1. We have audited the accompanying standalone financial statements of
Ashok Leyland Limited (the Company), which comprise the Balance Sheet
as at March 31, 2015, the Statement of Profit and Loss, the Cash Flow
Statement for the year then ended, and a summary of the significant
accounting policies and other explanatory information.
Management''s Responsibility for the Standalone Financial Statements
2. 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.
3. 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.
4. 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.
5. 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.
6. 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.
7. 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 March 31, 2015, and its profit and its
cash flows for the year ended on that date.
Report on Other Legal and Regulatory Requirements
8. As required by the Companies (Auditor''s report) Order, 2015 (the
Order) issued by the Central Government of India in terms of Section
143(11) of the Act, we give in the Annexure
a statement on the matters specified in paragraphs 3 and 4 of the
9. 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
(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 March 31, 2015 taken on record by the Board of
Directors, none of the directors is disqualified as on March 31, 2015
from being appointed as a director in terms of Section 164(2) of the
(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, in accordance with the generally accepted
accounting practice, disclosed the impact of pending litigations on its
financial position in its financial statements - Also Refer Note 3.2.7
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 under the applicable law or accounting standards.
iii. There has been no delay in transferring amounts, required to be
transferred, to the Investor Education and Protection Fund by the
ANNEXURE TO THE INDEPENDENT AUDITORS'' REPORT (Referred to in paragraph
8 under ''Report on Other Legal and Regulatory Requirements'' section of
our report of even date on the accounts of Ashok Leyland Limited (the
Company) for the year ended March 31, 2015)
(i) In respect of its fixed assets:
a) The Company has maintained proper records showing full particulars,
including quantitative details and situation of the fixed assets.
b) The fixed assets were physically verified during the year by the
Management in accordance with a phased programme of verification,
which, in our opinion, provides for physical verification of all the
fixed assets at reasonable intervals having regard to the size of the
Company, nature and value of its assets. According to the information
and explanation given to us, no material discrepancies were noticed on
(ii) In respect of its inventories:
a) As explained to us, the inventories were physically verified during
the year by the Management at reasonable intervals.
b) In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventories
followed by the Management were reasonable and adequate in relation to
the size of the Company and the nature of its business.
c) In our opinion and according to the information and explanations
given to us, the Company has generally maintained proper records of its
inventories and no material discrepancies were noticed on physical
(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 and accordingly, the
provisions of clause (iii) of paragraph 3 of the Order are not
applicable to the Company.
(iv) In our opinion and according to the information and explanations
given to us, there is generally an adequate internal control system
commensurate with the size of the Company and the nature of its
business, for the purchase of inventories and fixed assets and for the
sale of goods and services, and during the course of our audit, we have
not observed any continuing failure to correct major weaknesses in such
internal control system.
(v) According to information and explanations given to us, the Company
has not accepted any deposits and accordingly, the provisions of clause
(v) of paragraph 3 of the Order are not applicable to the Company.
(vi) In our opinion and according to the information and explanations
given to us, the requirement for maintenance of cost records pursuant
to the Companies (Cost records and Audit) Rules, 2014 specified by the
Central Government of India under Section 148 of the Companies Act,
2013 are not applicable to the Company for the year under audit.
(vii) According to the information and explanations given to us and the
books of account examined by 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, Sales Tax, Wealth Tax, Service Tax, Customs Duty, Excise
Duty, Value Added Tax, Cess and other material statutory dues
applicable to it with the appropriate authorities during the year.
There were no undisputed amounts payable in respect of the aforesaid
statutory dues outstanding as at March 31, 2015 for a period of more
than six months from the date they became payable.
b) There are no dues of Wealth Tax and Customs Duty which have not been
deposited on account of any dispute with the relevant authorities.
Details of dues towards Income Tax, Sales Tax, Service Tax, Excise
Duty, Value Added Tax and Cess that have not been deposited as at March
31, 2015 on account of disputes are as stated below:
Nature Disputed Period to Forum where Amount
of Dues Dues which the the dispute is stayed
amount pending out of
Income 7,390.63 Assessment Appellate 7,390.63
Tax years 2005- authority -
06, 2006-07 Income Tax
and 2008- Appellate
Sales 21,724.88 Various Appellate 6,210.84
Tax and periods authority
Value from 1993 - upto
Added - 2014 Commissioner
268.69 Various Appellate 232.85
periods authority -
from 1987 Tribunal
723.81 Various High Court 655.69
Excise 62.43 Various Appellate -
Duty periods authority
and cess from 2008 - upto
thereon - 2012 Commissioner
1,251.75 Appellate 1,246.75
Service 40.89 Various Appellate -
Tax and periods authority
cess from 2011 - upto
thereon - 2014 Commissioner
c) The amounts 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, have been
transferred to such fund within time.
(viii) The Company does not have accumulated losses at the end of the
financial year and the Company has not incurred cash losses during the
financial year covered by our audit and in the immediately preceding
(ix) In our opinion and according to the information and explanations
given to us, the Company has not defaulted in the repayment of dues to
financial institutions, banks and debenture holders.
(x) In our opinion and according to the information and explanations
given to us, the terms and conditions of the guarantees given by the
Company in earlier years, for loans taken by a subsidiary and a joint
venture company from banks or financial institutions are not, prima
facie, prejudicial to the interests of the Company.
(xi) In our opinion and according to the information and explanations
given to us, the term loans have been applied by the Company during the
year for the purposes for which they were obtained.
(xii) To the best of our knowledge and belief, and according to the
information and explanations given to us, and considering the size and
nature of the Company''s operations, no fraud of material significance
on the Company or no fraud by the Company has been noticed or reported
during the year.
For M. S. Krishnaswami & Rajan For Deloitte Haskins & Sells LLP
Chartered Accountants Chartered Accountants
Registration No. 01554S Firm''s Registration No. 117366W/W-100018
M. S. Murali A. Siddharth
Membership No. 26453 Membership No. 31467
May 12, 2015 May 12, 2015