You are here » Home » Companies » Company Overview » Greenlam Industries Ltd

Greenlam Industries Ltd.

BSE: 538979 Sector: Others
NSE: GREENLAM ISIN Code: INE544R01013
BSE LIVE 15:40 | 17 Nov 1020.50 35.50
(3.60%)
OPEN

977.05

HIGH

1037.95

LOW

977.05

NSE 15:31 | 17 Nov 1038.65 58.15
(5.93%)
OPEN

999.00

HIGH

1060.00

LOW

970.25

OPEN 977.05
PREVIOUS CLOSE 985.00
VOLUME 892
52-Week high 1037.95
52-Week low 500.00
P/E 47.42
Mkt Cap.(Rs cr) 2,463
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 977.05
CLOSE 985.00
VOLUME 892
52-Week high 1037.95
52-Week low 500.00
P/E 47.42
Mkt Cap.(Rs cr) 2,463
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Greenlam Industries Ltd. (GREENLAM) - Auditors Report

Company auditors report

To

The Members of

Greenlam Industries Limited

REPORT ON THE STANDALONE FINANCIAL STATEMENTS

We have audited the accompanying standalone financial statements of GREENLAM INDUSTRIESLIMITED ("the Company") which comprise the Balance Sheet as at 31 March 2017the Statement of Profit and Loss the Cash Flow Statement for the year then ended and asummary of the significant accounting policies and other explanatory information.

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 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 and Companies (Accounting Standards) Amendment Rules 2016. Thisresponsibility also includes maintenance of adequate accounting records in accordance withthe provisions of the Act for safeguarding of 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 accountingand auditing standards and matters which are required to be included in the audit reportunder the provisions of the Act and the Rules made thereunder. We conducted our audit inaccordance with the Standards on Auditing specified under Section 143(10) of the Act.Those Standards require that we comply with ethical requirements and plan and perform theaudit to obtain reasonable assurance about whether the financial statements are free frommaterial misstatement. An audit involves performing procedures to obtain audit evidenceabout the amounts and the disclosures in the financial statements. The procedures selecteddepend on the auditor's judgment including the assessment of the risks of materialmisstatement of the financial statements whether due to fraud or error. In making thoserisk assessments the auditor considers internal financial control relevant to theCompany's preparation of the financial statements that give a true and fair view in orderto 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 financial statements. We believe that the auditevidence we have obtained is sufficient and appropriate to provide a basis for our auditopinion 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 31March 2017 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 sub-section (11) of Section 143 of the Act we give inthe Annexure ‘A' a statement on the matters specified in paragraphs 3 and 4 of theOrder.

2. As required by Section 143 (3) of the Act we report that: (a) We have sought andobtained all the information and explanations which to the best of our knowledge andbelief were necessary for the purposes of our audit.

(b) In our opinion proper books of account as required by the law have been kept bythe Company 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 and Companies (Accounting Standards) Amendment Rules2016.

(e) On the basis of the written representations received from the directors and takenon record by the Board of Directors none of the directors is disqualified as on 31 March2017 from being appointed as a director in terms of Section 164 (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. TheCompany has disclosed the impact of pending litigations on its financial position in itsfinancial statements – Refer Note 20.1.1 to the financial statements; ii. The Companydid not have any long-term contracts including derivative contracts for which there wereany material foreseeable losses; iii. There were no amounts which were required to betransferred to the Investor Education and Protection Fund by the Company. iv. The Companyhas provided requisite disclosures in the financial statements as to holdings as well asdealings in Specified Bank Notes during the period from 8th November 2016 to 30th December2016 and the same are in accordance with books of accounts maintained by the Company andas produced to us by the Management. (Refer note no. 42)

For D. DHANDARIA & COMPANY
Chartered Accountants
ICAI Firm Reg. No. 306147E
(Dindayal Dhandaria)
Partner
Membership No. 010928

Place of Signature: New Delhi Date : 25th May 2017

Annexure ‘A' referred to in paragraph ‘report on other legal and regulatoryrequirements' of our report of even date

Re: greenlam industries limited (‘The Company')

(i) (a) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets. b) All fixed assets have not beenphysically verified by the management during the year but there is a regular programme ofverification which in our opinion is reasonable having regard to the size of the Companyand the nature of its assets. No material discrepancies were noticed on such verification.

(c) Based on our audit procedures performed for the purpose of reporting the true andfair view of the financial statements and according to information and explanations givenby the management the title deeds of immovable properties are held in the name of theCompany except in case of following immovable properties are yet to be transferred in thename of the Company pursuant to Schemes of Arrangements.

Description Gross Block Net Block
As on 31st As on 31st
March 2017 March 2017
1 One Office H 286.98 H 230.44
Premises Lacs Lacs

(ii) The management has conducted physical verification of inventory at reasonableintervals during the year and no material discrepancies were noticed on such physicalverification.

(iii) The Company has not granted any loans secured or unsecured to companies firmsLimited Liability Partnerships or other parties covered in the register

Statement of Disputed Dues maintained under section 189 of the Companies Act 2013("the Act").

(iv) In our opinion and according to information and explanations given to us inrespect of loans investments guarantees and securities the Company has complied withthe provisions of Section 185 and 186 of the Act. (v) The Company has not accepted anydeposits from the public. (vi) The Central Government has not prescribed the maintenanceof cost records under section 148(1) of the Act which apply to the Company. (vii) (a) TheCompany is generally regular in depositing with appropriate authorities undisputedstatutory dues including provident fund employees' state insurance income-taxsales-tax service tax customs duty excise duty value added tax cess and othermaterial statutory dues applicable to it.

(b) 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 customs duty excise duty value added tax cess and other material statutorydues were outstanding at the year end for a period of more than six months from the datethey became payable.

(c) According to the records of the Company the dues outstanding of income-taxsales-tax service tax customs duty excise duty value added tax and cess on account ofany dispute are as follows:

Name of the Statute Nature of the Dues Amount Period to which the amount relates Forum where dispute is pending
(H in Lacs) (Financial Year)
Rajasthan VAT Act 2003 Disallowance of Set-off of the Entry Tax in respect of Branch Transfers 58.95 FY 2003 - 2004 Tax Board Ajmer
Rajasthan VAT Act 2003 Disallowance of Set-off of the Entry Tax in respect of Branch Transfers 47.55 FY 2004 - 2005 Tax Board Ajmer
Central Excise Excise Duty on Resin for Captive 2543.31 June 2009 to Before CESTAT
Act 1944 Consumption February 2013 New Delhi
Central Excise Act 1944 Excise Duty on Plastic Scrap 22.32 June 2009 to Dec 2012 Before Joint Commissioner Chandigarh
Central Excise Act 1944 Excise duty on Wages Subsidy 10.87 April 2011- Sep 2014 Before Commissioner (Appeals) Jaipur

(viii) Based on our audit procedures performed for the purpose of reporting the trueand fair view of the financial statements and according to information and explanationsgiven by the management we are of the opinion that the Company has not defaulted inrepayment of dues to any bank. Further the Company does not have any debentures and loanfrom financial institution or government.

(ix) According to the information and explanations given by the management the Companyhas not raised any money way of initial public offer / further public offer / debtinstruments and term loans and hence reporting under clause (ix) is not applicable to theCompany and hence not commented upon. (x) According to the information and explanationsgiven to us by the Management no fraud on or by the Company was noticed and detected bythe Management during the year.

(xi) Subject to the approval of the shareholders the Board of Directors resolved toincrease the managerial remuneration with effect from 1st October 2016. Accordingly theCompany has paid/ provided an additional sum of H106.62 lacs which in the event ofnon-approval by shareholders would be adjusted against commission due to them. Exceptthis the Company has paid/provided for managerial remuneration in accordance withrequisite approvals mandated by the provisions of section 197 read with Schedule V of theCompanies Act 2013.

(xii) In our opinion the Company is not a nidhi company. Therefore the provisions ofclause 3(xii) of the Order are not applicable to the Company and hence not commented upon.

(xiii) Based on our audit procedures performed for the purpose of reporting the trueand fair view of the financial statements and according to the information andexplanations given by the management transactions with the related parties are incompliance with Section 177 and 188 of Companies Act 2013 where applicable and thedetails have been disclosed in the notes to the financial statements as required by theapplicable accounting standards.

(xiv) According to the information and explanations given to us and on an overallexamination of the balance sheet the Company has not made any preferential allotment orprivate placement of shares or fully or partly convertible debentures during the yearunder review and hence not commented upon.

(xv) Based on our audit procedures performed for the purpose of reporting the true andfair view of the financial statements and according to the information and explanationsgiven by the management the Company has not entered into any non-cash transactions withdirectors or persons connected with him.

(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 D. DHANDARIA & COMPANY

Chartered Accountants

ICAI Firm Reg. No. 306147E

(Dindayal Dhandaria)

Partner

Membership No. 010928

Place of Signature: New Delhi Date : 25th May 2017

Annexure ‘B' to the Independent Auditor's Report of even date on the FinancialStatements of Greenlam Industries Limted

REPORT ON THE INTERNAL FINANCIAL CONTROLS UNDER CLAUSE (I) OF SUB-SECTION 3 OF SECTION143 OF THE COMPANIES ACT 2013 ("THE ACT")

To

The Members of

Greenlam Industries Limited

We have audited the internal financial controls over financial reporting of GREENLAMINDUSTRIES LIMITED ("the Company") as of March 31 2017 in conjunction with ouraudit of the 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. These responsibilities includethe design implementation and maintenance of adequate internal financial controls thatwere operating effectively for ensuring the orderly and efficient conduct of its businessincluding adherence to the 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 as specified under Section143(10) of the Companies Act 2013 to the extent applicable to an audit of internalfinancial controls both applicable to an audit of Internal Financial Controls and bothissued by the Institute of Chartered Accountants of India. 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 was 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 judgment 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 internal financial controls system over financialreporting.

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 March 31 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.

EXPLANATORY PARAGRAPH

We also have audited in accordance with the Standards on Auditing issued by theInstitute of Chartered Accountants of India as specified under Section 143(10) of theAct the financial statements of Company which comprise the Balance Sheet as at March 312017 and the related Statement of Profit and Loss and Cash Flow Statement for the yearthen ended and a summary of significant accounting policies and other explanatoryinformation and our report dated 25th May 2017 expressed an unqualified opinion thereon.

For D. DHANDARIA & COMPANY

Chartered Accountants

ICAI Firm Reg. No. 306147E

(Dindayal Dhandaria)

Partner

Membership No. 010928

Place of Signature: New Delhi

Date : 25th May 2017