Balmer Lawrie Investment Ltd.
|BSE: 532485||Sector: Financials|
|NSE: N.A.||ISIN Code: INE525F01017|
|BSE 16:01 | 08 Aug||399.45||
|NSE 05:30 | 01 Jan||Balmer Lawrie Investment Ltd|
|Mkt Cap.(Rs cr)||887|
|Mkt Cap.(Rs cr)||886.78|
Balmer Lawrie Investment Ltd. (BALMERLAWINV) - Auditors Report
Company auditors report
To The Members of Balmer Lawrie Investments Limited Report on the Auditof the Standalone Financial Statements Opinion
We have audited the accompanying Standalone Financial Statements of BALMERLAWRIE INVESTMENTS LIMITED ("the Company") which comprise the StandaloneBalance Sheet as at March 31 2021 the Standalone Statement of Profit and Loss (includingOther Comprehensive Income) the Statement of Changes in Equity and the StandaloneStatement of Cash Flows for the year ended on that date and a summary of the significantaccounting policies and other explanatory information (hereinafter referred to as"the Standalone Financial Statements").
In our opinion and to the best of our information and according to theexplanations given to us the aforesaid Standalone Financial Statements givethe information required by the Companies Act 2013 ("the Act") in the manner sorequired and give a true and fair view in conformity with the Indian Accounting Standardsprescribed under section 133 of the Act read with the Companies (Indian AccountingStandards) Rules 2015 as amended ("Ind AS") and other accounting principlesgenerally accepted in India of the state of affairs of the Company as at March 31 2021the Profit and total comprehensive Income changes in equity and its cash flows for theyear ended on that date.
Basis for Opinion
We conducted our audit of the Standalone Financial Statements inaccordance with the Standards on Auditing (SAs) specified under section 143(10) of theCompanies Act 2013. Our responsibilities under those Standards are further described inthe Auditor's Responsibilities for the Audit of the Financial Statements section ofour report. We are independent of the Company in accordance with the Code of Ethics issuedby the Institute of Chartered Accountants of India together with the ethical requirementsthat are relevant to our audit of the financial statements under the provisions of theCompanies Act 2013 and the Rules there under and we have fulfilled our other ethicalresponsibilities in accordance with these requirements. We believe that the audit evidencewe have obtained is sufficient and appropriate to provide a basis for our opinion.
Key Audit Matters
Key audit matters are those matters that in our professional judgmentwere of most significance in our audit of the financial statements of the current period.We have determined that there are no Key Audit Matters to be communicated in our report.
Emphasis of Matter
We draw your attention to Note No 36 to the Standalone FinancialStatements which explain the uncertainties and the management's assessment of thefinancial impact due to the lock-down and other restrictions and conditions related to theCOVID-19 pandemic situation for which a definitive assessment of the impact in thesubsequent period is highly dependent upon circumstances as they evolve. Our report is notmodified in respect of these matters.
Information other than the Standalone Financial Statements andAuditor's Report Thereon
The Company's Board of Directors is responsible for otherinformation. The other information comprises the information included in theCompany's Annual Return but does not include the Financial Statements and ourAuditor's report thereon. Our opinion on the Standalone Financial Statements does notcover the other information and we do not express any form of assurance conclusionthereon. In connection with our audit of the Standalone Financial Statements ourresponsibility is to read the other information and in doing so consider whether theother information is materially inconsistent with the Standalone Financial Statements orour knowledge obtained during the course of our audit or otherwise appears to bematerially misstated. If based on the work we have performed we conclude that there is amaterial misstatement of this other information; we are required to report that fact. Wehave nothing to report in this regard.
Responsibility of the Management for the Standalone FinancialStatements
The Company's Board of Directors is responsible for the mattersstated in section 134(5) of the Companies Act 2013 with respect to the preparation ofthese Standalone Financial Statements that give a true and fair view of the financialposition and financial performance and cash flow 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 implementation and maintenance ofaccounting 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 statement that givea true and fair view and are free from material misstatement whether due to fraud orerror. In preparing the Standalone Financial Statements management is responsible forassessing the Company's ability to continue as a going concern disclosing asapplicable matters related to going concern and using the going concern basis ofaccounting unless management either intends to liquidate the Company or to ceaseoperations or has no realistic alternative but to do so.
The Board of Directors are also responsible for overseeing theCompany's financial reporting process.
Auditor's Responsibilities for the Audit of the StandaloneFinancial Statements
Our objectives are to obtain reasonable assurance about whether theStandalone Financial Statements as a whole are free from material misstatement whetherdue to fraud or error and to issue an auditor's report that includes our opinion.Reasonable assurance is a high level of assurance but is not a guarantee that an auditconducted in accordance with SAs will always detect a material misstatement when itexists. Misstatements can arise from fraud or error and are considered material ifindividually or in the aggregate they could reasonably be expected to influence theeconomic decisions of users taken on the basis of these financial statements. As part ofan audit in accordance with SAs we exercise professional judgment and maintainprofessional skepticism throughout the audit. We also:
Identify and assess the risks of the material misstatement ofthe financial statement whether due to fraud or error design and perform auditprocedures responsive to those risks and obtain audit evidence that is sufficient andappropriate to provide a basis for our opinion. The risk of not detecting a materialmisstatement resulting from fraud is higher than for one resulting from error as fraudmay involve collusion forgery intentional omissions misrepresentations or the overrideof internal control.
Obtain an understanding of internal financial controls relevantto the audit in order to design audit procedures that are appropriate in thecircumstances. Under section 143(3)(i) of the Companies Act 2013 we are also responsiblefor expressing our opinion on whether the company has adequate internal financial controlssystem in place and the operating effectiveness of such controls.
Evaluate the appropriateness of accounting policies used and thereasonableness of accounting estimates and related disclosures made by the management.
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 Company's ability to continue as a going concern. If we conclude that amaterial uncertainty exists we are required to draw attention in our auditor'sreport to the related disclosures in the financial statements or if such disclosures areinadequate to modify our opinion. Our conclusions are based on the audit evidenceobtained up to the date of our Auditor's report. However future events or conditionsmay cause the Company to cease to continue as a going concern.
Evaluate the overall presentation structure and content of theFinancial Statements including the disclosures and whether the financial statementsrepresent the underlying transactions and events in a manner that achieves fairpresentation.
We communicate with those charged with governance regarding amongother matters the planned scope and timing of the audit and significant audit findingsincluding any significant deficiencies in internal control that we identify during ouraudit.
We also provide those charged with governance with a statement that wehave complied with relevant ethical requirements regarding independence and to communicatewith them all relationships and other matters that may reasonably be thought to bear onour independence and where applicable related safeguards.
From the matters communicated with those charged with governance wedetermine those matters that were of most significance in the audit of the financialstatements of the current period and are therefore the key audit matters. We describethese matters in our auditors report unless law or regulation precludes publicdisclosure about the matter or when in extremely rare circumstances we determine that amatter should not be communicated in our report because the adverse consequences of doingso would reasonably be expected to outweigh the public interest benefits of suchcommunication.
Report on Other Legal and Regulatory Requirements
I. As required by the Companies (Auditor's Report ) Order 2016("the Order") issued by the Central Government Of India in terms ofsub-section(11) of Section 143 of the Companies Act 2013 we give in the Annexure Aa Statement on the matters specified in paragraphs 3 and 4 of the Order to the extentapplicable.
II. As required by Section 143(3) of the Act we report that:
a) We have sought and obtained all the information and explanationswhich to the best of our knowledge and belief were necessary for the purposes of ouraudit.
b) In our opinion proper books of account as required by law have beenkept by the Company so far as it appears from our examination of those books.
c) The Standalone Balance Sheet the Standalone Statement of Profit andLoss including other comprehensive income the Standalone Cash Flow Statement and theStatement of Changes in Equity dealt with by this Report are in agreement with the booksof accounts.
d) In our opinion the aforesaid financial statements comply with theAccounting Standards specified under Section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014
e) The provision of Section 164 (2) of the Companies Act 2013 are notapplicable to the Government Companies in terms of notification No. GSR 463(E) dated 5thJune 2015 issued by the Ministry of Corporate Affairs (MCA) Government of India.
f) With respect to the adequacy of the internal financial controls overfinancial reporting of the Company and the operating effectiveness of such controls referto our separate Report in "Annexure B".
g) With respect to the other matters to be included in theAuditor's Report in accordance with Rule 11 of the Companies (Audit and Auditors)Rules 2014 in our opinion and to the best of our information and according to theexplanations given to us:
i. The Company does not have any pending litigation which does have anyimpact on its financial position in its financial statements;
iii. During the year the company has transferred amount of Rs2832357 to Investor Education and Protection Fund pertaining to unpaid dividend.
h) As required Under Section 143(5) of the Companies Act 2013 wefurnish in "Annexure C" compliance to the directions issued by theComptroller & Auditor General of India.
The Annexure A referred to in paragraph 1 under the headingReport on Other Legal & Regulatory Requirements' of our report of even dateto the Standalone Financial Statements of the Company for the year ended March 31 2021we report that:
(i) The Company does not hold any Fixed Assets during the financialyear ended 31st March 2021. Therefore Provision of Clause 3(i) are notapplicable to the Company.
(ii) The Company does not hold any Inventory during the financial yearended. Therefore Provision of Clause 3(ii) are not applicable to the Company.
(iii) According to the information and explanation given to us andbased on the audit procedures conducted by us the Company has not granted any loanssecured or unsecured to companies firms or other parties covered in the registermaintained under section 189 of the Companies Act 2013. Therefore the reporting under theprovision of Clause 3(iii) [(a) (b) and (c)] of the said Order is not applicable to theCompany.
(iv) In our opinion and according to the information and explanationgiven to us the Company has neither granted loans made investments and providedguarantees and securities as applicable in Clause 3(iv). (v) The Company has not acceptedany deposits from the public and consequently the directives issued by Reserve Bank ofIndia and provisions of Section 73 to Section 76 or any other relevant provisions of theCompanies Act 2013 and the Companies (Acceptance of Deposit) Rules 2015 with regard tothe deposits accepted from the public Clause 3(v) are not applicable to the Company.
(vi) The Central Government has not prescribed for the maintenance ofcost records under Section 148(1) of the Companies Act 2013 for any services rendered bythe company. Accordingly the provision of clause 3(vi) is not applicable.
(vii) (a) According to the information and explanation given to us andon the basis of our examination of the books of account the Company has generally beenregular in depositing undisputed statutory dues including Provident Fund Employee StateInsurance Income tax GST Duty of Customs and any other statutory dues with theappropriate authorities.
(b) According to the information and explanations given to us andrecords of the company examined there were no dues in respect of Income taxes Goods andService Tax and other material statutory dues which have not been deposited as on31.03.2021 with the appropriate authorities on account of a dispute.
(viii) As the company does not have any Borrowings from any financialinstitution or banks or Government nor has it issued any Debentures as at the balancesheet date so the provision of clause 3(viii) of the order is not applicable.
(ix) Based upon the audit procedures performed and the information andexplanations given by the management the company has not raised moneys by way of initialpublic offer or further public offer including debt instruments and Term Loans.Accordingly the reporting under Paragraph 3(xi) of the order is not applicable and hencenot commented upon.
(x) Based upon the audit procedures performed and the information andexplanations given by the management we report that no fraud by the Company or on theCompany by its officers or employees has been noticed or reported during the year.
(xi) The provision of section 197 of the Companies Act 2013 read withrule Schedule V to the Act does not apply to the Government Company vide notification no.GSR 463 dated 05th June 2015.Accordingly the provisions of clause (xi) of theorder are not applicable to the Company.
(xii) In our opinion and according to the information and explanationsgiven to us the Company is not a Nidhi Company. Therefore the reporting under Paragraph3 (xii) of the Order is not applicable to the Company.
(xiii) In our opinion and according to the information and explanationsgiven to us all transactions with the related parties are in compliance with Section 177and 188 of Companies Act 2013 where applicable and the details have been disclosed in theFinancial Statements as required by the applicable Accounting Standards.
(xiv) According to the information and explanation given to us andbased on our examination of the records of the company the company has not made anypreferential allotment or private placement of shares of fully or partly convertibledebentures and hence reporting under paragraph 3(xiv) of the Order is not applicable tothe Company.
(xv) Based upon the audit procedures performed and theinformation and explanations given by the management the company has not entered into anynon-cash transactions with directors or persons connected with them. Accordingly thereporting under Paragraph 3 (xv) of the Order is not applicable to the Company and hencenot commented upon.
(xvi) The Company is not required to be registered under section 45-IAof the Reserve Bank of India Act 1934 as the Reserve Bank of India has exempted thecompany to comply with the formalities of the registration and minimum net owned fundsunder Notification No. DNBS. 153/CGM(LMF)-2001 dated December 10 2001.
Report on the Internal Financial Controls Over Financial Reportingunder Clause (i) of Sub-section 3 of Section 143 of the Companies Act 2013 ("theAct")
We have audited the internal financial controls over financialreporting of BALMER LAWRIE INVESTMENTS LIMITED ("the Company") as of 31stMarch 2021 in conjunction with our audit of the Standalone Financial Statements of theCompany for the year ended on that date.
Management's Responsibility for Internal Financial Controls
The Company's management is responsible for establishing andmaintaining internal financial controls based on the internal control over financialreporting criteria established by the Company considering the essential components ofinternal control stated in the Guidance Note on Audit of Internal Financial Controls overFinancial Reporting issued by the Institute of Chartered Accountants of India(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 tocompany's policies the safeguarding of its assets the prevention and detection offrauds and errors the accuracy and completeness of the accounting records and the timelypreparation of reliable financial information as required under the Companies Act 2013.
Our responsibility is to express an opinion on the Company's InternalFinancial Controls over Financial Reporting based on our audit. We conducted our audit inaccordance with the Guidance Note on Audit of Internal Financial Controls over FinancialReporting (the "Guidance Note") issued by the Institute of Chartered Accountantsof India and the Standards on Auditing issued by ICAI and prescribed under section 143(10)of the Companies Act 2013 to the extent applicable to an audit of internal financialcontrols both applicable to an audit of Internal Financial Controls and both issued bythe Institute of Chartered Accountants of India. Those Standards and the Guidance Noterequire that 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 aboutthe adequacy of the internal financial controls system over financial reporting and theiroperating effectiveness. Our audit of internal financial controls over financial reportingincluded obtaining an understanding of internal financial controls over financialreporting assessing the risk that a material weakness exists and testing and evaluatingthe design and operating effectiveness of internal control based on the assessed risk. Theprocedures selected depend on the auditor's judgment including the assessment of therisks of material misstatement of the financial statements whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our audit opinion on the Company's InternalFinancial Controls system over financial reporting.
Meaning of Internal Financial Controls over Financial Reporting
A Company's internal financial control over financial reporting is aprocess designed to provide reasonable assurance regarding the reliability of financialreporting and the preparation of financial statements for external purposes in accordancewith generally accepted accounting principles. A Company's internal financial control overfinancial reporting includes those policies and procedures that
(1) pertain to the maintenance of records that in reasonable detailaccurately and fairly reflect the transactions and dispositions of the assets of thecompany;
(2) provide reasonable assurance that transactions are recorded asnecessary to permit preparation of financial statements in accordance with generallyaccepted accounting principles and that receipts and expenditures of the Company arebeing made only in accordance with authorizations of management and directors of thecompany; and
(3) provide reasonable assurance regarding prevention or timelydetection of unauthorized acquisition use or disposition of the Company's assets thatcould have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls over FinancialReporting
Because of the inherent limitations of internal financial controls overfinancial reporting including the possibility of collusion or improper managementoverride of controls material misstatements due to error or fraud may occur and not bedetected. Also projections of any evaluation of the internal financial controls overfinancial reporting to future periods are subject to the risk that the internal financialcontrol over financial reporting may become inadequate because of changes in conditionsor that the degree of compliance with the policies or procedures may deteriorate.
In our opinion the Company has in all material respects an adequateinternal financial controls system over financial reporting and such internal financialcontrols over financial reporting were operating effectively as at 31st March 2021 basedon the internal control over financial reporting criteria established by the Companyconsidering the essential components of internal control stated in the Guidance Note onAudit of Internal Financial Controls Over Financial Reporting issued by the Institute ofChartered Accountants of India.