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Birla Corporation Ltd.

BSE: 500335 Sector: Industrials
NSE: BIRLACORPN ISIN Code: INE340A01012
BSE LIVE 15:40 | 24 Nov 1081.50 -15.35
(-1.40%)
OPEN

1111.95

HIGH

1113.80

LOW

1077.10

NSE 15:54 | 24 Nov 1085.55 -11.15
(-1.02%)
OPEN

1113.00

HIGH

1113.00

LOW

1080.10

OPEN 1111.95
PREVIOUS CLOSE 1096.85
VOLUME 1384
52-Week high 1228.75
52-Week low 608.90
P/E 75.58
Mkt Cap.(Rs cr) 8,329
Buy Price 1081.50
Buy Qty 22.00
Sell Price 0.00
Sell Qty 0.00
OPEN 1111.95
CLOSE 1096.85
VOLUME 1384
52-Week high 1228.75
52-Week low 608.90
P/E 75.58
Mkt Cap.(Rs cr) 8,329
Buy Price 1081.50
Buy Qty 22.00
Sell Price 0.00
Sell Qty 0.00

Birla Corporation Ltd. (BIRLACORPN) - Auditors Report

Company auditors report

To The Members of BIRLA CORPORATION LIMITED

REPORT ON THE STANDALONE IND AS FINANCIAL STATEMENTS

We have audited the accompanying standalone Ind AS financial statements of BIRLACORPORATION LIMITED (‘the Company') which comprise the Balance Sheet as at 31stMarch 2017 and the Statement of Profit and Loss (including Other Comprehensive Income)the Cash Flow Statement and the Statement of Changes in Equity for the year then endedand a summary of significant accounting policies and other explanatory information.

MANAGEMENT'S RESPONSIBILITY FOR THE STANDALONE 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 cash flowsand changes in equity of the Company in accordance with the accounting principlesgenerally accepted in India including the Indian Accounting Standards (Ind AS) prescribedunder section 133 of the Act . This responsibility also includes maintenance of adequateaccounting records in accordance with the provisions of the Act for safeguarding theassets of the Company and for preventing and detecting frauds and other irregularities;selection and application of appropriate accounting policies; making judgments andestimates that are reasonable and prudent; and design implementation and maintenance ofadequate internal financial controls that were operating effectively for ensuring theaccuracy and completeness of the accounting records relevant to the preparation andpresentation of the standalone Ind AS financial statements that give a true and fair viewand are free from material misstatement whether due 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 theaccounting and auditing standards and matters which are required to be included in theaudit report under the provisions of the Act and the Rules made there under. We conductedour audit of the standalone Ind AS financial statements in accordance with the Standardson Auditing specified under Section 143(10) of the Act. Those Standards require that wecomply with ethical requirements and plan and perform the audit to obtain reasonableassurance about whether the standalone Ind AS financial statements are free from materialmisstatement. An audit involves performing procedures to obtain audit evidence about theamounts and the disclosures in the standalone Ind AS financial statements. The proceduresselected depend on the auditor's judgment including the assessment of the risks ofmaterial misstatement of the standalone Ind AS financial statements whether due to fraudor error. In making those risk assessments the auditor considers internal financialcontrol relevant to the Company's preparation of the standalone Ind AS financialstatements that give a true and fair view in order to design audit procedures that areappropriate in the circumstances. An audit also includes evaluating the appropriateness ofthe accounting policies used and the reasonableness of the accounting estimates made bythe Company's Directors as well as evaluating the overall presentation of the standaloneInd AS financial statements. We believe that the audit evidence we have obtained issufficient and appropriate to provide a basis for our audit opinion on the standalone IndAS 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 including Ind AS of thefinancial position of the Company as at 31st March 2017 and its profit (including othercomprehensive income) its cash flows and the changes in equity for the year ended on thatdate.

REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS

1. As required by the Companies (Auditor's Report) Order 2016 issued by the CentralGovernment of India in terms of subsection (11) of section 143 of the Act("theOrder") we give in the "Annexure A" a statement on the matters specifiedin the paragraph 3 and 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 Cash Flow Statement and the Statement of Changes in Equity dealt with by thisReport are in agreement with the books of account.

d. In our opinion the aforesaid standalone Ind AS financial statements comply with theIndian Accounting Standards prescribed under section 133 of the Act.

e. On the basis of the written representations received from the directors as on 31stMarch 2017 taken on record by the Board of Directors none of the directors isdisqualified as on 31st 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".

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 (as amended) in our opinion and to the best of our information and according to the explanations givento us :

i. The Company has disclosed the impact of pending litigations on its financialposition in its standalone Ind AS financial statements – refer note 42.1 to 42.6 tothe financial statements;

ii. The Company did not have any long term contracts including derivative contracts forwhich there were any material foreseeable losses;

iii. There has been no delay in transferring amounts required to be transferred tothe Investor Education and Protection Fund by the Company;

iv. The Company has provided requisite disclosures in Note No. 63 to its Standalone IndAS Financial Statements as regards its holding and dealings in Specified Bank Notes asdefined in the Notification S.O. 3407(E) dated the 8th November 2016 of the Ministry ofFinance during the period from 8th November 2016 to 30th December 2016. Based on auditprocedures performed and relying on the management representation we report that thedisclosures are in accordance with books of account maintained by the Company and asproduced to us by the Management.

For H. P. Khandelwal & Co.

Chartered Accountants

Firm‘s Registration No. 302050E
Rajiv Singhi
Place : KOLKATA

Partner

Dated : 26th day of May 2017 Membership No. 053518

ANNEXURE- A TO THE INDEPENDENT AUDITORS' REPORT

The Annexure referred to in paragraph 1 under the heading "Report on Other Legaland Regulatory Requirements" of our Independent Auditors' Report of even date inrespect to statutory audit of M/s Birla Corporation Limited for the year ended 31 March2017 we report that :

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

(b) The fixed assets have been physically verified wherever practicable on a phasedmanner by the management/ internal auditors and the reconciliation of the quantities withthe book records has been done on continuous basis except in case of Soorah Jute Mills(due to suspension of work) Auto Trim Division at Gurgaon & Chakan where verificationcould not be done. Further the Differences if any arising out of such reconciliation sofar have been adjusted and no material discrepancies between book records and physicalinventory have been noticed.

(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 inventory has been physically verified at reasonable intervals during the yearby the Management/ Internal Auditors except in case of Soorah Jute Mills (due tosuspension of work) and Auto Trim Division at Gurgaon & Chakan units whereverification could not be done. The discrepancies noticed on verification between thephysical stock and the book stocks wherever ascertained were not significant and havebeen properly dealt in the books of accounts.

iii. In our opinion and according to the information and explanations given to us theCompany has not granted any loan to parties covered in the register maintained undersection 189 of the Companies Act 2013. Thus paragraph 3(iii) of the Order is notapplicable.

iv. In our opinion and according to the information and explanations given to us theCompany has complied with the provisions of section 185 and 186 of the Act with respectto the loans investments & guarantees made.

v. In our opinion and according to the information and explanations given to us theCompany did not receive any deposits covered under sections 73 to 76 of the Companies Actand the rules framed there under with regard to deposits accepted from the public duringthe year.

vi. The Central Government has prescribed maintenance of cost records under section 148(1) of the Companies Act for the Company's Cement Jute Power and Auto Trim Units. Wehave broadly reviewed such accounts and records and are of the opinion that prima faciethe prescribed accounts and records have been made and maintained but no detailedexamination of such records and accounts have been carried out by us.

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 ofaccount in respect of undisputed statutory dues including Provident Fund Employees' StateInsurance Income Tax Sales Tax Service Tax duty of Customs duty of Excise ValueAdded Tax Cess and other material statutory dues have been regularly deposited during theyear by the Company with the appropriate authorities. According to the information andexplanations given to us no undisputed amounts payable in respect of Provident FundEmployees' State Insurance Income Tax Sales Tax Service Tax Customs Duty Excise DutyValue Added Tax Cess and other material statutory dues were in arrears as at 31 March2017 for a period of more than six months from the date they became payable.

(b) According to the information and explanations given to us and the records of theCompany examined by us the dues of Income Tax Sales Tax Service Tax duty of Customsduty of Excise and Value Added Tax as at 31 March 2017 which have not been deposited onaccount of dispute and the forum where the disputes are pending are as under :

Name of the Statute Nature of Dues Amount Period to which the amount relates Forum where pending
(Rs. In Lacs)
Sales Tax & VAT Laws Sales Tax and VAT 3029.60 1994-2013 Department/ 1st Appellate Authority
171.34 1989-2008 Authority Tribunals
237.06 1989-2017 High Court & above
Central Excise Act 1944 Excise Duty 2180.33 1988-2016 Department/ 1st Appellate Authority
1897.79 1976-2013 Authority Tribunals
86.44 2004-2016 Department/ 1st Appellate Authority
Finance Act 1994 Service Tax 714.94 2004-2015 Authority Tribunals
138.36 2004-06 High Court & above
The Customs Act 1962 Custom Duty 9.66 2012-2014 Authority Tribunals
The Income Tax Act 1961 Income Tax 2712.24 AY 2011-12 to 2012-13 Department/ 1st Appellate Authority

viii. According to the information and explanations given to us by the management theCompany has not defaulted in repayment of dues to financial institutions or banks ordebenture holders.

ix. Based on information and explanations given to us and records of the Companyexamined by us in our opinion the term loans have been applied for the purpose for whichthey were obtained. Proceeds from Foreign currency loans raised in earlier years andremained unutilized due to delays in execution of projects as at 1st April 2016amounting to Rs. 22807.12 lacs were subsequently utilized during the year at variousdates and a sum of Rs. 13488.62 lacs remained unutilized at 31st March 2017 and kepttemporarily under Bank fixed deposit.

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 course of our audit.

xi. According to the information and explanations given 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 and according to the information and explanations given to us theCompany is not a nidhi company. Accordingly paragraph 3(xii) of the Order is notapplicable.

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 him. Accordingly paragraph 3(xv) ofthe Order is not applicable.

xvi. The Company is not required to be registered under section 45-IA of the ReserveBank of India Act 1934.

For H. P. Khandelwal & Co.

Chartered Accountants

Firm‘s Registration No. 302050E
Rajiv Singhi
Place : KOLKATA

Partner

Dated : 26th day of May 2017 Membership No. 053518

ANNEXURE - B TO THE INDEPENDENT AUDITORS' REPORT

The Annexure referred to in paragraph 2 (f) under the heading "Report on OtherLegal and Regulatory Requirements" of our Independent Auditors' Report of even datein internal financial control under clause (i) of sub-section 3 of section 143 of the Actof M/s Birla Corporation Limited for the year ended 31 March 2017 we report that :

We have audited the internal financial controls over financial reporting of M/s BirlaCorporation Limited ("the Company") as of 31st March 2017 inconjunction with our audit of the financial statements of the Company for the year endedon 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 effcientconduct 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 Act.

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 issued by ICAI and deemedto be prescribed under section 143(10) of the Companies Act 2013 to the extent applicableto an audit of internal financial controls both applicable to an audit of InternalFinancial Controls and both issued by ICAI. Those Standards and the Guidance Note requirethat we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether adequate internal financial controls over financialreporting was established and maintained and if such controls operated effectively in allmaterial 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 judgment including the assessment of the risks ofmaterial misstatement 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 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 of records that in reasonable detail accurately andfairly reflect the transactions and dispositions of the assets of the company;

(2) 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 authorizations of management and directors of the company; and

(3) provide reasonable assurance regarding prevention or timely detection ofunauthorized 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 31st 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 H. P. Khandelwal & Co.

Chartered Accountants

Firm‘s Registration No. 302050E
Rajiv Singhi
Place : KOLKATA

Partner

Dated : 26th day of May 2017 Membership No. 053518