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Balmer Lawrie & Company Ltd.

BSE: 523319 Sector: Others
NSE: BALMLAWRIE ISIN Code: INE164A01016
BSE LIVE 15:40 | 21 Nov 264.95 0
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NSE 15:57 | 21 Nov 264.70 -0.05
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OPEN 266.55
PREVIOUS CLOSE 264.95
VOLUME 15341
52-Week high 302.00
52-Week low 201.00
P/E 18.67
Mkt Cap.(Rs cr) 3,020
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 266.55
CLOSE 264.95
VOLUME 15341
52-Week high 302.00
52-Week low 201.00
P/E 18.67
Mkt Cap.(Rs cr) 3,020
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Balmer Lawrie & Company Ltd. (BALMLAWRIE) - Auditors Report

Company auditors report

TO THE MEMBERS OF BALMER LAWRIE & CO. LIMITED

Report on the Standalone Indian Accounting Standards (Ind AS) Financial Statements

We have audited the accompanying standalone Ind AS financial statements of BalmerLawrie & Co. Limited ("the Company") which comprise the Balance Sheetas at March 31 2017 and the Statement of Profit and Loss (including Other ComprehensiveIncome) the Cash Flow Statement and the Statement of Changes in Equity for the year thenended and a summary of significant accounting policies and other explanatory information(herein-after referred to as Ind AS Financial Statements) in which are incorporated thereturns for the year ended on that date audited by the Branch Auditors of the Company'sbranches located under Northern region Western region and Southern region.

Management's Responsibility for the Ind AS 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 standalone Ind AS financial statements that give a true and fair view of thefinancial position financial performance (including Other Comprehensive Income) Cashflows and Changes in Equity of the Company in accordance with the accounting principlesgenerally accepted in India including the Indian Accounting Standards specified in theCompanies (Indian Accounting Standards) Rules 2015 (as amended) under section 133 of theAct. 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 of theaccounting records relevant to the preparation and presentation of the Ind AS financialstatements that give a true and fair view and are free from material misstatement whetherdue to fraud or error.

Auditor's Responsibility

Our responsibility is to express an opinion on these standalone Ind AS financialstatements based on 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 there under.

We conducted our audit in accordance with the Standards on Auditing specified undersection 143(10) of the Act and 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 Ind AS financial statements are free from materialmisstatement.

An audit involves performing procedures to obtain audit evidence about the amounts anddisclosures 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 and fair presentation of the Ind AS financial statements that give a true andfair 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 thereasonableness of the accounting estimates made by the Company's Directors as well asevaluating the overall 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 standalone Ind AS financial statements give the informationrequired by the Act in the manner so required and give a true and fair view in conformitywith the accounting principles generally accepted in India:

(a) in the case of the Balance Sheet of the state of affairs of the Company as atMarch 31 2017;

(b) in the case of Statement of Profit and Loss of the Profit for the year ended onthat date;

(c) in the case of the Cash Flow Statement of the cash flows for the year ended onthat date; and

(d) in the case of the Statement of Changes in Equity of the changes in equity for theyear ended on that date.

Emphasis of Matters

We draw attention to the following matters in the Notes to the Ind AS financialstatements which describe the uncertainty related to the outcome. Our opinion is notqualified in respect of this matter.

a) Note No.40.7 : Trade receivables loans and advances and deposits for whichconfirmations are not received from the parties are subject to reconciliation andconsequential adjustments on determination/ receipt of such confirmation.

Other Matter

a) We did not audit the Ind AS financial statements of three (3) Regions included inthe standalone Ind AS financial statements of the Company whose Ind AS financial statementreflect total assets of Rs. 92422.05 lakh as at 31st March 2017 and total revenue of Rs.149054.33 lakh for the year ended on that date as considered in the standalone Ind ASfinancial statements. The Ind AS financial statements of these regions have been auditedby the branch auditors whose reports have been furnished to us and our opinion in so faras it relates to the amounts and disclosures included in respect of these Regions isbased solely on the report of such branch auditors.

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 givein the "Annexure- A" a statement on the matters specified in paragraphs 3 and 4of the order.

2. As required by section 143 (3) of the Act we report that :

a) We have sought and obtained all the information and explanations which to the bestof our knowledge and belief were necessary for the purpose of our audit.

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

c) The reports on the account of the three (3) Regions of the Company audited undersection 143(8) of the act by branch auditors have been submitted to us and have beenproperly dealt with by us in preparing this report.

d) The Balance Sheet the Statement of Profit and Loss the Cash Flow Statement and theStatement of Changes in Equity dealt with by this report are in agreement with the booksof accounts.

e) In our opinion the aforesaid standalone Ind AS financial statements comply with theIndian Accounting Standards specified under Section 133 of the Act read with Rule 7 ofthe Companies (Accounts) Rules 2014.

f) We are informed that provisions of Section 164(2) of the Act in respect ofdisqualification of directors are not applicable to the Company being a GovernmentCompany in terms of notification no. G.S.R. 463(E) dated 5th June 2015 issued by Ministryof Corporate Affairs.

g) 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".

h) 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

Ind AS financial statements – Refer Note 40.2(a) and (b) to the financialstatements; ii) The Company did not have any long-term contracts including derivativecontracts for which there were any material foreseeable losses.

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 disclosure in its Ind AS financial statement asto holdings as well as dealings in specified bank notes during the period from 8thNovember 2016 to 30th December 2016 and these are in accordance with the books of accountsmaintained by the company – Refer Note 40.29 to the Ind AS financial statements; v)As required by section 143(5) of the Act a statement on the matters specified as perdirections given by the Comptroller

& Auditor General of India is given in "Annexure- C".

For DUTTA SARKAR & CO.
Chartered Accountants
Firm Registration No. 303114E
(Partha Sarathi De)
Dated : 29.05.2017 Partner
Place : Kolkata Membership No. - 016727

ANNEXURE – ‘A' TO AUDITOR'S REPORT

AS REPORTED TO IN PARAGRAPH 1 OF OUR REPORT OF EVEN DATE

i) In respect of its fixed assets :

(a) The Company has generally maintained proper records showing full particularsincluding quantitative details and situation of the fixed assets.

(b) The Company has a regular programme of physical verification of its fixed assets bywhich plant and machinery are verified every year and other fixed assets are verified in aphased manner over a period of three years which in our opinion is reasonable havingregard to the size of the Company and nature of its assets. As explained to us inaccordance with its programme plant and machinery and certain other fixed assets wereverified during the year and no material discrepancies were noticed on such verification.

(c) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company title deeds of Immovable properties are held inthe Name of the Company except to the extent of the properties and values specified inNote No.40.1(a) and (b).

ii) The inventory of the Company except goods in transit has been physically verifiedduring the year by the management. In our opinion having regard to the nature andlocation of inventory the frequency of verification is reasonable and no materialdiscrepancies were noticed on such verification.

iii) The Company has not granted any loans secured or unsecured to companies firms orother parties covered in the register maintained under section 189 of the Companies Act2013.

Accordingly clauses 3(iii) (a) to 3(iii) (c) of the Order are not applicable.

iv) The Company has not given any loans guarantees securities or made Investmentswhich is required to be complied with the provisions of section 185 and 186 of theCompanies Act 2013.

v) The Company has not accepted any deposits according to the directives issued by theReserve Bank of India and the provisions of sections 73 to 76 or any other relevantprovisions of the Companies Act and the rules framed thereunder.

vi) We have broadly reviewed the cost records maintained by the Company in respect ofthe products of Grease and Lubricants Industrial Packaging & Leather Chemicals wherepursuant to the Companies (Cost records and Audit) Rules 2014 read with companies (Costrecords and Audit) Amendment Rules 2014 prescribed by the Central Government undersection 148 of the Companies Act 2013 and are of the opinion that prima facie theprescribed cost records have been maintained. We have however not made a detailedexamination of the cost records with a view to determine whether they are accurate orcomplete. To the best of our knowledge and according to the information and explanationsgiven to us the central government has not prescribed the maintenance of cost records forany other product of the Company.

vii) (a) According to the information and explanation given to us and the records ofthe Company examined by us in our opinion the Company has generally been regular indepositing undisputed statutory dues including provident fund employee's state insuranceincome tax sales tax service tax duty of customs duty of excise value added tax cessand other statutory dues to the appropriate authorities and there was no amount due formore than six months as at the last day of the financial year.

(b) The disputed statutory dues of income tax sales tax service tax duty of customsduty of excise and value added tax aggregating to Rs.11465.40 lakh have not been depositedas mentioned in Note No.40.2(a) to the accounts showing the amounts involved and the forumwhere the dispute is pending.

viii) The Company has not defaulted in repayment of dues to any financial institutionsor Banks as at the Balance Sheet date and there is no debenture holder.

ix) The Company has not raised moneys by way of initial public offer or further publicoffer (including debt instruments) and term loans during the year under audit. Hence thisclause is not applicable.

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 explanation given to us we have neither come across anyinstance of material fraud by the company or on the Company noticed or reported duringthe year nor have we been informed of any such case by the management.

xi) By virtue of Article 7A of the Articles of Association of the company thePresident of India is entitled to determine terms and conditions of appointment of theDirectors. This inter alia includes determination of remuneration payable to theWhole-Time Directors. Hence this clause is not applicable.

xii) The Company is not a Nidhi Company. Hence this clause is not applicable.

xiii) According to the information and explanations provided to us and the records ofthe company examined by us the Company has not been able to comply with the requirementsof Section 177 in respect of composition of Audit Committee since independent directorson the Board are yet to be appointed by the Government of India.

All transactions of the Company with related parties are in compliance with Section 188of Companies Act 2013 where applicable and the details have been disclosed in thefinancial statement in Note No. 40.20(i) and (ii) as required by the applicable accountingstandard.

xiv) The Company has not made any preferential allotment or private placement of sharesor fully or partly convertible debentures during the year under review. Hence this clauseis not applicable.

xv) The Company has not entered into any non cash transactions with directors orpersons connected with him. Hence this clause is not applicable.

xvi) The Company is not required to be registered under section 45 IA of the ReserveBank of India Act 1934. Hence this clause is not applicable.

For DUTTA SARKAR & CO.
Chartered Accountants
Firm Registration No. 303114E
(Partha Sarathi De)
Dated : 29.05.2017 Partner
Place : Kolkata Membership No. - 016727

ANNEXURE – ‘B' TO THE INDEPENDENT AUDITOR'S REPORT

Report on the Internal Financial Controls under Paragraph (i) of Sub-section 3 ofsection 143 of the Companies Act 2013 ("the Act")

We have audited the internal financial controls over financial reporting of BALMERLAWRIE & CO. LIMITED ("the Company") as of 31st March 2017 in conjunctionwith our audit of the financial statement 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 component 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'). Theseresponsibilities include the design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the orderly and efficientconduct of its business including adherence to Company's policies the safeguarding ofits assets the prevention and detection of fraud and errors the accuracy andcompleteness of the accounting records and the timely preparation of reliable financialinformation as required under the Companies Act 2013.

Auditors' Responsibility

Our responsibility is to express an opinion on the Company's internal financial controlover financial reporting based on our audit. We conducted our audit in accordance with theGuidance Note on Audit of Internal Financial Controls over Financial Reporting (the"Guidance Note") and the Standards on Auditing issued by ICAI and deemed to beprescribed under section 143(10) of the Companies Act 2013 to the extent applicable toan audit of internal financial controls both applicable to an audit of Internal FinancialControls and both issued by the Institute of Chartered Accountants of India. ThoseStandards and the Guidance Note require that we comply with ethical requirements and planand perform the audit to obtain reasonable assurance about whether adequate internalfinancial controls over financial reporting was established and maintained and whethersuch controls operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal control system over financial reporting and their operating effectiveness.Our audit of internal financial controls over financial reporting assessing the riskwhether material weakness exists and testing and evaluating the design and operatingeffectiveness of internal control based on the assessed risk. The procedure selecteddepends on the auditor's judgement including the assessment of the risks of materialmisstatement of the 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 Region'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 financial statements for external purposes in accordance with generallyaccepted accounting principles. A Company's internal financial control over financialreporting includes those policies and procedures that (1) pertain to the maintenance ofrecord that in reasonable detail accurately and fairly reflect the transaction anddisposition of the assets of the Company; (2) provide reasonable assurance thattransactions are recorded as necessary to permit preparation of financial statement inaccordance with generally accepted accounting principles and that receipts andexpenditures of the Company are being made only in accordance with authorisation ofmanagement and directors of the Company; and (3) provide reasonable assurance regardingprevention and or timely detection of unauthorised acquisition use or disposition of theCompany's assets that could have 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 financialreporting including the possibility of collusion of improper management override ofcontrols material misstatements due to error or fraud may occur and not be detected.Also projection of any evaluation of internal financial controls over financial reportingmay become inadequate because of changes in condition or that the degree of compliancewith the policies or procedures may deteriorate.

Opinion

In our opinion the Company has maintained in all material respects adequate internalfinancial controls over financial reporting and such internal financial controls overfinancial reporting were operating effectively as at 31 March 2017 based on the internalcontrol over financial reporting criteria established by the Company considering theessential components of internal control stated in the Guidance Note on Audit of InternalFinancial Controls Over Financial Reporting issued by the "Institute of CharteredAccountants of India".

For DUTTA SARKAR & CO.
Chartered Accountants
Firm Registration No. 303114E
(Partha Sarathi De)
Dated : 29.05.2017 Partner
Place : Kolkata Membership No. - 016727