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Balrampur Chini Mills Ltd.

BSE: 500038 Sector: Agri and agri inputs
NSE: BALRAMCHIN ISIN Code: INE119A01028
BSE LIVE 15:52 | 09 Dec 121.55 -0.25
(-0.21%)
OPEN

121.90

HIGH

123.30

LOW

120.70

NSE LIVE 15:55 | 09 Dec 121.30 -0.20
(-0.16%)
OPEN

121.95

HIGH

123.50

LOW

120.55

OPEN 121.90
PREVIOUS CLOSE 121.80
VOLUME 81332
52-Week high 138.00
52-Week low 68.35
P/E 5.28
Mkt Cap.(Rs cr) 2977.98
Buy Price 0.00
Buy Qty 0.00
Sell Price 121.55
Sell Qty 360.00
OPEN 121.90
CLOSE 121.80
VOLUME 81332
52-Week high 138.00
52-Week low 68.35
P/E 5.28
Mkt Cap.(Rs cr) 2977.98
Buy Price 0.00
Buy Qty 0.00
Sell Price 121.55
Sell Qty 360.00

Balrampur Chini Mills Ltd. (BALRAMCHIN) - Auditors Report

Company auditors report

To

The Members of

Balrampur Chini Mills Limited

Report on the standalone financial statements

We have audited the accompanying standalone financial statements of BALRAMPUR CHINIMILLS LIMITED ("the Company") which comprise the Balance Sheet as at 31stMarch 2016 the Statement of Profit and Loss the Cash Flow Statement and a summary ofthe significant accounting policies and other explanatory information for the year thenended.

Management’s responsibility for the standalone 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 financial statements that give a true and fair view of the financial positionfinancial performance and cash flows 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 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.

Auditor’s responsibility

Our responsibility is to express an opinion on these standalone financial statementsbased 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. Those standards require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetherthe financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the financial statements. The procedures selected depend on theauditor’s judgment including the assessment of the risks of material misstatement ofthe financial statements whether due to fraud or error. In making those risk assessmentsthe auditor considers internal financial control relevant to the Company’spreparation of the financial statements that give a true and fair view in order to designaudit 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 financial statements.

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

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid standalone financial statements give the information requiredby the Act in the manner so required and give a true and fair view in conformity with theaccounting principles generally accepted in India of the state of affairs of the Companyas at 31st March 2016 and its profit and its cash flows for the year ended on that date.

Report on other legal and regulatory requirements

1. As required by the Companies (Auditor’s Report) Order 2016 ("theOrder") issued by the Central Government of India in terms of sub-section (11) ofsection 143 of the Act we give in the "Annexure A" a statement on the mattersspecified in paragraphs 3 and 4 of the Order.

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

i. 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.

ii. 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.

iii. 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.

iv. In our opinion the aforesaid standalone financial statements comply with theAccounting Standards specified under section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014.

v. On the basis of the written representations received from the directors as at 31stMarch 2016 and taken on record by the Board of Directors none of the directors isdisqualified as at 31st March 2016 from being appointed as a director in terms of section164 (2) of the Act.

vi. 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".

vii. 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:

a. The Company has disclosed the impact of pending litigations on its financialposition in its financial statements – Refer Note No. 30 (1) to the financialstatements.

b. The Company did not have any long-term contracts including derivatives contracts forwhich there were any material foreseeable losses.

c. There has been no delay in transferring amounts required to be transferred to theinvestor education and protection fund by the Company.

For G.P. AGRAWAL & CO.
Chartered Accountants
Firm’s Registration No. - 302082E
Sd/-
(CA. Sunita Kedia)
Place of Signature: Kolkata Partner
Date: 20th May 2016 Membership No. 60162

"Annexure A" to the Auditor’s Report

Statement referred to in paragraph ‘Report on Other Legal and RegulatoryRequirements’ of our report of even date to the members of Balrampur Chini MillsLimited on the standalone financial statements for the year ended 31st March 2016.

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

b) The fixed assets were physically verified during the year by the management inaccordance with a regular programme of verification which in our opinion provides forphysical verification of all the fixed assets at reasonable intervals. According to theinformation and explanations given to us no material discrepancies were noticed on suchverification.

c) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company the title deeds of immovable properties areheld in the name of the Company.

(ii) The inventories have been physically verified during the year by the management atreasonable intervals and no material discrepancies were noticed on such physicalverification.

(iii) The Company has not granted any loan secured or unsecured to companies firmslimited liability partnerships or other parties covered in the register maintained undersection 189 of the Act. Therefore clauses (iii) (a) (b) and (c) of paragraph 3 of thesaid order are not applicable to the Company.

(iv) In our opinion and according to the information and explanations given to usthere are no guarantees and securities granted in respect of which provisions of section185 and 186 of the Companies Act 2013 are applicable. Based on our audit proceduresperformed and according to information and explanations given by the management theCompany has complied with provisions of section 186 of the Act in respect of loans grantedand investments.

(v) The Company has not accepted any deposit within the meaning of section 73 to 76 orany other relevant provisions of the Act and the rules framed there under. The directivesissued by the Reserve Bank of India are not applicable to the Company.

(vi) We have broadly reviewed the books of account maintained by the Company in respectof products where pursuant to the rules made by the Central Government the maintenance ofCost records has been prescribed under section 148(1) of the Act and are of the opinionthat prima facie the prescribed accounts and records have been made and maintained. Wehowever as not required have not made a detailed examination of such records.

(vii) a) On the basis of our examination the Company is regular in depositingundisputed statutory dues including provident fund employees’ state insuranceincome tax sales tax service tax duty of customs duty of excise value added tax cessand other statutory dues to the extent applicable with appropriate authorities and noundisputed amounts payable in respect of the aforesaid dues were outstanding as at 31stMarch 2016 for a period of more than six months from the date of becoming payable. b) Thedisputed statutory dues aggregating to Rs.112.95 lacs that have not been deposited onaccount of matters pending before appropriate authorities are as under:

Sl. No. Name of the Statute Nature of dues Period to which pertain Amount (Rs. in Lacs) Forum where the dispute is pending
1 U.P. Trade Tax Act 1948 Sales Tax 1990-91 0.22 Hon’ble High Court - Lucknow Bench
2 U.P. Trade Tax Act 1948 Sales Tax 2002-03 0.65 Jt. Commissioner (Appeal) – Bahraich
3 Central Sales Tax Act 1956 Central Sales Tax 2009-10 1.08 Dy. Commissioner (Appeal) – Balrampur
4 Central Excise Act 1944 Cenvat Credit 2006-08 12.77 CESTAT - New Delhi
5 Central Excise Act 1944 Cenvat Credit 2006-07 0.38 Jt. Commissioner of Central Excise Allahabad
6 Central Excise Act 1944 Cenvat Credit 2005-06 15.69 CESTAT - New Delhi
7 Central Excise Act 1944 Excise Duty 2003-05 82.16 CESTAT - New Delhi
Total 112.95

(viii) The Company has not defaulted in repayment of loans or borrowings to financialinstitutions or banks or Government. The Company has not issued any debentures.

(ix) The Company has not raised any money by way of initial public offer or furtherpublic offer (including debt instruments) during the year. On the basis of our examinationand according to the information and explanations given to us money raised by way of termloans have been applied for the purpose for which the loans were obtained.

(x) According to the information and explanations given to us no material fraud by theCompany or on the Company by its officers or employees has been noticed or reported duringthe year.

(xi) According to the information and explanations give to us and based on ourexamination of the records of the Company the Company has paid/provided for managerialremuneration in accordance with the requisite approvals mandated by the provisions ofsection 197 read with Schedule V to the Act.

(xii) In our opinion the Company is not a nidhi company. Therefore clause (xii) ofparagraph 3 of the said order are not applicable to the Company.

(xiii) According to the information and explanations given to us and based on ourexamination of the records of the Company transactions with the related parties are incompliance with sections 177 and 188 of the Act where applicable and details of suchtransactions have been disclosed in the financial statements as required by the applicableaccounting standards.

(xiv) According to the information and explanations give 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 fully or partly convertible debentures duringthe year.

(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 them. Accordingly clause (xv) ofparagraph 3 of the said order is not applicable to the Company.

(xvi) According to the information and explanations given to us the provisions ofsection 45-IA of the Reserve Bank of India Act 1934 are not applicable to the Company.

For G.P. AGRAWAL & CO.
Chartered Accountants
Firm’s Registration No. - 302082E
Sd/-
(CA. Sunita Kedia)
Place of Signature: Kolkata Partner
Date: 20th May 2016 Membership No. 60162

"Annexure B" to the Auditor’s Report

"Annexure B" to the Independent Auditor’s Report of Even Date on theStandalone Financial Statements of Balrampur Chini Mills Limited Report on the InternalFinancial Controls under Clause (i) of sub-section 3 of section 143 of the Companies Act2013 ("the Act")

We have audited the internal financial controls over financial reporting of BALRAMPURCHINI MILLS LIMITED ("the Company") as at 31st March 2016 in conjunction withour audit of the standalone financial statements of the Company for the year ended on thatdate.

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 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 assetsthe prevention and detection of frauds and errors the accuracy and completeness of theaccounting records and the timely preparation of reliable financial information asrequired under the Companies Act 2013.

Auditor’s 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 on Audit of Internal Financial Controls Over Financial Reporting(the "Guidance Note") and the Standards on Auditing to the extent applicable toan audit of internal financial controls both issued by the ICAI. Those Standards and theGuidance Note require that we comply with ethical requirements and plan and perform theaudit to obtain reasonable assurance about whether adequate internal financial controlsover financial reporting were established and maintained and if such controls operatedeffectively in all material respects.

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 financial statements whether due to fraud or error. Webelieve that the audit evidence we have obtained is sufficient and appropriate to providea 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 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

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 31st March 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 ICAI.

For G.P. AGRAWAL & CO.
Chartered Accountants
Firm’s Registration No. - 302082E
Sd/-
(CA. Sunita Kedia)
Place of Signature: Kolkata Partner
Date: 20th May 2016 Membership No. 60162

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