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Grasim Industries Ltd.

BSE: 500300 Sector: Industrials
NSE: GRASIM ISIN Code: INE047A01021
BSE LIVE 15:40 | 11 Dec 1130.25 -1.85
(-0.16%)
OPEN

1137.80

HIGH

1138.15

LOW

1125.05

NSE 15:55 | 11 Dec 1133.95 -0.10
(-0.01%)
OPEN

1138.90

HIGH

1140.65

LOW

1126.00

OPEN 1137.80
PREVIOUS CLOSE 1132.10
VOLUME 538990
52-Week high 1299.90
52-Week low 654.60
P/E 46.21
Mkt Cap.(Rs cr) 74,297
Buy Price 0.00
Buy Qty 0.00
Sell Price 1130.25
Sell Qty 60.00
OPEN 1137.80
CLOSE 1132.10
VOLUME 538990
52-Week high 1299.90
52-Week low 654.60
P/E 46.21
Mkt Cap.(Rs cr) 74,297
Buy Price 0.00
Buy Qty 0.00
Sell Price 1130.25
Sell Qty 60.00

Grasim Industries Ltd. (GRASIM) - Auditors Report

Company auditors report

To the Members of Grasim Industries Limited

REPORT ON THE STANDALONE IND AS FINANCIAL STATEMENTS

We have audited the accompanying standalone Ind AS financial statements of GRASIMINDUSTRIES LIMITED ("the Company") which comprise the Balance sheet as at 31March 2017 and the Statement of profit and loss (including Other Comprehensive Income)the Statement of Cash flows and the Statement of changes in equity for the year thenended and a summary of the significant accounting policies and other explanatoryinformation (herein after referred to as "standalone Ind AS financialstatements").

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 cash flows and changes in equity of the Companyin accordance with the accounting principles generally accepted in India including theIndian Accounting Standards (Ind AS) prescribed under Section 133 of the Act read with therules issued thereunder.

This responsibility also includes maintenance of adequate accounting records inaccordance 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 Ind AS financial statements that give a true and fair view and are free from materialmisstatement 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 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 thereunder.

We conducted our audit of standalone 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 standalone Ind AS financial statements are freefrom material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the standalone Ind AS financial statements. The procedures selecteddepend on the auditor's judgment including the assessment of the risks of materialmisstatement of the standalone Ind AS financial statements whether due to fraud or error.In making those risk assessments the auditor considers internal financial controlrelevant to the Company's preparation of the standalone Ind AS financial statements thatgive a true and fair view in order to design audit procedures that are appropriate in thecircumstances. An audit also includes evaluating the appropriateness of the accountingpolicies used and the reasonableness of the accounting estimates made by the Company'sDirectors as well as evaluating the overall presentation of the standalone Ind ASfinancial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the standalone 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 including the Ind AS of thestate of affairs of the Company as at 31 March 2017 and its financial performanceincluding other comprehensive income its cash flows and changes in equity for the yearended on that date.

OTHER MATTERS

The comparative financial information of the Company for the year ended 31 March 2016and the transition date opening balance sheet as at 1 April 2015 included in thesestandalone Ind AS financial statements are based on the previously issued statutoryfinancial statements prepared in accordance with the Companies (Accounting Standards)Rules 2006 audited by the predecessor auditors whose report for the year ended 31 March2016 and 31 March 2015 dated 7 May 2016 and 2 May 2015 respectively expressed anunmodified opinion on those standalone financial statements as adjusted for thedifferences in the accounting principles adopted by the Company on transition to Ind ASwhich have been audited by B S R & Co. LLP Chartered Accountants one of the jointauditors of the Company.

Our opinion is not modified in respect of the above matter.

REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS

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 inparagraphs 3 and 4 of the said Order to the extent applicable.

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 the Statement of Cash flowsand the Statement of changes in equity dealt with by this report are in agreement with thebooks of account;

(d) in our opinion the aforesaid standalone Ind AS financial statements comply withthe Indian Accounting Standards specified under Section 133 of the Act read with relevantrule issued 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 isdisqualified as on 31 March 2017 from being appointed as a director in terms of Section164 (2) of the Act; and

(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 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 standalone Ind AS financial statements. Refer Note 4.1 to the standaloneInd AS financial statements;

ii. t he Company did not have any long-term contracts including derivative contractsfor which 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; and

iv. the Company has provided requisite disclosures in the standalone Ind AS financialstatements as to holdings as well as dealings in Specified Bank Notes during the periodfrom 8 November 2016 to 30 December 2016 and these are in accordance with the books ofaccounts maintained by the Company. Refer Note 4.78 to the standalone Ind AS financialstatements.

For B S R & Co. LLP
Chartered Accountants Firm's Registration No: 101248W/W-100022

Akeel Master

Partner
Membership No: 046768

 

For G. P Kapadia & Co.
Chartered Accountants
Firm's Registration No: 104768W
Atul B. Desai
Partner
Membership No: 30850
Place: Mumbai
19th May 2017

ANNEXURE-A

to the Independent Auditor's Report

With reference to the Annexure referred to in the Independent Auditor's Report to theMembers of Grasim Industries Limited ('the Company') on the standalone Ind AS financialstatements for the year ended 31 March 2017 we report the following:

(i) (a) The Company has maintained proper records showing full particulars includingquantitative details and

situation of the fixed assets (property plant and equipment).

(b) The Company has a regular programme of physical verification of its fixed assets(property plant and equipment) by which all fixed assets (property plant and equipment)are verified in a phased manner over a period of two to three years. In accordance withthis programme a portion of the fixed assets (property plant and equipment) has beenphysically verified by the management during the year and no material discrepancies havebeen noticed on such verification. In our opinion this periodicity of physicalverification is reasonable having regard to the size of the Company and the nature of itsassets.

(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 asdisclosed in Note 2.1.1 to the standalone Ind AS financial statements are held in thename of the Company except for the following:

Particulars Leasehold land Freehold land 1
Gross Block as at 31 March 2017 74.12 75.05
Net Block as at 31 March 2017 64.17 75.05
Number of Cases 104 37

(ii) Inventory except good-in-transit has been physically verified by management atreasonable intervals during the year. In our opinion the frequency of such verificationis reasonable. Discrepancies noticed on such verification between physical stocks and thebook records were not material and these have been properly dealt with in the books ofaccount.

(iii) I n our opinion and according to information and explanations given to us theCompany has not granted any loans secured or unsecured to companies firms limitedliability partnerships or other parties covered in the register maintained under Section189 of the Act. Accordingly paragraph 3(iii) of the Order is not applicable to theCompany.

(iv) The Company has not granted any loans or provided any guarantees or security tothe parties covered under Section 185 of the Act. The Company has complied with theprovisions of Section 186 of the Act with respect to loans and investments. The Companyhas not provided any guarantee or security to the parties covered under Section 186 of theAct.

(v) The Company has not accepted any deposits from the public in accordance with theprovisions of Sections 73 to 76 of the Act and the rules framed there under.

(vi) We have broadly reviewed the cost records maintained by the Company pursuant tothe rules prescribed by Central Government for maintenance of cost records under subsection (1) of Section 148 of the Act and are of the opinion that prima facie theprescribed accounts and records have been made and maintained. However we have not made adetailed examination of the records.

(vii) (a) According to the information and explanations given to us and the records ofthe Company examined by us in

our opinion the Company is generally regular in depositing the undisputed statutorydues including Provident fund Employees' state insurance Income tax Sales tax Servicetax duty of Customs duty of Excise Value added tax Cess and other material statutorydues applicable to it with the appropriate authorities.

According to the information and explanations given to us no undisputed amountspayable in respect of Provident fund Employees' state insurance Income tax Sales taxService tax duty of Customs duty of Excise Value added tax Cess and other materialstatutory dues were in arrears as at 31 March 2017 for a period of more than six monthsfrom the date they became payable.

(b) According to the information and explanations given to us there are no dues ofIncome tax Sales tax Service tax duty of Customs duty of Excise or Value added taxwhich have not been deposited with the appropriate authorities on account of any disputeother than those mentioned in Appendix I to this report.

Name of the Statute Nature of the Dues Amount (' Crores) Period to which the amount relates Forum where dispute is pending
Income Tax Act Income Tax and 144.57 2005-2014 Appellate Authority
1961 Interest 0.48 2007-2016 Assessing Authority
Sales Tax / Value Sales Tax VAT 0.01 2008-2009 High Court
Added Tax Act Interest and Penalty 5.21 2006-2017 Appellate Authority
Entry Tax Act Entry Tax and Interest 5.61 2006-2017 Supreme Court
13.46 2004-2017 High Court
1.35 2007-2013 Appellate Authority
Service Tax under Service Tax Interest 0.01 2009-2010 High Court
Finance Act 1994 and Penalty 9.19 2004-2017 Appellate Authority
1.57 1997-2016 Assessing Authority
Customs Act 1962 Customs Duty 10.87 2004-2017 Appellate Authority
Interest and Penalty 0.63 2005-2008 Assessing Authority
Central Excise Act Excise duty Interest 2.27 1999-2017 High Court
1944 and Penalty 43.89 1999-2017 Appellate Authority
7.22 1995-2017 Assessing Authority

(viii) In our opinion and according to the information and explanations given to usthe Company has not defaulted in repayment of loans or borrowings to banks and government.The Company did not have any outstanding dues to financial institution and debentureholders.

(ix) In our opinion and according to the information and explanations given to us theCompany has not raised any moneys by way of initial public offer or further public offer(including debt instruments) and term loans during the year. Accordingly the provisionsof Clause 3(ix) of the Order are not applicable to the Company

(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 give to us and based on ourexamination of the records the Company has paid or provided for managerial remunerationin accordance 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 and explanations given to us theCompany is not a Nidhi Company. Accordingly paragraph 3(xii) of the Order is notapplicable 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. The details of suchrelated party transactions have been disclosed in the financial statements as requiredunder Indian Accounting Standard (Ind AS) 24 Related Party Disclosures notified under theCompanies (Indian Accounting Standards) (Amendment) Rules 2016.

(xiv) According to the information and explanations give to us and based on ourexamination of the records the Company has not made any preferential allotment or privateplacement of shares or fully or partly convertible debentures during the year.Accordingly paragraph 3(xiv) of the Order is not applicable to the Company.

(xv) According to the information and explanations given to us and based on ourexamination of the records the Company has not entered into non-cash transactions withdirectors or persons connected with him. Accordingly paragraph 3(xv) of the Order is notapplicable.

(xvi) In our opinion and 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.

For B S R & Co. LLP Chartered Accountants Firm's Registration No: 101248W/W-100022

Akeel Master Partner

Membership No: 046768

For G. P. Kapadia & Co.

Chartered Accountants Firm's Registration No: 104768W

Atul B. Desai Partner

Membership No: 30850

Place: Mumbai 19th May 2017

ANNEXURE-B

to the Independent Auditor's Report

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 GrasimIndustries Limited ("the Company") as of 31 March 2017 in conjunction with ouraudit of the standalone Ind AS financial statements of the Company for the year ended onthat 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 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 issued by ICAI and deemedto be prescribed under Section 143(10) of the Companies Act 2013 to the extentapplicable to an audit of internal financial controls both applicable to an audit ofInternal Financial Controls and both issued by the Institute of Chartered Accountants ofIndia. Those Standards and the Guidance Note require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetheradequate internal financial controls over financial reporting was established andmaintained and if such controls operated effectively 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 controls based on the assessed risk. Theprocedures selected depend on the auditor's judgment including the assessment of therisks of material misstatement of the Ind AS financial statements whether due to fraud orerror.

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 Ind AS 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 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 the Institute of CharteredAccountants of India.

For B S R & Co. LLP Chartered Accountants Firm's Registration No: 101248W/W-100022

Akeel Master Partner

Membership No: 046768

For G. P Kapadia & Co.

Chartered Accountants Firm's Registration No: 104768W

Atul B. Desai Partner

Membership No: 30850

Place: Mumbai 19th May 2017