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Greenlam Industries Ltd.

BSE: 538979 Sector: Others
NSE: GREENLAM ISIN Code: INE544R01013
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OPEN 1776.05
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VOLUME 411
52-Week high 2024.90
52-Week low 790.00
P/E 41.26
Mkt Cap.(Rs cr) 4,286
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 1776.05
CLOSE 1774.35
VOLUME 411
52-Week high 2024.90
52-Week low 790.00
P/E 41.26
Mkt Cap.(Rs cr) 4,286
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Greenlam Industries Ltd. (GREENLAM) - Auditors Report

Company auditors report

To

The Members

Greenlam Industries Limited

Report on the Standalone Financial Statements Opinion

We have audited the accompanying standalone financial statements of Greenlam IndustriesLimited ("the Company") which comprise the Balance Sheet as at March 31 2021the Statement of Profit and Loss (including Other Comprehensive Income) the Statement ofChanges in Equity and Statement of Cash Flows for the year then ended and notes to thefinancial statements including a summary of the significant accounting policies and otherexplanatory information (hereinafter referred to as "standalone financialstatements").

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 Standard prescribed under section133 of the Act read with the Companies (Indian Accounting Standard) Rules 2015 asamended ("Ind 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 profit 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 specified under section 143(10) of the Act (SAs). 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 the independencerequirements that are relevant to our audit of the standalone financial statements underthe provisions of the Act and the Rules made thereunder and we have fulfilled our otherethical responsibilities in accordance with these requirements and the ICAI's Code ofEthics. We believe that the audit evidence we have obtained is sufficient and appropriateto provide a basis for our audit opinion on the standalone financial statements.

Emphasis of Matter

We draw attention to note no. 45 on the statement which describes the uncertainties andthe impact of Covid-19 pandemic on the Company's operations and results as assessed by themanagement.

Our opinion is not modified in respect of above matters.

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.

Sr. No. Key Audit Matter Auditor's Response
1 Recognition of Revenue Principal Audit Procedures
The Company recognizes revenue at the point in time when control of the goods is transferred to the customer at an amount that reflects the consideration to which the Company expects to be entitled in exchange for those goods or services. In determining the transaction price for the sale the Company considers the effects of variable consideration and consideration receivable from the customer. • We performed process walkthrough to understand the adequacy and the design of the revenue cycle. We tested internal controls in the revenue and trade receivables over the accuracy and timing of revenue accounted in the financial statements.
Company's Statement of Profit & Loss included Sales of Rs 109929.78 lakh. Some terms of sales arrangements are governed by Incoterms including the timing of transfer of control. • Understanding the policies and procedures applied to revenue recognition as well as compliance thereof including an analysis of the effectiveness of controls related to revenue recognition processes employed by the Company.
The nature of rebates discounts and sales returns if any involve judgment in determining sales revenues and revenue cut-o_. The risk is therefore that revenue may not be recognized in the correct period or that revenue and associated profit is misstated. Refer to Accounting policies Note 1.09 and Note No. 24 of the standalone Financial Statements. • We reviewed the revenue recognition policy applied by the Company to ensure its compliance with Ind-AS 115 requirements.
• We checked the contracts of customers along with revenue recognition policy applied by the Company to ensure satisfaction of performance obligation upon transfer of control of products to customer at a point in time. Our checking procedure includes consideration of the accounting and presentation of the rebates and discount arrangements.
• In addition to substantive analytical reviews performed to understand how the revenue has trended over the year we performed a detailed testing on transactions around the year-end ensuring revenues were recognised in the correct accounting period. We also tested journal entries recognised to revenue focusing on unusual or irregular transactions.
• We validated the appropriateness and completeness of the related disclosures in Note No. 24 of the Standalone financial statements.

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

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

Our opinion on the standalone financial statements does not cover the other informationand we do not express any form of assurance conclusion thereon. In connection with ouraudit of the standalone financial statements our responsibility is to read the otherinformation and in doing so consider whether the other information is materiallyinconsistent with the standalone financial statements or our knowledge obtained during thecourse of our audit or otherwise appears to be materially misstated.

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

Responsibilities of Management and Those Charged with Governance for the StandaloneFinancial Statements.

The Company's Board of Directors is responsible for the matters stated in Section134(5) of the 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 profit changes in equity and cash flows of the Company in accordancewith the accounting principles generally accepted in India including Ind AS. 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 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 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 the 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 inaccordance with SAs we exercise professional judgment and maintain professionalskepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of the standalonefinancial statements whether due to fraud or error design and perform audit proceduresresponsive to those risks and obtain audit evidence that is sufficient and appropriate toprovide a basis for our opinion. The risk of not detecting a material misstatementresulting from fraud is higher than for one resulting from error as fraud may involvecollusion forgery intentional omissions misrepresentations or the override of internalcontrol.

• Obtain an understanding of internal financial controls relevant to the audit inorder to design audit procedures that are appropriate in the circumstances. Under section143(3)(i) of the Act we are also responsible for expressing our opinion on whether theCompany has adequate internal financial controls system in place and the operatingeffectiveness of such controls.

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

• Conclude on the appropriateness of management's use of the going concern basisof accounting and based on the audit evidence obtained whether a material uncertaintyexists related to events or conditions that may cast significant doubt on the Company'sability to continue as a going concern. If we conclude that a material uncertainty existswe are required to draw attention in our auditor's report to the related disclosures inthe 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 standalonefinancial statements including the disclosures and whether the standalone financialstatements represent 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 financial statements may be influenced. We considerquantitative materiality and qualitative factors in (i) planning the scope of our auditwork and in evaluating the results of our work; and (ii) to evaluate the effect of anyidentified misstatements in the 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 de_ciencies in internal control that we identify during our audit. We alsoprovide those charged with governance with a statement that we have complied with relevantethical 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.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor's Report) Order 2016 ("the Order")issued by the Central Government of India in terms of subsection (11) of section 143 ofthe Act we give in the "Annexure A" a statement on the matters specifiedin paragraphs 3 and 4 of the Order to the extent applicable.

2. As required by section 143 (3) of the Act we report that: (a) We have sought 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 it appears from ourexamination of those books.

(c) The Balance Sheet the Statement of Profit and Loss (including other comprehensiveincome) the Statement of Cash Flow and Statement of Change in Equity dealt with by thisreport are in agreement with the books of account.

(d) In our opinion the aforesaid Standalone financial statements comply with theIndian Accounting Standards specified under section 133 of the Act read with relevantrule issued thereunder.

(e) On the basis of written representations received from the directors as on March 312021 taken on record by the Board of Directors none of the directors is disqualified ason March 31 2021 from being appointed as a director in terms of sub-section 2 of section164 of the Act.

(f ) With respect to the other matters to be included in the Auditor's Report inaccordance with the requirements of section 197(16) of the Act as amended: In our opinionand to the best of our information and according to the explanations given to us theremuneration paid by the Company to its directors during the year is in accordance withthe provisions of section 197 of the Act.

(g) With respect to the adequacy of the internal financial controls with reference tothe financial statements of the Company and the operating effectiveness of such controlsrefer to our separate Report in

"Annexure B". and

(h) 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. TheCompany has disclosed the impact of pending litigations on its financial position in itsStandalone financial statements – Refer Note no. 35 to the standalone financialstatements. ii. The company has made adequate provision as required under the law oraccounting standards for material foreseeable losses if any on long term contractsincluding derivative contracts. iii. There has been no delay in transferring amountrequired to be transferred to the Investor Education and Protection Fund by the Company.

For S S KOTHARI MEHTA & COMPANY
Chartered Accountants
Firm Registration Number: 000756N
NAVEEN AGGARWAL
Partner
Place: New Delhi Membership Number: 094380
Date: May 27 2021 UDIN 21094380AAAADN7005

"Annexure A" to the Independent Auditors' Report

The Annexure as referred in paragraph

(1) ‘Report on Other Legal and Regulatory Requirements of our IndependentAuditors' Report to the members of Greenlam Industries Limited on the standalone financialstatements for the year ended March 31 2021 we report that:

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

(b) Fixed assets have been physically verified by the management during the year basedon the regular programme of verification which in our opinion is reasonable havingregard to the size of the Company and the nature of its assets. According to theinformation and explanation given to us no material discrepancies were noticed on suchverification.

(c) Based on our audit procedures performed for the purpose of reporting the true andfair view of the financial statements and according to information and explanations givenby the management the title deeds of immovable properties are held in the name of theCompany except One Office Premises of Gross Block Value of Rs 286.98 lacs and Net BlockValue as on 31.03.2021 of Rs 212.15 lacs (Previous Year Rs 216.64 lacs) is yet to betransferred in the name of the Company pursuant to Scheme of Arrangements ii.Wehavebeenexplainedbythemanagementthat the inventory (except stock lying with the thirdparties and in transit for which confirmations have been received/ material received) hasbeen physically verified at reasonable intervals and the procedures of physicalverification of inventory followed by the management are reasonable in relation to thesize of the Company and nature of its business. As far as we could ascertain andaccordingly to the information and explanations given to us no material discrepancieswere noticed between the physical stock and book records.

iii. The Company has granted unsecured loans to a company covered in the registermaintained under Section 189 of the Act except this Company has not granted any otherloans secured or unsecured to firms Limited Liability Partnerships or other partiescovered in the register maintained under Section 189 of the Act. a) In respect of theaforesaid loans the terms and conditions under which such loans were granted are notprejudicial to the Company's interest. b) The company has stipulated schedule of paymentof interest not of repayment of principal. Repayment of the principal amount and receiptof interest are not due at balance sheet date. c) There is no overdue amount in respect ofprincipal and interest.

iv. In our opinion and according to the information and explanations given to us theCompany has complied with the provisions of section 185 and section 186 of the CompaniesAct 2013 with respect to the loans investments guarantees and security provided.

v. According to the information and explanations given to us the Company has notaccepted any deposits from the public within the provisions of sections 73 to 76 of theAct and the rules framed there under.

vi. The Central Government has not prescribed the maintenance of cost records for anyof the products of the company under sub-section (1) of section 148 the Act and the rulesframed there under.

vii. (a) According to the information and explanations given to us and on the basis ofexamination of the records of the Company the company is regular in depositing undisputedstatutory dues including provident fund employees' state insurance income tax Goods andService Tax custom duty Cess and other material statutory dues with the appropriateauthorities to the extent applicable and further there are no undisputed statutory duespayable for a period of more than six months from the date they become payable as at March31 2021.

(b) According to the records of the company the dues outstanding of income-taxsales-tax service tax custom duty excise duty value added tax and cess goods andservices tax on account of any dispute are as per of the statement of disputed dues asunder:

Name of Statute Nature of Dues Amount (Rs in lakh) Period to which the amount relates Forum where dispute pending Remarks If any
Rajasthan VAT Act 2003 CST Liability 19.12 lakh FY 2004 - 2005 Assistant Commissioner SPL Ward- I Commercial tax office Bhiwadi
Himanchal Pradesh VAT Act 2005 ITC claimed 18.56 lakh FY 2010-2011 The Additional Excise and Taxation Commissioner Cum- Appellate Authority (South Zone) Shimla Himachal Pradesh
Income Tax Act 1961 Demand u/s 154 14.13 lakh FY 2013-2014 Assessing Authority

The disputed cases where the amount has been paid in full but under protest are notincluded in the above table. viii. In our opinion on the basis of audit procedures andaccording to the information and explanations given to us the Company has not defaultedin repayment of loan or borrowing to any banks or Financial Institutions. Further theCompany did not have any outstanding loans or borrowings from government or dues todebenture holder during the year ix. According to the information and explanation given tous the company has not raised moneys by way of initial public offer (IPO) or furtherpublic offer (including debt instruments) during the year. The term loans have beenapplied for the purposes for which they were raised. x. According to the information andexplanations given to us no instance of fraud by the Company or on the Company by itsofficers or employees has been noticed or reported during the year. xi. According to theinformation and explanations given to us and based on our examination of the records ofthe Company the Company has paid/ provided for managerial remuneration in accordance withthe requisite approvals mandated by the provisions of section 197 read with Schedule V tothe Act. xii. In our opinion and according to the information and explanations given tous the Company is not a Nidhi Company. Accordingly paragraph 3(xii) of the Order is notapplicable. xiii. According to the information and explanations given to us and based onour examination of the record of the Company transactions with the related parties are incompliance with provision of section 177 & 188 of the Act where applicable and detailsof such transactions have been disclosed in the financial statements as required by theapplicable accounting standards. xiv. According to the information and explanations givento us and based on our examination of the records of the Company the Company has not madeany preferential allotment or private placement of shares or fully or partly convertibledebentures during the year. Accordingly clause 3(xiv) of the Order is not applicable. xv.According to the information and explanations given to us and based on our examination ofthe records of the Company the Company has not entered into non-cash transactions withdirectors or persons connected with him. Accordingly paragraph 3(xv) of the Order is notapplicable. xvi. The Company is not required to be registered under Section 45-IA of theReserve Bank of India Act 1934. Accordingly clause 3(xvi) of the Order is notapplicable.

For S S KOTHARI MEHTA & COMPANY
Chartered Accountants
Firm Registration Number: 000756N
NAVEEN AGGARWAL
Partner
Place: New Delhi Membership Number: 094380
Date: May 27 2021 UDIN 21094380AAAADN7005

"Annexure B" to the Independent Auditor's Report of even date on theStandalone Financial Statements of Greenlam Industries Limited.

Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143 of the Companies Act 2013 ("the Act") as referred to in paragraph 2(g) of‘Report on Other Legal and Regulatory Requirements'

We have audited the internal financial controls with reference to financial statementsreporting of Greenlam Industries limited ("the Company") as of March 31 2021 inconjunction with our audit of the standalone financial statements of the Company for theyear ended on that date.

Management's Responsibility for Internal Financial Controls

The Company's management is responsible for establishing and maintaining internalfinancial controls based on the internal control with reference to financial statementcriteria 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 (ICAI). 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 Company's policies the safeguarding ofits assets the prevention and detection of frauds and errors the accuracy andcompleteness of the accounting records and the timely preparation of reliable financialinformation as required under the Companies Act 2013.

Auditors' Responsibility

Our responsibility is to express an opinion on the Company's internal financialcontrols with reference to financial statement based on our audit. We conducted our auditin accordance with the Guidance Note on Audit of Internal Financial Controls OverFinancial Reporting ("the Guidance Note") and the Standards on Auditing issuedby ICAI and deemed to be prescribed under section 143(10) of the Companies Act 2013 tothe extent applicable to an audit of internal financial controls both applicable to anaudit of Internal Financial Controls and both issued by the Institute of CharteredAccountants of India. Those Standards and the Guidance Note require that we comply withethical requirements and plan and perform the audit to obtain reasonable assurance aboutwhether adequate internal financial controls with reference to financial statement wasestablished and maintained and if such controls operated effectively in all materialrespects.

Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls system with reference to financial statement and theiroperating effectiveness. Our audit of internal financial controls with reference tofinancial statement included obtaining an understanding of internal financial controlswith reference to financial statement assessing the risk that a material weakness existsand testing and evaluating the design and operating effectiveness of internal controlbased on the assessed risk. The procedures selected depend on the auditor's judgementincluding the assessment of the risks of material misstatement of the financialstatements whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Company's internal financial controls systemwith reference to financial statement.

Meaning of Internal Financial Controls with reference to financial statement

A Company's internal financial control with reference to financial statement 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 withreference to financial statement includes those policies and procedures that (1) pertainto the maintenance of records that in reasonable detail accurately and fairly reflectthe transactions and dispositions of the assets of the Company; (2) provide reasonableassurance that transactions are recorded as necessary to permit preparation of financialstatements in accordance with generally accepted accounting principles and that receiptsand expenditures of the Company are being made only in accordance with authorisations ofmanagement and directors of the Company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorised acquisition use or disposition of theCompany's assets that could have a material effect on the financial statements.

Inherent Limitations of Internal Financial Controls with reference to financialstatement

Because of the inherent limitations of internal financial controls with reference tofinancial statement 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 withreference to financial statement to future periods are subject to the risk that theinternal financial control with reference to financial statement may become inadequatebecause of changes in conditions or that the degree of compliance with the policies orprocedures may deteriorate.

Opinion

In our opinion the Company has in all material respects an adequate internalfinancial controls system with reference to financial statement and such internalfinancial controls with reference to financial statement were operating effectively as atMarch 31 2021 based on the internal control with reference to financial statementcriteria established by the Company considering the essential components of internalcontrol stated in the Guidance Note on Audit of Internal Financial Controls with referenceto financial statement issued by the Institute of Chartered Accountants of India.

For S S KOTHARI MEHTA & COMPANY
Chartered Accountants
Firm Registration Number: 000756N
NAVEEN AGGARWAL
Partner
Place: New Delhi Membership Number: 094380
Date: May 27 2021 UDIN 21094380AAAADN7005

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