you are here:

Blue Star Ltd.

BSE: 500067 | NSE: BLUESTARCO |

Represents Equity.Intra - day transactions are permissible and normal trading is done in this category
Series: EQ | ISIN: INE472A01039 | SECTOR: Consumer Goods - White Goods

BSE Live

Jul 27, 16:00
840.20 -5.45 (-0.64%)
Volume
AVERAGE VOLUME
5-Day
4,820
10-Day
6,088
30-Day
11,007
5,534
  • Prev. Close

    845.65

  • Open Price

    851.00

  • Bid Price (Qty.)

    839.00 (11)

  • Offer Price (Qty.)

    841.00 (1)

NSE Live

Jul 27, 15:54
840.10 -5.00 (-0.59%)
Volume
AVERAGE VOLUME
5-Day
45,251
10-Day
63,178
30-Day
95,220
52,391
  • Prev. Close

    845.10

  • Open Price

    845.10

  • Bid Price (Qty.)

    0.00 (0)

  • Offer Price (Qty.)

    0.00 (0)

Annual Report

For Year :
2018 2017 2016 2015 2014 2013 2012 2011 2010

Auditor's Report

Report on the Standalone Ind AS Financial Statements

We have audited the accompanying standalone Ind AS financial statements of Blue Star Limited (“the Company”), which comprise the Balance Sheet as at March 31,2018, the Statement of Profit and Loss, including the statement of Other Comprehensive Income, the Cash Flow Statement and the Statement of Changes in Equity for the year then ended, and a summary of significant accounting policies and other explanatory information.

Management’s Responsibility for the Standalone Ind AS Financial Statements

The Company’s 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 Ind AS financial statements that give a true and fair view of the financial position, financial performance including other comprehensive income, cash flows and changes in equity of the Company in accordance with accounting principles generally accepted in India, including the Indian Accounting Standards (Ind AS) specified under section 133 of the Act, read with the Companies (Indian Accounting Standards) Rules, 2015, as amended.This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and the design, implementation and maintenance of adequate internal financial control that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the Ind AS financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

Auditor’s Responsibility

Our responsibility is to express an opinion on these standalone Ind AS 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 thereunder. We conducted our audit of the standalone Ind AS financial statements in accordance with the Standards on Auditing, issued by the Institute of Chartered Accountants of India, as 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 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 standalone Ind AS 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 standalone Ind AS financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of 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 standalone Ind AS financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the standalone Ind AS financial statements.

Opinion

In our opinion and to the best of our information and according to the explanations given to us, the standalone Ind AS 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 March 31, 2018, its profit including other comprehensive income, its cash flows and the changes in equity for the year ended on that date.

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 sub-section (11) of section 143 of the Act, we give in the Annexure 1 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 purpose of our audit;

(b) In our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books;

(c) The Balance Sheet, Statement of Profit and Loss including the Statement of Other Comprehensive Income, the Cash Flow Statement and Statement of Changes in Equity dealt with by this Report are in agreement with the books of account;

(d) In our opinion, the aforesaid standalone lnd AS financial statements comply with the Accounting Standards specified under section 133 of the Act, read with Companies (Indian Accounting Standards) Rules, 2015, as amended;

(e) On the basis of written representations received from the directors as on March 31, 2018, and taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2018, from being appointed as a director in terms of section 164 (2) of the Act;

(f) With respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate Report in “Annexure 2” to this report; and

(g) With respect to the other matters to be included in the Auditor’s 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 explanations given to us:

i. The Company has disclosed the impact of pending litigations on its financial position in its standalone lnd AS financial statements - Refer Note 35 to the standalone lnd AS financial statements;

ii. The Company has made provision, as required under the applicable law or accounting standards, for material foreseeable losses, if any, on long-term contracts. Further, the Company does not have any long term derivative contracts. Refer Note 18 to the standalone lnd AS financial statements;

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

ANNEXURE 1 TO THE INDEPENDENT AUDITOR’S REPORT OF EVEN DATE ON THE STANDALONE IND AS FINANCIAL STATEMENTS OF BLUE STAR LIMITED

Annexure referred to in paragraph 1 under the heading “Report on other legal and Regulatory Requirement” of our report of even date

Re: Blue Star Limited (‘the Company”)

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

(b) All fixed assets have not been physically verified by the management during the year but there is a regular programme of verification which, in our opinion, is reasonable having regard to the size of the Company and the nature of its assets. No material discrepancies were noticed on such verification.

(c) According to the information and explanations given by the management, the title deeds of immovable properties included in fixed assets are held in the name of the Company.

ii. The management has conducted physical verification of inventory at reasonable intervals during the year and no material discrepancies were noticed on physical verification.

iii. According to the information and explanations given to us, the Company has not granted any loans, secured or unsecured to companies, firms, Limited Liability Partnerships or other parties covered in the register maintained under section 189 of the Companies Act, 2013. Accordingly, the provisions of clause 3(iii) (a), (b) and (c) of the Order are not applicable to the Company and hence not commented upon.

iv. In our opinion and according to the information and explanations given to us, provisions of section 185 and 186 of the Companies Act 2013 in respect of loans to directors including entities in which they are interested and in respect of loans and advances given, investments made and, guarantees, and securities given have been complied with by the Company.

v. The Company has not accepted any deposits within the meaning of Sections 73 to 76 of the Act and the Companies (Acceptance of Deposits) Rules, 2014 (as amended). Accordingly, the provisions of clause 3(v) of the Order are not applicable.

vi. We have broadly reviewed the books of account maintained by the Company pursuant to the rules made by the Central Government for the maintenance of cost records under section 148(1) of the Companies Act, 2013, related to the manufacture or service of air conditioning and refrigeration products, and are of the opinion that prima facie, the specified accounts and records have been made and maintained. We have not, however, made a detailed examination of the same.

vii. (a) The Company is generally regular in depositing with appropriate authorities undisputed statutory dues including provident fund, employees’ state insurance, income-tax, sales-tax, service tax, duty of custom, duty of excise, value added tax, goods and service tax, cess and other material statutory dues applicable to it.

According to the information and explanations given to us, no undisputed amounts payable in respect of provident fund, employees’ state insurance, income-tax, service tax, sales-tax, duty of custom, duty of excise, value added tax, goods and service tax, cess and other material statutory dues were outstanding, at the year end, for a period of more than six months from the date they became payable.

(b) According to the records of the Company, the dues outstanding of income-tax, sales- tax, service tax, duty of custom, duty of excise and value added tax on account of any dispute, are as follows:

Name of Statute

Nature of dues

Amount (Rs. in Crores)*

Period to which the amount relates

Forum where dispute is pending

Disallowance for deduction u/s 80IA/80IB/80IC/80HHC

7.58

AY 1998-99, AY 2000-01, AY 2002-03 to A Y 2004-05, AY 2006-07, AY 2007-08

CIT (A)/ITAT/High Court

Income Tax Act, 1961

Disallowance of software expenses as revenue expenses

1.28

AY 2007-08

ITAT

Disallowance on advertisement on brand building considered as revenue expense

1.27

AY 2006-07

ITAT

Reduction of claim u/s 10A

3.68

AY 2005-06 and AY 2006-07

ITAT

Short deduction of Tax at Source on payment to subcontractors

1.67

AY 2008-09 and AY 2009-10

CIT (A)

Other disallowances

0.08

AY 2007-08

ITAT

Input credit denied due to failure of dealer to file return

0.03

FY 2011-12

Dy. Comm. of Commercial Taxes (Audit)

Demand due to excess tax payable as computed by assessing officer against that paid by the Company

48.99

FY 1990-91, FY 2001-02,

FY 2001-02 to FY 2008-09, FY 2010-11 to FY 2014-15

Asst. Comm./ Dy. Comm./Jt. Comm. Of Sales Tax, CESTAT, High Court and Supreme Court

Local Sales Tax,

Demand imposed on account of AMC margin difference

1.44

FY 2011-12

Jt. Comm./Asst. Comm. CT-III-Enforcement

VAT Act and Central Sales Tax Act

Demand for Entry Tax payable

8.30

FY 2001-02, FY 2002-03, FY 2008, FY 2014-15 FY 2015-16

CTO, Addl. Comm., Asst. Comm.

Denial of Input Tax Credit and disallowance due to non-submission of forms

96.29

FY 1992-93, FY 2000-01 to 2004-05, FY 2006-07 to FY 2014-15

Asst. Comm./Dy. Comm./

Jt. Comm. Of Sales Tax, CESTAT, High Court and Supreme Court

Disallowance made for stock transfer

0.30

FY 2011-12

Appellate Authority

Inter-state sale wrongly assessed as local sale

1.26

FY 2002-03 to FY 2003-04

Rajasthan Tax Board

Demand due short payment of service tax as alleged by the assessing officer

209.63

FY 2003-04 to FY 2007-08, FY 2010-11 to FY 2013-14

CESTAT, Commissioner (Appeals)

Demand due to excess tax payable as computed by assessing officer against that paid by the Company

0.08

FY 2003-04

CESTAT

Service Tax under Finance Act, 1994

Demand of service tax on commission received from abroad

8.37

FY 2006 -07 to FY 2009-10, FY 2011-12 to FY 2012-13

Asst. Comm./Dy. Comm./Jt. Comm. Of Sales Tax, CESTAT, High Court and Supreme Court

Denial of CENVAT credit availed on some services

13.74

FY 2005-06 to FY 2013-14

Comm (Appeals), CCE(A), Tribunal, CESTAT, Superintendent, Commissioner of Service Tax

Denial of exemption on services provided

0.04

FY 2007-08 to 2008-09

Commissioner (Appeals)

Reversal of CENVAT credit on trading activity

9.17

FY 2005-06 to FY 2013-14

CCE (A), CESTAT

Demand due to excess tax payable as computed by assessing officer against that paid by the Company

2.48

FY 1986-87 to FY 1990-91, FY 2008-09

CEC, Supreme Court, High Court, AC

Customs Act, 1962 and Central Excise Act, 1944

Demand for excise duty payable as alleged by assessing officer

1.13

FY 2008-09

CESTAT

Denial of CENVAT credit

5.85

FY 1990-1991 to FY 1995-96, FY 2006-07 to FY 2015-16

CESTAT, Commissioner Appeals,

Asst Commissioner, Commissionerate, Superintendent

Denial of exemption available

0.07

FY 2009-10

CESTAT

Rejection of Refund/CENVAT Credit claimed by the Company

0.82

FY 2011-12, FY 2012-13

Comm (Appeals) Chennai Customs, CESTAT

*net of advances

viii. In our opinion and according to the information and based on explanations provided to us the Company has not defaulted in repayment of dues to a financial institution, bank, or debenture holders. The Company has not taken any loan or borrowing from the government.

ix. According to the information and explanations given by the management, the Company has not raised any money by way of initial public offer/further public offer/debt instruments and term loans hence, reporting under clause (ix) is not applicable to the Company and hence not commented upon.

x. Based upon the audit procedures performed for the purpose of reporting the true and fair view of the financial statements and according to the information and explanations given by the management, we report that no fraud by the company or no material fraud on the company by the officers and employees of the Company has been noticed or reported during the year.

xi. According to the information and explanations given by the management, the managerial remuneration has been paid/provided in accordance with the requisite approvals mandated by the provisions of section 197 read with Schedule V to the Companies Act, 2013.

xii. In our opinion, the Company is not a nidhi Company. Therefore, the provisions of clause 3 (xii) of the order are not applicable to the Company and hence not commented upon.

xiii. According to the information and explanations given by the management, transactions with the related parties are in compliance with section 177 and 188 of Companies Act, 2013 where applicable and the details have been disclosed in the notes to the financial statements, as required by the applicable accounting standards.

xiv. According to the information and explanations given to us and on an overall examination of the balance sheet, the Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year under review and hence, reporting requirements under clause 3 (xiv) are not applicable to the Company and, not commented upon.

xv. According to the information and explanations given by the management, the Company has not entered into any non-cash transactions with directors or persons connected with him as referred to in section 192 of Companies Act, 2013.

xvi. According to the information and explanations given to us, the provisions of section 45-IA of the Reserve Bank of India Act, 1934 are not applicable to the Company.

For S R B C & CO LLP

Chartered Accountants

ICAI Firm Registration Number : 324982E/E300003

per Ravi Bansal

Partner

Membership Number : 49365

Date : May 14, 2018

Place of Signature : Mumbai