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BASF India Ltd.

BSE: 500042 Sector: Industrials
NSE: BASF ISIN Code: INE373A01013
BSE 15:40 | 19 Jan 2216.90 23.05
(1.05%)
OPEN

2197.35

HIGH

2240.00

LOW

2195.95

NSE 15:55 | 19 Jan 2219.30 17.90
(0.81%)
OPEN

2210.00

HIGH

2249.00

LOW

2195.05

OPEN 2197.35
PREVIOUS CLOSE 2193.85
VOLUME 2565
52-Week high 2430.00
52-Week low 1121.00
P/E 191.77
Mkt Cap.(Rs cr) 9,597
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 2197.35
CLOSE 2193.85
VOLUME 2565
52-Week high 2430.00
52-Week low 1121.00
P/E 191.77
Mkt Cap.(Rs cr) 9,597
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

BASF India Ltd. (BASF) - Auditors Report

Company auditors report

BASF India Limited

Report on the Ind AS Financial Statements

We have audited the accompanying Ind AS financial statements of BASF 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 ended on that date and asummary of the significant accounting policies and other explanatory information(hereinafter referred to as "Ind AS financial statements").

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 Ind AS financial statements that give a true and fair view of the financialposition the 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 the relevant rules issued thereunder. 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 Ind AS financial statementsthat give a true and fair view and are free from material misstatement whether due tofraud 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 andauditing standards and matters which are required to be included in the audit report underthe provisions 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 theamounts and the disclosures in the Ind AS financial statements. The procedures selecteddepend on the auditor's judgment including the assessment of the risks of materialmisstatement of the Ind AS financial statements whether due to fraud or error. In makingthose risk assessments the auditor considers internal financial control relevant to theCompany's preparation of the Ind AS financial statements that give a true and fair view inorder to design audit procedures that are appropriate in the circumstances. An audit alsoincludes evaluating the appropriateness of the 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 thatthe audit evidence we have obtained is sufficient and appropriate to provide a basis forour 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 thefinancial position of the Company as at 31 March 2017 and its financial performanceincluding other comprehensive income its cash flows and the changes in equity for theyear ended on that date.

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 of India in terms of sub-section (11) of Section 143 ofthe Act we give in the Annexure A a statement on the matters specified in paragraphs 3and 4 of 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 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 (including other comprehensiveincome) the Statement of Cash Flows and Statement of Changes in Equity dealt with by thisReport are in agreement with the books of account.

(d) In our opinion the aforesaid Ind AS financial statements comply with the IndianAccounting Standards prescribed under Section 133 of the Act read with the 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 aredisqualified 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 beincluded in the Auditor's Report in accordance with Rule 11 of the Companies (Audit andAuditors) Rules 2014 in our opinion and to the best of our information and according tothe explanations given to us: i. The Company has disclosed the impact of pendinglitigations on its financial position in its Ind AS financial statements – Refer Note34 or 40 to the Ind AS financial statements. ii. The Company has made provision asrequired under the applicable law or accounting standard for material foreseeable lossesif any on long term contracts including derivative contracts. Refer Note 16 to the Ind ASfinancial statements. iii. There has been no delay in transferring amounts required to betransferred to the Investor Education and Protection Fund by the Company. iv. The Companydid not have any holdings or dealings in Specified Bank Notes during the period from 8thNovember 2016 to 30th December 2016 – Refer Note 9 to the Ind ASfinancial statements.

For B S R & Co. LLP

Chartered Accountants

Firm's Registration No: 101248W/W-100022

Yezdi Nagporewalla

Partner

Membership No: 049265

Mumbai

4th May 2017

Annexure A to the Independent Auditors' Report – 31 March 2017

(Referred to in our report of even date)

i. (a) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets. (b) The Company has a regularprogramme of physical verification of its fixed assets by which all fixed assets areverified in a phased manner over a period of two years. In accordance with this programmea portion of the fixed assets has been physically verified by the management during theyear and no material discrepancies have been noticed on such verification. In our opinionthis periodicity of physical verification is reasonable having regard to the size of theCompany and the nature of its assets. (c) According to the information and explanationsgiven to us and on the basis of our examination of the records of the Company the titledeeds of immovable properties are held in the name of the Company except in respect of thelease cum sale agreement for one of the Company's manufacturing locations (gross block:Rs. 16.4 million and net block Rs. Nil included under leasehold land) the Company is inthe process of complying with the terms of the lease cum sale agreement so as to executethe final sale agreement and obtain the right to ownership. ii. The inventory exceptgoods-in-transit and stocks lying with third parties has been physically verified by themanagement during the year. In our opinion the frequency of such verification isreasonable. For stocks lying with third parties at the year-end written confirmationshave been obtained. The discrepancies noticed on verification between the physical stocksand the book records were not material. iii. The Company has not granted any loanssecured or unsecured to companies firms Limited Liability Partnerships or other partiescovered in the register maintained under Section 189 of the Companies Act 2013 ("theAct"). Accordingly paragraphs 3(iii)(a) (b) and (c) of the Order are not applicableto the Company. iv. In our opinion and according to the information and explanations givento us the Company has not given any loan made any investment given any guarantee orprovided any security under Section 185 and 186 of the Act. Accordingly paragraph 3(iv)of the Order is not applicable to the Company. v. In our opinion and according to theinformation and explanations given to us the Company has not accepted deposits as per thedirectives issued by the Reserve Bank of India under the provisions of Sections 73 to 76or any other relevant provisions of the Act and the rules framed there under. Accordinglyparagraph 3(v) of the Order is not applicable to the Company. vi. We have broadly reviewedthe books of account maintained by the Company pursuant to the rules prescribed by theCentral Government for maintenance of cost records under Section 148(1) of the Act and areof the opinion that prima facie the prescribed accounts and records have been made andmaintained. 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 of ourexamination of the records of the Company amounts deducted/accrued in the books ofaccount in respect of undisputed statutory dues including Provident Fund Employees' StateInsurance Professional tax Income-tax Sales-tax Service tax Duty of Customs Duty ofExcise Value added tax and other material statutory dues have been generally regularlydeposited during the year by the Company with the appropriate authorities. According tothe information and explanations given to us no undisputed amounts payable in respectof Provident Fund Employees' State Insurance Professional tax Income-tax Sales-taxService-tax Duty of Customs Duty of Excise Value added tax and other material statutorydues were in arrears as at 31 March 2017 for a period of more than six months from thedate they became payable. (b) According to the information and explanations given to usthere are no dues of Income-tax Sales-tax Service tax Duty of Customs Duty ofExcise and Value added tax which have not been deposited with the appropriate authoritieson account of any dispute other than those mentioned in the Appendix to this report.

viii. In our opinion and according to the information and explanations given to us theCompany has not defaulted in repayment of dues to financial institutions or banks. TheCompany does not have any loans or borrowings from government or dues to debenture holdersduring the year. ix. The Company did not raise any money by way of initial public offer orfurther public offer (including debt instruments). In our opinion and according to theinformation and explanations given to us the term loans taken by the Company have beenapplied for the purpose for which they are raised. x. According to the information andexplanations given to us no material fraud by the Company or on the Company by itsofficers or employees has been noticed or reported during the course of our audit. xi.According to the information and explanations give to us and based on our examination ofthe records of the Company the Company has paid/provided for managerial remuneration inaccordance with the requisite approvals mandated by the provisions of Section 197 readwith Schedule V to the Act. xii. In our opinion and according to the information andexplanations given to us the Company is not a Nidhi Company. Accordingly paragraph3(xii) of the Order is not applicable to the Company. xiii. According to the informationand explanations given to us and based on our examination of the records of the Companytransactions with the related parties are in compliance with Sections 177 and 188 of theAct where applicable and details of such transactions have been disclosed in the Ind ASfinancial statements as required by the applicable accounting standards. xiv. According tothe information and explanations given to us and based on our examination of the recordsof the Company the Company has not made any preferential allotment or private placementof shares or fully or partly convertible debentures during the year. Accordinglyparagraph 3(xiv) of the Order is not applicable to the Company. xv. According to theinformation and explanations given to us and based on our examination of the records ofthe Company the Company has not entered into any non-cash transactions with directors orpersons connected with them. Accordingly paragraph 3(xv) of the Order is not applicableto the Company. xvi. According to the information and explanations given to us theCompany is not required to be registered under Section 45-IA of the Reserve Bank of IndiaAct 1934. Accordingly paragraph 3(xvi) of the Order is not applicable to the Company.

For B S R & Co. LLP

Chartered Accountants

Firm's Registration No: 101248W/W-100022

Yezdi Nagporewalla

Partner

Membership No: 049265

Mumbai

4th May 2017

Name of the Statute Nature of the Amounts Amount Period Forum where the dispute is pending
dues (in million) paid in
dispute
(in million)
Central Excise Act Duty interest 0.85 2014-2015 Additional Commissioner
1944 and penalty 1.83 1982-1983 Assistant Commissioner of Central Excise
2008-2009
2011-2012
0.66 2007-2008 Central Excise & Service Tax Appellate
Tribunal
3.31 2007-2008 Commissioner of Central Excise
2.04 2008-2009 Commissioner (Appeals)
0.51 2009-2010 Deputy Commissioner of Central Excise
2010-2011
3.13 1992-1993 High Court
2000-2001
12.33 Total
The Customs Act Duty interest 0.89 2012-2013 Assistant Commissioner of Central Excise
1962 and penalty 12.10 1992-1993 Central Excise & Service Tax Appellate
Tribunal
95.00 2005-2006 Supreme Court
107.99 Total
The Service Tax Act Tax Interest 0.04 2008-2010 Assistant Commissioner – Central Excise
1975 and Penalty 2010-2011
5.08 2005-2010 Central Excise & Service Tax Appellate
Apr. 2008 to Tribunal
Jan. 2013
Jan. 2005 to
Mar. 2008
1.56 Dec. 2007 Commissioner (Appeals)
to Sep. 2009
21.80 2005-2006 to Commissioner of Central Excise
2009-2010
13.87 2006-2010 Commissioner of Service Tax
2008-2009 to
2012-2013
2009-2010
0.12 Jan. 2012 to Assistant Commissioner – Central Excise
Aug. 2014
42.47 Total
State and Central Non-Submission 0.38 2006-2007 Additional Commissioner of Sales Tax
Sales Tax Act 1956 of forms 11.23 2009-2010 Appellate Deputy Commissioner
2012-2013
2013-2014
4.02 2002-2003 Commissioner of Sales Tax
2007-2008
46.09 39.82 2013-2014 Deputy Commissioner of Sales Tax
2014-2015
2011-2012
2010-2011
43.86 37.70 2011-2012 Deputy Commissioner of Sales Tax
2012-2013 (Appeals)
2010-2011
2008-2009
2009-2010
174.78 22.36 2006-2007 Joint Commissioner of Sales Tax
2007-2008 (Appeals)
2008-2009
2009-2010
2010-2011
2011-2012
2013-2014
2014-2015
3.22 2005-2006 Joint Commissioner of Sales Tax
2008-2009
283.58 99.88 Total

 

Name of the Statute Nature of the dues Amounts (in million) Amount paid in dispute (in million) Period Forum where the dispute is pending
State and Central Tax interest and 1.67 2006-2007 Additional Commissioner of Sales Tax
Sales Tax Act 1956 penalty 0.14 2011-2012 Assistant Commissioner of Sales Tax
14.75 2009-2010 Appellate Deputy Commissioner
2012-2013
2013-2014
69.39 2007-2008 Deputy Commissioner of Sales Tax
2008-2009 (Appeals)
2009-2010
2011-2012
2010-2011
2012-2013
12.48 11.67 2009-2010 Deputy Commissioner of Sales Tax
2010-2011
2013-2014
2014-2015
360.78 38.97 2006-2007 Joint Commissioner of Sales Tax
2007-2008 (Appeals)
2008-2009
2009-2010
2010-2011
2011-2012
1.61 0.07 2006-2007 Tribunal
2007-2008
1993-1994
1994-1995
2004-2005
22.12 0.74 2013-2014 Joint Commissioner of Sales Tax
2006-2007
2005-2006
7.71 2002-2003 Commissioner of Sales Tax
490.64 51.45 Total
The Income Tax Act Tax interest and 0.02 2010-2011 Assistant Commissioner of Income Tax
1961 demand 186.19 67.50 2006-2007 Commissioner of Income Tax (Appeals)
2008-2009
2009-2010
2010-2011
2013-2014
54.48 7.60 2009-2010 Deputy Commissioner of Income Tax
2.70 2.70 2000-2001 High Court
2003-2004
2006-2007
594.91 253.67 2000-2001 Income Tax Appellate Tribunal
2002-2003
2003-2004
2006-2007
2007-2008
2008-2009
2009-2010
2010-2011
2011-2012
2012-2013
838.30 331.47 Total

Annexure B to the Independent Auditors' Report of even date on the Ind AS FinancialStatements of BASF India Limited – 31 March 2017

(Referred to in our report of even date)

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 BASF 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 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 frauds 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 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 issued by ICAI and deemedto be prescribed 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 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 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 ofrecords that in reasonable detail accurately and fairly reflect the transactions anddispositions of the assets of the company; (2) provide reasonable assurance thattransactions are recorded as necessary to permit preparation of financial statements inaccordance with generally accepted accounting principles and that receipts andexpenditures 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 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 on Audit ofInternal Financial Controls Over Financial Reporting issued by ICAI.

For B S R & Co. LLP

Chartered Accountants

Firm's Registration No: 101248W/W-100022

Yezdi Nagporewalla

Partner

Membership No: 049265

Mumbai

4th May 2017