We have audited the accompanying standalone financial statements of
Balmer Lawrie & Co.Ltd. (the company), which comprise the Balance
Sheet as at 31st March, 2015 the statement of Profit and Loss and the
Cash Flow statement for the year then ended, and a summary of the
significant accounting policies and other explanatory information, in
which are incorporated the accounts of the Southern Region, Northern
Region, Western Region of the Company for the year ended on that date
audited by the Regional Auditor of the Company in accordance with the
letter of appointment issued by Comptroller & Auditor General of India,
Management''s Responsibility for the Standalone Financial Statements
The Company, Board of Directors is responsible for the matters stated
in Section 134(5) of the Companies Act, 2013 (the Act) with respect
to the preparation of these standalone financial statements that give a
true and fair view of the financial position, financial performance and
cash flows of the company in accordance with the Accounting principles
generally accepted in india, including the accounting standards
specified under section 133 of the Act, read with rule 7 of the
companies (Accounts ) Rules 2014. This responsibility also includes
maintenance of adequate accounting records in accordance with the
provision of the Act for safeguarding the assets of the company and for
preventing and detecting frauds and other irregularities; selection and
application of appropriate accouting policies; making judgements and
estimate that are resonable and prudent and design, implementation and
maintenance of adequate internal financial controls, that were
operating effectively for ensuring the accuracy and completeness of the
accounting records, relevent to the preparation and presentation of the
financial statements that give a true and fair view and are free from
material misstatement, whether due to fraud or error.
Our responsibility is to express an opinion on these standalone
financial statements based on our audit.
We have taken into account the provisions of the act, the accounting and
auditing standards and matters which are required to be included in the
audit report under the provisions of the Act and the Rules made
We conducted our audit in accordance 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 the audit
to obtain reasonable assurance about whether the financial statements
are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and the disclosures in the financial statements. The
procedures selected depend on the auditor''s judgment, including the
assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk
assessments,the auditor considers internal financial control relevant
to the company''s preparation of the financial statements that give a
true and fair view in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing
an opinion on whether the company has in place an adequate internal
financial controls system over financial reporting and the operating
effectiveness of such controls.An audit also includes evaluating the
appropriateness of the accounting policies used and the reasonableness
of the accounting estimates made by the company''s Directors as well as
evaluating the overall presentation of the financial statements.
We belive that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion on the financial
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid standalone financial statements
give the information required by the Act in the manner so required and
give a true and fair view in conformity with the accounting principles
generally accepted in India, of the state of affairs of the Company as
at 31st March, 2015 and its profit and its cash flows for the year
ended on that date.
Emphasis of Matters
We draw attention to the following matters in the Notes to the
a. Note No-26.7:-Trade receivables, loans and advances and deposits of
which confirmations are not received from the parties are subject to
reconciliation and consequential adjustments on determination/ receipt
of such confirmation.
b. Note No-26.29:- Change in inventory valuation of semi -finished
goods and finished goods in respect of Industrial Packaging division
and Leather chemicals division consequent to implementation of SAP and
the impact of such change on the profit is not ascertainable.
Our opinion is not modified on these matters.
We did not audit the financial statement of three (3) Regions included
in the standalone financial statements of the compnay whose financial
statements reflect total assets of Rs. 80,874.65 lacs as at 31st March,
2015 and total revenue of Rs. 2,33,764.36 lacs for the year ended on
that date,as considered in the standalone financial statements. The
financial statements of these Regions have been audited by the Regional
auditors whose reports have been furnished to us, and our opinion in so
far as it relates to the amounts and disclosures included in respect of
these Regions,is based solely on the report of such Regional auditors.
Report on Other Legal and Regulatory Requirments
1. As required by the Companies (Auditor''s Report) Order, 2015 (the
order) issued by the Central Government in terms of Section 143(11) of
the Act,we give in the Annexure-A, a statement on the matters specified
in paragraphs 3 and 4 of the order.
2. As required by Section 143(3) of the Act, we report that:
(a) We have sought and obtained all the information and explanations
which to the best of our knowledge and belief were necessary for the
purposes of our audit.
(b) In our opinion, proper books of accounts as required by law have
been kept by the company so far as it appears from our examination of
(c) The reports on the account of the three (3) Regions of the company
audited under section 143(8) of the act by Regional auditors have been
sent to us and have been properly dealt with by us in preparing this
(d) The Balance Sheet, the statement of profit and loss and the cash
flow statement dealt with by this report are in agreement with the
books of account.
(e) In our opinion, the aforesaid standalone financial statements
comply with the Accounting Standards specified under Section 133 of the
Act, read with Rule 7 of the Companies (Accounts) Rules, 2014.
(f) On the basis of the written representation received from the
directors as on 31st March, 2015 taken on record by the Board of
Directors, none of the directors is disqualified as on 31st March, 2015
from being appointed as a director in terms of section 164(2) of the
(g) With respect to the other matters to be included in the Auditors
Report in accordance with Rule 11 of the companies (Audit and Auditors)
Rules, 2014, in our opinion and to the best of our information and
according to the explanation given to us :
i. The company has disclosed the impact of pending litigations on its
financial statements- Refer Note 26.2(a) &(b) to the financial
ii. The Company did not have any such long-term contracts including
derivative contracts for which there were any material foreseeable
iii. There has been no delay in transferring amounts, required to be
transferred , to the Investor Education and Protection Fund by the
3. As required by section 143(5) of the Act, a statement on the matters
specified as per directions given by the comptroller & Auditor General
of India, is given in Annexure-B
ANNEXURE TO THE INDEPENDENT AUDITORS REPORT
(Referred to in paragraph 1 under ''Report on Other Legal and Regulatory
Requirements'' section of our report of even date)
(i) In respect of its fixed assets:
(a) The Comapny has maintained proper records showing full particulars,
including quantitative details and situation of the fixed assets.
(b) The company has a regular programme of physical verification of its
fixed assets by which Plant and Machinery are verified every year and
other fixed assets are verified in a phased manner over a period of
three years which, in our opinion, is reasonable having regard to the
size of the company and nature of its assets. As explained to us, in
accordance with its programme plant and machinery and certain other
fixed assets were verified during the year and no material
discrepancies were noticed on such verification.
(ii) In respect of its inventories:
(a) The inventory of the company expect goods in transit has been
physically verified during the year by the management. In our opinion,
having regard to the nature and location of inventory, the frequency of
verification is reasonable.
(b) In our opinion, the procedures of physical verification of
inventories followed by the management are reasonable and adequate in
relation to the size of the company and the nature of its business.
(c) On the basis of our examination of records of inventory, in our
opinion, the company is maintaining proper records of inventory and no
material discrepancies were noticed on physical verification.
(iii) According to the information and explanation given to us, the
Company has not granted any loans, secured or unsecured, to companies,
firms or other parties covered in the Register maintained under Section
189 of the Companies Act, 2013. Accordingly, clause 3(iii)(a) to
3(iii)(b) of the Order are not applicable.
(iv) In our opinion and according to the information and explanations
given to us, having regard to the explanations that certain items
purchased are of special nature and for which suitable alternative
sources are not readily available for obtaining comparative quotations,
there are adequate internal control system commensurate with the size
of the company and the nature of its business with regard to purchase
of inventories, fixed assets and for the sales of goods and services.
Further on the basis of our examination and according to the
information and explanations given to us, we have neither come across
nor have been informed of any instance of major weaknesses in such
internal control. The company has taken steps to strengthen the
internal control system regarding management of debtors and is in the
process of further strengthening the same. During the year the company
has implemented SAP system in phase wise manner for accounting and
(v) According to information and explanations given to us, the company
has not accepted any deposits from public during the year and therefore
the directives issued by the Reserve bank of India and the provision of
Sections 73 to 76 or any other relevant provision of the Companies Act,
2013 and the rules framed there under are not applicable to the
(vi) We have broadly reviewed the cost records maintained by the
company in respect of the products of Grease and Lubricants ,Industrial
Packaging & Leather Chemical where, pursuant to the Companies (cost
Records and Audit) Rules, 2014 read with companies (cost Records and
audit) Amendment Rules, 2014 prescribed by the central government under
section 148 of the companies act, 2013 and are of the opinion that,
prima facie, the prescribed cost records have been maintained. We have,
however, not made a detailed examination of the cost records with a
view to determine whether they are accurate or complete. To the best of
our knowledge and according to the information and explanations given
to us, the central government has not prescribed the maintenance of
cost records for any other product of the company.
(vii) According to the information and explanations given to us and the
records of the company examined by us :
(a) The company is generally regular in depositing with the appropriate
authorities, undisputed statutory dues including Provident fund,
Employees state insurance, income tax, sales tax, wealth tax, service
tax, customs Duty and excise duty, value added tax, cess and any other
material statutory dues applicable to the Company.
(b) There were no undisputed amounts payable in respect of income tax,
sales tax, wealth tax, service tax, Duty of customs, Duty of excise or
value added tax, cess and other material statutory dues in arrears as
at 31st March, 2015 for a period of more than 6 months from the date
they became payable.
(c) The particulars of dues of income tax , sales tax, service
tax,excise duty, value added tax and cess as at 31st March, 2015
aggregating to Rs. 9418.35 lacs; which have not been deposited on
account of a dispute, as mentioned in Note no.26.2(a) to the Accounts
showing the amounts involved and the forum where dispute is pending.
(d) There has been no delay in transferring amounts, required to be
transferred, to the Investor Education and Protection Fund by the
(viii) The company has no accumulated losses as at 31st March, 2015 and
it has not incurred cash losses during the financial year ending 31st
March, 2015 and immediately preceding financial year.
(ix) According to the records of the Company examined by us and the
information and explanations given to us, we are of the opinion that
the company has not defaulted in repayment of dues to any financial
institutions, banks or debentures holders as at the Balance Sheet date.
(x) In our opinion and according to the information and explanations
given to us, the company has not given any guarantee for loans taken by
others from bank or financial institutions. Accordingly, the provision
of clause 3(x) of the Order are not applicable to the Company.
(xi) According to the information and explanation given to us, the
Company has not taken any term loan during the year.
(xii) During the course of our audit, and according to the information
and explanations given to us, we have neither come across any instance
of fraud on or by the Company nor reported during the year, nor have we
been informed of such case by the management.
For Vidya and Co.
CA Sarad Jha
Membership No : 050138
Place : Kolkata
Date : 27th May, 2015