You are here » Home » Companies » Company Overview » Birla Corporation Ltd

Birla Corporation Ltd.

BSE: 500335 Sector: Industrials
NSE: BIRLACORPN ISIN Code: INE340A01012
BSE LIVE 15:55 | 02 Dec 657.35 -7.75
(-1.17%)
OPEN

660.00

HIGH

666.00

LOW

649.50

NSE LIVE 15:40 | 02 Dec 664.10 -1.20
(-0.18%)
OPEN

664.95

HIGH

685.00

LOW

649.45

OPEN 660.00
PREVIOUS CLOSE 665.10
VOLUME 8208
52-Week high 806.75
52-Week low 322.00
P/E 18.88
Mkt Cap.(Rs cr) 5062.25
Buy Price 657.35
Buy Qty 690.00
Sell Price 0.00
Sell Qty 0.00
OPEN 660.00
CLOSE 665.10
VOLUME 8208
52-Week high 806.75
52-Week low 322.00
P/E 18.88
Mkt Cap.(Rs cr) 5062.25
Buy Price 657.35
Buy Qty 690.00
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 FINANCIAL STATEMENTS

We have audited the accompanying standalone financial statements of BIRLACORPORATION LIMITED ( the Company ) the Balance Sheet as at 31 March 2016 theStatement of Profit and Loss and the Cash Flow Statement for the year then ended and asummary of significant accounting policies and other explanatory information. MANAGEMENTSRESPONSIBILITY 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 standalone financial statements that give a true and fair view of the financialposition financial performance and cash flows of the Company in accordance with theaccounting principles generally accepted in India including the Accounting Standardsspecified under Section 133 of the Act read with Rule 7 of the Companies (Accounts)Rules 2014. This responsibility also includes maintenance of adequate accounting recordsin accordance with the provisions of the Act for safeguarding of the assets of the Companyand for preventing and detecting frauds and other irregularities; selection andapplication of appropriate accounting policies; making judgments and estimates that arereasonable and prudent; and design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the accuracy andcompleteness of the accounting records relevant to the preparation and presentation ofthe standalone financial statements that give a true and fair view and are free frommaterial misstatement whether due to fraud or error.

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 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.

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 31 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 ("the Order")issued by the Central Government of India in terms of subsection (11) of section 143 ofthe Act we give in the Annexure 'A' a statement on the matters specified in the paragraph3 and 4 of the Order to the extent applicable.

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

d. 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;

e. On the basis of the written representations received from the directors as on 31stMarch 2016 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2016 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 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 financialposition in its financial statements - refer note 2.29 and2.40 to the financialstatements;

ii. The Company did not have any material foreseeable losses on long term contractsincluding derivative contracts;

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

For H. P. KHANDELWAL & CO.
Chartered Accountants
Firm Registration No. 302050E
1B Old Post Office Street RAJIV SINGHI
Kolkata - 700 001 Partner
Date : 6th day of May 2016 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 March2016 we report that:

1. (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 except for in as follows :

Name of the Unit Total Number of Cases Leashold/ Freehold

As at 31st March 2016 (Amount in Rs. lacs)

Remarks
Gross Block Net Block
Durgapur Cement Works 1 Leasehold 6.39 Nil The Lease agreement had expired on31.12.2014 and the negotiation for the renewal is in process.

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 and investments made. The Company has neither issued any guarantee nor hasprovided any security on behalf of any party.

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 & records have been made & 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’State Insurance income tax sales tax service tax duty of excise duty of customsvalue added tax cess and other material statutory dues have been regularly depositedduring the year by the Company with the appropriate authorities. According to theinformation and explanations given to us no undisputed amounts payable in respect ofprovident fund income tax sales tax service tax duty of customs duty of excise valueadded tax cess and other material statutory dues were in arrears as at 31st March 2016for 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 wealth tax service tax dutyof customs duty of excise and value added tax as at 31st March 2016 which have not beendeposited on account of dispute and the forum where the disputes are pending are as under:

Name of the Statute Nature of Dues Amount (Rs. in Lacs) Period to which the amount relates Forum where pending
Sales Tax & VAT Laws Sales Tax and VAT 2100.40 1994-2014 Department/1st Appellate
1600.12 1989-2008 Authority Tribunals
210.01 1993-2015 High Court & above
Central Excise Act 1944 Excise Duty 976.58 1980-2012 Department/1st Appellate
2030.84 1976-2012 Authority Tribunals
Finance Act 1944 Service Tax 226.00 2005-2014 Department/1st Appellate
979.11 2004-2012 Authority Tribunals
The Custom Act 1962 Custom Duty 9.66 2012-2013 Tribunals
Income Tax Act 1961 Income Tax 2632.09 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 2015amounting to Rs. 33448.40 lacs were subsequently utilized during the year at variousdates and a sum of Rs. 22807.12 lacs remained unutilized at 31st March 2016 and kepttemporarily under Bank fixed deposit.

x. According to the information and explanations given to us no fraud by the Companyor on the Company by its officers or employees has been noticed or reported during thecourse 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 Registration No. 302050E
1B Old Post Office Street RAJIV SINGHI
Kolkata - 700 001 Partner
Date : 6th day of May 2016 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 respect to the internal financial control under clause (i) of sub-section 3 of section143 of the Act of M/s Birla Corporation Limited for the year ended 31 March 2016 wereport that :

We have audited the internal financial controls over financial reporting of M/sBirla Corporation Limited ("the Company") as of 31st March 2016 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'). 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.

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 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 authorizations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorized 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 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 ICAI.

For H. P. KHANDELWAL & CO.
Chartered Accountants
Firm Registration No. 302050E
1B Old Post Office Street RAJIV SINGHI
Kolkata - 700 001 Partner
Date : 6th day of May 2016 Membership No. 053518

Upgrade To Premium Services

Welcome User

Business Standard is happy to inform you of the launch of "Business Standard Premium Services"

As a premium subscriber you get an across device unfettered access to a range of services which include:

  • Access Exclusive content - articles, features & opinion pieces
  • Weekly Industry/Genre specific newsletters - Choose multiple industries/genres
  • Access to 17 plus years of content archives
  • Set Stock price alerts for your portfolio and watch list and get them delivered to your e-mail box
  • End of day news alerts on 5 companies (via email)
  • NEW: Get seamless access to WSJ.com at a great price. No additional sign-up required.
 

Premium Services

In Partnership with

 

Dear Guest,

 

Welcome to the premium services of Business Standard brought to you courtesy FIS.
Kindly visit the Manage my subscription page to discover the benefits of this programme.

Enjoy Reading!
Team Business Standard