Page 85 - BCML AR 2019-20

BALRAMPUR CHINI MILLS LIMITED

arm’s length basis. During the year under review, your Company Regulations, the Management Discussion and Analysis, the
did not enter into any Related Party Transaction which requires Corporate Governance Report and the Certificate on the compliance
prior approval of the Members. There have been no materially- of conditions of Corporate Governance form part of the Annual
significant related party transactions made by the Company with Report and are given separately as Annexure - VII.
the Promoters, the Directors or the Key Managerial Personnel which
may be in conflict with the interests of the Company at large. Business Responsibility Report
Regulation 34(2) of the Listing Regulations, inter alia, provides that
Since all related party transactions entered into by your Company the annual reports of the top 1000 listed entities based on market
were in the ordinary course of business and also on an arm’s length capitalisation (calculated as on March 31st of every financial year),
basis, therefore, details required to be provided in the prescribed shall include a Business Responsibility Report. Since the Company is
Form AOC - 2 are not applicable to the Company. The Policy one of the top 1000 listed entities, it has presented its Forth Business
on Related Party Transactions as approved by the Board can be Responsibility Report for the financial year 2019-20, as Annexure -
accessed on the Company’s website at following web-link:
VIII to this Report.
http://chini.com/wp-content/uploads/2018/03/Policy_on_
materiality_of_Related_Party_Transactions.pdf Auditors

The details of the related party transactions are set out in the notes Statutory Auditors and their Audit Report
to the financial statements. Pursuant to the applicable provisions of the Act, the members of
the Company at their AGM held on 30th August, 2017, appointed
Risk Management Policy M/s. Lodha & Co., Chartered Accountants (Firm Registration No.
301051E), as the Statutory Auditors of the Company to hold office
The policy on risk assessment and minimisation procedures as
laid down by the Board are periodically reviewed by the Risk from the conclusion of the 41st AGM until the conclusion of the
Management Committee, Audit Committee and the Board. The 46th AGM of the Company to be held in the year 2022.
policy facilitates identification of risks at appropriate time and The reports given by the Auditors, M/s. Lodha & Co., Chartered
ensures necessary steps to be taken to mitigate the risks. Brief details Accountants on the standalone and consolidated financial
of risks and concerns are given in the Management Discussion and statements of the Company for the year ended 31st March, 2020
Analysis Report. form part of this Annual Report and there is no qualification,
reservation, adverse remark or disclaimer given by the Auditors in
Extract of Annual Return their Reports.
Extract of Annual Return in Form MGT- 9 is annexed to this Report as The Auditors of the Company have not reported any fraud in terms
Annexure – VI. The said Annexure also contains the list of Associates of the second proviso to Section 143(12) of the Act.
of the Company as on 31st March, 2020.
Secretarial Auditors and their Audit Report
Material Changes and Commitments Pursuant to the provisions of Section 204 of the Act, the Company
Except those disclosed in this Annual Report, there are no material has appointed Shri Manoj Kumar Banthia of M/s. MKB & Associates,
changes and commitments affecting the financial position of the Company Secretaries, to undertake the secretarial audit of the
Company between the end of the financial year i.e. 31st March, 2020 Company for the financial year 2019-20. The Secretarial Audit Report
and the date of this Report. The impact of COVID 19 pandemic has for the financial year 2019-20 is attached as Annexure - IX and forms
not been material on the financial performance of the Company part of this Report. The contents of the said Audit Report are self-
and is disclosed separately in the notes to Financial Statements. explanatory and do not call for any further comments by the Board.
The Secretarial Audit Report does not contain any qualification,
Significant and Material Orders reservation, adverse remark or disclaimer.
There are no significant/ material orders passed by the Regulators / Cost Auditors and their Audit Report
Courts / Tribunals which would impact the going concern status of The Cost Auditors (M/s. N. Radhakrishnan & Co., Cost Accountants)
the Company and its future operations.
appointed by the Board have submitted the Cost Audit Report
Internal Financial Controls within the time limit prescribed under the Act and Rules made
thereunder.
The Company has in place adequate internal financial controls with
reference to the financial statements. During the year, such controls During the year under review, pursuant to Section 148 of the Act
were reviewed and no reportable material weakness was observed. read with the Companies (Cost Records and Audit) Rules, 2014 (as
amended), the Board appointed M/s. N. Radhakrishnan & Co., Cost
Corporate Governance Accountants, to conduct cost audit of the Company relating to
In terms of the provisions of Regulation 34(3) of the Listing sugar (including industrial alcohol) and electricity for the financial
year ended 31st March, 2020.

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