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3M India Ltd.

BSE: 523395 Sector: Others
NSE: 3MINDIA ISIN Code: INE470A01017
BSE 00:00 | 23 Aug 20549.60 336.15
(1.66%)
OPEN

20203.55

HIGH

20641.75

LOW

20200.00

NSE 00:00 | 23 Aug 20538.90 302.80
(1.50%)
OPEN

20151.00

HIGH

20625.00

LOW

20125.25

OPEN 20203.55
PREVIOUS CLOSE 20213.45
VOLUME 101
52-Week high 26679.25
52-Week low 19150.10
P/E 75.12
Mkt Cap.(Rs cr) 23,159
Buy Price 20550.00
Buy Qty 1.00
Sell Price 20669.00
Sell Qty 5.00
OPEN 20203.55
CLOSE 20213.45
VOLUME 101
52-Week high 26679.25
52-Week low 19150.10
P/E 75.12
Mkt Cap.(Rs cr) 23,159
Buy Price 20550.00
Buy Qty 1.00
Sell Price 20669.00
Sell Qty 5.00

3M India Ltd. (3MINDIA) - Auditors Report

Company auditors report

INDEPENDENT AUDITOR'S REPORT

To the Members of 3M India Limited

Report on the Audit of the Ind AS Financial Statements

We have audited the accompanying Ind AS financial statements of 3M IndiaLimited("the Company") which comprise the Balance Sheet as at 31 March 2018the Statement of Profit and Lossthe Statement of Changes in Equity the Cash FlowStatement for the year then ended and a summary of the significant accounting policies andother explanatory information (hereinafter referred to as "the Ind AS financialstatements").

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 state of affairsprofit/loss and other comprehensive income changes in equity and cash flows of theCompany in accordance with the accounting principles generally accepted in Indiaincluding the Indian Accounting (IndAS) prescribed under Section 133 of the Act.

This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding the assets of the Company andfor preventing and detecting frauds and other irregularities; selection and application ofappropriate accounting policies; making judgments and estimates that are reasonable andprudent; and design implementation and maintenance of adequate internal financialcontrols that were operating effectively for ensuring the accuracy and completeness of theaccounting records relevant to the preparation and presentation of the Ind AS financialstatements that give a true and fair view and are free from material misstatement whetherdue to fraud or error.

In preparing the financial statements management is responsible for assessing theCompany's ability to continue as a going concern disclosing as applicable mattersrelated to going concern and using the going concern basis of accounting unless managementeither intends to liquidate the Company or to cease operations or has no realisticalternative but to do so.

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 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 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 the amounts andthe disclosures in the Ind AS financial statements. The procedures selected depend on theauditor's judgment including the assessment of the risks of material misstatement of theInd AS financial statements whether due to fraud or error. In making those riskassessments the auditor considers internal financial control relevant to the Company'spreparation of the Ind AS financial statements that give a true and fair view in order todesign audit procedures that are appropriate in the circumstances. An audit also includesevaluating the appropriateness of the accounting policies used and the reasonableness ofthe accounting estimates made by the Company's Directors as well as evaluating theoverall presentation of the Ind AS financial statements.

We are also responsible to conclude on the appropriateness of management's use of thegoing concern basis of accounting and based on the audit evidence obtained whether amaterial uncertainty exists related to events or conditions that may cast significantdoubt on the entity's ability to continue as a going concern. If we conclude that amaterial uncertainty exists we are required to draw attention in the auditor's report tothe related disclosures in the Ind AS financial statements or if such disclosures areinadequate to modify the opinion. Our conclusions are based on the audit evidenceobtained up to the date of the auditor's report. However future events or conditions maycause an entity to cease to continue as a going concern.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our 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 of the state of affairs of the Company as at 31March 2018 its profit and other comprehensive income its changes in equity and its cashflows 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 Section 143(11) of the Actwe givein "Annexure A" a statement on the matters specified in paragraphs 3 and 4 ofthe 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 Lossthe Statement of Changes inEquity and the Cash Flow Statement dealt with by this Report are in agreement with thebooks of account;

(d) In our opinion the aforesaid Ind AS financial statements comply with the IndianAccounting Standards prescribed under Section 133 of the Act;

(e) On the basis of the written representations received from the directors as on 31March 2018 taken on record by the Board of Directors none of the directors isdisqualified as on 31 March 2018 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 with reference toInd AS financial statements of the Company and the operating effectiveness of suchcontrols refer to our separate 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 Ind AS financial statements - Refer notes 35 and 37 to the Ind ASfinancial 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; and

iv. The disclosures in the Ind AS financial statements regarding holdings as well asdealings in specified bank notes during the period from 8 November 2016 to 30 December2016 have not been made since they do not pertain to the financial year ended 31 March2018.

For B S R & Co. LLP
Chartered Accountants
Firm Registration No: 101248W/W-100022
Amit Somani
Place : Bangalore Partner
Date : May 30 2018 Membership Number: 060154

ANNEXURE - A TO THE AUDITOR'S REPORT

With reference to the Annexure A referred to in paragraph 1 in Report on Other Legaland Regulatory Requirements of the Independent Auditor's Report to the Members of theCompany on the Ind AS financial statements for the year ended 31 March 2018 we reportthat:

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

assets.

(b) The Company has a regular programme of physical verification of its fixed assets bywhich all fixed assets are physically verified in a phased manner over a period of threeyears. In our opinion the periodicity of physical verification is reasonable havingregard to the size of the Company and the nature of its assets. Pursuant to the programmecertain fixed assets have been physically verified during the year and no materialdiscrepancies were noticed on such verification.

(c) In our opinion and according to the information and explanations given to us and onthe basis of our examination of the records of the Company the title deeds of immovableproperties (including immovable properties under lease arrangements) which are included inproperty plant and equipment are held in the name of the Company. Also refer explanatorynote (a) of Note (4) to the Ind AS financial statements.

(ii) The inventory except goods-in-transit and stocks lying with third parties hasbeen physically verified by the Management during the year. In our opinion the frequencyof such physical verification is reasonable. The discrepancies noticed on physicalverification between the physical stock and the book records were not material and havebeen appropriately dealt with in the books of accounts. For stocks lying with thirdparties at the year end written confirmations have been obtained by the Management.

(iii) According to the information and explanations given to us the Company has notgranted any loans secured or unsecured to companies firms limited liabilitypartnerships or other parties covered in the register maintained under Section 189 of thethe Act. Accordingly the provisions of clause 3(iii) (a) (b) and (c) of the Order arenot applicable to the Company.

(iv) According to the information and explanations given to us there are no loansinvestments guarantees and security given in respect of which provisions of section 185and 186 of the Act are applicable. Accordingly the provisions of clause 3(iv) of theOrder are not applicable to the Company.

(v) According to information and explanations given to us the Company has not acceptedany deposits from the public in accordance with the provisions of Sections 73 to 76 or anyother relevant provisions of the Act and the rules framed there under.

(vi) We have broadly reviewed the books of account maintained by the Company pursuantto the rules prescribed by the Central Government of India for maintenance of cost recordsunder section 148(1) of the Act in respect of products manufactured and are of the opinionthat prima facie the prescribed accounts and records have been made and maintained.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 ofour examination of the records of the

Company amounts deducted/ accrued in the books of account in respect of undisputedstatutory dues including Provident fund Employees' State Insurance Income-taxSales-tax Service tax Goods and Services tax Duty of customs Duty of excise Valueadded tax Cess and any other material statutory dues have generally been regularlydeposited during the year by the Company 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 Goods and Services taxDuty of customs Duty of excise Value added tax Cessand any other material statutory dues were in arrears as at 31 March 2018 for a period ofmore than six months from the date they became payable.

(b) According to the information and explanations given to us the particulars of duesof Income-tax Sales-tax Service-tax Duty of customs Duty of excise and Value added taxas at 31 March 2018 which have not been deposited by the Company on account of disputesare mentioned in Appendix-1.

(viii) In our opinion and according to the information and explanations given to usthe Company did not have any loans or borrowings to financial institutions or banks orgovernment and there were no dues to debenture holders during the year.

(ix) The Company did not raise any money by way of initial public offer or furtherpublic offer (including debt instrument) and term loans during the year.

(x) According to the information and explanations given to us no material fraud on theCompany by its officers and employees or fraud by the Company has been noticed or reportedduring the course of our audit.

(xi) According to the information and explanations given to us and based on examinationof the records of the Company the Company has paid/ provided for managerial remunerationin accordance with the requisite approvals mandated by the provisions of Section 197 readwith Schedule V to the Act.

(xii) According to the information ad explanations given to us in our opinion theCompany is not a Nidhi Company as prescribed under Section 406 of the Act. Accordinglypara 3(xii) of the Order is not applicable.

(xiii) According to the information and explanations given to us and based on ourexamination of the records of the Company all transactions with the related parties arein compliance with Section 177 and 188 of the Act where applicable and details of alltransactions have been disclosed in the Ind AS financial statements as required by theapplicable accounting standards.

(xiv) According to the information and explanations given 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 issued fully or partly convertible debenturesduring the year. Accordingly para 3(xiii) of the Order is not applicable.

(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 para 3(xv) of theOrder is not applicable.

(xvi) According to the information and explanations given to us and in our opinion theCompany is not required to be registered under section 45-IA of the Reserve Bank of IndiaAct 1934.

For B S R & Co. LLP
Chartered Accountants
Firm Registration No: 101248W/W-100022
Amit Somani
Place : Bangalore Partner
Date : May 30 2018 Membership Number: 060154

Annexure B to the Independent Auditor's Report of even date on the Ind AS financialstatements of 3M India Limited

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 3M IndiaLimited("the Company") as of 31 March 2018 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 Reporting('Guidance Note') issued by the Institute of Chartered Accountants of India ('ICAI').These responsibilities include the design implementation and maintenance of adequateinternal financial controls that were operating effectively for ensuring the orderly andefficient conduct of its business including adherence to Company's policies thesafeguarding of its assets the prevention and detection of frauds and errors theaccuracy and completeness of the accounting records and the timely preparation ofreliable financial information as required under the Act.

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 and the Standards on Auditing issued by ICAI and deemed to beprescribed 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 the 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 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:

(i) pertain to the maintenance of records that in reasonable detail accurately andfairly reflect the transactions and dispositions of the assets of the company;

(ii) 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 authorisations of management and directors of the company; and

(iii) provide reasonable assurance regarding prevention or timely detection ofunauthorised 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 31 March 2018 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note issued by ICAI.

For B S R & Co. LLP
Chartered Accountants
Firm Registration No: 101248W/W-100022
Amit Somani
Place : Bangalore Partner
Date : May 30 2018 Membership Number: 060154