Mar 31, 2023
Maharashtra Scooters Ltd.
Opinion
1. We have audited the accompanying Ind AS financial statements of Maharashtra Scooters Ltd.
(''the Company), which comprise the Balance Sheet as at 31 March 2023, and the Statement of Profit and Loss (including Other Comprehensive Income), Statement of Changes in Equity and Statement of Cash Flows for the year then ended, and notes to the financial statements, including a summary of significant accounting policies and other explanatory information (''the financial statements).
2. In our opinion and to the best of our information and according to the explanations given to us, the aforesaid financial statements give the information required by the Companies Act, 2013 (''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 31 March 2023, and its profit and other comprehensive income, changes in equity and its cash flows for the year then ended.
Basis for opinion
3. 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 are further described in the Auditors'' responsibilities for the audit of the financial statements section of our report. We are independent of the Company in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India (''ICAI) together with the ethical requirements that are relevant to our audit of the financial statements under the provisions of the Act, and the rules thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the Code of Ethics. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion on the financial statements.
Key audit matters
4. Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the financial statements of the current year. These matters were addressed in the context of our audit of the financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. In our professional judgment, we have determined that there is no key audit matter to be communicated in our report.
Other matters
5. Attention is drawn to the fact that the audited financial statements of the Company for the year ended 31 March 2022 were audited by predecessor auditors whose report dated 25 April 2022 expressed an unmodified opinion on those financial statements. Our opinion is not modified in respect of this matter.
Other information
6. The Company''s Board of Directors are responsible for the other information. The other information comprises the information included in the Company''s annual report, but does not include the financial statements and our auditors'' report thereon. The Other information is expected to be made available to us after the date of this auditors'' report.
7. Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.
8. In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
Responsibilities of management and those charged with governance for the financial statements
9. The Company''s Board of Directors is responsible for the matters stated in section 134(5) of the Act, with respect to the preparation of these financial statements that give a true and fair view of the state of affairs, profit and other comprehensive income, changes in equity and cash flows of the Company in accordance with the accounting principles generally accepted in India, including the Indian accounting standards (''Ind AS'') specified under section 133 of the Act. 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 design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant 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.
10. In preparing the financial statements, the Board of Directors is responsible for assessing the Company''s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Board of Directors either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.
11. The Board of Directors are also responsible for overseeing the Company''s financial reporting process.
Auditors'' responsibilities for the audit of the financial statements
12. Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors'' report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that
an audit conducted in accordance with SAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
13. As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:
13.1 Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
13.2 Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances. Under section 143(3) (i) the Act, we are also responsible for expressing our opinion on whether the Company has adequate internal financial controls with reference to financial statements in place and the operating effectiveness of such controls.
13.3 Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the management.
13.4 Conclude on the appropriateness of the management''s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company''s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditors'' report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditors'' report.
However, future events or conditions may cause the Company to cease to continue as a going concern.
13.5 Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
14. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
15. We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.
16. From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the financial statements of the current year and are therefore the key audit matters. We describe these matters in our auditors'' report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.
Report on other legal and regulatory requirements
17. As required by the Companies (Auditors'' Report) Order, 2020 (''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 A'' a statement on the matters specified in paragraphs 3 and 4 of the Order, to the extent applicable.
18. As required by section 143(3) of the Act, we report that:
18.1 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.
18.2 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.
18.3 The Balance Sheet, the Statement of Profit and Loss including Other Comprehensive Income, the Statement of Changes in Equity and the Cash Flow Statement dealt with by this Report are in agreement with the books of account.
18.4 In our opinion, the aforesaid financial statements comply with the Ind AS specified under section 133 of the Act.
18.5 On the basis of the written representations received from the directors as on 31 March 2023 taken on record by the Board of Directors, none of the directors is disqualified as on 31 March 2023 from being appointed as a director in terms of section 164(2) of the Act.
18.6 With respect to the adequacy of the internal financial controls with reference to financial statements of the Company and the operating effectiveness of such controls, refer to our separate Report in ''Annexure B''.
18.7 In our opinion and according to the information and explanations given to us, the Company has not paid/ provided any remuneration to its directors during the current year.
19. 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 explanations given to us:
19.1 The Company has disclosed the impact of pending litigations as at 31 March 2023 on its financial position in its financial statements - Refer Note 29 to the financial statements.
19.2 The Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses.
19.3 There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company.
19.4 The Management has represented, to best of their knowledge and belief, that no funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the Company to or in any other person(s) or entity(ies), including foreign entities (''Intermediaries''), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall, whether, directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company (''Ultimate Beneficiaries'') or provide any guarantee, security or the like on behalf of the ultimate beneficiaries.
19.5 The Management has represented, to best of their knowledge and belief, that no funds have been received by the Company from any person(s) or entity(ies), including foreign entities (''Funding Parties''), with the understanding, whether recorded in writing or otherwise, that the Company shall, whether, directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (''Ultimate Beneficiaries'') or provide any guarantee, security or the like on behalf of the ultimate beneficiaries.
19.6 Based on such audit procedures, that has been considered reasonable and appropriate in the circumstances, performed by us, nothing has come to our notice that has caused us to believe that the representation under para 19.4 and 19.5 contain any material misstatement.
19.7 In our opinion and according to the information and explanations given to us and as stated in Note No. 36(b) to the financial statements:
(a) The final dividend proposed in the previous year, declared and paid by the Company during the year is in accordance with section 123 of the Act, as applicable.
(b) The interim dividend declared and paid by the Company during the year and until the date of this report is in compliance with section 123 of the Act.
(c) The Board of Directors of the Company have proposed final dividend for the year which is subject to the approval of the members at the ensuing Annual General Meeting. The amount of dividend proposed is in accordance with section 123 of the Act, as applicable.
19.8 Proviso to rule 3(1) of the Companies (Accounts) Rules, 2014 for maintaining books of account using accounting software which has a feature of recording audit trail (edit log) facility is applicable to the Company with effect from 1 April 2023, and accordingly, reporting under rule 11(g) of Companies (Audit and Auditors) Rules, 2014 is not applicable for the financial year ended 31 March 2023.
For KKC & Associates LLP Chartered Accountants (formerly Khimji Kunverji & Co LLP)
ICAI Firm Registration Number: 105146W/W100621
Soorej Kombaht Partner
ICAI Membership Number: 164366 UDIN: 23164366BGYKTL5874
Pune: 24 April 2023
Mar 31, 2022
Opinion
We have audited the accompanying financial statements of Maharashtra Scooters Ltd. (''the Company''), which comprise the Balance Sheet as at 31 March 2022, the Statement of Profit and Loss (including Other Comprehensive Income), the Statement of Changes in Equity and the Statement of Cash Flows for the year ended on that date, and a summary of the significant accounting policies and other explanatory information (hereinafter referred to as ''the financial statements'').
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid financial statements give the information required by the Companies Act, 2013 (''the Act'') in the manner so required and give a true and fair view in conformity with the Indian Accounting Standards prescribed under section 133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015, as amended, (''Ind AS'') and other accounting principles generally accepted in India, of the state of affairs of the Company as at 31 March 2022, the profit and total comprehensive income, changes in equity and its cash flows for the year ended on that date.
We conducted our audit of the financial statements in accordance with the Standards on Auditing (SAs) specified under section 143(10) of the Act. Our responsibilities under those Standards are further described in the Auditor''s Responsibilities for the Audit of the Financial Statements section of our report. We are independent of the Company in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India (ICAI) together with the independence requirements that are relevant to our audit of the financial statements under the provisions of the Act and the Rules made thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the ICAI''s Code of Ethics. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the financial statements.
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the financial statements of the current period. We have determined that there are no key audit matters to communicate in our report.
Information other than the financial statements and auditor''s report thereon
The Company''s Board of Directors is responsible for the preparation of the other information. The other information comprises the information included in the Management Discussion and Analysis, Board''s Report including Annexures to Board''s Report, Corporate Governance and Shareholder''s Information, but does not include the financial statements and our auditor''s report thereon.
Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained during the course of our audit or otherwise appears to be materially misstated. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.
Management''s responsibility for the financial statements
The Company''s Board of Directors is responsible for the matters stated in section 134(5) of the Act with respect to the preparation of these financial statements that give a true and fair view of the financial position, financial performance, total comprehensive income, changes in equity and cash flows of the Company in
accordance with the Ind AS and other accounting principles generally accepted in India. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding 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 design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant 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.
In preparing the financial statements, management is responsible for assessing the Company''s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.
The Board of Directors are responsible for overseeing the Company''s financial reporting process.
Auditor''s responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due 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 audit conducted in accordance with SAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:
⢠Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
⢠Obtain an understanding of internal financial controls relevant to the audit in order to design audit procedures that are appropriate in the circumstances. Under section 143(3) (i) of the Act, we are also responsible for expressing our opinion on whether the Company has adequate internal financial controls system in place and the operating effectiveness of such controls.
⢠Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
⢠Conclude on the appropriateness of management''s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company''s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor''s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor''s report. However, future events or conditions may cause the Company to cease to continue as a going concern.
⢠Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
Materiality is the magnitude of misstatements in the financial statements that, individually or in aggregate, makes it probable that the economic decisions of a reasonably knowledgeable user of the financial statements may be influenced. We consider quantitative materiality and qualitative factors in (i) planning
the scope of our audit work and in evaluating the results of our work; and (ii) to evaluate the effect of any identified misstatements in the financial statements.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor''s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.
Report on other legal and regulatory requirements
1. As required by section 143(3) of the Act, based on our audit 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 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, the Statement of Profit and Loss including Other Comprehensive Income, Statement of Changes in Equity and the Statement of Cash Flow dealt with by this Report are in agreement with the relevant books of account.
d) In our opinion, the aforesaid financial statements comply with the Ind AS specified under section 133 of the Act.
e) On the basis of the written representations received from the directors as on 31 March 2022 taken on record by the Board of Directors, none of the directors is disqualified as on 31 March 2022 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 A''. Our report expresses an unmodified opinion on the adequacy and operating effectiveness of the Company''s internal financial controls over financial reporting.
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, as amended 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 financial statements - Refer Note 30 to the financial statements
ii. The Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses.
iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company
iv. With respect to clause (e) of Rule 11 of the Companies (Audit and Auditors) Rules,
2014, as amended
a. The Management has represented that, to the best of it''s knowledge and belief, no funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the company to or in any other person (s) or entity(ies), including foreign entities (''Intermediaries''), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall, whether, directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the company (''Ultimate Beneficiaries'') or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
b. Management has represented, that, to the best of it''s knowledge and belief, no funds have been received by the company from any person(s) or entity(ies), including foreign entities (''Funding Parties''), with the understanding, whether recorded in writing or otherwise, that the company shall, whether, directly or indirectly, lend or invest in other persons
or entities identified in any manner whatsoever by or on behalf of the Funding Party (''Ultimate Beneficiaries'') or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
c. Based on such audit procedures that we have considered reasonable and appropriate in the circumstances, nothing has come to their notice that has caused us believe that the representations under sub-clause (a) and (b) contain any material mis-statement.
Dividend declared and paid during the year by the Company is in compliance with section 123 of the Companies Act, 2013.
2. As required by the Companies (Auditor''s Report) Order, 2016 (''the Order'') issued by the Central Government in terms of section 143(11) of the Act, we give in ''Annexure B'' a statement on the matters specified in paragraphs 3 and 4 of the Order.
3. With respect to the other matters to be included in the Auditor''s Report in accordance with the requirements of section 197(16) of the Act, as amended:
In our opinion and to the best of our information and according to the explanations given to us, the remuneration paid by the Company to its directors during the year is in accordance with the provisions of section 197 of the Act.
For Kirtane & Pandit LLP
Chartered Accountants
ICAI Firm Registration Number: 105215W/W100057
Suhas Deshpande
Partner
ICAI Membership Number: 31787
UDIN: 22031787AHUNGT4402
Pune: 25 April 2022
Mar 31, 2019
Management''s Responsibility for the Financial Statements
The Company''s Board of Directors is responsible for the matters stated in section 134(5) of the Act with respect to the preparation of these financial statements that give a true and fair view of the financial position, financial performance, total comprehensive income, changes in equity and cash flows of the Company in accordance with the Ind AS and other accounting principles generally accepted in India. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding 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 design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant 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.
In preparing the financial statements, management is responsible for assessing the Company''s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.
The Board of Directors are responsible for overseeing the Company''s financial reporting process.
Auditor''s Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due 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 audit conducted in accordance with SAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:
- Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
- Obtain an understanding of internal financial controls relevant to the audit in order to design audit procedures that are appropriate in the circumstances. Under section 143(3)(i) of the Act, we are also responsible for expressing our opinion on whether the Company has adequate internal financial controls system in place and the operating effectiveness of such controls.
- Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
- Conclude on the appropriateness of management''s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company''s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor''s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor''s report. However, future events or conditions may cause the Company to cease to continue as a going concern.
- Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. Materiality is the magnitude of misstatements in the financial statements that, individually or in aggregate, makes it probable that the economic decisions of a reasonably knowledgeable user of the financial statements may be influenced. We consider quantitative materiality and qualitative factors in (i) planning the scope of our audit work and in evaluating the results of our work; and (ii) to evaluate the effect of any identified misstatements in the financial statements.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor''s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.
Report on Other Legal and Regulatory Requirements
1. As required by Section 143(3) of the Act, based on our audit 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 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, the Statement of Profit and Loss including Other Comprehensive Income, Statement of Changes in Equity and the Statement of Cash Flow dealt with by this Report are in agreement with the relevant books of account.
d) In our opinion, the aforesaid financial statements comply with the Ind AS specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014.
e) On the basis of the written representations received from the directors as on 31 March 2019 taken on record by the Board of Directors, none of the directors is disqualified as on 31 March 2019 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 âAnnexure Aâ. Our report expresses an unmodified opinion on the adequacy and operating effectiveness of the Company''s internal financial controls over financial reporting.
g) With respect to the other matters to be included in the Auditor''s Report in accordance with the requirements of section 197(16) of the Act, as amended:
In our opinion and to the best of our information and according to the explanations given to us, the remuneration paid by the Company to its directors during the year is in accordance with the provisions of section 197 of the Act.
h) 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, as amended 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 financial statements
- Refer Note 30 to the financial statements
ii. The Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses.
iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company.
2. As required by the Companies (Auditor''s Report) Order, 2016 (âthe Orderâ) issued by the Central Government in terms of Section 143(11) of the Act, we give in âAnnexure Bâ a statement on the matters specified in paragraphs 3 and 4 of the Order.
Report on the Internal Financial Controls Over Financial Reporting under Clause (i) of Sub- section 3 of Section 143 of the Companies Act, 2013 (âthe Actâ)
We have audited the internal financial controls over financial reporting of MAHARASHTRA SCOOTERS LIMITED (âthe Companyâ) as of 31 March 2019 in conjunction with our audit of the financial statements of the Company for the year ended on that date.
Management''s Responsibility for Internal Financial Controls
The Board of Directors of the Company is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India. These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to respective company''s policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013.
Auditor''s Responsibility
Our responsibility is to express an opinion on the internal financial controls over financial reporting of the Company based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (the âGuidance Noteâ) issued by the Institute of Chartered Accountants of India and the Standards on Auditing prescribed under Section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. 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.
We believe that the audit evidence we have obtained, is sufficient and appropriate to provide a basis for our audit opinion on the internal financial controls system over financial reporting of the Company.
Meaning of Internal Financial Controls Over Financial Reporting
A company''s internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company''s internal financial control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company''s assets that could have a material effect on the financial statements.
Limitations of Internal Financial Controls Over Financial Reporting
Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Opinion
In our opinion, to the best of our information and according to the explanations given to us, the Company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at 31 March 2019, based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India.
i. In respect of the Company''s property, plant and equipment:
(a) The Company has maintained proper records showing full particulars, including quantitative details and situation of property, plant and equipment.
(b) According to the information and explanations given to us, Property, plant and equipment were physically verified by the management during the year and no material discrepancies were noticed on such verification. In our opinion, the frequency of physical verification of Property, plant and equipment is reasonable.
(c) According to the information and explanations given to us and on the basis of our examination of the records of the Company, the title deeds of immovable properties are held in the name of the Company.
ii. As informed to us, the physical verification of inventory has been conducted by the management at reasonable intervals and the discrepancies noticed during such physical verification were not material. Stocks lying with third parties at the year-end have been confirmed. The discrepancies noticed on physical verification of Inventory as compared to the book records have been properly dealt with the Books of Account.
iii. 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. Accordingly, paragraph 3(iii) of the Order is not applicable.
iv. In our opinion and according to information and explanations given to us, the Company has complied with the provisions of section 185 and 186 of the Companies Act, 2013 in respect of loans given and investments made. Further the Company has not given any guarantee or security in connection with a loan to any other body corporate or person.
v. The Company has not accepted deposits during the year and does not have any unclaimed deposits as at 31 March 2019 and therefore, the paragraph 3 (v) of the Order is not applicable to the Company.
vi. In our opinion and according to the information and explanations given to us, Maintenance of Cost Records, for the Company, has not been specified by the Central Government under sub-section (1) of section 148 of the Companies Act, 2013.
vii. According to the information and explanations given to us, in respect of statutory dues:
(a) The Company has generally been regular in depositing undisputed statutory dues, including Provident Fund, Employees'' State Insurance, Income Tax, Goods and Service Tax, Customs Duty, Cess and other material statutory dues applicable to it with the appropriate authorities.
(b) There were no undisputed amounts payable in respect of Provident Fund, Employees'' State Insurance, Income Tax, Goods and Service Tax, Customs Duty, Cess and other material statutory dues in arrears as at 31 March 2019 for a period of more than six months from the date they became payable.
(c) Details of dues of Income Tax, Sales Tax, Service Tax, Excise Duty and Value Added Tax which have not been deposited as at 31 March 2019 on account of dispute are given below:
Sl. No. |
Name of the statute |
Nature of the dues |
Amount unpaid (?) |
Period(s) to which the amount relate |
Forum where such dispute is pending |
1 |
The Bombay Sales Tax Act, 1959 and The Central Sales Tax Act,1956 |
Sales Tax |
38,808,687 |
2001-02 and 2002-03 |
Maharashtra Sales Tax Tribunal, Mumbai |
2 |
Maharashtra Value Added Tax Act, 2002 |
Value Added Tax |
71,825,295 |
2005-06 |
Dy.Commissioner of Sales Tax (Appeals), Satara |
3 |
Maharashtra Value Added Tax Act, 2002 |
Value Added Tax |
864,747 |
2006-07 |
Jt. Commissioner of Sales Tax (Appeals), Kolhapur |
4 |
Income Tax Act, 1961 |
Income Tax |
3,984,285 |
1997-98 and 1998-99 |
Mumbai High Court |
5 |
Central Excise Act, 1944 |
Excise Duty |
319,085 |
1985-86 to 1991-92 |
Customs, Excise and Service Tax Appellate Tribunal, Mumbai |
6 |
Central Excise Act, 1944 |
Excise Duty |
1,214,840 |
1985-86 to 1995-96 |
Mumbai High Court |
7 |
Central Excise Act, 1944 |
Excise Duty |
465,868 |
1994-95 and 1995-96 |
Assistant Commissioner, Satara |
8 |
Central Excise Act, 1944 |
Excise Duty |
28,754 |
1987-88 |
Assistant Commissioner, Satara |
viii. In our opinion and according to the information and explanations given to us, the Company has not defaulted in the repayment of loans or borrowings to financial institutions, banks and government and dues to debenture holders.
ix. In our opinion and according to the information and explanations given to us, the Company has not raised moneys by way of initial public offer or further public offer (including debt instruments) and term loans during the year.
x. According to the information and explanations given to us, no fraud by the Company or on the Company by its officers or employees has been noticed or reported during the year.
xi. In our opinion and according to the information and explanations given to us, the Company has paid/provided managerial remuneration in accordance with the requisite approvals mandated by the provisions of section 197 read with Schedule V to the Act.
xii. The Company is not a Nidhi Company and hence reporting under paragraph 3 (xii) of the Order is not applicable to the Company.
xiii. In our opinion and according to the information and explanations given to us, the Company is in compliance with Section 177 and 188 of the Companies Act, 2013 where applicable, for all transactions with the related parties and the details of related party transactions have been disclosed in the financial statements as required by the applicable accounting standards.
xiv. During the year the Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures and hence reporting under paragraph 3(xiv) of the Order is not applicable to the Company.
xv. In our opinion and according to the information and explanations given to us, during the year the Company has not entered into any non-cash transactions with its directors or persons connected with him. Accordingly, paragraph 3(xv) of the Order is not applicable.
xvi. According to the information and explanations given to us, and based on our examination of the records of the Company, the Company has been classified as a Core Investment Company not requiring registration with Reserve Bank of India pursuant to the provisions of section 45-IA of RBI Act, 1934 - Refer Note 33 to Ind AS financial statements.
For Kirtane & Pandit LLP
Chartered Accountants Firm Registration No.105215W / W100057
Suhas Deshpande
Partner
Membership No.031787
Pune, 15 May 2019
Mar 31, 2018
INDEPENDENT AUDITORS'' REPORT
To the Members of Maharashtra Scooters Ltd.
Report on the Financial Statements
We have audited the accompanying Ind AS financial statements of MAHARASHTRA SCOOTERS LTD. ("the Company"), which comprise the Balance Sheet as at 31 March 2018 and the Statement of Profit and Loss (including Other Comprehensive Income), the Statement of Cash Flow and the Statement of Changes in Equity for the year then ended and a summary of the significant accounting policies and other explanatory information (hereinafter referred to as "the Ind AS financial statements").
Management''s Responsibility for the Ind AS Financial Statement
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 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 the accounting principles generally accepted in India, including the Indian Accounting Standards (Ind AS) prescribed under Section 133 of the Act.
This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding 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 design, implementation and maintenance of adequate internal financial controls, 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 Ind AS financial statements based on our audit.
In conducting 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 there under.
We conducted our audit of the Ind AS financial statements 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 Ind AS financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the Ind AS financial statements. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the 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 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 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 Ind AS financial statements.
We believe that the audit evidence obtained by us is sufficient and appropriate to provide a basis for our audit opinion on the Ind AS financial statements.
Opinion
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid 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 31 March 2018 and its profit, total comprehensive income, its cash flows and the changes in equity for the year ended on that date.
Other Matter
The financial statements of the Company for the year ended 31 March 2017 were audited by other auditor, who expressed an unmodified opinion on these statements on 16 May 2017.
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 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, based on our audit we report, to the extent applicable 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 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, the Statement of Profit and Loss including Other Comprehensive Income, the Statement of Cash Flow and Statement of Changes in Equity dealt with by this Report are in agreement with the relevant books of account.
d. In our opinion, the aforesaid Ind AS financial statements comply with the Indian Accounting Standards prescribed under section 133 of the Act.
e. On the basis of the written representations received from the directors as on 31 March 2018 taken on record by the Board of Directors, none of the directors is disqualified as on 31 March 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 B". Our report expresses an unmodified opinion on the adequacy and operating effectiveness of the Company''s internal financial controls over financial reporting.
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, as amended, 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 Ind AS financial statements - Refer Note 30 to Ind AS financial statements;
II. The Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses;
III. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company.
(i) (a) The Company has maintained proper records showing full particulars, including quantitative details and situation of property, plant and equipment.
(b) According to the information and explanations given to us, property, plant and equipment were physically verified by the management during the year and no material discrepancies were noticed on such verification. In our opinion, the frequency of physical verification of property, plant and equipment is reasonable.
(c) According to the information and explanations given to us and on the basis of our examination of the records of the Company, the title deeds of immovable properties are held in the name of the Company.
(ii) As informed to us, the physical verification of inventory has been conducted by the management at reasonable intervals and the discrepancies noticed during such physical verification were not material. The discrepancies noticed on physical verification of inventory as compared to the book records have been properly dealt with the Books of Account.
(iii) 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. Accordingly, paragraph 3(iii) of the Order is not applicable.
(iv) In our opinion and according to information and explanations given to us, the Company has complied with the provisions of section 185 and 186 of the Companies Act, 2013 in respect of loans given and investments made. Further the Company has not given any guarantee or security in connection with a loan to any other body corporate or person.
(v) In our opinion and according to the information and explanations given to us, the Company has not accepted any deposits from the public under section 73 to 76 or any other relevant provisions of the Companies Act and the rules framed there under.
(vi) In our opinion and according to the information and explanations given to us, maintenance of Cost Records, for the Company, has not been specified by the Central Government under sub-section (1) of section 148 of the Companies Act, 2013.
(vii) According to the information and explanations given to us and on the basis of our examination of the records of the Company, amounts deducted/ accrued in the books of account in respect of undisputed statutory dues including Provident Fund, Income Tax, Sales Tax, Value Added Tax, Duty of Customs, Duty of Excise, Service Tax, Goods & Service Tax, Employees'' State Insurance, Cess and any other material statutory dues have been regularly deposited during the year by the Company with appropriate authorities.
According to the information and explanations given to us, no undisputed amounts payable in respect of statutory dues were in arrears as at 31 March 2018 for a period of more than six months from the date they became payable.
Details of dues of Income-tax, Service Tax, Customs Duty, Excise Duty, and Value Added Tax which have not been deposited as on 31 March 2018 on account of disputes are given below:-
Sl. No. |
Name of the statute |
Nature of the dues |
Amount unpaid (Rs,) |
Period(s) to which the amount relate |
Forum where such dispute is pending |
1 |
The Bombay Sales Tax Act, 1959 and the Central Sales Tax Act, 1956 |
Sales Tax |
38,808,687 |
2001-02 and 2002-03 |
Maharashtra Sales Tax Tribunal, Mumbai |
2 |
Maharashtra Value Added Tax Act, 2002 |
Value Added Tax |
71,825,295 |
2005-06 |
Dy. Commissioner of Sales Tax (Appeals), Satara |
3 |
Maharashtra Value Added Tax Act, 2002 |
Value Added Tax |
864,747 |
2006-07 |
Jt. Commissioner of Sales Tax (Appeals), Kolhapur |
4 |
Maharashtra Value Added Tax Act, 2002 |
Value Added ax |
140,102 |
2012-13 |
Jt. Commissioner of Sales Tax (Appeals), Kolhapur |
5 |
Income Tax Act, 1961 |
Income Tax |
3,984,285 |
1997-98 and 1998-99 |
Mumbai High Court |
6 |
Income Tax Act, 1961 |
Income Tax |
2,850,745 |
2012-13 and 2013-14 |
Income tax Appellate Tribunal, Pune |
7 |
Income Tax Act, 1961 |
Income Tax |
1,549,388 |
2014-15 |
Commissioner of Income Tax, Pune |
8 |
Central Excise Act, 1944 |
Excise Duty |
319,085 |
1985-86 to 1991-92 |
Customs, Excise and Service Tax Appellate Tribunal, Mumbai |
9 |
Central Excise Act, 1944 |
Excise Duty |
1,214,840 |
1985-86 to 1995-96 |
Mumbai High Court |
10 |
Central Excise Act, 1944 |
Excise Duty |
465,868 |
1994-95 and 1995-96 |
Assistant Commissioner, Satara |
11 |
Central Excise Act, 1944 |
Excise Duty |
28,754 |
1987-88 |
Assistant Commissioner, Satara |
(viii) In our opinion and according to the information and explanations given to us, the Company has not defaulted in the repayment of loans or borrowings to financial institutions, banks and government and dues to debenture holders.
(ix) In our opinion and according to the information and explanations given to us, the Company has not raised moneys by way of initial public offer or further public offer (including debt instruments) and term loans during the year.
(x) According to the information and explanations given to us, no fraud by the Company or on the Company by its officers or employees has been noticed or reported during the year.
(xi) In our opinion and according to the information and explanations given to us, the Company has paid/ provided managerial remuneration 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 and according to the information and explanations given to us, the Company is not a Nidhi Company. Accordingly, paragraph 3(xii) of the Order is not applicable.
(xiii) In our opinion and according to the information and explanations given to us, the Company is in compliance with section 177 and 188 of the Companies Act, 2013 where applicable, for all transactions with the related parties and the details of related party transactions have been disclosed in the Ind AS financial statements as required by the applicable accounting standards.
(xiv) During the year the Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures and hence reporting under paragraph 3(xiv) of the Order is not applicable to the Company.
(xv) In our opinion and according to the information and explanations given to us, during the year the Company has not entered into any non-cash transactions with its directors or persons connected with him. Accordingly, paragraph 3(xv) of the Order is not applicable.
(xvi) According to the information and explanations given to us, and based on our examination of the records of the Company, the Company has been classified as a Core Investment Company not requiring registration with Reserve Bank of India pursuant to the provisions of section 45-IA of RBI Act, 1934 - Refer Note 33 to Ind AS financial statements.
Report on the Internal Financial Controls Over Financial Reporting under clause (i) of sub-section 3 of section 143 of the Companies Act, 2013 ("the Act")
We have audited the internal financial controls over financial reporting of Maharashtra Scooters Ltd. ("the Company") as of 31 March 2018 in conjunction with our audit of the Ind AS 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 and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (the "Guidance Note") issued by the Institute of Chartered Accountants of India. These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to Company''s policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013.
Auditor''s Responsibility
Our responsibility is to express an opinion on the Company''s internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note issued by the Institute of Chartered Accountants of India and the Standards on Auditing prescribed under section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. 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.
Meaning of Internal Financial Controls Over Financial Reporting
A Company''s internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A Company''s internal financial control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the Company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the Company are being made only in accordance with authorizations of management and directors of the Company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the Company''s assets that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls Over Financial Reporting
Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Opinion
In our opinion, to the best of our information and according to the explanations given to us, the Company has, in all material respects, an internal financial controls with reference to financial statements over financial reporting and such internal financial controls over financial reporting were operating effectively as at 31 March 2018 based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note issued by the Institute of Chartered Accountants of India.
For Kirtane & Pandit LLP
Chartered Accountants
Firm Registration No. 105215W/W100057
Suhas Deshpande
Partner
Membership No. 31787
Pune,16 May 2018
Mar 31, 2017
INDEPENDENT AUDITORSâ REPORT
To the Members of Maharashtra Scooters Ltd.
Report on the Standalone Financial Statements
We have audited the accompanying standalone financial statements of MAHARASHTRA SCOOTERS LTD. (âthe Companyâ), which comprise the Balance Sheet as at 31 March 2017, the Statement of Profit and Loss and Cash Flow Statement for the year then ended, and a summary of significant accounting policies and other explanatory information.
Management''s Responsibility for the Standalone Financial Statements
The Company''s Board of Directors is responsible for the matters stated in section 134(5) of the Companies Act, 2013 (âthe Actâ) 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 provisions of the Act for safeguarding 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 design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant 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.
Auditor''s Responsibility
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 there under.
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. 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 believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the standalone financial statements.
Opinion
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 31 March 2017, and its profit/loss and its cash flows for the year ended on that date.
Report on Other Legal and Regulatory Requirements
As required by the Companies (Auditors Report) Order, 2016 (âThe Orderâ) issued by the Central Government of India in terms of sub-section 11 of section 143 of the Act, we give in the Annexure A, a statement on the matter specified in paragraphs 3 & 4 of the order.
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 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, the Statement of Profit and Loss, and the Cash Flow Statement 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 Accounting Standards specified under section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014.
(e) On the basis of the written representations received from the directors as on 31 March 2017 taken on record by the Board of Directors, none of the directors is disqualified as on 31 March 2017 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 B''.
(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 financial statements - Also refer Note 22 to the financial statements;
ii. The Company did not have any long term contract, including derivative contract, for which there were any material foreseeable losses;
iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company.
iv. The Company has provided requisite disclosures in the Standalone Financial Statements as to holdings as well as dealings in specified Bank notes during the period from 8 November 2016 to 30 December 2016. Based on audit procedures and relying on management representation we report that the disclosures are in accordance with the Books of accounts maintained by the Company and as produced to us by the Management - Also refer Note 26 to the financial statements.
The Annexure referred to in our report to the members of MAHARASHTRA SCOOTERS LTD. (âthe Companyâ) for the year ended on 31 March 2017. We report that:
(i) (a) The Company has maintained proper records showing full particulars including quantitative details and situation of fixed assets.
(b) The Management has carried out physical verification of fixed assets during the year and no material discrepancies were noticed on such verification. In our opinion, the frequency of physical verification of fixed assets is reasonable.
(c) The title deeds of immovable properties are held in the name of the Company.
(ii) According to the information and explanations given to us, physical verification of inventory has been conducted at reasonable intervals by the Management and no material discrepancies were noticed on physical verification during the year.
(iii) According to the information and explanations given to us, the Company has not granted any loans, secured or unsecured to companies, firms, Ltd. Liability Partnerships or other parties covered in the register maintained under section 189 of the Companies Act, 2013.
Sub-clauses (a) (b) and (c) are not applicable.
(iv) In our opinion and according to information and explanations given to us, the Company has complied with the provisions of section 185 and 186 of the Companies Act, 2013 in respect of loans, investments, guarantees and security.
(v) The Company has not accepted deposits during the year.
(vi) Maintenance of Cost Records, for the Company, has not been specified by the Central Government under sub-section (1) of section 148 of the Companies Act, 2013.
(vii) (a) According to the records of the Company, the Company has been generally regular in depositing undisputed statutory dues including Provident
Fund, employees'' state insurance, Income-Tax, Sales-Tax, service tax, Custom Duty, Excise Duty, value added tax, cess and any other statutory dues with the appropriate authorities. According to information and explanations given to us, there are no arrears of statutory dues which have remained outstanding as at 31 March 2017 for a period of more than six months from the date they became payable.
(b) According to information and explanations given to us and the records of the Company, the following dues of Sales Tax and Service Tax have not been deposited on account of dispute:
Nature of disputed Statutory dues |
Amount (?) |
Forum where dispute is pending |
Sales Tax for the year 2001-02 |
8,786,623 |
Joint Commissioner of Sales Tax (Appeals)-I, Kolhapur Division, Kolhapur |
Sales Tax for the year 2001-02 |
5,295,295 |
Joint Commissioner of Sales Tax (Appeals)-I, Kolhapur Division, Kolhapur |
Sales Tax for the year 2002-03 |
17,987,580 |
Joint Commissioner of Sales Tax (Appeals)-I, Kolhapur Division, Kolhapur |
Sales Tax for the year 2005-06 |
71,825,295 |
Maharashtra Sales Tax Tribunal, Mumbai |
Sales Tax for the year 2006-07 |
864,747 |
Dy. Commissioner of Sales Tax (Appeals), Satara |
Sales Tax for the year 2012-13 |
140,102 |
Dy. Commissioner of Sales Tax (Appeals), Kolhapur |
(viii) The Company has not defaulted in repayment of loans or borrowing to financial institutions, banks, government or dues to debenture holders.
(ix) The Company has not raised moneys by way of initial public offer or further public offer (including debt instruments) and term loans during the year.
(x) Based upon the audit procedures performed by us and according to information and explanations given to us and representations made by Management, no fraud by the Company or on the Company by its officers or employees has been noticed or reported during the year.
(xi) The managerial remuneration has been paid or provided in accordance with the requisite approvals mandated by the provisions of section 197 read with Schedule V of the Companies Act.
(xii) In our opinion and according to the information and explanations given to us, the Company is not a Nidhi Company. Accordingly, paragraph 3(xii) of the Order is not applicable.
(xiii) According to the information and explanations given to us, and based on our examination of the records of the Company, transactions with the related parties are in compliance with sections 177 and 188 of Companies Act, 2013 where applicable and the details have been disclosed in the Financial Statements as required by the applicable accounting standards.
(xiv) According to the information and explanations given to us, and based on our examination of the records of the Company, the Company has not made preferential allotment or private placement of shares or fully or partly convertible debentures during the year.
(xv) According to the information and explanations given to us, and based on our examination of the records of the Company, the Company has not entered into any non-cash transactions with directors or persons connected with him. Accordingly paragraph 3(xv) of the Order is not applicable.
(xvi) According to the information and explanations given to us, and based on our examination of the records of the Company, the Company has been classified as a Core Investment Company not requiring registration with Reserve Bank of India pursuant to the provisions of section 45-IA of RBI Act, 1934 - Also Refer Note 28 to the financial statements. Accordingly, separate report as required vide RBI Master Direction DNBS.PPD.03/66.15.001/2016-17 dated 29 September 2016, is not required to be furnished.
Report on the Internal Financial Controls under Clause (i) of sub-section 3 of section 143 of the Companies Act, 2013 (âthe Actâ)
We have audited the internal financial controls over financial reporting of Maharashtra Scooters Ltd. (âthe Companyâ) as of 31 March 2017 in conjunction with our audit of the standalone financial statements of the Company for the year ended on that date.
Managementâs Responsibility for Internal Financial Controls
The Company''s Management is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India. These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to Company''s policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013.
Auditorsâ Responsibility
Our responsibility is to express an opinion on the Company''s internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (the âGuidance Noteâ) and the Standards on Auditing, issued by ICAI and deemed to be prescribed under section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls, both applicable to an audit of Internal Financial Controls and, both issued by the Institute of Chartered Accountants of India. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness.
Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. 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. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Company''s internal financial controls system over financial reporting.
Meaning of Internal Financial Controls Over Financial Reporting
A company''s internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company''s internal financial control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of Management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company''s assets that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls Over Financial Reporting
Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Opinion
In our opinion, the Company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at 31 March 2017, based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India.
For P. C. PARMAR & Co.
Chartered Accountants
Firm Regn. No. 107604W
C.A. J. P. PARMAR
Proprietor
Membership No. 46293
Pune, 16 May 2017
Mar 31, 2016
To the Members of Maharashtra Scooters Limited Report on the Standalone Financial Statements
We have audited the accompanying standalone financial statements of MAHARASHTRA SCOOTERS LIMITED ("the Company"), which comprise
the Balance Sheet as at March 31, 2016, the Statement of Profit and Loss and Cash Flow Statement for the year then ended, and a
summary of significant accounting policies and other explanatory information.
Management''s Responsibility for the Standalone 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 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 provisions of
the Act for safeguarding 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 design,
implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy
and completeness of the accounting records, relevant 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.
Auditor''s Responsibility
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 thereunder.
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. 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 believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the
standalone financial statements. Opinion
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,
2016, and its profit / loss and its cash flows for the year ended on that date.
Report on Other Legal and Regulatory Requirements
As required by the Companies (Auditors Report) Order, 2016 ("The Order") issued by the Central Government of India in terms of
subsection 11 of section 143 of the Act, we give in the Annexure A, a statement on the matter specified in paragraphs 3 and 4 of
the order.
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 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, the Statement of Profit and Loss and the Cash Flow Statement 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 Accounting Standards specified under Section
133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014.
(e) On the basis of the written representations received from the directors as on 31st March, 2016 taken on record by the Board
of Directors, none of the directors is disqualified as on 31st March, 2016 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 B''.
(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 financial statements - Refer
Note 22 to the financial statements;
ii. The Company did not have any long term contract, including derivative contract, for which there were any material
foreseeable losses;
iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund
by the Company.
The Annexure referred to in our report to the members of MAHARASHTRA SCOOTERS LIMITED ("the Company") for the year ended on 31
March, 2016. We report that:
(i) (a) The Company has maintained proper records showing full particulars including quantitative details and situation of fixed
assets.
(b) The management has carried out physical verification of fixed assets during the year and no material discrepancies were
noticed on such verification. In our opinion, the frequency of physical verification of fixed assets is reasonable.
(c) The title deeds of immovable properties are held in the name of the company.
(ii) According to the information and explanations given to us, physical verification of inventory has been conducted at
reasonable intervals by the management and no material discrepancies were noticed on physical verification during the year.
(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.
Sub-clauses (a) (b) and (c) are not applicable.
(iv) In our opinion and according to information and explanations given to us the company has complied with the provisions of
section 185 and 186 of the Companies Act, 2013 in respect of loans, investments, guarantees and security.
(v) The Company has not accepted deposits during the year.
(vi) Maintenance of Cost Records, for the Company, has not been specified by the Central Government under sub-section (1) of
section 148 of the Companies Act, 2013.
(vii) (a) According to the records of the Company, the Company has been generally regular in depositing undisputed statutory dues
including Provident Fund, employees'' state insurance, Income-Tax, Sales-Tax, service tax, Custom Duty, Excise Duty, value added
tax, cess and any other statutory dues with the appropriate authorities. According to information and explanations given to us,
there are no arrears of statutory dues which have remained outstanding as at 31 March, 2016 for a period of more than six months
from the date they became payable.
(b) According to information and explanations given to us and the records of the Company, the following dues of Sales Tax and
Service Tax have not been deposited on account of dispute:
Nature of disputed Statutory
dues Amount
(Rs.) Forum where dispute is
pending
Sales Tax for the year 2001-02 87,86,623 Joint Commissioner of Sale
Tax (Appeals) - I, Kolhapur
Division, Kolhapur
Sales Tax for the year 2001-02 52,95,295 Joint Commissioner of Sales
Tax (Appeals) - I, Kolhapur
Division, Kolhapur
Sales Tax for the year 2002-03 1,79,87,580 Joint Commissioner of Sales
Tax (Appeals) - I, Kolhapur
Division, Kolhapur
Sales Tax for the year 2005-06 7,18,25,295 Maharashtra Sales Tax
Tribunal, Mumbai
Sales Tax for the year 2006-07 8,64,747 Dy. Commissioner of Sales
Tax (Appeals), Satara
(viii) The Company has not defaulted in repayment of loans or borrowing to financial institutions, banks, government or dues to
debenture holders.
(ix) The Company has not raised moneys by way of initial public offer or further public offer (including debt instruments) and
term loans during the year.
(x) Based upon the audit procedures performed by us and according to information and explanations given to us and representations
made by management, no fraud by the Company or on the Company by its officers or employees has been noticed or reported during
the year.
(xi) The managerial remuneration has been paid or provided in accordance with the requisite approvals mandated by the provisions
of section 197 read with Schedule V of the Companies Act.
(xii) In our opinion and according to the information and explanations given to us, the Company is not a Nidhi Company.
Accordingly paragraph 3(xii) of the Order is not applicable.
(xiii) According to the information and explanations given to us, and based on our examination of the records of the Company,
transactions with the related parties are in compliance with sections 177 and 188 of Companies Act, 2013 where applicable and the
details have been disclosed in the Financial Statements as required by the applicable accounting standards.
(xiv) According to the information and explanations given to us, and based on our examination of the records of the Company, the
Company has not made preferential allotment or private placement of shares or fully or partly convertible debentures during the
year.
(xv) According to the information and explanations given to us, and based on our examination of the records of the Company, the
Company has not entered into any non-cash transactions with directors or persons connected with him. Accordingly paragraph 3(xv)
of the Order is not applicable.
(xvi) According to the information and explanations given to us, and based on our examination of the records of the Company, the
company has received confirmation from RBI on its classification as a Core Investment Company, not requiring registration with
RBI pursuant to the provisions of section 45-IA of the RBI Act, 1934.
For P. C. PARMAR & Co.
Chartered Accountants
Firm Regn. No. 107604W
C.A. J. P. PARMAR
Proprietor
Membership No. 46293
Pune, 23 May, 2016
Mar 31, 2015
We have audited the accompanying standalone financial statements of
MAHARASHTRA SCOOTERS LIMITED ("the Company"), which comprise the
Balance Sheet as at March 31,2015, the Statement of Profit and Loss and
Cash Flow Statement for the year then ended, and a summary of
significant accounting policies and other explanatory information.
Management''s Responsibility for the Standalone Financial Statements
The Company''s Board of Directors is responsible for the matters stated
in Section134(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 provisions of the Act for safeguarding 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 design,
implementation and maintenance of adequate internal financial controls,
that were operating effectively for ensuring the accuracy and
completeness of the accounting records, relevant 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.
Auditor''s Responsibility
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
thereunder.
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 believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion on the standalone
financial statements. Opinion
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 31 March, 2015 and its profit/loss and its cash flows for the year
ended on that date.
Report on Other Legal and Regulatory Requirements
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 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, the Statement of Profit and Loss and the Cash
Flow Statement 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 Accounting Standards specified under Section 133 of the
Act, read with Rule 7 of the Companies (Accounts) Rules, 2014.
(e) On the basis of the written representations received from the
directors as on 31 March, 2015 taken on record by the Board of
Directors, none of the directors is disqualified as on 31 March, 2015
from being appointed as a director in terms of Section 164 (2) of the
Act.
(f) 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 financial statements - Refer Note 22 to the
financial statements;
ii. The Company did not have any long term contract including
derivative contract for which there were any material foreseeable
losses;
iii. There has been no delay in transferring amounts, required to be
transferred, to the Investor Education and Protection Fund by the
Company.
The Annexure referred to in our report to the members of MAHARASHTRA
SCOOTERS LIMITED ("the Company") for the year ended on 31 March,
2015.
We report that:
(i) (a) The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
(b) The management has carried out physical verification of fixed
assets during the year and no material discrepancies were noticed on
such verification. In our opinion, the frequency of physical
verification of fixed assets is reasonable.
(ii) (a) Inventories have been physically verified by the management,
during the year. In our opinion, the frequency of verification is
reasonable.
(b) In our opinion, the procedures of physical verification of
inventory followed by the management are reasonable and adequate in
relation to the size of the Company and the nature of its business.
(c) The Company has maintained proper records of inventory. The
discrepancies noticed on verification between physical stocks and book
stocks were not material and the same have been properly dealt with in
the books of Account.
(iii) 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.
Sub-clauses (a) and (b) are not applicable.
(iv) In our opinion and according to information and explanations given
to us there are adequate internal control procedures commensurate with
the size of the Company and the nature of its business, with regard to
purchase of inventory and fixed assets and for the sale of goods.
During the course of our audit, no continuing failure to correct major
weaknesses have been noticed in the internal controls.
(v) The Company has not accepted deposits from public.
(vi) Maintenance of Cost Records, for the Company, has not been
specified by the Central Government under sub-section (1) of section
148 of the Companies Act, 2013.
(vII) (a) According to the records of the Company, the Company has been
generally regular in depositing undisputed statutory dues including
Provident Fund, Employees'' State Insurance, Income-Tax,
Sales-Tax,Wealth-Tax, Service Tax, Custom Duty, Excise Duty, Cess and
any other statutory dues with the appropriate authorities. According to
information and explanations given to us, there are no arrears of
statutory dues which have remained outstanding as at 31 March, 2015 for
a period of more than six months from the date they became payable.
(b) According to information and explanations given to us and the
records of the Company, the following dues of Sales Tax and Service Tax
have not been deposited on account of dispute:
Nature of disputed
Statutory dues Amount (Rs.) Forum where dispute is pending
Sales Tax for the
year 2001-02 87,86,623 Joint Commissioner of Sales
Tax (Appeals)-I, Kolhapur
Division, Kolhapur
Sales Tax for the
year 2001-02 52,95,295 Joint Commissioner of Sales
Tax (Appeals)-I, Kolhapur
Division, Kolhapur
Sales Tax for the
year 2002-03 1,79,87,580 Joint Commissioner of Sales
Tax (Appeals)-I, Kolhapur
Division, Kolhapur
Sales Tax for the
year 2005-06 7,18,25,295 Maharashtra Sales Tax
Tribunal, Mumbai
Service Tax for the
year 2004-05, 2005-06
and 2006-07 2,62,034 Assistant Commissioner of
Central Excise, Satara.
(c) The Company has transferred the amount required to be transferred
to Investor Education and Protection Fund in accordance with the
relevant provisions of the Companies Act, 1956 (1 of 1956) and rules
made thereunder.
(viii) The Company does not have any accumulated losses as at 31 March,
2015.The Company has not incurred cash losses during the financial year
covered by our audit and in the immediately preceding financial year.
(ix) According to information and explanation given to us, the Company
has not defaulted in repayment of dues to a financial institution or
bank or debenture holders.
(x) The Company has not given any guarantee for loans taken by others
from bank or financial institutions.
(xi) The Company has not obtained any term loans.
(xii) Based upon the audit procedures performed by us and according to
information and explanations given to us and representations made by
management, no fraud on or by the Company has been noticed or reported
during the year.
Place: Pune
Date: 12 May, 2015
For P. C. PARMAR & CO.
Chartered Accountants
Firm Reg. No: 107604W
C.A. J.P. PARMAR
Proprietor
Membership No. 46293
Mar 31, 2014
We have audited the accompanying financial statements of MAHARASHTRA
SCOOTERS LIMITED, which comprise the Balance Sheet as at March 31, 2014
and the Statement of Profit and Loss and Cash Flow Statement for the
year then ended and a summary of significant accounting policies and
other explanatory information.
Management''s Responsibility for the Financial Statements
Management is responsible for the preparation of these 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 Standards referred to in sub-section (3C) of section 211
of the Companies Act, 1956 (Âthe Act"). This responsibility includes
the design, implementation and maintenance of internal control relevant
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.
Auditor''s Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. 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 financial statements, whether
due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the Company''s preparation and
fair presentation of the financial statements in order to design audit
procedures that are appropriate in the circumstances, but not for the
purpose of expressing an opinion on the effectiveness of the entity''s
internal control. An audit also includes evaluating the appropriateness
of accounting policies used and the reasonableness of the accounting
estimates made by management, as well as evaluating the overall
presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the 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:
a) in the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2014;
b) in the case of the Statement of Profit and Loss Account, of the
profit for the year ended on that date; and
c) in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2003 (Âthe
Order") issued by the Central Government of India in terms of
sub-section (4A) of section 227 of the Act, we give in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the Order.
2. As required by section 227(3) of the Act, we report that:
a) we have 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 appears from our examination of those
books;
c) the Balance Sheet, Statement of Profit and Loss and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account;
d) in our opinion, the Balance Sheet, Statement of Profit and Loss and
Cash Flow Statement comply with the Accounting Standards referred to in
subsection (3C) of section 211 of the Companies Act, 1956;
e) on the basis of written representations received from the directors
as on March 31, 2014 and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31, 2014, from being
appointed as a director in terms of clause (g) of sub-section (1) of
section 274 of the Companies Act, 1956.
ANNEXURE TO AUDITORS'' REPORT
STATEMENT REFERRED TO IN PARAGRAPH 3 OF OUR REPORT OF EVEN DATE TO THE
MEMBERS OF MAHARASHTRA SCOOTERS LIMITED ON THE ACCOUNTS FOR THE YEAR
ENDED 31 MARCH, 2014.
(i) (a) The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
(b) The management has carried out physical verification of fixed
assets during the year and no material discrepancies were noticed on
such verification. In our opinion, the frequency of physical
verification of fixed assets is reasonable.
(c) The fixed assets disposed off during the year are not substantial
and hence it has not affected the going concern assumption. (ii) (a)
Inventories have been physically verified by the management, during the
year. In our opinion, the frequency of verification is reasonable.
(b) In our opinion, the procedures of physical verification of
inventory followed by the management are reasonable and adequate in
relation to the size of the Company and the nature of its business.
(c) The Company has maintained proper records of inventory. The
discrepancies noticed on verification between physical stocks and book
stocks were not material and the same have been properly dealt with in
the Books of Account.
(iii) (a) The Company has not granted or taken any loans, secured or
unsecured to/from companies, firms or other parties covered in the
register maintained under section 301 of the Companies Act, 1956.
Sub-clauses (b),(c) and (d) are not applicable.
(iv) In our opinion and according to information and explanations given
to us there are adequate internal control procedures commensurate with
the size of the Company and the nature of its business, with regard to
purchase of inventory and fixed assets and for the sale of goods.
During the course of our audit, no major weaknesses have been noticed
in the internal controls.
(v) (a) In our opinion and according to the information and
explanations given to us, transactions that need to be entered into the
register maintained in pursuance of section 301 of the Companies Act,
1956 have been so entered.
(b) In our opinion and according to information and explanations given
to us the transaction made in pursuance of contract and arrangement
entered in register maintained under the section 301 of the Act and
exceeding the value of five lakh rupees with any party during the year,
have been made at prices which are reasonable having regard to the
prevailing market prices at the relevant time.
(vi) The Company has not accepted deposits from public.
(vii) In our opinion, the Company has an internal audit system which is
commensurate with its size and nature of its business.
(viii) Cost Records have been prescribed by the Central Government
under clause (d) of sub-section (1) of section 209 of the Companies
Act. The Company has made and maintained such accounts and records.
(ix) (a) According to the records of the Company, the Company has been
generally regular in depositing undisputed statutory dues including
Provident Fund, Investor Education and Protection Fund, Employees''
State Insurance, Income-Tax, Sales-Tax, Wealth-Tax, Custom Duty, Excise
Duty, cess and any other statutory dues with the appropriate
authorities. According to information and explanations given to us,
there are no arrears of statutory dues which have remained outstanding
as at 31March, 2014 for a period of more than six months from the date
they became payable.
(b) According to information and explanations given to us and the
records of the Company, the following dues of Sales Tax and Service Tax
have not been deposited on account of dispute:
Nature of disputed Statutory
dues Amount (`) Forum where dispute is
pending
Sales Tax for the year 2001-02 87,86,623 Maharashtra Sales Tax
Tribunal, Mumbai.
Sales Tax for the year 2001-02 52,95,295 Joint Commissioner of
Sales Tax (Appeals) - I,
Pune division, Pune
Sales Tax for the year 2002-03 1,79,87,580 Maharashtra Sales Tax
Tribunal, Mumbai.
Service Tax for the year
2004-05, 2005-06 and 2006-07 2,62,034 Assistant Commissioner
of Central Excise,
Satara.
(x) The Company does not have any accumulated losses as at 31March,
2014. The Company has not incurred cash losses during the financial
year covered by our audit and in the immediately preceding financial
year.
(xi) According to information and explanation given to us, the Company
has not defaulted in repayment of dues to a financial institution or
bank or debenture holders.
(xii) The Company has not granted loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
(xiii) The Company is not a chit fund, nidhi/ mutual benefit fund and
therefore a requirement pertaining to such class of companies is not
applicable.
(xiv) The Company is not dealing or trading in shares, securities,
debentures and other investments.
(xv) The Company has not given any guarantee for loans taken by others
from bank or financial institutions.
(xvi) The Company has not obtained any term loans.
(xvii) In our opinion the funds raised on short-term basis have not
been used for long term investment and vice versa.
(xviii) The Company has not made any preferential allotment of shares
during the year to parties and companies covered in the Register
maintained under section 301 of the Companies Act, 1956.
(xix) The Company has not issued any debentures during the year.
(xx) The Company has not made any public issue during the year.
(xxi) Based upon the audit procedures performed by us and according to
information and explanations given to us and representations made by
management, no fraud on or by the Company has been noticed or reported
during the year.
For P. C. PARMAR & Co.
Chartered Accountants
Firm Regn. No. 107604W
J. P. PARMAR
Proprietor
Membership No. 46293
Pune, 13 May, 2014
Mar 31, 2013
We have audited the accompanying financial statements of MAHARASHTRA
SCOOTERS LIMITED, which comprise the Balance Sheet as at March 31, 2013
and the Statement of Profit and Loss and Cash Flow Statement for the
year then ended and a summary of significant accounting policies and
other explanatory information.
Management is responsible for the preparation of these 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 Standards referred to in sub-section (3C) of section 211
of the Companies Act, 1956 ("the Act"). This responsibility
includes the design, implementation and maintenance of internal control
relevant 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 financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. 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 financial statements,
whether due to fraud or error. In making those risk assessments, the
auditor considers internal control relevant to the Company''s
preparation and fair presentation of the financial statements 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 management, as well as evaluating the overall presentation of the
financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
In our opinion and to the best of our information and according to the
explanations given to us, the 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:
a) in the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2013;
b) in the case of the Statement of Profit and Loss Account, of the
profit for the year ended on that date; and
c) in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
1. As required by the Companies (Auditor''s Report) Order, 2003
("the Order") issued by the Central Government of India in terms of
sub-section (4A) of section 227 of the Act, we give in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the Order.
2. As required by section 227(3) of the Act, we report that:
a) we have 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 appears from our examination of those
books;
c) the Balance Sheet, Statement of Profit and Loss, and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account;
d) in our opinion, the Balance Sheet, Statement of Profit and Loss, and
Cash Flow Statement comply with the Accounting Standards referred to in
subsection (3C) of section 211 of the Companies Act, 1956;
e) on the basis of written representations received from the directors
as on March 31, 2013 and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31, 2013, from being
appointed as a director in terms of clause (g) of sub-section (1) of
section 274 of the Companies Act, 1956.
ANNEXURE TO AUDITORS'' REPORT
STATEMENT REFERRED TO IN PARAGRAPH 3 OF OUR REPORT OF EVEN DATE TO THE
MEMBERS OF MAHARASHTRA SCOOTERS LIMITED ON THE ACCOUNTS FOR THE YEAR
ENDED 31 MARCH, 2013.
(i) (a) The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
(b) The management has carried out physical verification of fixed
assets during the year and no material discrepancies were noticed on
such verification. In our opinion, the frequency of physical
verification of fixed assets is reasonable.
(c) The fixed assets disposed off during the year are not substantial
and hence it has not affected the going concern assumption.
(ii) (a) Inventories have been physically verified by the management,
during the year. In our opinion, the frequency of verification is
reasonable.
(b) In our opinion, the procedures of physical verification of
inventory followed by the management are reasonable and adequate in
relation to the size of the Company and the nature of its business.
(c) The Company has maintained proper records of inventory. The
discrepancies noticed on verification between physical stocks and book
stocks were not material and the same have been properly dealt with in
the books of Account.
(iii) (a) The Company has not granted or taken any loans, secured or
unsecured to/from companies, firms or other parties covered in the
register maintained under section 301 of the Companies Act, 1956.
Sub-clauses (b), (c) and (d) are not applicable.
(iv) In our opinion and according to information and explanations given
to us there are adequate internal control procedures commensurate with
the size of the Company and the nature of its business, with regard to
purchase of inventory and fixed assets and for the sale of goods.
During the course of our audit, no major weaknesses have been noticed
in the internal controls.
(v) (a) In our opinion and according to the information and
explanations given to us, transactions that need to be entered into the
register maintained in pursuance of section 301 of the Companies Act,
1956 have been so entered.
(b) In our opinion and according to information and explanations given
to us the transaction made in pursuance of contract and arrangement
entered in register maintained under section 301 of the Act and
exceeding the value of five lakh rupees with any party during the year,
have been made at prices which are reasonable having regard to the
prevailing market prices at the relevant time.
(vi) The Company has not accepted deposits from public.
(vii) In our opinion, the Company has an internal audit system which is
commensurate with its size and nature of its business.
(viii) Cost Records have been prescribed by the Central Government
under clause (d) of sub-section (1) of section 209 of the Companies
Act. The Company has made and maintained such accounts and records.
(ix) (a) According to the records of the Company, the Company has been
generally regular in depositing undisputed statutory dues including
Provident Fund, Investor Education and Protection Fund, Employees''
State Insurance, Income-Tax, Sales-Tax, Wealth-Tax, Custom Duty, Excise
Duty, cess and any other statutory dues with the appropriate
authorities. According to information and explanations given to us,
there are no arrears of statutory dues which have remained outstanding
as at 31 March, 2013 for a period of more than six months from the date
they became payable.
(b) According to information and explanations given to us and the
records of the Company, the following dues of Sales Tax and Service
Tax have not been deposited on account of dispute:
Nature of disputed
Statutory dues Amount (Rs.) Forum where dispute is
pending
Sales Tax for the
year 2001-02 87,86,623 Maharashtra Sales Tax
Tribunal, Mumbai
Sales Tax for the
year 2001-02 52,95,295 Joint Commissioner of Sales
Tax (Appeals) - I, Pune
division, Pune
Sales Tax for the
year 2002-03 1,79,87,580 Maharashtra Sales Tax
Tribunal, Mumbai
Service Tax for the
year 2004-05, 2005-06
and 2006-07 2,62,034 Assistant Commissioner of
Central Excise, Satara
(x) The Company does not have any accumulated losses as at 31 March,
2013. The Company has not incurred cash losses during the financial
year covered by our audit but has incurred cash losses in the
immediately preceding financial year.
(xi) According to information and explanation given to us, the Company
has not defaulted in repayment of dues to a financial institution or
bank or debenture holders.
(xii) The Company has not granted loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
(xiii) The Company is not a chit fund, nidhi/ mutual benefit fund and
therefore a requirement pertaining to such class of companies is not
applicable.
(xiv) The Company is not dealing or trading in shares, securities,
debentures and other investments.
(xv) The Company has not given any guarantee for loans taken by others
from bank or financial institutions.
(xvi) The Company has not obtained any term loans.
(xvii) In our opinion the funds raised on short-term basis have not
been used for long term investment and vice versa.
(xviii) The Company has not made any preferential allotment of shares
during the year to parties and companies covered in the Register
maintained under section 301 of the Companies Act, 1956.
(xix) The Company has not issued any debentures during the year.
(xx) The Company has not made any public issue during the year.
(xxi) Based upon the audit procedures performed by us and according to
information and explanations given to us and representations made by
management, no fraud on or by the Company has been noticed or reported
during the year.
For P. C. PARMAR & Co.
Chartered Accountants
Firm Regn. No. 107604W
J. P. PARMAR
Proprietor
Pune, 14 May, 2013 Membership No. 46293
Mar 31, 2012
1. We have audited the attached Balance Sheet of MAHARASHTRA SCOOTERS
LIMITED as at 31st March, 2012 and also the Statement of Profit and
Loss and the Cash Flow Statement for the year ended on that date
annexed thereto. These financial statements are the responsibility of
the Company's management. Our responsibility is to express an opinion
on these financial statements based on our Audit.
2. We conducted our audit in accordance with auditing standards
generally accepted in India. Those standards required that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An Audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An Audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our Audit provides a reasonable basis for
our opinion.
3. As required by the Companies (Auditor's Report) Order, 2003 issued
by the Central Government of India in terms of section 227(4A) of the
Companies Act, 1956, we enclose in the Annexure a statement on the
matters specified in paragraphs 4 and 5 of the said order, to the
extent applicable to the Company.
4. Further to our comments in the Annexure referred to in paragraph 3
above:
a) We have 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 appears from our examination of such
books.
c) The Balance Sheet and Statement of Profit and Loss and Cash Flow
Statement dealt with by this report, are in agreement with the books of
account.
d) In our opinion, the Balance Sheet and the Statement of Profit and
Loss and Cash Flow Statement dealt with by the report are in compliance
with the Accounting Standards referred to in section 211 (3C) of the
Companies Act, 1956.
e) In our opinion and to the best of our information and according to
the explanations given to us, the said accounts read together with
notes thereon give the information required by the Companies Act, 1956,
in the manner so required and give a true and fair view in conformity
with the accounting principles generally accepted in India.
1. In the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2012 and;
2. In the case of the Statement of Profit and Loss, of the loss of the
Company for the year ended on that date.
3. In the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
5. On the basis of written representations received from the
Directors, as on 31st March, 2012 and taken on record by the Board of
Directors, we report that none of the Directors is disqualified as on
31st March, 2012 from being appointed as a Director in terms of clause
(g) of sub-section (1) of section 274 of the Companies Act, 1956.
ANNEXURE TO AUDITORS' REPORT
STATEMENT REFERRED TO IN PARAGRAPH 3 OF OUR REPORT OF EVEN DATE TO THE
MEMBERS OF MAHARASHTRA SCOOTERS LIMITED ON THE ACCOUNTS FOR THE YEAR
ENDED 31ST MARCH, 2012.
(i) (a) The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
(b) The management has carried out physical verification of fixed
assets during the year and no material discrepancies were noticed on
such verification. In our opinion, the frequency of physical
verification of fixed assets is reasonable.
(c) The fixed assets disposed off during the year are not substantial
and hence it has not affected the going concern assumption.
(ii) (a) Inventories have been physically verified by the management
during the year. In our opinion, the frequency of verification is
reasonable.
(b) In our opinion, the procedures of physical verification of
inventory followed by the management are reasonable and adequate in
relation to the size of the Company and the nature of its business.
(c) The Company has maintained proper records of inventory. The
discrepancies noticed on verification between physical stocks and book
stocks were not material and the same have been properly dealt with in
the Books of Account.
(iii) (a) The Company has not granted or taken any loans, secured or
unsecured to/from companies, firms or other parties covered in the
register maintained under section 301 of the Companies Act, 1956.
Sub-clauses (b),(c) and (d) are not applicable.
(iv) In our opinion and according to information and explanations given
to us there are adequate internal control procedures commensurate with
the size of the Company and the nature of its business, with regard to
purchase of inventory and fixed assets and for the sale of goods.
During the course of our audit, no major weaknesses have been noticed
in the internal controls.
(v) (a) In our opinion and according to the information and
explanations given to us, transactions that need to be entered into the
register maintained in pursuance of section 301 of the Companies Act,
1956 have been so entered.
(b) In our opinion and according to information and explanations given
to us the transaction made in pursuance of contract and arrangement
entered in register maintained under the section 301 of the Act and
exceeding the value of five lakh rupees with any party during the year,
have been made at prices which are reasonable having regard to the
prevailing market prices at the relevant time.
(vi) The Company has not accepted deposits from public.
(vii) In our opinion, the Company has an internal audit system which is
commensurate with its size and nature of its business.
(viii) Cost Records have been prescribed by the Central Government
under clause (d) of sub-section (1) of section 209 of the Companies
Act. The Company has made and maintained such accounts and records.
(ix) (a) According to the records of the Company, the Company has been
generally regular in depositing undisputed statutory dues including
Provident Fund, Investor Education and Protection Fund, Employees' State
Insurance, Income-Tax, Sales-Tax, Wealth-Tax, Custom Duty, Excise Duty,
cess and any other statutory dues with the appropriate authorities.
According to information and explanations given to us, there are no
arrears of statutory dues which have remained outstanding as at 31st
March, 2012 for a period of more than six months from the date they
became payable.
(b) According to information and explanations given to us and the
records of the Company, the following dues of Sales Tax and Service Tax
have not been deposited on account of dispute:
Nature of disputed
Statutory dues Amount (Rs.) Forum where dispute is
pending
Sales Tax for the
year 2001-02 87,86,623 Maharashtra Sales Tax
Tribunal, Mumbai.
Sales Tax for the
year 2001-02 52,95,295 Joint Commissioner of Sales Tax
(Appeals) - I, Pune division,
Pune
Sales Tax for the
year 2002-03 1,79,87,580 Maharashtra Sales Tax
Tribunal, Mumbai.
Service Tax for
the year 2004-05, 2,62,034 Assistant Commissioner of
Central Excise, Satara.
2005-06 and 2006-07
(x) The Company does not have any accumulated losses as at 31st March,
2012. The Company has incurred cash losses during the financial year
covered by our audit but has not incurred cash losses in the
immediately preceding financial year.
(xi) According to information and explanation given to us, the Company
has not defaulted in repayment of dues to a financial institution or
bank or debenture holders.
(xii) The Company has not granted loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
(xiii) The Company is not a chit fund, nidhi/ mutual benefit fund and
therefore a requirement pertaining to such class of companies is not
applicable.
(xiv) The Company is not dealing or trading in shares, securities,
debentures and other investments.
(xv) The Company has not given any guarantee for loans taken by others
from bank or financial institutions.
(xvi) The Company has not obtained any term loans.
(xvii) In our opinion, the funds raised on short-term basis have not
been used for long term investment and vice versa.
(xviii) The Company has not made any preferential allotment of shares
during the year to parties and companies covered in the Register
maintained under section 301 of the Companies Act, 1956.
(xix) The Company has not issued any debentures during the year.
(xx) The Company has not made any public issue during the year.
(xxi) Based upon the audit procedures performed by us and according to
information and explanations given to us and representations made by
management, no fraud on or by the Company has been noticed or reported
during the year.
For P. C. PARMAR & Co.
Chartered Accountants
Firm Regn. No. 107604W
J. P. PARMAR
Proprietor
Pune, 15th May, 2012 Membership No. 46293
Mar 31, 2011
1. We have audited the attached Balance Sheet of MAHARASHTRA SCOOTERS
LIMITED as at 31st March, 2011, and also the Profit and Loss Account
and the Cash Flow Statement for the year ended on that date annexed
thereto. These financial statements are the responsibility of the
Companys management. Our responsibility is to express an opinion on
these financial statements based on our Audit.
2. We conducted our audit in accordance with auditing standards
generally accepted in India. Those standards required that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An Audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An Audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our Audit provides a reasonable basis for
our opinion.
3. As required by the Companies (Auditors Report) Order, 2003 issued
by the Central Government of India in terms of section 227(4A) of the
Companies Act, 1956, we enclose in the Annexure a statement on the
matters specified in paragraphs 4 and 5 of the said order, to the
extent applicable to the Company.
4. Further to our comments in the Annexure referred to in paragraph 3
above:
a) We have 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 appears from our examination of such
books.
c) The Balance Sheet and Profit and Loss Account and Cash Flow
Statement dealt with by this report, are in agreement with the books of
account.
d) In our opinion, the Balance Sheet and the Profit and Loss Account
and Cash Flow Statement dealt with by the report are in compliance with
the Accounting Standards referred to in section 211 (3C) of the
Companies Act, 1956.
e) In our opinion and to the best of our information and according to
the explanations given to us, the said accounts read together with
notes thereon give the information required by the Companies Act, 1956,
in the manner so required and give a true and fair view in conformity
with the accounting principles generally accepted in India.
1. In the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2011 and;
2. In the case of the Profit and Loss Account, of the profit of the
Company for the year ended on that date.
3. In the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
5. On the basis of written representations received from the
Directors, as on 31st March, 2011 and taken on record by the Board of
Directors, we report that none of the Directors is disqualified as on
31st March, 2011 from being appointed as a Director in terms of clause
(g) of sub-section (1) of section 274 of the Companies Act, 1956.
ANNEXURE TO AUDITORS REPORT
STATEMENT REFERRED TO IN PARAGRAPH 3 OF OUR REPORT OF EVEN DATE TO THE
MEMBERS OF MAHARASHTRA SCOOTERS LIMITED ON THE ACCOUNTS FOR THE YEAR
ENDED 31ST MARCH, 2011.
(i) (a) The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
(b) The management has carried out physical verification of fixed
assets during the year and no material discrepancies were noticed on
such verification. In our opinion, the frequency of physical
verification of fixed assets is reasonable.
(c) The fixed assets disposed off during the year are not substantial
and hence it has not affected the going concern assumption.
(ii) (a) Inventories have been physically verified by the management,
during the year. In our opinion, the frequency of verification is
reasonable.
(b) In our opinion, the procedures of physical verification of
inventory followed by the management are reasonable and adequate in
relation to the size of the Company and the nature of its business.
(c) The Company has maintained proper records of inventory. The
discrepancies noticed on verification between physical stocks and book
stocks were not material and the same have been properly dealt with in
the books of Account.
(iii) (a) The Company has not granted or taken any loans, secured or
unsecured to/from companies, firms or other parties covered in the
register maintained under section 301 of the Companies Act, 1956.
Sub-clauses (b),(c) and (d) are not applicable.
(iv) In our opinion and according to information and explanations given
to us there are adequate internal control procedures commensurate with
the size of the Company and the nature of its business, with regard to
purchase of inventory and fixed assets and for the sale of goods.
During the course of our audit, no major weaknesses have been noticed
in the internal controls.
(v) (a) In our opinion and according to the information and
explanations given to us, transactions that need to be entered into the
register maintained in pursuance of section 301 of the Companies Act,
1956 have been so entered.
(b) In our opinion and according to information and explanations given
to us the transaction made in pursuance of contract and arrangement
entered in register maintained under section 301 of the Act and
exceeding the value of five lakh rupees with any party during the year,
have been made at prices which are reasonable having regard to the
prevailing market prices at the relevant time.
(vi) The Company has not accepted deposits from public.
(vii) In our opinion, the Company has an internal audit system which is
commensurate with its size and nature of its business.
(viii) Cost Records have been prescribed by the Central Government
under clause (d) of sub-section (1) of section 209 of the Companies
Act. The Company has made and maintained such accounts and records.
(ix) (a) According to the records of the Company, the Company has been
generally regular in depositing undisputed statutory dues including
Provident Fund, Investor Education and Protection Fund, Employees
State Insurance, Income-Tax, Sales-Tax, Wealth-Tax, Custom Duty, Excise
Duty, cess and any other statutory dues with the appropriate
authorities. According to information and explanations given to us,
there are no arrears of statutory dues which have remained outstanding
as at 31st March, 2011 for a period of more than six months from the
date they became payable.
(b) According to information and explanations given to us and the
records of the Company, the following dues of Sales Tax and Service Tax
have not been deposited on account of dispute:
Nature of disputed Statutory
dues Amount (Rs.) Forum where dispute is
pending
Sales Tax for the year 2001-02 8,786,623 Maharashtra Sales Tax
Tribunal, Mumbai
Sales Tax for the year 2001-02 5,295,295 Joint Commissioner of
Sales Tax (Appeals)- I,
Pune division, Pune
Sales Tax for the year 2002-03 17,987,580 Maharashtra Sales Tax
Tribunal, Mumbai
Service Tax for the year
2004-05, 2005-06 and 2006-07 262,034 Assistant Commissioner
of Central Excise,
Satara
(x) The Company does not have any accumulated losses as at 31st March,
2011. The Company has not incurred cash losses during the financial
year covered by our audit and in the financial year immediately
preceding such financial year also.
(xi) According to information and explanation given to us, the Company
has not defaulted in repayment of dues to a financial institution or
bank or debenture holders.
(xii) The Company has not granted loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
(xiii) The Company is not a chit fund, nidhi/ mutual benefit fund and
therefore a requirement pertaining to such class of companies is not
applicable.
(xiv) The Company is not dealing or trading in shares, securities,
debentures and other investments.
(xv) The Company has not given any guarantee for loans taken by others
from bank or financial institutions.
(xvi) The Company has not obtained any term loans.
(xvii) In our opinion the funds raised on short-term basis have not
been used for long term investment and vice versa.
(xviii) The Company has not made any preferential allotment of shares
during the year to parties and companies covered in the Register
maintained under section 301 of the Companies Act, 1956.
(xix) The Company has not issued any debentures during the year.
(xx) The Company has not made any public issue during the year.
(xxi) Based upon the audit procedures performed by us and according to
information and explanations given to us and representations made by
management, no fraud on or by the Company has been noticed or reported
during the year.
For P. C. PARMAR & Co.
Chartered Accountants
J. P. PARMAR
Proprietor
Membership No. 46293
Firm Regn. No. 107604W
Pune, 16th May, 2011
Mar 31, 2010
1. We have audited the attached Balance Sheet of MAHARASHTRA SCOOTERS
LIMITED as at 31 st March, 2010, and also the Profit and Loss Account
and the Cash Flow Statement for the year ended on that date annexed
thereto. These financial statements are the responsibility of the
Companys management. Our responsibility is to express an opinion on
these financial statements based on our Audit.
2. We conducted our audit in accordance with auditing standards
generally accepted in India. Those standards required that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An Audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An Audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our Audit provides a reasonable basis for
our opinion.
3. As required by the Companies (Auditors Report) Order, 2003 issued
by the Central Government of India in terms of section 227(4A) of the
Companies Act, 1956, we enclose in the Annexure a statement on the
matters specified in paragraphs 4 and 5 of the said order, to the
extent applicable to the Company.
4. Further to our comments in the Annexure referred to in paragraph &
above:
a) We have 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 appears from our examination of such
books.
c) The Balance Sheet and Profit and Loss Account and Cash Flow
Statement dealt with by this report, are in agreement with the books of
account.
d) In our opinion, the Balance Sheet and the Profit and Loss Account
and Cash Flow Statement dealt with by the report are in compliance with
the Accounting Standards referred to in section 211 (3C) of the
Companies Act, 1956.
e) In our opinion and to the best of our information and according to
the explanations given to us, the said accounts read together with
notes thereon give the information required by the Companies Act, 1956,
in the manner so required and give a true and fair view in conformity
with the accounting principles generally accepted in India.
1. In the case of the Balance Sheet, of the state of affairs of the
Company as at 31 st March, 2010 and;
2. In the case of the Profit and Loss Account, of the profit of the
Company for the year ended on that date.
3. In the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
5. On the basis of written representations received from the
Directors, as on 31st March, 2010 and taken on record by the Board of
Directors, we report that none of the Directors is disqualified as on
31 st March, 2010 from being appointed as a Director in terms of clause
(g) of sub-section (1) of section 274 of the Companies Act, 1956.
ANNEXURE TO AUDITORS REPORT
STATEMENT REFERRED TO IN PARAGRAPH 3 OF OUR REPORT OF EVEN DATE TO THE
MEMBERS OF MAHARASHTRA SCOOTERS LIMITED ON THE ACCOUNTS FORTHE YEAR
ENDED 31 ST MARCH, 2010.
(i) (a) The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
(b) The management has carried out physical verification of fixed
assets during the year and no material discrepancies were noticed on
such verification. In our opinion, the frequency of physical
verification of fixed assets is reasonable.
(c) The fixed assets disposed off during the year are not substantial
and hence it has not affected the going concern assumption.
(ii) (a) Inventories have been physically verified by the management,
during the year. In our opinion, the frequency of verification is
reasonable.
(b) In our opinion, the procedures of physical verification of
inventory followed by the management are reasonable and adequate in
relation to the size of the Company and the nature of its business.
(c) The Company has maintained proper records of inventory. The
discrepancies noticed on verification between physical stocks and book
stocks were not material and the same have been properly dealt with in
the books of Account. (iii) (a) The Company has not granted or taken
any loans, secured or unsecured to/from companies, firms or other
parties covered in the register maintained undersection 301
oftheCompaniesAct, 1956. Sub-clauses (b),(c) and (d) are not
applicable.
(iv) In our opinion and according to information and explanations given
to us, there are adequate internal control procedures commensurate with
the size of the Company and the nature of its business, with regard to
purchase of inventory and fixed assets and for the sale of goods.
During the course of our audit, no major weaknesses have been noticed
in the internal controls.
(v) (a) In our opinion and according to the information and
explanations given to us, transactions that need to be entered into the
register maintained in pursuance of section 301 of the Companies Act,
1956 have been so entered.
(b) In our opinion and according to information and explanations given
to us and having regard to the explanations that several items
purchased are of special nature for which alternative sources of supply
are not available, each of these transactions exceeding the value of
five lakh rupees have been made at prices which are reasonable having
regard to the prevailing market prices at the relevant time.
(vi) The Company has not accepted deposits from public.
(vii) In our opinion, the Company has an internal audit system which is
commensurate with its size and nature of its business.
(viii) Cost Records have been prescribed by the Central Government
under clause (d) of sub-section (1) of section 209 of the Companies
Act. The Company has made and maintained such accounts and records.
(ix) (a) According to the records of the Company, the Company has been
regular in depositing undisputed statutory dues including Provident
Fund, Investor Education and Protection Fund, Employees State
Insurance, Income-Tax, Sales-Tax, Wealth-Tax, Custom Duty, Excise Duty,
cess and any other statutory dues with the appropriate authorities.
According to information and explanations given to us, there are no
arrears of statutory dues which have remained outstanding as at 31 st
March, 2010 for a period of more than six months from the date they
became payable.
(b) According to information and explanations given to us and the
records of the Company, the following dues of Sales Tax and Service Tax
have not been deposited on account of dispute:
Nature of Disputed Statutory Dues Amount (Rs.) Forum where
dispute is pending
Sales Tax for the year 2001-02 8,786,623 Joint Commissioner
of Sales Tax (Appeals)
-1, Pune Division, Pune
Sales Tax for the year 2001-02 5,295,295 Joint Commissioner
of Sales Tax (Appeals)-I,
Pune Division, Pune
Sales Tax for the year 2002-03 15,557,940 Deputy Commissioner
of Sales Tax (Assessment) -
B-234, Satara
Service Tax for the year 2004-05,
2005-06 and 2006-07 262,034 Assistant Commissioner
of Central Excise, Satara
(x) The Company does not have any accumulated losses as at 31st March,
2010. The Company has not incurred cash losses during the financial
year covered by our audit and in the financial year immediately
preceding such financial year also.
(xi) According to information and explanation given to us, the Company
has not defaulted in repayment of dues to a financial institution or
bank or debenture holders.
(xii) The Company has not granted loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
(xiii) The Company is not a chit fund, nidhi/ mutual benefit fund and
therefore a requirement pertaining to such class of companies is not
applicable.
(xiv) The Company is not dealing or trading in shares, securities,
debentures and other investments.
(xv) The Company has not given any guarantee for loans taken by others
from bank or financial institutions.
(xvi) The Company has not obtained any term loans.
(xvii) In our opinion, the funds raised on short-term basis have not
been used for long term investment and vice versa.
(xviii) The Company has not made any preferential allotment of shares
during the year to parties and companies covered in the Register
maintained under section 301 of the CompaniesAct, 1956.
(xix) The Company has not issued any debentures during the year.
(xx) The Company has not made any public issue during the year.
(xxi) Based upon the audit procedures performed by us and according to
information and explanations given to us and representations made by
management, no fraud on or by the Company has been noticed or reported
during the year.
For P.C.PARMAR & Co.
Chartered Accountants
J. P. PARMAR
Proprietor
Membership No. 46293
Pune, 10th May, 2010 Firm Reg. No: 107604W