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Grasim Industries Ltd.

BSE: 500300 Sector: Industrials
NSE: GRASIM ISIN Code: INE047A01021
BSE 00:00 | 24 Sep 1018.70 -29.70
(-2.83%)
OPEN

1050.40

HIGH

1064.00

LOW

1012.30

NSE 00:00 | 24 Sep 1019.45 -31.70
(-3.02%)
OPEN

1051.15

HIGH

1052.00

LOW

1014.25

OPEN 1050.40
PREVIOUS CLOSE 1048.40
VOLUME 368996
52-Week high 1299.90
52-Week low 915.00
P/E 29.54
Mkt Cap.(Rs cr) 66,990
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 1050.40
CLOSE 1048.40
VOLUME 368996
52-Week high 1299.90
52-Week low 915.00
P/E 29.54
Mkt Cap.(Rs cr) 66,990
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Grasim Industries Ltd. (GRASIM) - Auditors Report

Company auditors report

To the Members of Grasim Industries Limited

Report on the Audit of the Standalone Ind AS Financial Statements

We have audited the accompanying standalone Ind AS financial statementsof Grasim Industries Limited ("the Company") which comprise the Balance sheetas at 31 March 2018 the Statement of profit and loss (including Other comprehensiveincome) the Statement of changes in equity and the Statement of cash flows for the yearthen ended and a summary of the significant accounting policies and other explanatoryinformation (hereinafter referred to as "standalone Ind AS financialstatements").

Management's Responsibility for the Standalone Ind AS FinancialStatements

The Company's Board of Directors is responsible for the mattersstated in Section 134(5) of the Companies Act 2013 ("hereinafter referred to as theAct") with respect to the preparation of these standalone Ind AS financial statementsthat give a true and fair view of the state of affairs profit (including othercomprehensive income) changes in equity and cash flows of the Company in accordance withthe accounting principles generally accepted in India including the Indian AccountingStandards ("Ind AS") prescribed under Section 133 of the Act.

This responsibility also includes maintenance of adequate accountingrecords in accordance with the provisions of the Act for safeguarding the assets of theCompany and for preventing and detecting frauds and other irregularities; selection andapplication of appropriate accounting policies; making judgments and estimates that arereasonable and prudent; and design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the accuracy andcompleteness of the accounting records relevant to the preparation and presentation ofthe standalone Ind AS financial statements that give a true and fair view and are freefrom material misstatement whether due to fraud or error.

Auditor's Responsibility

Our responsibility is to express an opinion on these standalone Ind ASfinancial statements based on our audit.

We have taken into account the provisions of the Act the accountingand auditing standards and matters which are required to be included in the audit reportunder the provisions of the Act and the Rules made thereunder.

We conducted our audit of the standalone Ind AS financial statements inaccordance with the Standards on Auditing specified under Section 143(10) of the Act.Those Standards require that we comply with ethical requirements and plan and perform theaudit to obtain reasonable assurance about whether the standalone Ind AS financialstatements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence aboutthe amounts and the disclosures in the standalone Ind AS financial statements. Theprocedures selected depend on the auditor's judgment including the assessment of therisks of material misstatement of the standalone Ind AS financial statements whether dueto fraud or error. In making those risk assessments the auditor considers internalfinancial controls relevant to the Company's preparation of the standalone Ind ASfinancial statements that give a true and fair view in order to design audit proceduresthat are appropriate in the circumstances. An audit also includes evaluating theappropriateness of the accounting policies used and the reasonableness of the accountingestimates made by the Company's Directors as well as evaluating the overallpresentation of the standalone Ind AS financial statements.

We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our audit opinion on the standalone Ind AS financialstatements.

Opinion

In our opinion and to the best of our information and according to theexplanations given to us the aforesaid standalone Ind AS financial statements give theinformation required by the Act in the manner so required and give a true and fair viewin conformity with the accounting principles generally accepted in India of the state ofaffairs of the Company as at 31 March 2018 its profit (including other comprehensiveincome) changes in equity and its cash flows for the year ended on that date.

Report on Other Legal and Regulatory Requirements

As required by the Companies (Auditor's Report) Order 2016(‘the Order') issued by the Central Government of India in terms of Section143(11) of the Act we give in "Annexure A" a statement on the mattersspecified in the paragraphs 3 and 4 of the Order.

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 standalone Balance sheet the standalone Statement of profit and loss(including other comprehensive income) the standalone Statement of Changes in equity andthe standalone Statement of cash flows dealt with by this Report are in agreement with thebooks of account;

(d) In our opinion the aforesaid standalone Ind AS financial statements comply withthe Indian Accounting Standards (Ind AS)prescribed under Section 133 of the Act;

(e) On the basis of the written representations received from the directors as on 31March 2018 taken on record by the Board of Directors none of the directors isdisqualified as on 31 March 2018 from being appointed as a director in terms of Section164(2) of the Act;

(f) With respect to the adequacy of the internal financial controls with reference toInd AS financial statements of the Company and the operating effectiveness of suchcontrols refer to our separate report in "Annexure B"; and

(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 standalone Ind AS financial statements - Refer Note 4.1 to the standaloneInd AS financial statements;

ii. The Company has made provision as required under the applicable law or accountingstandards for material foreseeable losses if any on long-term contracts includingderivative contracts – Refer Note 2.25.1 to the standalone Ind AS financialstatements;

iii. There has been no delay in transferring amounts required to be transferred tothe Investor Education and Protection Fund by the Company; and

iv. The disclosures in the standalone Ind AS financial statements regarding holdings aswell as dealings in specified bank notes during the period from 8 November 2016 to 30December 2016 have not been made since the requirement does not pertain to financial yearended 31 March 2018.

For B S R & Co. LLP For S R B C & CO LLP.
Chartered Accountants Chartered Accountants
Firm's Registration No: 101248W/W-100022 Firm's Registration No: 324982E/E300003
Akeel Master Vijay Maniar
Partner Partner
Membership No: 046768 Membership No: 36738
Mumbai Mumbai
Dated: 23 May 2018 Dated: 23 May 2018

Annexure – A to the Independent Auditors' Report – 31March 2018 on the standalone Ind AS financial statements (Referred to in our report ofeven date)

With reference to the Annexure A referred to in the IndependentAuditor's Report to the members of the Company on the standalone Ind AS financialstatements for the year ended 31 March 2018 we report the following:

(i) (a) The Company has maintained proper records showing fullparticulars including quantitative details and situation of the fixed assets (propertyplant and equipment).

(b) The Company has a regular programme of physical verification of itsfixed assets (property plant and equipment) by which all fixed assets (property plant andequipment) are verified in a phased manner over a period of two to three years. Inaccordance with this programme a portion of the fixed assets (property plant andequipment) has been physically verified by the management during the year and no materialdiscrepancies have been noticed on such verification. In our opinion this periodicity ofphysical verification is reasonable having regard to the size of the Company and thenature of its assets.

(c) According to the information and explanations given to us and onthe basis of our examination of the records of the Company the title deeds of immovableproperties as disclosed in Note 2.1.1 to the standalone Ind AS financial statements areheld in the name of the Company except for the following:

Particulars Leasehold land Freehold land
Gross Block as at 31 March 2018 256.23 682.70
Net Block as at 31 March 2018 244.68 682.70
Number of Cases 26 116

(ii) The inventory except good-in-transit has been physicallyverified by management at reasonable intervals during the year. In our opinion thefrequency of such verification is reasonable. In respect of inventory lying with thirdparties these have substantially been confirmed by them. The discrepancies noticed onsuch verification between physical stocks and the book records were not material and havebeen properly dealt with in the books of account.

(iii) In our opinion and according to information and explanationsgiven to us the Company has not granted any loans secured or unsecured to companiesfirms limited liability partnerships or other parties covered in the register maintainedunder Section 189 of the Act. Accordingly Clause 3(iii) of the Order is not applicable tothe Company.

(iv) The Company has not granted any loans or provided any guaranteesor security to the parties covered under Section 185 of the Act. The Company has compliedwith the provisions of Section 186 of the Act in respect of investments made loans andguarantees to the parties covered under Section 186. The Company has not provided anysecurity to the parties covered under Section 186 of the Act

(v) According to information and explanations given to us the Companyhas not accepted any deposits from the public within the meaning of the directives issuedby Reserve Bank of India provisions of Sections 73 to 76 of the Act any other relevantprovisions of the Act and the relevant rules framed thereunder.

(vi) We have broadly reviewed the records maintained by the Companypursuant to the rules prescribed by Central Government for maintenance of cost recordsunder sub section (1) of Section 148 of the Act and are of the opinion that prima faciethe prescribed accounts and records have been made and maintained. However we have notmade a detailed examination of the records.

(vii) (a) According to the information and explanations given to us andthe records of the Company examined by us in our opinion the Company is generallyregular in depositing the undisputed statutory dues including Provident fundEmployees' state Insurance Income tax Sales tax Service tax Goods and servicetax Duty of customs Duty of excise Value added tax Cess Professional tax and othermaterial statutory dues as applicable with the appropriate authorities.

According to the information and explanations given to us noundisputed amounts payable in respect of Provident fund Employees' state insuranceIncome tax Sales tax Service tax Goods and service tax Duty of customs Duty ofexcise Value added tax Cess Professional tax and other material statutory dues were inarrears as at 31 March 2018 for a period of more than six months from the date they becamepayable.

(b) According to the information and explanations given to us thereare no dues of Income tax Sales tax Service tax Goods and service tax Duty of customsDuty of excise or Value added tax which have not been deposited with the appropriateauthorities on account of any dispute other than those mentioned in Appendix I to thisreport.

(viii) In our opinion and according to the information and explanations given to usthe Company has not defaulted in repayment of loans or borrowings to banks financialinstitutions government and debenture holders.

(ix) In our opinion and according to the information and explanations given to us theCompany has not raised any moneys by way of initial public offer or further public offer(including debt instruments) and term loans during the year. Accordingly the provisionsof Clause 3(ix) of the Order is not applicable to the Company.

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

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

(xii) In our opinion and according to the information and explanations given to us theCompany is not a Nidhi company. Accordingly Clause 3(xii) of the Order is not applicableto the Company.

(xiii) 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 notes to the standalone Ind ASfinancial statements as required under Indian Accounting Standard (Ind AS) 24.

(xiv) According to the information and explanations give to us and based on ourexamination of the records of the Company the Company has not made any preferentialallotment or private placement of shares or fully or partly convertible debentures duringthe year. Accordingly Clause 3(xiv) of the Order is not applicable to the Company.

(xv) According to the information and explanations given to us and based on ourexamination of the records the Company has not entered into non-cash transactions withdirectors or persons connected with them. Accordingly Clause 3(xv) of the Order is notapplicable to the Company.

(xvi) In our opinion and according to the information and explanations given to us theCompany is not required to be registered under Section 45-IA of the Reserve Bank of IndiaAct 1934. Accordingly Clause 3(xvi) of the Order is not applicable to the Company.

For B S R & Co. LLP For S R B C & CO LLP.
Chartered Accountants Chartered Accountants
Firm Registration No.: 101248W/W-100022 Firm's Registration No: 324982E/E300003
Akeel Master Vijay Maniar
Partner Partner
Membership No.: 46768 Membership No: 36738
Mumbai Mumbai
Dated: 23 May 2018 Dated: 23 May 2018