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
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
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
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
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
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
(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
(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
(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
Sales Tax for the
year 2001-02 87,86,623 Maharashtra Sales Tax
Sales Tax for the
year 2001-02 52,95,295 Joint Commissioner of Sales Tax
(Appeals) - I, Pune division,
Sales Tax for the
year 2002-03 1,79,87,580 Maharashtra Sales Tax
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
(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.
Firm Regn. No. 107604W
J. P. PARMAR
Pune, 15th May, 2012 Membership No. 46293