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Balaji Amines Ltd.

BSE: 530999 Sector: Industrials
NSE: BALAMINES ISIN Code: INE050E01027
BSE 00:00 | 25 May 2779.95 -117.75
(-4.06%)
OPEN

2929.00

HIGH

2929.00

LOW

2760.00

NSE 15:57 | 25 May 2775.00 -126.10
(-4.35%)
OPEN

2901.20

HIGH

2923.20

LOW

2751.30

OPEN 2929.00
PREVIOUS CLOSE 2897.70
VOLUME 4158
52-Week high 5220.00
52-Week low 2451.35
P/E 29.25
Mkt Cap.(Rs cr) 9,007
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 2929.00
CLOSE 2897.70
VOLUME 4158
52-Week high 5220.00
52-Week low 2451.35
P/E 29.25
Mkt Cap.(Rs cr) 9,007
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Balaji Amines Ltd. (BALAMINES) - Auditors Report

Company auditors report

To the Members of Balaji Amines Limited

Report on the Audit of the Standalone Financial Statements

Opinion

We have audited the standalone financial statements of Balaji Amines Limited ("theCompanyRs.) which comprise the balance sheet as at 31st March 2021 and the statement ofprofit and loss and statement of cash flows for the year then ended and notes to thefinancial statements including a summary of significant accounting policies and otherexplanatory information.

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 Companies Act 2013 in the manner so required and give a true and fair view inconformity with the accounting principles generally accepted in India of the state ofaffairs of the Company as at 31st March 2021 and its profit/loss and its cash flows forthe year ended on that date.

Basis for opinion

We conducted our audit in accordance with the Standards on Auditing (SAs) specifiedunder section 143(10) of the Companies Act 2013. Our responsibilities under thoseStandards are further described in the Auditor's Responsibilities for the Audit of theFinancial Statements section of our report. We are independent of the Company inaccordance with the Code of Ethics issued by the Institute of Chartered Accountants ofIndia together with the ethical requirements that are relevant to our audit of thefinancial statements under the provisions of the Companies Act 2013 and the Rulesthereunder and we have fulfilled our other ethical responsibilities in accordance withthese requirements and the Code of Ethics. We believe that the audit evidence we haveobtained is sufficient and appropriate to provide a basis for our opinion.

Key audit Matters

Key audit matters are those matters that in our professional judgment were of mostsignificance in our audit of the financial statements of the current period. These matterswere addressed in the context of our audit of the financial statements as a whole and informing our opinion thereon and we do not provide a separate opinion on these matters.

Sl. No. Key Audit Matter Auditor's Response
1. Land allotted by MIDC to the Company at Chicholi Maharashtra.
The Company has made a payment of Rs.16.56 Cr. towards upfront lease premium to MIDC against a 95 years' lease. The Company has started incurring capital expenditure on the land. However the lease agreement is yet to be entered and registered with the concerned registering authority. The land has been handed over to the Company through a possession letter. We have ascertained the land allotment procedure of MIDC and also perused the land allotment and possession documents.
We have obtained an opinion that the allotment of the land and subsequent issue of the 'possession letter' is confirming the lease for the specified period. We are informed that the final registration will take place upon issue of completion certificate by the concerned authorities.
2. Disputed Tax Demands
The Company is in dispute in respect of Income Tax Assessments for four years and the aggregate of the tax demand in respect of these Four years is Rs.287.24 Lacs. The matter is in appeal before the first appellate authority i.e. Commissioner of Income Tax (Appeals). The Company has made a payment of part of the amount pending outcome of the appeal and the same is accounted for as an advance (Current Assets). We have obtained and considered an expert opinion on the matters involved in these appeals a nd also the judicia l precedents. We ha ve evaluated the same to assess whether there should be a change in the management's position on the sustainability and recoverability of the amounts paid against the disputed demands.
This position involves uncertainty about the possible outcome of these disputes and consequent recovery of the part payments so made.

Information other than the financial statements and auditor's Report thereon"

The Company's Board of Directors is responsible for the preparation of the otherinformation. The other information comprises the information included in the ManagementDiscussion and Analysis Board's Report including Annexures to Board's Report BusinessResponsibility Report Corporate Governance and Shareholder's Information but does notinclude the standalone financial statements and our auditor's report thereon.

Our opinion on the standalone financial statements does not cover the other informationand we do not express any form of assurance conclusion thereon.

In connection with our audit of the standalone financial statements our responsibilityis to read the other information and in doing so consider whether the other informationis materially inconsistent with the standalone financial statements or our knowledgeobtained during the course of our audit or otherwise appears to be materially misstated.

If based on the work we have performed we conclude that there is a materialmisstatement of this other information we are required to report that fact. We havenothing to report in this regard.

Responsibilities of Management and Those Charged with Governance for the StandaloneFinancial 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. This responsibility also includes maintenance ofadequate accounting records in accordance with the provisions of the Act for safeguardingof the assets of the Company and for preventing and detecting frauds and otherirregularities; selection and application of appropriate accounting policies; makingjudgments and estimates that are reasonable and prudent; and design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the accuracy and completeness of the accounting records relevant to thepreparation and presentation of the financial statements that give a true and fair viewand are free from material misstatement whether due to fraud or error.

In preparing the financial statements the Board of Directors is responsible forassessing the Company's ability to continue as a going concern disclosing as applicablematters related to going concern and using the going concern basis of accounting unlessthe Board of Directors either intends to liquidate the Company or to cease operations orhas no realistic alternative but to do so.

Those Board of Directors are also responsible for overseeing the Company's financialreporting process.

Auditor's Responsibilities for the Audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financialstatements as a whole are free from material misstatement whether due to fraud or errorand to issue an auditor's report that includes our opinion. Reasonable assurance is a highlevel of assurance but is not a guarantee that an audit conducted in accordance with SAswill always detect a material misstatement when it exists. Misstatements can arise fromfraud or error and are considered material if individually or in the aggregate theycould reasonably be expected to influence the economic decisions of users taken on thebasis of these financial statements.

As part of an audit in accordance with SAs we exercise professional judgment andmaintain professional skepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of the financialstatements whether due to fraud or error design and perform audit procedures responsiveto those risks and obtain audit evidence that is sufficient and appropriate to provide abasis for our opinion. The risk of not detecting a material misstatement resulting fromfraud is higher than for one resulting from error as fraud may involve collusionforgery intentional omissions misrepresentations or the override of internal control

• Obtain an understanding of internal control relevant to the audit in order todesign audit procedures that are appropriate in the circumstances. Under section 143(3)(i) of the Companies Act 2013 we are also responsible for expressing our opinion onwhether the Company has adequate internal financial controls system in place and theoperating effectiveness of such controls

• Evaluate the appropriateness of accounting policies used and the reasonablenessof accounting estimates and related disclosures made by management

• Conclude on the appropriateness of management's use of the going concern basisof accounting and based on the audit evidence obtained whether a material uncertaintyexists related to events or conditions that may cast significant doubt on the Company'sability to continue as a going concern. If we conclude that a material uncertainty existswe are required to draw attention in our auditor's report to the related disclosures inthe financial statements or if such disclosures are inadequate to modify our opinion.Our conclusions are based on the audit evidence obtained up to the date of our auditor'sreport. However future events or conditions may cause the Company to cease to continue asa going concern

• Evaluate the overall presentation structure and content of the financialstatements including the disclosures and whether the financial statements represent theunderlying transactions and events in a manner that achieves fair presentation. Wecommunicate with those charged with governance regarding among other matters the plannedscope and timing of the audit and significant audit findings including any significantdeficiencies in internal control that we identify during our audit. We also provide thosecharged with governance with a statement that we have complied with relevant ethicalrequirements regarding independence and to communicate with them all relationships andother matters that may reasonably be thought to bear on our independence and whereapplicable related safeguards

From the matters communicated with those charged with governance we determine thosematters that were of most significance in the audit of the financial statements of thecurrent period and are therefore the key audit matters. We describe these matters in ourauditor's report unless law or regulation precludes public disclosure about the matter orwhen in extremely rare circumstances we determine that a matter should not becommunicated in our report because the adverse consequences of doing so would reasonablybe expected to outweigh the public interest benefits of such communication.

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 ofthe Companies Act 2013 we give in the "Annexure A" a statement on the mattersspecified in paragraphs 3 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 2021 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2021 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 VI-16 to the 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.

For Ayyadevara & Co.

Chartered Accountants

Firm's Registration No.000278S

Ayyadevara Srinivas

Proprietor

Membership No.28803

Hyderabad. 24th May 2021.

UDIN: 21028803AAAAAV3436

ANNEXUREA

TO THE INDEPENDENT AUDITOR'S REPORT OF EVEN DATE ON THE FINANCIAL STATEMENTS

[Referred to in para 1 under the heading 'Report on Other Legal and RegulatoryRequirements']

1. a. The Company is maintaining proper records showing full particulars includingquantitative details and details about the situation of fixed assets.

b. These fixed assets have been verified by the Management at reasonable intervals.According to information and explanations given to us no material discrepancies have beennoticed on such verification.

c. During the financial year 2017-18 amalgamation took place between the Company andtwo of its subsidies viz. Balaji Greentech Products Limited and Bhagyanagar ChemicalsLimited. The immovable properties acquired by the Company through the said amalgamationare yet to be registered in the name of the Company. The Company has made an applicationto the concerned authorities which is pending disposal. Except as mentioned above thetitle deeds of immovable properties belonging to the Company are held in the name of theCompany.

2. The physical verification of the inventories has been conducted at reasonableintervals during the year and according to information and explanations furnished to usno material discrepancies were noticed during such verification.

3. The Company has not granted any loans secured or unsecured to companies firms.Limited Liability Partnerships or other parties covered in the register maintained undersection 189 of the Companies Act 2013.

4. The provisions of section 186 of companies Act 2013 have been complied with inrespect of investment made by the Company in the subsidiary Balaji Specialty ChemicalsPrivate Limited loan given to the said subsidiary and guarantee provided for amountsborrowed by the subsidiary from the financial institutions/banks.

5. The Company has not accepted any Deposits.

6. In respect of the records maintained by the Company under Rules made by the CentralGovernment for maintenance of Cost Records under section 148(1) of the Companies Act2013 we have broadly reviewed the same and we are of the opinion that the prescribedaccounts and records have been kept and maintained. However we have not carried out adetailed audit of such records.

7. a. There are no undisputed statutory dues that are outstanding for more than sixmonths from the date they became payable.

b. The Company did not incur any dues on account of any dispute in respect of Sales Taxor Customs Excise Duty Service Tax or GST. The particulars of disputed demands relatingto Income Tax are as under;

i. Rs.17.60 Lacs (relating to Assessment Year 2013-14)

ii. Rs.231.08 Lacs (relating to Assessment Year 2014-15)

iii. Rs.9.25 Lacs (relating to Assessment Year 2016-17)

iv. Rs.29.31 Lacs (relating to Assessment Year 2017-18)

The disputes are in respect of additions made in assessment under section 143(3) of theIncome Tax Act 1961 and the same are in appellate proceedings before the first appellateauthority viz. Commissioner of Income Tax (Appeals) Pune. The Company has deposited anamount of Rs.87.38 Lacs in aggregate against the demands for the said Four years andobtained stay of collection of the balance disputed demand till disposal of the firstappeal.

8. The Company has not defaulted in repayment of borrowings from FinancialInstitutions/Banks. The Company does not have any borrowings from Government or Debentureholders. During the year the Company has repaid the borrowings from financialinstitutions/banks and as on 31st March 2021 there are no borrowings.

9. The Company has not raised any monies by way of any Public Offer or Term Loansduring the year under review.

10. To the best of our information and according to explanations given to us no fraudby the Company or on the Company by its officers or employees has been noticed or reportedduring the year under review.

11. The managerial remuneration paid/provided by the Company is in accordance with therequisite approvals mandated by the provisions of section 197 read with Schedule V to theCompanies Act.

12. The Company is not a Nidhi Company.

13. The transactions with related parties are in compliance with the provisions ofsection 177 and 188 of the Companies Act 2013 and the details have been disclosed in theFinancial Statements as required by the applicable Accounting Standards.

14. The Company has not made any preferential allotment or private placement of sharesor debentures during the year under review.

15. The Company has not entered into any non-cash transactions with its Directors orpersons connected with them.

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

For Ayyadevara & Co.

Chartered Accountants

FRN: 000278S

Ayyadevara Srinivas

Proprietor

ICAI Membership No. 028803

Hyderabad. 24th May 2021.

ANNEXURE "B"

TO THE INDEPENDENT AUDITOR'S REPORT

(Referred to in paragraph 2 (f) under 'Report on Other Legal and RegulatoryRequirements' section of our report to the Members of Balaji Amines Limited of even date)

Report on the Internal Financial Controls Over Financial Reporting under clause (i) ofsub-section 3 of section 143 of the companies act 2013 ("the act")

We have audited the internal financial controls over financial reporting of BalajiAmines Limited (the "Company") as of 31st March 2021 in conjunction with ouraudit of the standalone financial statements of the Company for the year ended on thatdate.

Management's Responsibility for Internal Financial controls

The Board of Directors of the Company is responsible for establishing and maintaininginternal financial controls based on the internal control over financial reportingcriteria established by the Company considering the essential components of internalcontrol stated in the Guidance Note on Audit of Internal Financial Controls Over FinancialReporting issued by the Institute of Chartered Accountants of India (the"ICAI"). These responsibilities include the design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the orderly and efficient conduct of its business including adherence torespective company's policies the safeguarding of its assets the prevention anddetection of frauds and errors the accuracy and completeness of the accounting recordsand the timely preparation of reliable financial information as required under theCompanies Act 2013.

Auditor's Responsibility

Our responsibility is to express an opinion on the Company's internal financialcontrols over financial reporting of the Company based on our audit. We conducted ouraudit in accordance with the Guidance Note on Audit of Internal Financial Controls OverFinancial Reporting (the "Guidance Note") issued by the ICAI and the Standardson Auditing prescribed under Section 143(10) of the Companies Act 2013 to the extentapplicable to an audit of internal financial controls. Those Standards and the GuidanceNote require that we comply with ethical requirements and plan and perform the audit toobtain reasonable assurance about whether adequate internal financial controls overfinancial 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 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 (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 to the best of our information and according to the explanations givento us the Company has in all material respects an adequate internal financial controlssystem over financial reporting and such internal financial controls over financialreporting were operating effectively as at 31st March 2021 based on the internalfinancial 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 ICAI.

For Ayyadevara & Co.

Chartered Accountants

Firm's Registration No.000278S

Ayyadevara Srinivas

Proprietor

Membership No.28803

Hyderabad.

24th May 2021.

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