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L G Balakrishnan & Bros Ltd.

BSE: 500250 Sector: Auto
NSE: LGBBROSLTD ISIN Code: INE337A01034
BSE 00:00 | 22 Sep 414.50 9.70
(2.40%)
OPEN

408.35

HIGH

422.60

LOW

406.45

NSE 00:00 | 22 Sep 413.85 8.65
(2.13%)
OPEN

408.00

HIGH

424.40

LOW

405.75

OPEN 408.35
PREVIOUS CLOSE 404.80
VOLUME 8071
52-Week high 545.00
52-Week low 209.45
P/E 7.48
Mkt Cap.(Rs cr) 1,301
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 408.35
CLOSE 404.80
VOLUME 8071
52-Week high 545.00
52-Week low 209.45
P/E 7.48
Mkt Cap.(Rs cr) 1,301
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

L G Balakrishnan & Bros Ltd. (LGBBROSLTD) - Auditors Report

Company auditors report

TO THE MEMBERS OF L.G.BALAKRISHNAN & BROS LIMITED

Report on the Standalone Ind AS Financial Statements: Opinion

We have audited the accompanying Standalone Ind AS Financial Statements ofL.G.BALAKRISHNAN & BROS LIMITED Coimbatore ("the Company") which comprisesthe Balance Sheet as at 31st March 2021 the Statement of Profit and Loss (Including OtherComprehensive

Income) the Statement of Cash Flows notes to the financial statements the Statementof Changes in Equity for the year then ended and a summary of significant accountingpolicies and other explanatory information. In our opinion and to the best of ourinformation and according to the explanations given to us the aforesaid Standalone Ind ASFinancial Statements give the information required by the Act in the manner so requiredand give a true and fair view in conformity with the accounting principles generallyaccepted in

India including Ind AS of the state of affairs of the Company as at 31st March 2021the profit and total comprehensive income its cash flows in equity for the year ended onthat date.

Basis for Opinion

We conducted our audit of the standalone IND AS financial statements in accordance withthe Standards on Auditing specified u/s 143(10) of the Companies Act

2013. Our responsibilities 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 together with the ethical requirementsthat are relevant to our audit of the standalone financial statements under the provisionsof the Companies Act 2013 and the Rules thereunder and we have fulfilled our otherethical responsibilities in accordance with these requirements and ICAI's Code of Ethics.

We believe that the audit evidence we have obtained is sufficientand appropriate toprovide a opinion on Standalone Ind AS Financial Statements.

Key audit matters

Key audit matters are those matters that in our professional judgement 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 opinionandthe 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 audit report.

S.No Key Audit Matters Auditor's Response
1 Allowance for Credit Loss:
The Company determines the allowance for credit losses based on historical loss experience adjusted to reflect current and estimated future economic conditions. In calculating expected credit loss the Company has also considered other related credit information for its customers to estimate the probability of default in future. Our audit procedures related to the allowance for credit losses for trade receivables include the following among others:
We identifiedallowance for credit losses as a key audit matter because the Company exercises significant judgment in calculating the expected credit losses We tested the the (1) development of the methodology for the allowance for credit losses including consideration of the current and estimated future economic conditions (2) completeness and accuracy of information used in the estimation of probability of default and (3) computation of the allowance for credit losses.
2 Evaluation of uncertain tax positions: 1 We obtained details of completed tax assessments and demands for the year ended March 31 2021 from management. We reviewed the management's underlying assumptions in estimating the tax provision and the possible outcome of the disputes. We also considered legal precedence and other rulings in evaluating management's position on these uncertain tax positions. Additionally we considered the effect of new information in respect of uncertain tax positions as at April 1 2020 to evaluate whether any change was required to management's position on these uncertainties.

Information other than the standalone financial statements and the auditor's reportthereon

The Company's Board of directors are responsible for the preparation of 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 Ind AS financial statements and our auditor's report thereon. Ouropinion on the standalone Ind AS 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 Ind AS financial statements our responsibility is to read theother information and in doing so consider whether the other information is materiallyinconsistent with the standalone Ind AS financial statements or our of controls overknowledge obtained during the course of our audit or otherwise appears to be materiallymisstated.

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.

Management's Responsibility for the Standalone 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 of these Standalone IndAS Financial Statements that give a true and fair view of the financial positionfinancial performance including other comprehensive income cash flows and changes inequity of the Company in accordance with the Accounting principles generally accepted inIndia including the Indian Accounting Standards ("Ind AS")prescribed underSection 133 of the Act 2013 read with relevant rules issued there under. 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 of the accounting records relevant to the preparation andpresentation of the Standalone Ind AS Financial Statements that give a true and fair viewand are free from material misstatement whether due 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 also responsible foroverseeing the company's financial reporting process.

Auditor's Responsibility for the Audit of the Standalone Ind AS 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 Ind AS 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 the risks of material misstatement of the standalone Ind ASfinancial statements whether due to fraud or error design and perform audit proceduresresponsive to those risks and obtain audit evidence that is and appropriate to provide abasis for our opinion. The risk of not detecting a material misstatement resulting fromfraud is higher than for one resulting from error as fraud may involve collusionforgery intentional omissions misrepresentations or the override of internal control.

Obtain an understanding of internal financial controls relevant to the audit in orderto 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 with reference to standalonefinancial statements in place and the operating effectiveness of such controls.

Evaluate the appropriateness of accounting policies used and the reasonableness ofaccounting estimates and related disclosures made by the 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

Company's ability to continue as a going concern. If we conclude that materialuncertainty exists we are required to draw attention in our auditor's report to therelated disclosures in the standalone financial statements or if such disclosures areinadequate to modify our opinion. Our conclusions are based on the audit evidenceobtained up to the date of our auditor's report. However future events or conditions maycause the company to cease to continue as a going concern.

Evaluate the overall presentation structure and content of the standalone Ind ASfinancial statements including the disclosures and whether the standalone Ind ASfinancial statements represent the underlying transactions and event in a manner thatachieves fair presentation.

We communicate with those charged with governance regarding among other matters theplanned scope and timing of the audit and significant including any significant that weidentify during our audit.

We also provide those charged with governance with a statement that we have compliedwith relevant ethical requirements regarding independence and to communicate with themall relationships and other matters that may reasonably be thought to bear on ourindependence and where applicable related safeguards. From the matters communicated withthose charged with governance we determine those matters that were of most significancein the audit of the Standalone

Financial Statements of the current period and are therefore the key audit matters. Wedescribe these matters in our auditor's report unless law or regulation precludes publicdisclosure about the matter or when in extremely rare circumstances we determine that amatter should not be communicated in our report because the adverse consequences of doingso would reasonably be expected to outweigh the public interest benefits of suchcommunication.

Report on Other Legal and Regulatory Requirements:

As required by the Companies (Auditor's Report) Order 2016 ("the Order")issued by the Central Government of doubt on the

India in terms of sub-Section (11) of Section 143 of the Act we enclose in"Annexure A" a statement on the matters specified in Paragraphs 3 and 4 of theOrder.

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 purposes 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 comprehensive income) the Statement of Cash Flows and theStatement of Changes in Equity dealt with by this Report are in agreement with therelevant books of accounts. d) In our opinion the aforesaid Standalone Ind AS auditfindings

Financial Statements comply with the Indian deficiencies in internal control AccountingStandards specified under Section 133 of the Act read with Companies (Indian AccountingStandards) Rules 2015 as amended. e) On the basis of the written representationsreceived from the directors as on 31st March 2021 taken on record by the Board ofDirectors none of the directors are disqualified as on 31 March 2021 from being appointedas a director in terms of Section 164(2) of the Act. f) With respect to the adequacy ofthe internal financial controls over financial reporting of the Company and the operatingeffectiveness of such controls refer to our separate Report in "Annexure B". g)With respect to the other matters to be included in the Auditor's Report in accordancewith the requirements of Section 197(16) of the Act as amended: In our opinion and to thebest of our information and according to the explanations given to us the remunerationpaid by the company to its directors during the year is in accordance with the provisionsof Section 197 of the Act. h) With respect to the other matters to be included in theAuditor's Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules2014 in our opinion and to the best of our information and according to the explanationsgiven to us: i. The Company has disclosed the impact of pending litigations on itsfinancial position in its Standalone Ind AS Financial Statements – Refer Note No.28to the Standalone Financial Statements ii. The company did not have any long termcontracts including derivative contracts for which there were any material foreseeablelosses. iii. There has been no delay in transferring amounts required to be transferredto the Investor Education and Protection Fund by the Company.

For SURI & CO.
Chartered Accountants
Firm Registration No.: 004283S
M. SIVARAM
Partner
Place: Coimbatore
Membership No.: 211916
Date: 10.06.2021
UDIN: 21211916AAAALW3654

‘Annexure –A' to the Independent Auditor's Report to the members ofL.G.BALAKRISHNAN & BROS LIMITED

In terms of the information and explanation sought by us and given by the Company andthe books and records examined by us in the normal course of audit and to the best of ourknowledge and belief we report the following: i. (a) The Company has maintained properrecords showing full particulars including quantitative details and situation of fixedassets.

(b) The fixed assets were physically verified during the year by the management atreasonable intervals in a phased manner and no material discrepancies were noticed on suchverification. (c) According to the information and explanation given to us and the booksand records verified by us and based on the examination of the registered sale deedsprovided to us we report that the title deeds of immovable properties of Land andBuildings which are freehold are held in the name of the Company as at Balance sheet dateexcept for two title deeds for land amounting to Rs. 63.55 Lakhs which are yet to betransferred in the name of the company. In respect of immovable properties of Land thathave been taken on lease and disclosed as fixed assets in the financial statements and thebuildings constructed on such leasehold land whose lease deeds have been pledged assecurity for credit facilities taken from the banks the lease agreements are in the nameof the Company where the Company is the lessee in the agreement based on the confirmation. directlyreceived by usfrom banks ii. According to information and explanations furnishedto us the inventories have been physically verified management at reasonable intervalsand in our opinion the frequency of such verification is reasonable. The discrepanciesnoticedonsuchverification . were not material iii. The Company has not granted loanssecured or unsecured to companies firms limited liability partnerships or other partiescovered in the register maintained under Section 189 of the Companies Act 2013. iv. TheCompany has not granted any loans hence provisions of Section 185 are not applicable. TheCompany has made Investments and provided guarantee which are within the limits of Section186 of the Companies Act 2013. v. According to the explanation and information providedto us the Company has complied with the provisions of Sections 73 to 76 and any otherrelevant provisions of the Companies Act 2013 and the Companies (Acceptance of Deposits)Rules 2014. We have been informed that no order has been passed by the Company Law Boardor the National Company Law Tribunal or the Reserve Bank of India or any court or anyother Tribunal in this regard. vi. The maintenance of cost records has been specified bythe Central Government u/s 148(1) of the Companies

Act 2013 for automotive components. We have broadly reviewed the cost recordsmaintained by the company pursuant to the Companies (Cost records and Audit) rules 2014as amended and prescribed by the central government under sub-Section 1 of Section 148 ofthe Companies Act 2013 and are of the opinion that prima facie the prescribed costrecords have been made and maintained. We have however not made a detailed examinationof the cost records with a view to determine whether they are accurate or complete. vii.(a) The Company is regular in depositing undisputed statutory dues including providentfund employees' state insurance income-tax sales-tax wealth tax service tax duty ofcustoms duty of excise value added tax goods and service tax cess and any otherstatutory dues with the appropriate authorities and there are no undisputed statutory duesoutstanding for a period of more than six months from the date they became payable as atthe balance sheet date.

(b) The particulars of disputed statutory dues are as follows:

Name of the Statute Nature of Due Amount Disputed (Rs. In Lakhs) Amount Unpaid (Rs. In Lakhs) Period to which the amount relates Forum where dispute is pending
Central Excise Act ED- Transfer of Division 100.00 92.50 2009-10 CESTAT Chennai
Tamil Nadu Value Added Tax Act Input Tax Credit/ Sales return 355.98 172.47 2007-08 2008- 09 2010-11 2011-12 Joint Commissioner (Appeals) Coimbatore
Tamil Nadu Value Added Tax Act Differential rate and Inter State Sale 5.91 5.91 2006-07 2010- 11 Sales Tax Appellate Tribunal Coimbatore
Entry Tax Entry Tax 408.36 408.36 2007-08 Hon'ble High Court of Madras (stayed by the High Court)
Tamil Nadu Value Added Tax Act Disputed on tax charged for by the Canteen sales 12.97 12.97 2007-08 to 2011-12 STAT Chennai
Kerala Sales Tax Annual Turnover 24.61 24.61 2015-16 Deputy Commissioner SGST Ernakulam Kerala
Income Tax Act Excess claim u/s 80IC 213.02 213.02 2009-10 Commissioner (Appeals)
Income Tax Act Excess claim u/s 80IC 214.23 214.23 2010-11 Commissioner (Appeals)
Income Tax Act Excess claim u/s 80IC 150.99 - 2012-13 ITAT Chennai
Income Tax Act Excess claim u/s 80IC & 14A 428.39 428.39 2013-14 Commissioner (Appeals)
Income Tax Act Excess Claim u/s 80 IC 284.79 284.79 2015-16 ITAT Chennai
Income Tax Act Disallowance claim u/s 14 A 12.92 12.92 2016-17 Commissioner (Appeals)

viii.In our Opinion and according to the information and explanation provided to usthe Company has not defaulted in repayment of dues to financial institutions and banks.The Company has not taken loans from Government and has not issued any debentures. ix. TheCompany has not raised any money by way of initial public offer or further public offerduring the year.

The term loans raised during the year have been applied for the purpose for which therewere availed.

x. In our opinion and according to the information and explanation provided to us nofrauds by the Company and no material fraud on the Company by its officers or employeeshas been noticed or reported during the year. xi. The managerial remuneration has beenpaid and provided in accordance with the requisite approvals mandated by the provisions ofSection 197 read with Schedule V to the Act. xii. The Company is not a Nidhi Company andhence reporting under clause (xii) of Paragraph 3 of the order is not applicable. xiii.Inour opinion based on the information and explanation given to us all transactions withthe related parties are in compliance with Section 177 and 188 of the Act and the detailsthereof have been disclosed in the Standalone Ind AS Financial Statements as required bythe applicable accounting standards and the Act. xiv. The Company has not made anypreferential allotment or private placement of shares or fully or partly convertibledebentures during the year under review and hence reporting under clause (xiv) ofParagraph 3 of the Order is not applicable. xv. The Company has not entered into anynon-cash transactions with directors or persons connected with him and hence reportingunder clause (xv) of Paragraph 3 of the Order is not applicable. xvi.The Company is notrequired to be registered under Section 45-IA of the Reserve Bank of India Act 1934.

For SURI & CO.
Chartered Accountants
Firm Registration No.: 004283S
M. SIVARAM
Partner
Membership No.: 211916
Place: Coimbatore
Date: 10.06.2021 UDIN: 21211916AAAALW3654

"Annexure – B" to the Independent Auditor's Report to the members ofL.G.BALAKRISHNAN & BROS LIMITED

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 ofL.G.BALAKRISHNAN & BROS

LIMITED ("the Company") as of 31 March 2021 in conjunction with our audit ofthe Standalone Ind AS Financial Statements of the Company for the year ended on that date.

Management's Responsibility for the Internal Financial Controls:

The Company's management is responsible for establishing and maintaining internalfinancial controls based on the internal controls 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. These responsibilities includethe design implementation and maintenance of adequate internal financial controls thatwere operating effectively of its business including adherence to 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.

Auditors' Responsibility:

Our responsibility is to express an opinion on the

Company's internal financial controls over financial reporting based on our audit. Weconducted our audit in accordance with the Guidance Note on Audit of Internal FinancialControls Over Financial Reporting (the "Guidance Note") and the Standards onAuditing issued by ICAI and deemed to be prescribed under Section 143(10) of theCompanies Act 2013 to the extent applicable to an audit of internal financial controlsboth applicable to an audit of Internal Financial Controls and both issued by theInstitute of Chartered Accountants of India. Those Standards and the Guidance

Note 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 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 Ind AS Financial Statements whether due to fraudor error.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide our audit opinion on the Company's internal financial controls system overfinancial reporting.

Meaning of Internal Financial Controls Over Financial for ensuring the orderly andefficient conduct

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 Standalone Ind AS Financial Statements for external purposes in accordancewith generally accepted accounting principles. A Company's internal financial control overfinancial reporting includes those policies and procedures that:-

1. Pertain to the maintenance of records that in reasonable 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 Standalone Ind AS Financial Statements in accordance with generallyaccepted accounting principles and that receipts and expenditures of the Company arebeing made only in accordance with authorizations of management and directors of theCompany; and

3. Provide reasonable assurance regarding prevention or timely detection ofunauthorized acquisition use or disposition of the Company's assets that could have amaterial effect on the Standalone Ind

AS 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 to the best of our information and according to the explanations givento us the Company has in all material respects an adequate internal financial controlssystem over financial reporting and such internal financial controls over financialreporting were operating effectively 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.

For SURI & CO.
Chartered Accountants
Firm Registration No.: 004283S
M. SIVARAM
Partner
Place: Coimbatore
Membership No.: 211916
Date: 10.06.2021
UDIN: 21211916AAAALW3654

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