the Company and for preventingand detecting frauds and other irregularities; selection and application of appropriateaccounting policies; making judgments and estimates that are reasonable and prudent; anddesign implementation and maintenance of adequate internal financial controls that wereoperating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the financial statements thatgive a true and fair view and are free from material misstatement whether due to fraud orerror.

Auditors' Responsibility

3. Our responsibility is to express an opinion on these financial statements based onour audit.

4. We have taken into account the provisions of the Act and the Rules made thereunderincluding the accounting standards and matters which are required to be included in theaudit report.

5. We conducted our audit in accordance with the Standards on Auditing specified underSection 143(10) of the Act and other applicable authoritative pronouncements issued by theInstitute of Chartered Accountants of India. Those Standards and pronouncements requirethat we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether the financial statements are free from materialmisstatement.

6. An audit involves performing procedures to obtain audit evidence about the amountsand the disclosures in the financial statements. The procedures selected depend on theauditors' judgment including the assessment of the risks of material misstatement of thefinancial statements whether due to fraud or error. In making those risk assessments theauditor considers internal financial control relevant to the Company's preparation of thefinancial statements that give a true and fair view in order to design audit proceduresthat are appropriate in the circumstances. An audit also includes evaluating theappropriateness of the accounting policies used and the reasonableness of the accountingestimates made by the Company's Directors as well as evaluating the overall presentationof the financial statements.

7. We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the financial statements.

Opinion

8. In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid financial statements give the information required by the Actin the manner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India of the state of affairs of the Company as at March31 2016 and its profit and its cash lows for the year ended on that date.

Report on Other Legal and Regulatory Requirements

9. As required by 'the Companies (Auditor's Report) Order 2016' issued by the CentralGovernment of India in terms of sub-section (11) of section 143 of the Act (hereinafterreferred to as the "Order") and on the basis of such checks of the books andrecords of the Company as we considered appropriate and according to the information andexplanations given to us we give in the Annexure B a statement on the matters specifiedin paragraphs 3 and 4 of the Order.

10. 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 and the Cash Flow Statementdealt with by this Report are in agreement with the books of account.

(d) In our opinion the aforesaid financial statements comply with the AccountingStandards 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 March31 2016 taken on record by the Board of Directors none of the directors is disqualifiedas on March 31 2016 from being appointed as a director in terms of Section 164 (2) of theAct.

(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 A.

(g) With respect to the other matters to be included in the Auditors' Report inaccordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 in our opinionand to the best of our knowledge and belief and according to the information andexplanations given to us:

i. The Company has disclosed the impact if any of pending litigations as at March 312016 on its financial position in its financial statements - Refer Note 6;

ii. The Company has long-term contracts as at March 31 2016 for which there were nomaterial foreseeable losses. The Company did not have any derivative contracts as at March31 2016.

iii. There were no amounts which were required to be transferred to the InvestorEducation and Protection Fund by the Company during the year ended March 31 2016.

For Lovelock & Lewes
Firm Registration Number: 301056E
Chartered Accountants
Dibyendu Majumder
Place : Bangalore Partner
Date : May 27 2016 Membership Number: 057687

ANNEXURE 'A' TO INDEPENDENT AUDITORS' REPORT

Referred to in paragraph 10 (h) of the Independent Auditors' Report of even date to themembers of 3M India Limited on the financial

statements as of and for the year ended March 31 2016.

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

1. We have audited the internal financial controls over financial reporting of 3M IndiaLimited ("the Company") as of March 31 2016 in conjunction with our audit ofthe financial statements of the Company for the year ended on that date.

Management's Responsibility for Internal Financial Controls

2. The Company's management is responsible for establishing and maintaining internalfinancial controls based on the internal control over financial reporting criteriaestablished by the Company considering the essential components of internal control statedin the Guidance Note on Audit of Internal Financial Controls Over Financial Reportingissued by the Institute of Chartered Accountants of India (ICAI). These responsibilitiesinclude the design implementation and maintenance of adequate internal financial controlsthat were operating effectively for ensuring the orderly and efficient conduct of itsbusiness including adherence to Company's policies the safeguarding of its assets theprevention and detection of frauds and errors the accuracy and completeness of theaccounting records and the timely preparation of reliable financial information asrequired under the Act.

Auditors' Responsibility

3. 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 on Audit of Internal Financial Controls Over Financial Reporting(the "Guidance Note") and the Standards on Auditing deemed to be prescribedunder section 143(10) of the Act to the extent applicable to an audit of internalfinancial controls both applicable to an audit of internal financial controls and bothissued by the ICAI. Those Standards and the Guidance Note require that we comply withethical requirements and plan and perform the audit to obtain reasonable assurance aboutwhether adequate internal financial controls over financial reporting was established andmaintained and if such controls operated effectively in all material respects.

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

5. 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

6. A Company's internal financial control over financial reporting is a processdesigned to provide reasonable assurance regarding the reliability of financial reportingand the preparation of 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 (1) pertain to themaintenance of records that in reasonable detail accurately and fairly reflect thetransactions and dispositions of the assets of the Company; (2) provide reasonableassurance that transactions are recorded as necessary to permit preparation of financialstatements in accordance with generally accepted accounting principles and that receiptsand expenditures of the Company are being made only in accordance with authorisations ofmanagement and directors of the Company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorised acquisition use or disposition of theCompany's assets that could have a material effect on the financial statements.

Inherent Limitations of Internal Financial Controls Over Financial Reporting

7. 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

8. 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 March 31 2016 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note on Audit ofInternal Financial Controls Over Financial Reporting issued by the Institute of CharteredAccountants of India.

For Lovelock & Lewes
Firm Registration Number: 301056E
Chartered Accountants
Dibyendu Majumder
Place : Bangalore Partner
Date : May 27 2016 Membership Number: 057687

Referred to in paragraph 9 of the Independent Auditors' Report of even date to themembers of 3M India Limited on the financial statements as of and for the year ended March31 2016.

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

(b) The fixed assets are physically verified by the Management according to a phasedprogramme designed to cover all the items over a period of three years which in ouropinion is reasonable having regard to the size of the Company and the nature of itsassets. Pursuant to the programme a portion of the fixed assets has been physicallyverified by the Management during the year and no material discrepancies have been noticedon such verification.

(c) The title deeds of immovable properties as disclosed in Note 10 on fixed assets tothe financial statements are held in the name of the Company. Also refer explanatory note(i) of Note 10.

ii. The physical verification of inventory excluding stocks with third parties havebeen conducted at reasonable intervals by the Management during the year. In respect ofinventory lying with third parties these have substantally been verified / confirmed bythem. The discrepancies notced on physical verificaton of inventory as compared to bookrecords were not material.

iii. The Company has not granted any loans secured or unsecured to companies firmsLimited Liability Partnerships or other partes covered in the register maintained underSecton 189 of the Act. Therefore the provisions of Clause 3(iii) (iii)(a) (iii)(b) and(iii)(c) of the said Order are not applicable to the Company.

iv. The Company has not granted any loans or made any investments or provided anyguarantees or security to the partes covered under Secton 185 and 186. Therefore theprovisions of Clause 3(iv) of the said Order are not applicable to the Company.

v. The Company has not accepted any deposits from the public within the meaning ofSectons 73 74 75 and 76 of the Act and the Rules framed there under to the extentnotfied.

vi. Pursuant to the rules made by the Central Government of India the Company isrequired to maintain cost records as specified under Secton 148(1) of the Act in respectof its products. We have broadly reviewed the same and are of the opinion that primafacie the prescribed accounts and records have been made and maintained. We have nothowever made a detailed examinaton of the records with a view to determine whether theyare accurate or complete.

vii. (a) According to the informaton and explanatons given to us and the records of theCompany examined by us in our opinion the Company is generally regular in depositngundisputed statutory dues in respect of employee's state insurance professional taxservice tax value added tax and sales tax though there has been a slight delay in a fewcases and is regular in depositng undisputed statutory dues including provident fundincome tax duty of customs duty of excise cess and other material statutory dues asapplicable with the appropriate authorites.

(b) According to the informaton and explanatons given to us and the records of theCompany examined by us there are no dues of wealth-tax which have not been deposited onaccount of any dispute. The particulars of dues of income tax sales tax service taxduty of customs duty of excise value added tax as at March 31 2016 which have not beendeposited on account of a dispute are as follows:

Name of the statute Nature of dues Demand Amount (Rs. in Lakhs) Payment under protest (Rs. in Lakhs) Net Amount (Rs. in Lakhs) Period to which the amount relates Forum where the dispute is pending
The Income Tax Act 1961 Income Tax and Interest 77.18 83.71 Assessment Year 2006 - 07 Income Tax Appellate Tribunal
The Income Tax Act 1961 Income Tax and Interest 57.38 57.38 Assessment Year 2007 - 08 Income Tax Appellate Tribunal
The Income Tax Act 1961 Income Tax and Interest 157.16 75.00 82.16 Assessment Year 2008 - 09 Income Tax Appellate Tribunal
The Income Tax Act 1961 Income Tax and Interest 264.08 225.00 39.08 Assessment Year 2009 - 10 Income Tax Appellate Tribunal
The Income Tax Act 1961 Income Tax and Interest 1275.73 1275.73 Assessment Year 2010 - 11 Commissioner of Income Tax (Appeals)
The Income Tax Act 1961 Income Tax and Interest 1009.25 250.00 759.25 Assessment Year 2011 - 12 Income Tax Appellate Tribunal
The Income Tax Act 1961 Income Tax and Interest 567.28 _ 567.28 Assessment Year 2012 - 13 Commissioner of Income Tax (Appeals)
The Income Tax Act 1961 Income Tax and Assessment Year Commissioner of Income Tax
Interest 50.24 - 50.24 2013 - 14 (Appeals)
The Income Tax Act 1961 Income Tax and Assessment Year Commissioner of Income Tax
Interest 51.11 - 51.11 2014 - 15 (Appeals)
Customs Act 1962 Customs Duty Financial Years Customs Excise & Service Tax
Interest and 1961.51 - 1961.51 2005 - 06 Appellate Tribunal
penalty 2006 - 07 2007 - 08 2008 - 09 2009 - 10
The West Bengal Value Value Added Tax Financial Years The Senior Joint Commissioner
Added Tax Act 2003 0.63 - 0.63 2009 - 10 Commercial Tax
9.86 - 9.86 2010 - 11
The Central Sales Tax Central Sales Tax Financial Years The Senior Joint Commissioner
(West Bengal) Rules and interest 10.70 - 10.70 2010 - 11 Commercial Tax
1958 50.77 - 50.77 2011 - 12
37.00 - 37.00 2012 - 13
Maharashtra Value Value Added Financial Years Deputy Commissioner of Sales
Added Tax Act 2002 Tax interest and 539.50 66.08 473.42 2005 - 06 Tax Mumbai
penalty 1406.66 124.04 1282.62 2006 - 07
1320.77 100.00 1220.77 2007 - 08
3565.54 147.81 3417.73 2008 - 09
1709.87 116.78 1593.09 2009 - 10
1465.30 200.00 1265.30 2010 - 11
Maharashtra Value Value Added Financial Year Assistant Commissioner of
Added Tax Act 2002 Tax interest and penalty 1893.27 - 1893.27 2011 - 12 Sales Tax Mumbai
Central Sales Tax Act Central Sales Financial Years Deputy Commissioner of Sales
1956 (Central Sales Tax Tax interest and 101.11 - 101.11 2005 - 06 Tax Mumbai
(Bombay) Rules 1957) penalty 61.31 10.00 51.31 2006 - 07
49.99 18.97 31.02 2007 - 08
677.71 - 677.71 2008 - 09
870.57 9.00 861.57 2009 - 10
125.01 21.10 103.91 2010 - 11
Central Sales Tax Act Central Sales Financial Year Assistant Commissioner of
1956 (Central Sales Tax Tax interest and 5096.44 - 5096.44 2011 - 12 Sales Tax Mumbai
(Bombay) Rules 1957) penalty
Central Sales Tax Act Central Sales Tax Financial Years Excise and Taxation Officer-
1956 and penalty 368.34 - 368.34 2010 - 11 cum-Assessing Authority
420.06 - 420.06 2011 - 12 Gurgaon
231.44 - 231.44 2012 - 13
Central Sales Tax Act Central Sales Tax Financial Year Telangana VAT Appellate
1956 8.06 4.03 4.03 2011 - 12 Tribunal
Central Sales Tax Act Central Sales Tax Financial Year Assistant Commissioner (CT)
1956 5.74 - 5.74 2012 - 13 LTU Saroornagar Division Hyderabad
Delhi Value Added Tax Value Added Financial Year Value Added Tax Officer Delhi
Act 2004 Tax interest and penalty 354.10 - 354.10 2010 - 11
Central Sales Tax Act Central Sales Financial Years Value Added Tax Officer Delhi
1956 Tax interest and 312.99 - 312.99 2010 - 11
penalty 57.55 - 57.55 2011 - 12
Central Sales Tax Act Central Sales Financial Year Joint Commissioner of
1956 Tax interest and 182.94 73.16 109.78 2008 - 09 Commercial Taxes (Appeals) - I
penalty Bangalore
Central Sales Tax Act Central Sales Financial Years Deputy Commissioner of
1956 Tax interest and 144.75 118.78 25.97 2010 - 11 Commercial Taxes Bangalore
penalty 139.71 113.94 25.77 2011 - 12
768.87 300.66 468.21 2012 - 13
Karnataka Value Added Value Added Financial Year Assistant Commissioner of
Tax Act 2003 Tax interest and 66.82 20.05 46.77 2008 - 09 Commercial Taxes (Audit)- 1.3
penalty VAT Dvn-1 Bangalore
Tamil Nadu Value Added Value Added Tax Financial Years Appellate Deputy
Tax Act 2006 and penalty 49.66 16.56 33.10 2007 - 08 Commissioner Chennai
12.90 4.30 8.60 2008 - 09
107.18 35.73 71.45 2009 - 10
81.82 27.28 54.54 2010 - 11
83.29 27.78 55.51 2011 - 12
74.72 24.91 49.81 2012 - 13
3.20 1.60 1.60 2013 - 14
Gujarat Value Added Tax Value Added Financial Years Deputy Commissioner of
Act 2003 Tax interest and 20.37 4.65 15.72 2010 - 11 Commercial Tax Ahmedabad
penalty 5.36 - 5.36 2011 - 12
Central Sales Tax Act Central Sales Financial Years Deputy Commissioner of
1956 [Central Sales Tax Tax interest and 3.75 3.75 - 2010 - 11 Commercial Tax Ahmedabad
(Gujarat) Rules 1970] penalty 17.62 - 17.62 2011 - 12
Uttar Pradesh Value Value Added Tax Financial Year Deputy Commissioner
Added Tax Act 2008 47.21 16.52 30.69 2013 - 14 Commercial Tax Lucknow
Finance Act 1994 Service tax Financial Year Customs Excise and Service Tax
interest and 26.55 26.55 - 2010 - 11 Appellate Tribunal Bangalore
penalty
Central Excise Act 1944 Cenvat Credit Financial Years Customs Excise and Service Tax
(Cenvat Credit Rules interest and 449.41 - 449.41 2009 - 10 Appellate Tribunal Bangalore
2004) penalty 2010 - 11
Central Excise Act 1944 Cenvat Credit Financial Years Customs Excise and Service Tax
(Cenvat Credit Rules interest and 190.11 95.05 95.06 2006 - 07 Appellate Tribunal Bangalore
2004) penalty 2007 - 08
Central Excise Act 1944 Penalty Financial Years Customs Excise and Service Tax
(Cenvat Credit Rules 711.11 - 711.11 2010 - 11 Appellate Tribunal Bangalore
2004) 2011 - 12
2012 - 13
2013 - 14
2014 - 15
Central Excise Act 1944 Penalty Financial Years Principal Commissioner of
(Cenvat Credit Rules 409.00 - 409.00 2010 - 11 Central Excise Bangalore
2004) 2011 - 12
2012 - 13
2013 - 14
2014 - 15

viii. As the Company does not have any loans or borrowings from any financialinstitution or bank or Government nor has it issued any debentures as at the balancesheet date the provisions of Clause 3(viii) of the Order are not applicable to theCompany.

ix. The Company has not raised any moneys by way of initial public offer furtherpublic offer (including debt instruments) and term loans. Accordingly the provisions ofClause 3(ix) of the Order are not applicable to the Company.

x. During the course of our examination of the books and records of the Companycarried out in accordance with the generally accepted auditing practices in India andaccording to the information and explanations given to us we have neither come across anyinstance of material fraud by the Company or on the Company by its officers or employeesnoticed or reported during the year nor have we been informed of any such case by theManagement.

xi. The Company has paid for managerial remuneration in accordance with the requisiteapprovals mandated by the provisions of Section 197 read with Schedule V to the Act.

xii. As the Company is not a Nidhi Company and the Nidhi Rules 2014 are not applicableto it the provisions of Clause 3(xii) of the Order are not applicable to the Company.

xiii. The Company has entered into transactions with related parties in compliance withthe provisions of Sections 177 and 188 of the Act. The details of such related partytransactons have been disclosed in the financial statements as required under AccountngStandard (AS) 18 Related Party Disclosures specified under Secton 133 of the Act readwith Rule 7 of the Companies (Accounts) Rules 2014.

xiv. The Company has not made any preferental allotment or private placement of sharesor fully or partly convertible debentures during the year under review. Accordingly theprovisions of Clause 3(xiv) of the Order are not applicable to the Company.

xv. The Company has not entered into any non cash transactons with its directors orpersons connected with him. Accordingly the provisions of Clause 3(xv) of the Order arenot applicable to the Company.

xvi. The Company is not required to be registered under Secton 45-IA of the ReserveBank of India Act 1934. Accordingly the provisions of Clause 3(xvi) of the Order are notapplicable to the Company.

For Lovelock & Lewes
Firm Registraton Number: 301056E
Chartered Accountants
Dibyendu Majumder
Place : Bangalore Partner
Date : May 27 2016 Membership Number: 057687

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