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Bajaj Auto

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« Mar 15
Auditor's Report (Bajaj Auto) Year End : Mar '16
1.  We have audited the accompanying standalone financial statements of
 Bajaj Auto Limited (''the Company''), which comprise the Balance Sheet as
 at 31 March 2016, 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 to
 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 and Accounting Standard
 30, Financial Instruments: Recognition and Measurement issued by the
 Institute of Chartered Accountants of India to the extent it does not
 contradict any other Accounting Standard referred to in section 133 of
 the Act read with rule 7 of Companies (Accounts) Rules, 2014. 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.
 
 Auditors'' responsibility
 
 3.  Our responsibility is to express an opinion on these standalone
 financial statements based on our audit.
 
 4.  We have taken into account the provisions of the Act and the Rules
 made thereunder including the Accounting Standards and matters which
 are required to be included in the audit report.
 
 5.  We conducted our audit in accordance with the Standards on Auditing
 specified under section 143(10) of the Act and other applicable
 authoritative pronouncements issued by the Institute of Chartered
 Accountants of India. Those Standards and pronouncements 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.
 
 6.  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 auditors'' 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.
 
 7.  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
 
 8.  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 2016 and its profit and its cash
 flows for the year ended on that date.
 
 Report on other legal and regulatory requirements
 
 9.  As required by ''the Companies (Auditor''s Report) Order, 2016'',
 issued by the Central Government of India in terms of sub-section (11)
 of section 143 of the Act (hereinafter referred to as the ''Order''), and
 on the basis of such checks of the books and records of the Company as
 we considered appropriate and according to the information and
 explanations given to us, we give in the Annexure B a statement on the
 matters specified in paragraphs 3 and 4 of the Order.
 
 10. 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 and
 Accounting Standard 30, Financial Instruments: Recognition and
 Measurement issued by the Institute of Chartered Accountants of India
 to the extent it does not contradict any other Accounting Standard
 referred to in section 133 of the Act read with rule 7 of Companies
 (Accounts) Rules, 2014.
 
 (e) On the basis of the written representations received from the
 directors as on 31 March 2016 taken on record by the Board of
 Directors, none of the directors is disqualified as on 31 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 A.
 
 (g) 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 knowledge and belief
 and according to the information and explanations given to us:
 
 i.  The Company has disclosed the impact, if any, of pending
 litigations as at 31 March 2016 on its financial position in its
 standalone financial statements;
 
 ii.  The Company has made provision as at 31 March 2016, as required
 under the applicable law or accounting standards, for material
 foreseeable losses, if any, on long-term contracts including derivative
 contracts;
 
 iii. There has been no delay in transferring amounts, required to be
 transferred, to the Investor Education and Protection Fund by the
 Company during the year ended 31 March 2016.
 
 Referred to in paragraph 9 of the Independent Auditors'' Report of even
 date to the members of Bajaj Auto Ltd. on the standalone financial
 statements as of and for the year ended 31 March 2016
 
 1.  (a) The Company is maintaining proper records showing full
 particulars, including quantitative details and situation, of fixed
 assets.
 
 (b) The fixed assets are physically verified by the Management
 according to a phased programme designed to cover all the items over a
 period of three years which, in our opinion, is reasonable having
 regard to the size of the Company and the nature of its assets.
 Pursuant to the programme, a portion of the fixed assets has been
 physically verified by the Management during the year and no material
 discrepancies have been noticed on such verification.
 
 (c) The title deeds of immovable properties, are held in the name of
 the Company, except for buildings having gross block of Rs. 15.30 crore
 and net block of Rs. 13.12 crore, wherein final registration is
 pending, as disclosed in Note 9 on fixed assets to the financial
 statements.
 
 2.  The physical verification of inventory excluding stocks with third
 parties have been conducted at reasonable intervals by the Management
 during the year. In respect of inventory lying with third parties,
 these have substantially been confirmed by them.  In our opinion, the
 frequency of verification is reasonable.
 
 3.  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 Act. Therefore, the provisions of clause
 3(iii), (iii)(a) and (iii)(b) of the said Order are not applicable to
 the Company.
 
 4.  The Company has not granted any loans or provided any guarantees or
 security to the parties covered under section 185.
 
 In our opinion, and according to the information and explanations given
 to us, the Company has complied with the provisions of section 186 of
 the Companies Act, 2013 in respect of investments made by it.
 
 5.  The Company has not accepted any deposits from the public within
 the meaning of sections 73, 74, 75 and 76 of the Act and the Rules
 framed there under to the extent notified.
 
 6.  The Central Government of India has not specified the maintenance
 of cost records under sub-section (1) of section 148 of the Act for any
 of the products of the Company.
 
 7.  (a) According to the information and explanations given to us and
 the records of the Company examined by us, in our opinion, the Company
 is regular in depositing the undisputed statutory dues, including
 provident fund, employees'' state insurance, income tax, sales tax,
 service tax, duty of customs, duty of excise, value added tax, cess and
 other material statutory dues, as applicable, with the appropriate
 authorities.
 
 (b) According to the information and explanations given to us and the
 records of the Company examined by us, the particulars of dues of
 income tax, sales tax, service tax, duty of customs and duty of excise,
 value added tax as at 31 March 2016 which have not been deposited on
 account of a dispute, are as follows:
 
 Name of
 the statute      Nature of dues                                 Amount
 
 Excise duty      Additional demand received                       1.92
 
                  Additional demand received                      22.90
 
                  Additional demand received                       1.79
 
                  Additional demand received                       6.13
 
 Sales tax        Additional demand received on the basis of
                  assessment order                                82.94
 
                  Additional demand received on the basis of
                  assessment order                                33.20
 
 Income tax       Department appeal against CIT(A) order          12.19
 
                  Demand on various matter
 
                                                                   0.46
 
 Customs duty     Recovery of duty by treating the vehicles
                  as not fuel efficient                            3.85
 
                                                         (Rs. In Crore)
 
 Name of the 
 statute          Period to which the    Forum where the
                  amount relates         dispute is pending
 
 Excise duty      Various years          Commissioner Appeals
 
                  Various years          CESTAT
 
                  Various years          High Court
 
                  Financial year 
                  1983-84                Supreme Court
 
 Sales tax                               Joint Commissioner of
                  Various years          Sales Tax
 
                  Financial year
 
                  2001-02 to 2004-05,
 
                  2008-09 and 2009-10    Tribunal
 
 Income tax       Financial year 
                  2007-08                ITAT
 
                  For the years 
                  2005-06 to
                  2009-10                Commissioner Appeals
 
 Customs duty     Financial year
                  1984-86                High Court
 
 8.  As the Company does not have any loans or borrowings from any
 financial institution or bank or Government, nor has it issued any
 debentures as at the Balance Sheet date, the provisions of clause
 3(viii) of the Order are not applicable to the Company.
 
 9.  The Company has not raised any moneys by way of initial public
 offer, further public offer (including debt instruments) and term
 loans. Accordingly, the provisions of clause 3(ix) of the Order are not
 applicable to the Company.
 
 10. During the course of our examination of the books and records of
 the Company, carried out in accordance with the generally accepted
 auditing practices in India, and according to the information and
 explanations given to us, we have neither come across any instance of
 material fraud by the Company or on the Company by its officers or
 employees, noticed or reported during the year, nor have we been
 informed of any such case by the Management.
 
 11. The Company has paid/ provided for managerial remuneration in
 accordance with the requisite approvals mandated by the provisions of
 section 197 read with Schedule V to the Act.
 
 12. As the Company is not a Nidhi Company and the Nidhi Rules, 2014 are
 not applicable to it, the provisions of clause 3(xii) of the Order are
 not applicable to the Company.
 
 13. The Company has entered into transactions with related parties in
 compliance with the provisions of sections 177 and 188 of the Act. The
 details of such related party transactions have been disclosed in the
 financial statements as required under Accounting Standard 18, Related
 Party Disclosures specified under section 133 of the Act, read with
 rule 7 of the Companies (Accounts) Rules, 2014.
 
 14. The Company has not made any preferential allotment or private
 placement of shares or fully or partly convertible debentures during
 the year under review. Accordingly, the provisions of clause 3(xiv) of
 the Order are not applicable to the Company.
 
 15. The Company has not entered into any non-cash transactions with its
 directors or persons connected with him.  Accordingly, the provisions
 of clause 3(xv) of the Order are not applicable to the Company.
 
 16. The Company is not required to be registered under section 45-IA of
 the Reserve Bank of India Act, 1934.  Accordingly, the provisions of
 clause 3(xvi) of the Order are not applicable to the Company.
 
 For Dalai & Shah LLP
 
 Firm Registration Number: 102021W/W100110
 
 Chartered Accountants
 
 Russell I Parera
 
 Partner
 
 Membership Number: 42190
 
 Pune: 25 May 2016
Source : Dion Global Solutions Limited
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