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Balmer Lawrie & Company Ltd.

BSE: 523319 Sector: Others
NSE: BALMLAWRIE ISIN Code: INE164A01016
BSE 00:00 | 17 May 115.40 0.65
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NSE 00:00 | 17 May 115.55 1.05
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OPEN 114.70
PREVIOUS CLOSE 114.75
VOLUME 14727
52-Week high 148.90
52-Week low 108.65
P/E 13.39
Mkt Cap.(Rs cr) 1,973
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 114.70
CLOSE 114.75
VOLUME 14727
52-Week high 148.90
52-Week low 108.65
P/E 13.39
Mkt Cap.(Rs cr) 1,973
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Balmer Lawrie & Company Ltd. (BALMLAWRIE) - Auditors Report

Company auditors report

To

The Members of

Balmer Lawrie & Company Limited

Report on the Audit of Standalone Financial Statements Opinion

We have audited the standalone financial statements of Balmer Lawrie & CompanyLimited ("the Company") which comprise the balance sheet as at 31st March 2021and the statement of Profit and Loss (including Other Comprehensive Income) the statementof changes in equity and the statement of cash flows for the year then ended and notes tothe standalone financial statements including a summary of significant accountingpolicies and other explanatory information in which are included the returns for the yearended on that date audited by the branch auditors of the Company's branches located atNorthern Southern and Western Region of the country.

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 ("the Act") in the manner so required and give a trueand fair view in conformity with the Indian Accounting Standards prescribed under section133 of the Act read with the Companies (Indian Accounting Standards) Rules 2015 asamended ("lnd AS") and other accounting principles generally accepted in Indiaof the state of affairs of the Company as at March 31 2021 the profit and totalcomprehensive income changes in equity and its cash flows for the year ended on thatdate.

Basis for Opinion

We conducted our audit of the standalone financial statements in accordance with theStandards on Auditing ("SA"s) specified under section 143(10) of the Act. Ourresponsibilities under those Standards are further described in the Auditor'sResponsibilities for the Audit of the Standalone Financial Statements section of ourreport. We are independent of the Company in accordance with the Code of Ethics issued bythe Institute of Chartered Accountants of India ("ICAI") together with theethical requirements that are relevant to our audit of the standalone financial statementsunder the provisions of the Act and the Rules made thereunder and we have fulfilled ourother ethical responsibilities in accordance with these requirements and the ICAI's Codeof Ethics. We believe that the audit evidence obtained by us is sufficient and appropriateto provide a basis for our audit opinion on the standalone financial statements.

Key Audit Matters

Key audit matters are those matters that in our professional judgment were of mostsignificance in our audit of the standalone financial statements of the current period.These matters were addressed in the context of our audit of the standalone financialstatements as a whole and in forming our opinion thereon and we do not provide aseparate opinion on these matters. We have determined the matters described below to bethe key audit matters to be communicated in our report:

1. Evaluation of uncertain tax positions The Company has tax matters under dispute which involves judgment to determine the possible outcome of these disputes. [Refer Note No.42.2(a) to the standalone financial statement read with its annexure "A"] We obtained the details of assessment orders to the extent available regarding those assessments for which disputes are continuing and being disclosed as contingent liability from management. We involved our expertise to estimate the possible outcome of the disputes. Our experts considered the assessment orders and other rulings in evaluating management's position on these uncertain tax positions to evaluate whether any change was required to management's position on these uncertainties.
2. Debtors Due for More than Three years and Credit Balance in Sundry Debtors Accounts (Unallocated Receipts) We have checked the debtor's ageing schedule of the SBU's. The authority is regularly following up on the realisation of the same. As is evident from the ageing schedule dues do exist for more than three years against which provision has been made in the accounts.
The company has credit balance in some customer accounts across all Strategic Business Unit (SBU's). The credit balance in these customer accounts are due to either of the following reasons: • Amount lying in the nature of advance in the customer account; • Amount credited to customer account but the same could not be tracked/linked with any sales invoice. • Non-reconciliation of these balances in the absence of customer's confirmation resulting in the credit balances lying for long periods We during the course of our examination have also checked the unadjusted advances from customers for more than three years and also the credit balances lying in customers' accounts on account of unmatched invoices (unallocated receipts). Some of the advances lying unadjusted for more than three years have been written back during the course of audit. In some cases the management is in the process of reconciliation with the respective parties and hence the process of write back has been kept in abeyance. It is observed that though letters seeking confirmations are sent the response has been poor. Steps should be taken to get the confirmations from customers. In addition to practice of seeking confirmation annually the Company should get confirmation through the sales team on a periodical basis also. The management has to strengthen the internal control process of reconciling the balances of the debtors and to adjust the unallocated receipts on a periodical basis.

Emphasis of Matter

We draw attention to the following matters in the Notes to the standalone financialstatements which describe the uncertainty related to the outcome. a) Note No. 42.7 whichstates that trade receivables loans and advances and deposits for which confirmations arenot received from the parties are subject to reconciliation and consequential adjustmentson determination/ receipt of such confirmation. b) Note No. 42.30 which states that thecompany has not made any provision towards investments made in and loan given to itssubsidiary M/s Visakhapatnam Port Logistics Park Ltd. c) Note No.42.32 which describesthe management's assessment of the impact of uncertainties related to COVID 19 pandemicand its consequential effects on the business operations of the Company. d) Note No. 23:"Other Trade Payable" includes the sundry creditor for expenses amounting toRs.322.57 Lakhs (P.Y. Rs. 322.57 Lakhs) of E&P Division Kolkata which are lyingunpaid since long as the matter is under litigation.

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

Information Other than the Financial Statements and Auditor's Report Thereon

The Company's Board of Directors is responsible for the other information. The otherinformation comprises the information included in the Management Discussion and AnalysisBoard's Report including Annexures to Board's Report Business Responsibility ReportCorporate Governance Report and Shareholder Information but does not include thestandalone financial statements and our auditor's report thereon. Our opinion on thestandalone financial statements does not cover the other information and we do not expressany form of assurance conclusion thereon. In connection with our audit of the standalonefinancial statements our responsibility is to read the other information and in doingso consider whether the other information is materially inconsistent with the standalonefinancial statements or our knowledge obtained during the course of our audit or otherwiseappears 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.

Responsibility of Management and those Charged with Governance for the standalone FinancialStatements

The Company's Board of Directors is responsible for the matters stated in section134(5) of the Act with respect to the preparation of these standalone financial statementsthat give a true and fair view of the financial position financial performance includingother comprehensive income changes in equity and cash flows of the Company in accordancewith the lnd AS and other accounting principles generally accepted in India. Thisresponsibility also includes maintenance of adequate accounting records in accordance withthe provisions of the Act for safeguarding the assets of the Company and for preventingand detecting frauds and other irregularities; selection and application of appropriateaccounting policies; making judgment 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 standalone financialstatements that give a true and fair view and are free from material misstatement whetherdue to fraud or error.

In preparing the standalone financial statements management 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 unlessmanagement either intends to liquidate the Company or to cease operations or has norealistic alternative but to do so.

The Board of Directors are responsible for overseeing the Company's financial reportingprocess.

Auditor's responsibilities for the Audit of Standalone Financial Statements

Our objectives are to obtain reasonable assurance about whether the standalonefinancial statements as a whole are free from material misstatement whether due to fraudor error and to issue an auditor's report that includes our opinion. Reasonable assuranceis a high level of assurance but is not a guarantee that an audit conducted in accordancewith SAs will always detect a material misstatement when it exists. Misstatements canarise from fraud or error and are considered material if individually or in theaggregate they could reasonably be expected to influence the economic decisions of userstaken on the basis of these standalone 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 therisks of material misstatement of the standalone financial statements whether due tofraud or error design and perform audit procedures responsive to those risks and obtainaudit evidence that is sufficient and appropriate to provide a basis for our opinion. Therisk of not detecting a material misstatement resulting from fraud is higher than for oneresulting from error as fraud may involve collusion forgery intentional omissionsmisrepresentations or the override of internal control.

Obtain an understanding of internal financial 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 on whetherthe Company has adequate internal financial controls system in place and the operatingeffectiveness of such controls.

Evaluate the appropriateness of accounting policiesusedandthereasonablenessofaccountingestimates and related disclosures made by management.Conclude on the appropriateness of management's use of the going concern basis ofaccounting 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 standalone financial statements or if such disclosures are inadequate to modify ouropinion. Our conclusions are based on the audit evidence obtained up to the date of ourauditor's report. However future events or conditions may cause the Company to cease tocontinue as a going concern.

Evaluate the overall presentation structure and content of the standalone financialstatements including the disclosures and whether the standalone financial statementsrepresent the underlying transactions and events in a manner that achieves fairpresentation.

Materiality is the magnitude of misstatements in the standalone financial statementsthat individually or in aggregate makes it probable that the economic decisions of areasonably knowledgeable user of the standalone financial statements may be influenced. Weconsider quantitative materiality and qualitative factors in (i) planning the scope of ouraudit work and in evaluating the results of our work; and (ii) to evaluate the effect ofany identified misstatements in the standalone financial statements.

We communicate with those charged with governance regarding among other matters theplanned scope and timing of the audit and significant audit findings including anysignificant deficiencies in internal financial control that we identify during our audit.We also provide those charged with governance with a statement that we have complied withrelevant ethical requirements regarding independence and to communicate with them allrelationships and other matters that may reasonably be thought to bear on ourindependence and where applicable related safeguards.

From the matters communicated with those charged with governance we determine thosematters that were of most significance in the audit of the standalone financial statementsof the current period and are therefore the key audit matters. We describe these mattersin our auditor's report unless law or regulation precludes public disclosure about thematter or when 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.

Other Matter

We did not audit the financial statements/ information of branches situated inNorthern Western and Southern regions included in the standalone financial statements ofthe Company whose financial statements/financial information reflect total assets of Rs.101338.16 Lakhs as at 31st March 2021 and the total revenue of Rs. 124139.31Lakhs for the year ended on that date as considered in the standalone financialstatements/information of these branches have been audited by the branch auditors whosereports have been furnished to us and our opinion in so far as it relates to the amountsand disclosures included in respect of branches is based solely on the report of suchbranch auditors.

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

Report on Other Legal and Regulatory requirements

1. As required under section 143(5) of the of the Companies Act 2013 we give in the Annexure-Aa Statement on the Direction issued by the Comptroller and Auditor General of Indiaafter complying the suggested methodology of Audit the action taken thereon and itsimpact on the accounts and financial statements of the Company. 2. As required by theCompanies (Auditor's Report) Order 2016 ("the Order") issued by the CentralGovernment of India in terms of sub-section (11) of section 143 of the Companies Act2013 we give in the Annexure-B. a statement on the matters specified in paragraphs3 and 4 of the Order to the extent applicable to the Company.

3. 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 purpose of our audit. b) In our opinion proper books ofaccount as required by law have been kept by the Company so far as appears from ourexamination of those books and proper returns adequate for the purposes of our audit havebeen received from the branches not visited by us. c) The reports on the accounts of thebranch offices of the Company audited under Section 143(8) of the Act by branch auditorshave been sent to us and have been properly dealt with by us in preparing this report. d)The Balance Sheet Statement of Profit and Loss including Other Comprehensive IncomeStatement of Changes in Equity and Statement of Cash Flow dealt with by this report are inagreement with the books of account and with the returns received from the branches notvisited by us. e) In our opinion the aforesaid standalone financial statements complywith the Indian Accounting Standards specified under Section 133 of the Act read withrelevant rules thereunder. f) The provisions of Section 164(2) of the Companies Act 2013are not applicable to Government Companies in terms of notification No. GSR 463(E) dated5th June 2015 issued by the Ministry of Company Affairs Government of India. g) Withrespect to the adequacy of the internal financial controls over financial reporting of theCompany and the operating effectiveness of such controls refer to our separate Report in Annexure-C.Our report expresses an unmodified opinion on the adequacy and operating effectiveness ofthe Company's internal financial controls over financial reporting. h) With respect to theother matters to be included in the Auditor's Report in accordance with Rule 11 of theCompanies (Audit and Auditors) Rules 2014 in our opinion and to the best of ourinformation and according to the explanations given to us: i) As per records madeavailable to us the Company has disclosed the impact of pending litigations on itsfinancial position in its notes & its annexures to the standalone financial statements- Refer Note 42.2 and its annexure "A" to the standalone financial statements.ii) The Company does not have any material foreseeable losses on long-term contractsincluding derivative contracts. iii) There has been no delay in transferring amountsrequired to be transferred to the Investor Education and Protection Fund by the Company.

For B. K. SHROFF & CO.
Chartered Accountants
Firm Registration No.: 302166E
Place: Kolkata (P. K. SHROFF)
Date: 25th June 2021 PARTNER
Membership No. : 059542
UDIN: 21059542AAAACD4953

ANNEXURE – A TO THE AUDITORS' REPORT

DIRECTIONS/SUB-DIRECTIONS UNDER SECTION 143(5) OF THE COMPANIES ACT 2013 ISSUED BY THECOMPTROLLER AND AUDITOR GENERAL OF INDIA TO THE INDEPENDENT AUDITORS OF BALMER LAWRIE& CO. LIMITED FOR CONDUCTING AUDIT OF ACCOUNTS FOR THE YEAR 2020-21.

CAG's Directions Our Observation Impact on Financial statements
(1) Whether the Company has system in place to process all the accounting transactions through IT system? If yes the implications of processing of accounting transactions outside IT system on the integrity of the accounts along with the financial implications if any may be stated. Yes the accounting transactions of the Company for the year are processed through the IT system vide ERP (SAP accounting package) and as per the examination of records as provided to us there are standalone intermediary software's to capture the transactions related to certain functions in certain SBU's (for example Mid Office software for Tours and Travel) and the transactions from these standalone software are posted in SAP for accounting purpose. NIL
(2) Whether there is any restructuring of an existing Loan or cases of waiver/ write off of debt/loans/ interests etc. made by a lender to the company due to the company's inability to repay the loan? If yes the financial impact may be stated. Whether such cases are properly accounted for? (In case lender is a Government Company then this direction is also applicable for statutory auditor of lender company). As per the information and explanations given by the management there is no restructuring of loan or cases of waiver/ write off of debts/loans/interest etc made by a lender to the company during the year. NIL
(3) Whether the fund (grant / subsidy etc.) received/ receivable for specific scheme from Central/ State Government or its agencies were properly accounted for/utilised as per its term and condition? List the case of deviation. The company has been sanctioned a Grant - in -Aid of Rs.7.83 crores in earlier year from the Ministry of Food Processing Industries (MoFPI) for setting up integrated cold chain facilities at Rai Haryana and Patalganga in Maharashtra. Against the same the company has been disbursed Rs.4.70 crores till 31.03.2021 for specified assets purchased [for Patalganga Maharashtra] as according to the scheme document the fund is disbursed upon utilisation for specific purpose. The accounting for the same has been done with regard to IND AS 20 "Accounting for Government Grants and Disclosure of Government Assistance". Accordingly the same has been treated as deferred income to be apportioned over the useful life of the assets. During the current financial year a sum of Rs.29.99 Lakhs has been credited to the income in the statement of profit and loss account based on the accounting standard.
For B. K. SHROFF & CO.
Chartered Accountants
Firm Registration No.: 302166E
Place: Kolkata (P. K. SHROFF)
Date: 25th June 2021 PARTNER
Membership No. : 059542
UDIN: 21059542AAAACD4953

ANNEXURE – B TO THE AUDITORS' REPORT

ANNEXURE REFERRED TO IN PARAGRAPH (1) UNDER THE HEADING OF "REPORT ON OTHER LEGALAND REGULATORY REQUIREMENTS" OF OUR REPORT OF EVEN DATE

i. In respect of the Company's fixed assets: a. The Company has maintained properrecords showing full particulars including quantitative details and situation of fixedassets; b. The Company has a regular program of physical verification of its fixed assetsin a phased manner which in our opinion is reasonable having regard to the size of thecompany and nature of its assets. According to the information and explanations given tous no material discrepancies were noticed on such verification and the same have beenproperly dealt with in the books of account. c. According to the information andexplanations given to us the records examined by us and based on the examination of theconveyance deeds I registered sale deed provided to us we report that the title deedscomprising all the immovable properties of land and buildings which are freehold are heldin the name of the Company as at the balance sheet date except as mentioned below. Inrespect of immovable properties of land and building taken on lease and disclosed asfixed assets under ROU Assets in the standalone financial statements the lease agreementsare in the name of the Company except as mentioned below.

Due to non - availability of the original title deeds in certain cases of immovableproperties mentioned herein below we are unable to comment whether the respectivetitle/lease deeds are held in the name of the company;

Address of Immovable Property Status of Document Received
Gopalpur holiday home viii - Gopalpur Udayapur Mouza Gopalpur Orissa Certified Conveyance Deed and Photocopy Agreement
Balmer Lawrie & Co Ltd Village-Piyala
Ballabgarh Viii-Asaoti Dist-Faridabad Photocopy of Agreement
Batra Centre 27Ulsoor Road Bangalore-560042 Certified Copy of Sale Deed
Flat no.601 Sea Gull Cooperative Housing Society Ltd (B&C) Original : Share Certificate
Sherly Rajan Road Rizvi Complex Off Carter Road Sandra (West) Mumbai-400 061 Photocopy: Registration Receipt.
Flat at Sea Crest Cooperative Housing Society Ltd. Plot No-6364 Seven Bungalows Jay Prakash Road Versova Andheri (west) Mumbai- 400 061 Original : Share Certificate Duplicate Copy: Agreement
Flat No(s) 202 Mount Unique Co-op. Hsg Soc. Ltd. 25 Mount Original : Registration Receipt
Mary Road Sandra (West) Mumbai-400 050 Duplicate Copy: Agreement
Flat No. 23A Meherina Cooperative Housing Society Ltd. Original : Registration Receipt
Plot No. C-51 Nepean Sea Road Mumbai-400 026 Duplicate Copy: Agreement & Share Certificate
Flat at BL Housing Complex Plot No. 1-1 & 1- 2 Sector 2 Phase II Nerul Navi Mumbai-400 706 Photo Copy of MOU with CIDCO
House No(s) H2 & H3 Bokadveera Uran Mumbai Original : Registration Receipt-CIDCO
Photocopy: Registered Agreement
Balmer Lawrie
Grease and Lubricants Division 149 Jackeria Bunder Road
Sewree (W) Mumbai-400 015 Survey Report and Photocopy of
Balmer Lawrie Agreement
Industrial Packaging Division 149 Jackeria
Bunder Road Sewree (W) Mumbai-400 015
Balmer Lawrie
Survey No 201/1Sayli Village Silvassa-396 230 Photocopy of Agreement
Balmer Lawrie Photocopy of Agreement
Survey No 23/1/1Khadoli Village Silvassa-396 230
Address of Immovable Property Status of Document Received
Balmer Lawrie Photocopy of Lease Agreement
5 J. N. Heredia Marg Ballard Estate Mumbai-400 001
Ground Floor Sadashiv Sadan Andheri (E) Mumbai-400 099 Original : Registration Receipt Photocopy : Agreement
Plot No. F-9/5 Additional Patalganga Industrial Area Chawane Taluka- Panvel Raigad District Maharashtra Photocopy of Agreement
Grease Division P-43 Hide Road Extention Kolkata-700 088 Certified Copy of Indenture
Leasehold Building at Scope Complex & Noida Housing Complex Buildings Not registered in the name of the company

ii. According to the information and explanation given to us the inventory of theCompany except goods in transit has been physically verified during the year by themanagement. In our opinion having regard to the nature and location of inventory thefrequency of verification is reasonable and no material discrepancies were noticed on suchverification; iii. The Company during the year has not granted any loans secured orunsecured to companies firms or other parties covered in the register maintained undersection 189 of the Companies Act 2013. Accordingly clauses (iii) (a) (b) & (c) ofthe Order are not applicable to the company; iv. According to the information andexplanations given to us the Company during the year has not given any loansguarantees or securities which is required to be complied with the provisions of section185 and 186 of the Companies Act 2013. However during the year the Company has madeadditional investment in equity shares of a start up company M/s RC Hobbytech Solution(P) Limited which are in compliance with the provision of section 186 of the CompaniesAct 2013; v. According to the information and explanation given to us the company hasnot accepted any deposit from the public. Therefore the provisions of clause (v) of theorder are not applicable to the company; vi. We have broadly reviewed the cost recordmaintained by the Company in respect of the products of Grease and Lubricants IndustrialPackaging & Leather Chemicals where pursuant to the Companies (Cost records andAudit) Rules 2014 read with companies (Cost records and Audit) Amendment Rules 2014prescribed by the Central Government under section 148 of the Companies Act 2013 andare of the opinion that prima facie the prescribed cost records have been maintained. Wehave however not made a detailed examination of the cost record with a view to determinewhether they are accurate or complete. To the best of our knowledge and according to theinformation and explanations given to us the central government has not prescribed themaintenance of cost records for any other product of the Company; vii. According to theinformation and explanations given to us and the records of the Company examined by us inrespect of statutory dues: a. The Company has generally been regular in depositingundisputed statutory dues including Provident Fund Employees' State Insurance IncomeTax Goods and Service Tax Customs Duty Cess and other material statutory duesapplicable to it with the appropriate authorities; b. The disputed statutory dues of SalesTax Service Tax and Central Excise aggregating to Rs.6590.25 lakhs have not beendeposited as mentioned in Note No.42.2(a) to the accounts read with annexure "A"showing the amounts involved and the forum where the dispute is pending; viii. The Companyhas not defaulted in repayment of dues to any financial institutions or Banks as at theBalance Sheet date and there is no debenture holder; ix. To the best of our knowledge andbelief and according to the information and explanations given to us no moneys has beenraised by way of initial public offer or further public offer (including debt instruments)and no term loans obtained by the company during the year. Therefore the provisions ofclause (ix) of the order are not applicable to the company. x. According to theinformation and explanations given to us during the year a fraud has been detected on thecompany in Coimbatore Implant of Travel Chennai unit to the tune of Rs.29.98 Lakhs forwhich action has been already taken by the management and insurance claim has also beenlodged with the insurance company under fidelity policy on 06.11.2020. xi. The provisionsof section 197 of the Act read with schedule V to the Act does not apply to a Governmentcompany vide notification no. GSR 463 E dated 05 June 2015. Accordingly the provisions ofclause (xi) of the order are not applicable to the company. xii. The Company is not aNidhi Company and hence reporting under clause (xii) of the Order are not applicable tothe Company. xiii. According to the information and explanations provided to us and therecords of the company examined by us the Company has been able to comply with therequirements of Section 177 in respect of composition of Audit Committee. All transactionsof the Company with related parties are in compliance with Section 188 of Companies Act2013 where applicable and the details have been disclosed in the standalone financialstatement in Note No. 42.18 (i) and (ii) as required by the applicable accounting standardxiv. During the year under review the company has not made any preferential allotment onprivate placement of shares or fully or partly convertible debentures. xv. In our opinionand according to the information and explanations given to us the company during theyear has not entered into any non-cash transactions with directors or persons connectedwith him. xvi. The Company is not required to be registered under section 45-IA of theReserve Bank of India Act 1934.

For B. K. SHROFF & CO.
Chartered Accountants
Firm Registration No.: 302166E
Place: Kolkata (P. K. SHROFF)
Date: 25th June 2021 PARTNER
Membership No. : 059542
UDIN: 21059542AAAACD4953

ANNEXURE - C TO THE AUDITORS' 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 BalmerLawrie & Company Limited ("the Company") as of March 31 2021 in conjunctionwith our audit of the standalone financial statements of the Company for the year ended onthat date.

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. Theseresponsibilities include the design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the orderly and efficientconduct of its business including adherence to respective 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 Companies Act 2013.

Auditor's Responsibility

Our responsibility is to express an opinion on the internal financial controls overfinancial reporting of the Company 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 prescribed under Section 143(10) of the CompaniesAct 2013 to the extent applicable to an audit of internal financial controls. ThoseStandards and the Guidance Note require that we comply with ethical requirements and planand perform the audit to obtain reasonable assurance about whether adequate internalfinancial controls over financial reporting was established and maintained and if suchcontrols 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 control based on the assessed risk. The proceduresselected depend on the auditor's judgement including the assessment of the risks ofmaterial misstatement of the standalone 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 internal financial controls system overfinancial reporting of the Company.

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 standalone financial statement

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 and to the best of our information and according to the explanationsgiven to us the Company has in all material respects an adequate internal financialcontrols system over financial reporting. Though certain areas require furtherstrengthening it does not have any material effect on the internal financial controls.The internal financial controls over financial reporting were operating effectively as atMarch 31 2021 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.

For B. K. SHROFF & CO.
Chartered Accountants
Firm Registration No.: 302166E
Place: Kolkata (P. K. SHROFF)
Date: 25th June 2021 PARTNER
Membership No. : 059542
UDIN: 21059542AAAACD4953

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