You are here » Home » Companies ยป Company Overview » Birla Corporation Ltd

Birla Corporation Ltd.

BSE: 500335 Sector: Industrials
NSE: BIRLACORPN ISIN Code: INE340A01012
BSE 00:00 | 24 Apr 2020 Birla Corporation Ltd
NSE 05:30 | 01 Jan 1970 Birla Corporation Ltd

Notice: Undefined property: stdClass::$market_capital_for_nse in /usr2/unibs/application/modules/live-market/views/scripts/company/bs-new-bse-nse-block.php on line 17
OPEN 423.60
PREVIOUS CLOSE 423.60
VOLUME 15876
52-Week high 807.60
52-Week low 391.55
P/E 10.20
Mkt Cap.(Rs cr) 3,182
Buy Price 410.00
Buy Qty 3.00
Sell Price 413.20
Sell Qty 254.00
OPEN 423.60
CLOSE 423.60
VOLUME 15876
52-Week high 807.60
52-Week low 391.55
P/E 10.20
Mkt Cap.(Rs cr) 3,182
Buy Price 410.00
Buy Qty 3.00
Sell Price 413.20
Sell Qty 254.00

Birla Corporation Ltd. (BIRLACORPN) - Auditors Report


Notice: Undefined variable: pattern in /usr2/unibs/application/modules/live-market/views/scripts/company/annual-report.php on line 72

Company auditors report

TO THE MEMBERS OF BIRLA CORPORATION LIMITED

Report on the Audit of the Standalone Financial Statements Opinion

We have audited the accompanying standalone financial statements of BIRLACORPORATION LIMITED ("the Company") which comprise the Balance Sheet as at31st March 2019 the Statement of Profit & Loss (including Other ComprehensiveIncome) the Statement of Changes in Equity and the Statement of Cash Flows for the yearthen ended and notes to the standalone financial statements including a summary ofsignificant accounting policies and other explanatory information (hereinafter referred toas "the standalone financial statements").

In our opinion and to the best of our information and according to theexplanations given to us the aforesaid standalone financial statements give theinformation required by the Companies Act 2013 as amended ("the Act") in themanner so required and give a true and fair view in conformity with accounting principlesgenerally accepted in India of the state of affairs (financial position) of the Companyas at 31st March 2019 its profit (financial performance including other comprehensiveincome) its cash flows and changes in equity for the year ended on that date.

Basis for Opinion

We conducted our audit of the standalone financial statements inaccordance with the Standards on Auditing (SAs) specified under section 143(10) of theAct. Our responsibilities under those Standards are further described in the"Auditor's Responsibilities for the Audit of the Standalone FinancialStatements" section of our report. We are independent of the Company in accordancewith the Code of Ethics issued by the Institute of Chartered Accountants of India("ICAI") together with the ethical requirements that are relevant to our auditof the standalone financial statements under the provisions of the Act and the Rules madethereunder and we have ful_lled our other ethical responsibilities in accordance withthese requirements and the ICAI's Code of Ethics. We believe that the audit evidencewe have obtained is sufficient and appropriate to provide a basis for our opinion on thestandalone financial statements.

Key Audit Matters

Key audit matters are those matters that in our professional judgmentwere of most signi_cance 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. We have determined the matters described below to bethe key audit matters to be communicated in our report.

Key Audit Matter Auditor's Response
Recoverability of MAT Credit Entitlement in future:
The Company has recognised deferred tax assets mainly on account of tax credit available for set o_ (Minimum Alternate Tax) under the Income Tax Act 1961. Under Ind AS 12 Audit procedures included among others review of:
– Income Taxes deferred tax assets shall be recognised to the extent that it is probable that future taxable profit will be available against which the unused tax credit can be utilised. The assessment of valuation of deferred tax assets requires significant management judgement and estimation. This include amongst others estimation long-term future profitability future revenue from proposed projects and tax regulations and developments. As a result the recognition of the deferred tax asset on above is significant to our audit. • The appropriateness of the methodology applied by the Company with applicable Indian accounting standards and applicable taxation laws along with the future business forecast of taxable profits.
• The likelihood of the Company to utilize the available MAT credit entitlements in the future with underlying projections and assumptions relating to future estimated profits future capitalisations and depreciation allowance thereon and future estimates of taxable income.
The disclosures relating to the above are included in Note no 25 of the standalone financial statements. • The adequacy of the Company's disclosures in the financials on deferred tax assets and assumptions used.

Information Other than the Standalone Financial Statements andAuditor's Report Thereon

The Company's Board of Directors is responsible for thepreparation of the other information. The other information comprises the informationincluded in the Directors' Report and Management Discussion and Analyses BusinessResponsibility Report and the Report on Corporate Governance but does not include thestandalone financial statements and our auditor's 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 during the course of our audit or otherwise appears to bematerially misstated. If based on the work we have performed we conclude that there is amaterial misstatement of this other information we are required to report that fact. Wehave nothing to report in this regard.

Responsibilities of Management and Those Charged with Governance forthe Standalone Financial Statements

The Company's Board of Directors is responsible for the mattersstated in Section 134(5) of the Act with respect to the preparation of these standalonefinancial statements that give a true and fair view of the financial position financialperformance including other comprehensive income changes in equity and cash flows of theCompany in accordance with the accounting principles generally accepted in Indiaincluding the Indian Accounting Standards (Ind AS) specified under Section 133 of the Act.This responsibility also includes maintenance of adequate accounting records in accordancewith the provisions of the Act for safeguarding the assets of the Company and forpreventing and detecting frauds and other irregularities; selection and application ofappropriate accounting policies; making judgments and estimates that are reasonable andprudent; and design implementation and maintenance of adequate internal financialcontrols that were operating effectively for ensuring the accuracy and completeness ofthe accounting records relevant to the preparation and presentation of the standalonefinancial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.

In preparing the standalone financial statements the Board ofDirectors is responsible for assessing the Company's ability to continue as a goingconcern disclosing as applicable matters related to going concern and using the goingconcern basis of accounting unless the Board of Directors either intends to liquidate theCompany or to cease operations or has no realistic alternative but to do so.

The Board of Directors are 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 professionaljudgment and maintain professional 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 responsive to those risks and obtain audit evidence that is sufficient andappropriate to provide a basis for our opinion. The risk of not detecting a materialmisstatement resulting from fraud is higher than for one resulting from error as fraudmay involve collusion forgery intentional omissions misrepresentations or the overrideof internal control.

• Obtain an understanding of internal control relevant to theaudit in order to design audit procedures that are appropriate in the circumstances. Undersection 143(3)(i) of the Companies Act 2013 we are also responsible for expressing ouropinion on whether the company has adequate internal financial controls system in placeand the operating effectiveness of such controls.

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

• Conclude on the appropriateness of management's use of thegoing concern basis of accounting and based on the audit evidence obtained whether amaterial uncertainty exists related to events or conditions that may cast significantdoubt on the Company's ability to continue as a going concern. If we conclude that amaterial uncertainty exists we are required to draw attention in our auditor'sreport to the related disclosures in the standalone financial statements or if suchdisclosures are inadequate to modify our opinion. Our conclusions are based on the auditevidence obtained up to the date of our auditor's report. However future events orconditions 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 audit findingsincluding any significant defficiencies in internal control that we identify during ouraudit.

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 auditor's 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 interest benefits of suchcommunication.

Report on Other Legal and Regulatory Requirements

1 As required by the Companies (Auditor's Report) Order 2016("the Order") issued by the Government of India in terms of sub-section (11) ofsection 143 of the Act and on the basis of such checks of the books and records of theCompany as we considered appropriate and according to the information and explanationsgiven to us we give in "Annexure A" a statement on the matters specified in theparagraphs 3 and 4 of the said Order.

2 As required by section 143(3) of the Act we report that: a) We havesought and obtained all the information and explanations which to the best of ourknowledge and belief were necessary for the purposes of our audit; b) In our opinionproper books of account as required by law have been kept by the Company so far as itappears from our examination of those books; c) The Balance Sheet the Statement of Profitand Loss (including other comprehensive income) the Cash _ow statement and the statementof Changes in Equity dealt with by this report are in agreement with the books of account;d) In our opinion the aforesaid standalone financial statements comply with the IndianAccounting

Standards (Ind AS) specified under section 133 of the Act read withrelevant rules issued thereunder; e) On the basis of written representations received fromthe directors as on 31st March 2019 taken on record by the Board of Directors none ofthe directors is disqualified as on 31st March 2019 from being appointed as a director interms of section 164(2) of the Act; f) With respect to the adequacy of the internalfinancial controls over financial reporting of the Company and the operating effectivenessof such controls refer to our separate report in "Annexure B"; g) With respectto the other matters to be included in the Auditor's Report in accordance with therequirements of section 197(16) of the Act as amended: In our opinion and to the best ofour information and according to the explanations given to us the remuneration paid bythe Company to its directors during the year is in accordance with the provisions ofsection 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)Rules 2014 as amended in our opinion and to the best of our information and accordingto the explanations given to us: i. The Company has disclosed the impact of pendinglitigations on its financial position in its standalone financial statements – ReferNote 41.1 to 41.5 to the standalone financial statements; ii. The Company has madeprovision as required under the applicable law or accounting standards for materialforeseeable losses if any on long-term contracts including derivative contracts; iii.There has been no delay in transferring amounts required to be transferred to theInvestor Education and Protection Fund by the Company in accordance with the relevantprovisions of the Act and Rules made there under.

For V. Sankar Aiyar & Co.
Chartered Accountants
(Firm Registration No: 109208W)
(M.S. BALACHANDRAN)
Place : Kolkata Partner
Date : 3rd May 2019 (Membership No: 024282)

Annexure-A referred to in the Independent Auditors' Report to theMembers of Birla Corporation Limited on the standalone accounts for the year ended 31stMarch 2019.

(i) (a) The Company is maintaining proper records showing fullparticulars including quantitative details and situation of fixed assets.

(b) The fixed assets have been physically verified by the management/outside agencies in a phased manner and reconciled with books of account except in caseof Soorah Jute Mills (due to suspension of work) with carrying value other than land andbuilding at Rs. 0.30 crore and Auto Trim Division at Gurgaon & Chakan with carryingvalue other than land and building at Rs.1.65 crores where veri_cation could not bedone. We are informed that no major discrepancies were noticed on such verification. Minordiscrepancies stands adjusted in the accounts. In our opinion the frequency ofverification is reasonable in relation to the size of the Company. (c) According to theinformation and explanations given to us and the records examined by us and based on theexamination of the registered sale deed/ transfer deed/ conveyance deed etc. provided tous we report that the title deeds of immovable properties are held in the name of theCompany. The title deeds relating to certain immovable properties have been pledged assecurity with banks and financial institution for loans guarantees etc. are held in thename of the Company based on the confirmations from the Security Trustees.

(ii) The stock of _nished goods stores spare parts and raw materialshave been physically verified by the management/ outside agencies at reasonable intervalsduring the year except for Soorah Jute Mills (due to suspension of work) and Auto TrimDivision at Gurgaon and Chakan where physical verification could not be done. We areinformed that inventory held at these locations were insignificant. No materialdiscrepancies were noticed on physical verification and minor discrepancies standsadjusted in the accounts. (iii) The Company has not granted any loans secured orunsecured to companies firms limited liability partnerships or other parties covered inthe register maintained under section 189 of the Companies Act 2013. Therefore theprovisions of clause 3(iii)(a)(b)&(c) of the Order are not applicable.

(iv) The Company has not given any loan or provided any guarantees orsecurity to parties covered under section 185 of the Companies Act 2013. In respect ofloans investments guarantees and security the Company has complied with the provisionsof section 186 of the Companies Act 2013.

(v) The Company has not accepted deposits during the year from thepublic within the provisions of section 73 to 76 or any other provisions of the CompaniesAct 2013 and the Rules framed thereunder.

(vi) We have broadly reviewed the books of accounts maintained by theCompany pursuant to rules made under subsection (1) of section 148 of the Act and are ofthe opinion that prima facie the prescribed accounts and records have been maintained. Wehave not however made a detailed examination of the records with a view to determinewhether they are accurate and complete.

(vii) (a) According to the records of the Company the Company has beengenerally regular in depositing undisputed statutory dues including provident fundemployees' state insurance income-tax service tax sales-tax goods and servicestax (GST) duty of excise duty of custom value added tax cess and any other statutorydues with the appropriate authorities. There were no arrears of undisputed statutory duesas at 31st March 2019 which were outstanding for a period of more than six months fromthe date they became payable. (b) The disputed dues of different years relating toincome-tax service-tax sales-tax duty of customs duty of excise value added tax orgoods and services tax (GST) which have remained unpaid as on 31st March 2019 for whichappeals are pending as under:

Name of the Statute Nature of Dues Amount (Rs. in Crore) Period to which amount relates Forum where the dispute is pending
Sales Tax & VAT Laws Sales Tax and VAT 15.67 1994 to 2016 Department/ 1st Appellate Authority
3.53 1989 to 2014 Appellate Tribunals
3.04 1989 to 2015 High Court
IGST and SGST Act IGST and SGST 0.14 2017 Department/ 1st Appellate Authority
Central Excise Act 1944 Excise Duty 37.33 1980 to June 2017 Department/ 1st Appellate Authority
15.24 2002 to June 2017 Appellate Tribunals
4.76 2003 to June 2017 High Court
Finance Act 1994 Service Tax 1.01 10.10 2006 to 2016 2005 to June 2017 Department/ 1st Appellate Authority Appellate Tribunals
0.30 2015 to June 2017 High Court
Customs Act 1962 Custom Duty 1.99 2012 to 2013 Appellate Tribunals
The Income Tax Act 1961 Income Tax 7.15 AY 2014-15 to 2015-16 Department/ 1st Appellate Authority

(viii) On the basis of the verification of records and information andexplanations given to us the Company has not defaulted in repayment of loans orborrowings to financial institutions or banks. In the case of debentures no repayment hasfallen due.

(ix) In our opinion and according to the information and explanationsgiven to us term loans taken during the year were applied for the purpose for which theloans were obtained. The Company has not raised moneys by way of public offer (includingdebt instruments). Proceeds from foreign currency loans raised in earlier years and remainunutilized due to delays in execution of projects as at 1st April 2018 amounting toRs.16.14 crores were subsequently utilized during the year at various dates. (x) Based onthe audit procedures performed and representation obtained from the management we reportthat no case of material fraud by the Company or on the Company by its Officers oremployees has been noticed or reported during the year.

(xi) The managerial remuneration has been paid or provided inaccordance with the requisite approvals mandated by the provisions of section 197 readwith Schedule V to the Companies Act 2013. (xii) The Company is not a Nidhi Company.Therefore the provisions of clause 3(xii) of the Order are not applicable. (xiii) In ouropinion and according to the information and explanations given to us all thetransactions with the related parties are in compliance with section 177 and 188 of theCompanies Act 2013 to the extent applicable and the details have been disclosed in thefinancial statements as required by the applicable Indian Accounting Standards (Ind AS).

(xiv) During the year the Company has not made any preferentialallotment or private placement of shares or fully or partly convertible debentures.Therefore the provisions of clause 3(xiv) of the Order are not applicable.

(xv) According to the information and explanations given to us and therepresentation obtained from the management the Company has not entered into any non-cashtransactions with directors or persons connected with them. Therefore the provisions ofclause 3(xv) of the Order are not applicable. (xvi) In our opinion and according to theinformation and explanations given to us the Company is not required to be registeredunder section 45-IA of the Reserve Bank of India Act 1934.

For V. Sankar Aiyar & Co.
Chartered Accountants
(Firm Registration No: 109208W)
(M.S. BALACHANDRAN)
Place : Kolkata Partner
Date : 3rd May 2019 (Membership No: 024282)

Annexure-B referred to in the Independent Auditors' Report to theMembers of Birla Corporation Limited on the standalone accounts for the year ended 31stMarch 2019.

We have audited the internal financial controls over financialreporting of the Company as of 31st March 2019 in conjunction with our audit of thestandalone financial statements of the Company for the year ended on that date.

Management's Responsibility for Internal Financial Controls

The Company's management is responsible for establishing andmaintaining internal financial controls based on the internal control over financialreporting criteria established by the Company considering the essential components ofinternal control stated in the Guidance Note on Audit of Internal Financial Controls overFinancial Reporting (the "Guidance Note") issued by the Institute of CharteredAccountants of India (ICAI). These responsibilities include the design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the orderly and efficient conduct of its business including adherence toCompany's policies the safeguarding of its assets the prevention and detection offrauds and errors the accuracy and completeness of the accounting records and the timelypreparation of reliable financial information as required under the Act.

Auditors' Responsibility

Our responsibility is to express an opinion on the Company'sinternal financial controls over financial reporting based on our audit. We conducted ouraudit in accordance with the Guidance Note and the Standards on Auditing issued by ICAIand deemed to be prescribed under section 143(10) of the Act to the extent applicable toan audit of internal financial controls both applicable to an audit of Internal FinancialControls and issued by ICAI. Those Standards and the Guidance Note require that we complywith ethical requirements and plan and perform the audit to obtain reasonable assuranceabout whether adequate internal financial controls over financial reporting wasestablished and maintained and if such controls operated effectively in all materialrespects. Our audit involves performing procedures to obtain audit evidence about theadequacy of the internal financial controls system over financial reporting and theiroperating effectiveness. Our audit of internal financial controls over financial reportingincluded obtaining an understanding of internal financial controls over financialreporting assessing the risk that a material weakness exists and testing and evaluatingthe design and operating effectiveness of internal control based on the assessed risk. Theprocedures selected depend on the auditor's judgement including the assessment ofthe risks of material misstatement of the standalone financial statements whether due tofraud or error. We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our audit opinion on the Company's internalfinancial controls system over financial reporting.

Meaning of Internal Financial Controls over Financial Reporting

A Company's internal financial control over financial reporting isa process 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 controlover financial reporting includes 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 theCompany's assets that could have a material effect on the financial statements.

Inherent Limitations of Internal Financial Controls over FinancialReporting

Because of the inherent limitations of internal financial controls overfinancial reporting 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 overfinancial reporting to future periods are subject to the risk that the internal financialcontrol over financial reporting may become inadequate because of changes in conditionsor that the degree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion the Company has in all material respects an adequateinternal financial controls system over financial reporting and such internal financialcontrols over financial reporting were operating effectively as at 31st March 2019 basedon the internal control over financial reporting criteria established by the Companyconsidering the essential components of internal control stated in the Guidance Noteissued by the ICAI.

For V. Sankar Aiyar & Co.
Chartered Accountants
(Firm Registration No: 109208W)
(M.S. BALACHANDRAN)
Place : Kolkata Partner
Date : 3rd May 2019 (Membership No: 024282)


Notice: Undefined variable: mediaAbsUrl in /usr2/unibs/application/modules/live-market/controllers/CompanyController.php on line 6054