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Gillette India Ltd.

BSE: 507815 Sector: Consumer
NSE: GILLETTE ISIN Code: INE322A01010
BSE 00:00 | 11 Dec 6557.45 -16.95
(-0.26%)
OPEN

6574.40

HIGH

6625.50

LOW

6525.00

NSE 00:00 | 11 Dec 6568.70 0.05
(0.00%)
OPEN

6590.00

HIGH

6640.00

LOW

6516.50

OPEN 6574.40
PREVIOUS CLOSE 6574.40
VOLUME 406
52-Week high 8200.00
52-Week low 6200.00
P/E 85.71
Mkt Cap.(Rs cr) 21,371
Buy Price 6526.00
Buy Qty 1.00
Sell Price 6660.00
Sell Qty 1.00
OPEN 6574.40
CLOSE 6574.40
VOLUME 406
52-Week high 8200.00
52-Week low 6200.00
P/E 85.71
Mkt Cap.(Rs cr) 21,371
Buy Price 6526.00
Buy Qty 1.00
Sell Price 6660.00
Sell Qty 1.00

Gillette India Ltd. (GILLETTE) - Auditors Report

Company auditors report

To the Members of Gillette India Limited

Report on Audit of the Ind AS Financial Statements

We have audited the accompanying Ind AS financial statements of Gillette IndiaLimited ("the Company") which comprise the Balance Sheet as at June 302018 the Statement of Profit and Loss (including other comprehensive income) theStatement of Changes in Equity and the Statement of Cash Flows for the year then endedincluding a summary of the significant accounting policies and other explanatoryinformation (hereinafter referred to as the Ind AS financial statements).

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 financialposition financial performance including other comprehensive income changes in equityand cash flows of the Company in accordance with the accounting principles generallyaccepted in India including the Indian Accounting Standards (Ind AS) prescribed undersection 133 of the Act read with relevant Rules issued thereunder. This responsibilityalso includes maintenance of adequate accounting records in accordance with the provisionsof the Act for safeguarding the assets of the Company and for preventing and detectingfrauds and other irregularities; selection and application of appropriate accountingpolicies; making judgments and estimates that are reasonable and prudent; and designimplementation and maintenance of adequate internal financial controls that were operatingeffectively for ensuring the accuracy and completeness of the accounting records relevantto the preparation and presentation of the Ind AS financial statements that give a trueand fair view and are free from material misstatement whether due to fraud or error.

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 andauditing standards and matters which are required to be included in the audit report underthe provisions 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 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 including the Ind AS of the state ofaffairs of the Company as at June 30 2018 its profit (including other comprehensiveincome) changes in equity and its cash flows for the year ended on that date.

Other Matter

The comparative financial information of the Company for the year ended June 30 2017included in these Ind AS financial statements have been audited by the predecessor auditorwhose report for the year ended June 30 2017 expressed an unmodified opinion on thoseaudited financial statements vide their audit report dated August 24 2017. Our opinion isnot modified in respect of this matter.

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 in terms of section 143(11) of the Act we give in"Annexure A" a statement on the matters specified in paragraphs 3 and 4 of theOrder.

2. As required by section 143(3) of the Act we report that:

a) We have sought 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 (including Other ComprehensiveIncome) Statement of Changes in Equity and the Cash Flow Statement dealt with by thisReport are in agreement with the books of account.

d) In our opinion the aforesaid Ind AS financial statements comply with the IndianAccounting Standards prescribed under section 133 of the Act read with relevant rulesissued thereunder.

e) On the basis of the written representations received from the Directors as on June30 2018 taken on record by the Board of Directors none of the Directors is disqualifiedas on June 30 2018 from being appointed as a Director in terms of section 164(2) of theAct.

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 Ind AS financial statements

- Refer Note 35 to the Ind AS 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 KALYANIWALLA & MISTRY LLP
CHARTERED ACCOUNTANTS
Firm Regn. No.: 104607W / W100166
Daraius Z. Fraser
Place : Mumbai Partner
Date : August 23 2018. M. No. 42454

ANNEXURE – "A" TO THE INDEPENDENT AUDITORS' REPORT

Referred to in paragraph 1 under ‘Report on Other Legal and RegulatoryRequirements' in our Independent Auditor's Report to the Members of the Company on the IndAS Financial Statements for the year ended June 30 2018.

1. Fixed Assets:

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

b) As explained to us the Company has a program for physical verification of fixedassets at periodic intervals. In our opinion the period of verification is reasonablehaving regard to the size of the Company and the nature of its assets. The discrepanciesreported on such verification are not material and have been properly dealt with in thebooks of account.

c) According to the information and explanations given to us the title deedscomprising all the immovable properties of buildings other than self-constructedbuildings are held in the name of the Company. In respect of immovable properties of landthat have been taken on lease and disclosed as non-current / current assets in thefinancial statements the lease agreements are in the name of the Company where theCompany is the lessee in the agreement.

2. The inventory has been physically verified by the Management at reasonable intervalsduring the year. In our opinion the frequency of such verification is reasonable. Inrespect of inventory lying with third parties these have substantially been confirmed bythem. The discrepancies noticed on verification between the physical stocks and the bookrecords were not material.

3. In our opinion and according to the information and explanations given to us theCompany has not granted any loans secured or unsecured to companies firms limitedliability partnerships or other parties covered in the register maintained under section189 of the Act.

4. In our opinion and according to the information and explanations given to us theCompany has complied with the provisions of sections 185 and 186 of the Act with respectto investments made guarantees given and securities provided.

5. According to the information and explanations given to us the Company has notaccepted deposits from the public to which the directives issued by the Reserve Bank ofIndia and the provisions of sections 73 to 76 of the Act and the rules framed thereunderapply.

6. According to the information and explanations given to us the maintenance of costrecords has not been prescribed by the Central Government under section 148(1) of the Act.

7. According to the information and explanations given to us and records of the Companyexamined by us in our opinion:

a) the Company is generally regular in depositing the undisputed statutory duesincluding provident fund employees' state insurance income-tax sales tax service taxduty of customs duty of excise value added tax goods and services tax cess professiontax and other material statutory dues as applicable with the appropriate authorities andthere are no undisputed amounts payable in arrears as at June 30 2018 for a period ofmore than six months from the date they became payable.

b) there are no dues of income-tax sales tax service tax duty of customs duty ofexcise value added tax and goods and services tax which have not been deposited with theappropriate authorities on account of any dispute other than the following:

Name of Statute Nature of Dues Forum where Dispute is Pending Period to which the Amount Relates* Amount Involved (Rs. in lakhs)**
The Central Excise Act 1944 Excise Duty Appellate Authority - up to Commissioners/ Revisional authorities level 1994-95 to 1997-98 2002-03 to 2016-17 30 416
Customs Excise and Service Tax Appellate Tribunal 1994-95 to 1998-99 2002-03 to 2007-08 164
High Court 1990-91 9
Supreme Court 2000-01 6
Sales Tax and Laws as per statutes applicable in various states Sales Tax and VAT Appellate Authority - up to Commissioners/ Revisional authorities level 1999-00 to 2016-17 4 463
Tribunal 1997-98 1999-00 2002-03 2005-06 to 2010-11 36
High Court 2005-06 60
Customs Act 1962 Customs Duty Appellate Authority - up to Commissioners/ Revisional authorities level 2000-01 2005-06 2006-07 2012-13 1 582
Tribunal 1995-96 27
Finance Act 1994 Service Tax Appellate Authority - up to Commissioners/ Revisional authorities level 2001-02 2004-06 2007-08 to 2015-16 2 626
Tribunal 2010-11 to 2013-14 81

* Period denotes the financial year April to March

** includes penalty and interest on taxes wherever applicable

8. The Company has not taken any loans or borrowings from financial institutions banksor government nor has issued any debentures.

9. The Company has not raised any money by way of initial public offer further publicoffer (including debt instruments) or term loans during the year.

10. According to the information and explanations given to us no fraud by the Companyor on the Company by its officers or employees has been noticed or reported during thecourse of our audit.

11. According to the information and explanations given to us and based on ourexamination of the records the Company has paid / provided for managerial remuneration inaccordance with the requisite approvals mandated by the provisions of section 197 readwith Schedule V to the Act.

12. In our opinion and according to the information and explanations given to us theCompany is not a Nidhi company.

13. According to the information and explanations given to us and based on ourexamination of the records of the Company transactions with the related parties are incompliance with sections 177 and 188 of the Act where applicable. The details of suchrelated party transactions have been disclosed in the Ind AS financial statements asrequired by the applicable accounting standards.

14. According to the information and explanations give to us and based on ourexamination of the records the Company has not made any preferential allotment or privateplacement of shares or fully or partly convertible debentures during the year.

15. According to the information and explanations given to us and based on ourexamination of the records the Company has not entered into any non-cash transactionswith Directors or persons connected with him.

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

For KALYANIWALLA & MISTRY LLP
CHARTERED ACCOUNTANTS
Firm Regn. No.: 104607W / W100166
Daraius Z. Fraser
Place : Mumbai Partner
Date : August 23 2018. M. No. 42454

ANNEXURE – "B" TO THE INDEPENDENT AUDITORS' REPORT

Referred to in paragraph 2(f) under ‘Report on Other Legal and RegulatoryRequirements' in our Independent Auditor's Report to the Members of the Company on the IndAS Financial Statements for the year ended June 30 2018.

Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of section143 of the Companies Act 2013

We have audited the internal financial controls over financial reporting of GilletteIndia Limited ("the Company") as of June 30 2018 in conjunction with our auditof the standalone Ind AS financial statements of the Company for the year ended on thatdate.

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 (the"Guidance Note") 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 of fraudsand errors the accuracy and completeness of the accounting records and the timelypreparation of reliable financial information as required under the Companies Act 2013(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 issued by the ICAI. 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 judgment including the assessment of the risks ofmaterial misstatement of the financial statements whether due to fraud or error. Webelieve that the audit evidence we have obtained is sufficient and appropriate to providea basis for our audit opinion on the Company's internal financial controls system overfinancial 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 of records that in reasonable detail accurately andfairly reflect the transactions and dispositions of the assets of the company;

2. provide reasonable assurance that transactions are recorded as necessary to permitpreparation of financial statements in accordance with generally accepted accountingprinciples and that receipts and expenditure of the company are being made only inaccordance with authorizations of Management and Directors of the company; and

3. provide reasonable assurance regarding prevention or timely detection ofunauthorized 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 June 30 2018 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note on Audit ofInternal Financial Controls over Financial Reporting issued by the ICAI.

For KALYANIWALLA & MISTRY LLP
CHARTERED ACCOUNTANTS
Firm Regn. No.: 104607W / W100166
Daraius Z. Fraser
Place : Mumbai Partner
Date : August 23 2018. M. No. 42454