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Marico Ltd.

BSE: 531642 Sector: Consumer
NSE: MARICO ISIN Code: INE196A01026
BSE 00:00 | 07 Jul 499.00 -0.05
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500.25

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497.25

NSE 00:00 | 07 Jul 499.00 0.15
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OPEN 500.25
PREVIOUS CLOSE 499.05
VOLUME 53845
52-Week high 606.00
52-Week low 455.80
P/E 55.44
Mkt Cap.(Rs cr) 64,516
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 500.25
CLOSE 499.05
VOLUME 53845
52-Week high 606.00
52-Week low 455.80
P/E 55.44
Mkt Cap.(Rs cr) 64,516
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Marico Ltd. (MARICO) - Auditors Report

Company auditors report

Report on the Audit of the Standalone Financial Statements Opinion

We have audited the standalone financial statements of Marico Limited("the Company") which comprise the standalone balance sheet as at 31 March2021 and the standalone statement of profit and loss (including other comprehensiveincome) standalone statement of changes in equity and standalone statement of cash flowsfor the year then ended and notes to the standalone financial statements including asummary of the significant accounting policies and other explanatory information. In ouropinion and to the best of our information and according to the explanations given to usthe aforesaid standalone financial statements give the information required by theCompanies Act 2013 ("Act") in the manner so required and give a true and fairview in conformity with the accounting principles generally accepted in India of thestate of affairs of the Company as at 31 March 2021 and profit and other comprehensiveincome changes in equity and its cash flows for the year ended on that date.

Basis for Opinion

We conducted our audit in accordance with the Standards on Auditing(SAs) specified under section 143(10) of the Act. Our responsibilities under those SAs arefurther described in the Auditor's Responsibilities for the Audit of theStandalone Financial Statements section of our report. We are independent of theCompany in accordance with the Code of Ethics issued by the Institute of CharteredAccountants of India together with the ethical requirements that are relevant to our auditof the standalone financial statements under the provisions of the Act and the Rulesthereunder and we have fulfilled our other ethical responsibilities in accordance withthese requirements and the Code of Ethics. We believe that the audit evidence we haveobtained is our opinion on the Standalone financial statements.

Key Audit Matters

Key audit matters are those matters that in our professional judgmentwere of most significance in our audit of the standalone financial statements of thecurrent period. These matters were addressed in the context of our audit of the standalonefinancial statements as a whole and in forming our opinion thereon and we do not providea separate opinion on these matters.

Revenue Recognition

[Refer to Note (d) of Significant 18 to the Standalone FinancialStatements]

The Key Audit Matter How the matter was addressed in our audit
Revenue is recognised based on the arrangement with custom- ers. In view of the significance of the mat - ter we applied the following audit pro- cedures in this area among others sufficient appropriate audit toobtain evidence:
Revenue is recognised when control of the underlying products has been transferred to the customer. There is a risk of revenue being overstated at year-end on account of variation in the timing of transfer of control due to the pressure management may feel to achieve performance targets at the reporting period end. Evaluated appropriateness of the Company's revenue recognition accounting policies by comparing with applicable accounting standards.
Tested design implementation and operating effectiveness of the Company's general IT controls and key IT/manual application controls over the Company's systems which govern recording of revenue revenue cut-off in the general ledger accounting system.
Performed substantive year- end cut-off testing by selecting samples of revenue transactions recorded at year-end and verifying the underlying documents i.e. sales invoices/contracts and shipping documents.
Inspected on a sample basis key customer contracts to identify terms and conditions relating to goods acceptance.
Tested manual journals posted to revenue close to year-end to identify unusual items.
Scrutinised sales returns/reversals and bad debt write offs recorded in the general ledger subsequent to year-end to identify any significant unusual items.
Performed analytical procedures on sales such as trend analysis to identify any unusual fluctuations.

Uncertain Tax Position and Note Refer note (g) of Significant and31 to the standalone financial statements

The Key Audit Matter How the matter was addressed in our audit
The Company operates in a complex tax jurisdiction with certain tax exemptions / deductions that may be subject to challenges and audits by tax authorities. In view of the significance of the matter we applied the following audit procedures in this area among others to obtain sufficient appropriate audit evidence:
There are significant open tax matters under litigation with tax authorities Judgement is required in assessing the level of provisions and disclosure of contingent liabilities required in respect of uncertain tax position that reflects management's best estimates of the most likely outcome based on the facts available. For uncertain tax positions inspected select correspondences with tax authorities.
Evaluated management's judgment judgements required in regarding the expected resolution of matters with various tax authorities based on external tax expert/counsel opinions and the use of past experience where available with the tax authorities. Involved our tax specialists to evaluate the status of ongoing tax litigations and judgemental tax positions in tax returns and their most likely outcome basis their expertise industry outcomes and company's own past experience in respect of similar matters.
Evaluated the adequacy of financial statement disclosures in respect of the tax provision / adjustments and contingencies.

Impairment assessment of investment in subsidiaries

AccountingPoliciesandNote25 Refer note (w) (y) of SignificantAccounting 2(h) and 6(a) to the standalone financial statements

The Key Audit Matter How the matter was addressed in our audit
The carrying amount of investment in subsidiaries aggregates RS 489 crores i.e. 11% of the total assets of the Company as at 31 March 2021. In view of the significance of the matter we applied the following au- dit procedures in this area among others to obtain sufficient appropri - ate audit evidence
The annual impairment testing of investments is considered to be a key audit matter due to complexity of the accounting requirements and significant determining the assumptions to be used to estimate the recoverable amount. The recoverable amount of investments which is based on the higher of value in use or fair value less costs to sell has been derived from discounted forecast cash flow models. These models use several key assumptions including estimates of future sales value operating costs terminal value growth rates and the weighted average cost of capital (discount rate). Evaluated the assumptions applied to key inputs such as sales value operating costs growth rates and discount rates. Compared the inputs with the historical growth trends evaluating the forecast used in prior year models to its actual performance of the business agreeing current forecast to the board of directors / management approved plans as well as our own assessment based on our knowledge of the entity.
• Involved our internal valuation specialists where appropriate to evaluate the reasonability of the methodology and approach used in the valuation carried out for determining the carrying amount of investments.
Challenged management with our own sensitivity analysis and evaluated the effect of possible reductions in growth rates and forecasted cash flows on the estimated headroom and impairment adjustment.
Evaluated the adequacy of financial statement disclosures in respect of the impairment assessment for investment in subsidiaries.

Other Information

The Company's management and Board of Directors are responsiblefor the other information. The other information comprises the information included in theCompany's annual report but does not include the financial statements and ourauditors' report thereon.

Our opinion on the standalone financial statements does not cover theother information and we do not express any form of assurance conclusion thereon.

In connection with our audit of the standalone financial statementsour responsibility is to read the other information and in doing so consider whether theother information is materially inconsistent with the standalone financial statements orour knowledge obtained in the audit or otherwise appears to be materially misstated. Ifbased on the work we have performed we conclude that there is a material misstatement ofthis other information we are required to report that fact. We have nothing to report inthis regard.

Management's and Board of Directors' Responsibility for theStandalone Financial Statements

The Company's Management and Board of Directors are responsiblefor the matters stated in section 134(5) of the Act with respect to the preparation ofthese standalone financial statements that give a true and fair view of the state ofaffairs profit/loss income changes in equity and cash flows of the Company andappropriate to provide a in accordance with the accounting principles generally acceptedin India including the Indian Accounting Standards (Ind AS) specified under section 133of the Act.

This responsibility also includes maintenance of adequate accountingrecords in accordance with the provisions of the Act for safeguarding of 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 effectivelycontrols with reference to financial forensuring the accounting records relevant to the preparation and presentation of thestandalone financial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.

In preparing the standalone financial

Management and Board of Directors are responsible for assessing theCompany's ability to continue as a going concern disclosing as applicable mattersrelated to going concern and using the going concern basis of accounting unless the Boardof Directors either intends to liquidate the Company or to cease operations or has norealistic alternative but to do so.

The Board of Directors is also responsible for overseeing theCompany's financial reporting process.

Auditor's Responsibilities for the Audit of the StandaloneFinancial Statements

Our objectives are to obtain reasonable assurance about whether thestandalone financial statements as a whole are free from material misstatement whetherdue to fraud or error and to issue an auditor's report that includes our opinion.Reasonable assurance is a high level of assurance but is not a guarantee that an auditconducted in accordance with SAs will always detect a material misstatement when itexists. Misstatements can arise from fraud or error and are considered material ifindividually or in the aggregate they could reasonably be expected to influence theeconomic decisions of users taken on the basis of these standalone financial statements.As part of an audit in accordance with SAs we exercise professional judgment and maintainprofessional skepticism throughout the audit. We also:

Identify and assess the risks of material misstatement of thestandalone financial statements whether due to fraud or error design and perform auditprocedures and otherresponsive to those risks and obtain audit evidence comprehensivethat is 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 control 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 andinternal financial completeness of statements in place and theoperating effectiveness of such controls.

Evaluate the appropriateness of accounting policies used and thereasonableness of accounting estimates and related disclosures in the standalone financialstatements the statements made by the Management and Board of Directors.

Conclude on the appropriateness of the Management and Board ofDirectors use of the going concern basis of accounting and based on the audit evidenceobtained whether a material uncertainty exists related to events or conditions that maycast significant Company's ability to continue as a going concern. If we concludethat a material uncertainty exists we are required to draw attention in ourauditor's report to the related disclosures in the standalone financial statementsor if such disclosures are inadequate to modify our opinion. Our conclusions are basedon the audit evidence obtained up to the date of our auditor's report. Howeverfuture events or conditions may cause the Company to cease to continue as a going concern.

Evaluate the overall presentation structure and content of thestandalone financial statements including the disclosures and whether the standalonefinancial statements represent the underlying transactions and events in a manner thatachieves fair presentation.

We communicate with those charged with governance regarding amongother matters the planned scope and timing of the audit and significant any significantdeficiencies in during our audit.

We also provide those charged with governance with a statement that wehave complied with relevant ethical requirements regarding independence and tocommunicate with them all relationships and other matters that may reasonably be thoughtto bear on our independence and where applicable related safeguards.

From the matters communicated with those charged with governance wedetermine those matters that were of most significance in the audit of the standalonefinancial statements of the current period and are therefore the key audit matters. Wedescribe these matters in our auditors' report unless law or regulation precludespublic disclosure about the matter or when in extremely rare circumstances we determinethat a matter should not be communicated in our report because the adverse consequences ofdoing so would reasonably be expected to outweigh the public . interestbenefits of suchcommunication

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditors' Report) Order 2016("the Order") issued by the Central Government in terms of section 143 (11) ofthe Act we give in the "Annexure A" a statement on the matters specified inparagraphs 3 and 4 of the Order to the extent applicable.in specified bank notes duringthe period from 8 NovembeRs 2016 to 30 DecembeRs 2016 have not been made in thesefinancial statements since they do not pertain to the financial year ended 31 March 2021.(C) With respect to the matter to be included in the Auditors' Report under section197(16): In our opinion and according to the information and explanations given to us theremuneration paid by the Company to its directors during the current year is in accordancewith the provisions of Section 197 of the Act. The remuneration paid to any director isnot in excess of the limit laid down under Section 197 of the Act. The Ministry ofCorporate Affairs has not prescribed other details under Section 197(16) which arerequired to be commented upon by us.

> Chartered Accountants
Firm's Registration No: 101248W/W-100022
Sadashiv Shetty
Mumbai Partner
30 April 2021 Membership No: 048648
UDIN: 21048648AAAAAQ9704

ANNEXURE - A TO THE INDEPENDENT AUDITORS' REPORT 31 MARCH 2021

(Referred to in our report of even date)

(i) (a) The Company has maintained proper records showing fullparticulars including quantitative details and situation of fixed assets. (b) The Companyhas a regular programme of physical verification all fixed assets areverifiedin a phasedmanner over a period of two years. In accordance with this programme certain fixed assetswere verified during the year and no material discrepancies were noticed on suchverification. In our opinion this periodicity of physical verification having regard tothe size of the Company and the nature of its assets. (c) According to the information andexplanations given to us and on the basis of our examination of the records of theCompany the title deeds of immovable property and the agreements for lease hold premisesas disclosed in Note 3(a) to the standalone financial statements are held in the name ofthe Company.

(ii) The inventory except goods in transit have beenphysicallyverified by the management during the year. For inventory lying with third parties at theyear-end written confirmations have been obtained. In our opinion the frequency of suchverification The discrepancies noticed on verification between the physical stocks and thebook records were not material and have been suitably dealt with in the books of account.(iii) According to the information and explanations given to us the Company has notgranted any loans secured or unsecured to companies firms limited liabilitypartnerships or other parties covered in the register maintained under section 189 ofCompanies Act 2013 (‘the Act'). Accordingly paragraphs 3 (iii) (a) (b) and(c) of the Order are not applicable to the Company. (iv) In our opinion and according tothe information and explanations given to us the Company has not granted any loans orprovided any guarantees or security to the parties covered under Section 185 of the Actduring the year. The Company has complied with the provisions of Section 186 of the Actin respect of grant of loans making investments and providing guarantees and securitiesas applicable. (v) In our opinion and according to the information and explanations givento us the

Company has not accepted deposits from the public in accordance withthe provisions of Section 73 to 76 or any other relevant provisions of the Act and therules framed of its fixed assetsbywhich thereunder. Accordingly paragraph 3(v) of theOrder is not applicable to the Company. (vi) We have broadly reviewed the books of accountmaintained by the Company pursuant to the rules made by the Central Government for themaintenance of cost isreasonable records under sub-Section 1 of Section 148 of the Act andare of the opinion that prima facie the prescribed accounts and records have been madeand maintained. However we have not made a detailed examination of the records with aview to determine whether they are accurate or complete.

(vii) (a) According to the information and explanations given to us andon the basis of our examination of the records of the Company amounts deducted/ accruedin the books of account in respect of undisputed statutory dues including Provident FundEmployees' State Insurance Income Tax Goods and Services tax Duty of Customsisreasonable. Cess and other material statutory dues have been generally regularlydeposited during the year by the Company 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 Goods and Services tax Duty of Customs Cess and other material statutorydues were in arrears as at 31 March 2021 for a period of more than six months from thedate they became payable.

(b) According to the information and explanations given to us thereare no dues of Income Tax Sales tax Service tax Duty of Customs Duty of Excise Goodsand services tax and Value Added Tax as at 31 March 2021 which have not been depositedwith the appropriate authorities on account of any dispute other than those mentioned inEnclosure 1 to this report.

(viii) In our opinion and according to the information and explanationsgiven to us the Company has not defaulted in repayment of dues to its bankers. TheCompany does not have any loans or borrowings from any financial institutions andGovernment nor has it issued any debentures during this year.

(ix) The Company did not raise any money by way of initial public offeror further public offer (including debt instruments) and term loans during the year.Accordingly paragraphs 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 any fraud on the Company by its officers or employees has been noticed reportedduring the year. (xi) According to the information and explanations given to us and basedon our examination of the records of the Company the Company has paid/ provided formanagerial remuneration in accordance with the requisite approvals mandated by theprovisions of Section 197 read with Schedule V to the Act.

(xii) In our opinion and according to the information and explanationsgiven to us the Company is not a Nidhi company as per section 406 of the Act.Accordingly paragraph 3(xii) of the Order is not applicable to the Company. (xiii)According to the information and explanations given to us and based on our examination ofthe records of the Company transactions with the related parties are in compliance withthe provision of Sections 177 and 188 of the Act where applicable. The details of suchrelated party transactions have been disclosed in the standalone financial statements asrequired by the applicable Indian Accounting Standards. (xiv) According to the informationand explanations given to us and based on our examination of the records of the Companythe Company has not made any preferential allotment or private placement of shares orfully or partly convertible debentures during the year. Accordingly paragraph 3(xiv) ofthe Order is not applicable to the Company. (xv) According to the information andexplanations given to us and based on our examination of the records of the Company theCompany has not entered into any non-cash transactions with directors or persons connectedwith them. Accordingly paragraph 3(xv) of the Order is not applicable to the Company.

(xvi) In our opinion and according to the information and explanationsgiven to us the Company is not required to be registered under Section 45-IA of theReserve Bank of India Act 1934. Accordingly paragraph 3(xvi) of the Order is notapplicable to the Company.

For B S R & Co. LLP
Chartered Accountants
Firm's Registration No: 101248W/W-100022
Sadashiv Shetty
Mumbai Partner
30 April 2021 Membership No: 048648
UDIN: 21048648AAAAAQ9704

Enclosure I to Annexure A to the Independent Auditors'

Report 31 March 2021

Name of Statute Nature of dues Forum where dispute is pending Period to which the Amount relates Amount under dispute ( Rs in Crore) Amount paid under protest ( Rs in Crore)
The Central Sales Tax Act and Local Sales Tax Acts Sales Tax (including interest and penalty if applicable) High Court Various years 54 0*
The Central Sales Tax Act and Local Sales Tax Acts Sales Tax (including interest and penalty if applicable) Additional Commissioner- Sales tax Various years 11 1
The Central Sales Tax Act and Local Sales Tax Acts Sales Tax (including interest and penalty if applicable) Joint Commissioner- Sales tax Various years 20 2
The Central Sales Tax Act and Local Sales Tax Acts Sales Tax (including interest and penalty if applicable) Deputy Commissioner- Sales tax Various years 2 1
The Central Sales Tax Act and Local Sales Tax Acts Sales Tax (including interest and penalty if applicable) Assistant Commissioner Sales tax Various years 0* 0*
The Central Sales Tax Act and Local Sales Tax Acts Sales Tax (including interest and penalty if applicable) Tribunal Various years 7 1
The Central Excise Act Excise Duty (including penalty if applicable) Customs Excise and Service Tax Appellate Various years 33 3
Service Tax (Finance Act 1994) Service Tax (including penalty if applicable) Tribunal Customs Excise and Service Tax Appellate Tribunal 2006-2012 0* 0*
Income Tax Act 1961 Income Tax Commissioner of Income-tax (Appeals) AY 2010 11 to AY 2013 -14 and AY 2016-17 74 -

ANNEXURE - B TO THE INDEPENDENT AUDITORS'

Report on the Standalone Financial Statements of Marico Limited for theyear ended 31 March 2021

Report on the internal financial controls with reference to theaforesaid standalone financial statements under Clause (i) Sub-section 3 of Section 143 ofthe Companies Act 2013. (Referred to in paragraph 2(A)(f) under ‘Report on OtherLegal and Regulatory Requirements' section of our report of even date).

Opinion

We have audited the internal financial controls with reference tofinancialstatementsofMaricoLimited("the sufficient and appropriate to provide a basisfor our Company") as of 31 March 2021 in conjunction with our audit of the standalonefinancial statements of the Company for the year ended on that date.

In our opinion the Company has in all material respects adequateinternal financial controls with reference to financial statements and such internalfinancial controls were operating effectively as the internal financial controls withreference to financial statements criteria established by the Company considering theessential components of internal control stated in the Guidance Note on Audit of InternalFinancial Controls Over Financial Reporting issued by the Institute of CharteredAccountants of India (the "Guidance Note").

Management's Responsibility for Internal Financial Controls

The Company's management and the Board of Directors areresponsible for establishing and maintaining internal financial controls based on theinternal financial controls with reference to financial statements criteria established bythe Company considering the essential components of internal control stated in theGuidance Note. These responsibilities include the design implementation and maintenanceof adequate internal financial controls that were operating effectively for ensuring theof its business including adherence to company's policies the safeguarding of itsassets the prevention and detection of frauds and errors the accuracy and completenessof the accounting records and the timely preparation of reliable financial informationas required under the Companies Act 2013 (hereinafter referred to as "theAct").

Auditors' Responsibility

Our responsibility is to express an opinion on the Company'sinternal financial controls with reference to financial statements based on our audit. Weconducted our audit in accordance with the Guidance Note and the Standards on Auditingprescribed under section 143(10) of the Act to the extent applicable to an audit ofinternal financial controls with reference to financial statements. Those Standards andthe Guidance Note require that we comply with ethical requirements and plan and performthe audit to obtain reasonable assurance about whether adequate internal financialcontrols with reference to financial statements were established and maintained andwhether such controls operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence aboutthe adequacy of the internal financial controls with reference to financial statements andtheir operating effectiveness. Our audit of internal financial obtaining an understandingof such internal financial controls 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'sjudgement including the assessment of the risks of material misstatement of thestandalone financial statements whether due to fraud or error.

We believe that the audit evidence we have obtained is opinion on theCompany's internal financial controls with reference to financial statements.

Meaning of Internal Financial controls with Reference to FinancialStatements

A company's internal financial controls with reference tofinancial statements is a process designed to provide reasonable assurance regarding thereliability of financial 31 March 2021 based on reporting and the preparation offinancial statements for external purposes in accordance with generally acceptedaccounting principles. A company's internal financial controls with reference tofinancial statements include those policies and procedures that (1) pertain to themaintenance of records that in reasonable detail accurately and fairly reflect thetransactions 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 theandefficientconduct company's assets that could have a material effect on theStandalone financial statements.

Inherent Limitations of Internal Financial controls with Reference toFinancial Statements

Because of the inherent limitations of internal financial controls withreference to financial statements including the possibility of collusion or impropermanagement override of controls material misstatements due to error or fraud may occurand not be detected. Also projections of any evaluation of the internal financialcontrols with reference to Standalone financial statements to future periods are subjectto the risk that the internal financial controls with reference to standalone financialstatements may become inadequate because of changes in conditions or that the degree ofcompliance with the policies or procedures may deteriorate.

For B S R & Co. LLP
Chartered Accountants
Firm's Registration No: 101248W/W-100022
Sadashiv Shetty
Mumbai Partner
April 30 2021 Membership No: 048648
UDIN: 21048648AAAAAQ9704

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