Mahindra and Mahindra
BSE: 500520 | NSE: M&M | ISIN: INE101A01018 | Auto - Cars & Jeeps
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| Auditor's Report | Year End : Mar '09 |
1. We have audited the attached balance sheet of Mahindra & Mahindra
Limited as at 31st March, 2009, the profit and loss account and also
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 the auditing standards
generally accepted in India. Those Standards require 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
(hereinafter referred to as the Order) issued by the Central
Government of India in terms of sub-section (4A) of Section 227 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.
4. Further to our comments in the Annexure referred to in paragraph 3
above, we report that:
i. we have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purposes of our
audit;
ii. 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;
iii. the balance sheet and the profit and loss account dealt with by
this report are in agreement with the books of account;
iv. in our opinion, the balance sheet and the profit and loss account
dealt with by this report comply with the accounting standards referred
to in sub-section (3C) of Section 211 of the Companies Act, 1956;
v. in our opinion and to the best of our information and according to
the explanations given to us, the said accounts 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:
(a) in the case of the balance sheet, of the state of affairs of the
company as at 31st March, 2009;
(b) in the case of the 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.
5. On the basis of the written representations received from the
directors, as on 31st March, 2009, and taken on record by the Board of
Directors, we report that none of the directors is disqualified as on
31st March, 2009 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 the Auditors Report
(Referred to in paragraph (3) of the Auditors Report of even date to
the members of Mahindra & Mahindra Limited.)
(i) (a) The company is maintaining proper records showing full
particulars, including quantitative details and situation of fixed
assets.
(b) The fixed assets have not been physically verified by the
management during the year but the company has a system of verifying
the fixed assets once in every three years. In our opinion the
frequency of verification is at reasonable intervals.
(c) During the year, in our opinion, a substantial part of fixed assets
has not been disposed off by the company.
(ii) (a) The inventory of the company has been physically verified by
the management as at the year end. In respect of stocks lying with
third parties, a substantial portion has been confirmed by third
parties. In our opinion the frequency of verification is reasonable.
(b) In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventory
followed by the management were found reasonable and adequate in
relation to the size of company and the nature of its business.
(c) On the basis of our examination of records of inventory, in our
opinion, the company has maintained proper records of inventory and the
discrepancies noticed on physical verification between the physical
stocks and the book records were not material in relation to the
operations of the company.
(iii) According to the information and explanations given to us, the
company has neither granted nor 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 and accordingly
paragraphs 4(iii) (b), (c), (d), (f) and (g) of the Companies
(Auditors Report) Order, 2003, are not applicable.
(iv) In our opinion and according to the information and explanations
given to us, having regard to the explanation that many of the items
are of a special nature and their prices cannot be compared with
alternative quotations, there are adequate internal control systems
commensurate with the size of the company and the nature of its
business for purchase of inventory, fixed assets and for the sale of
goods and services. Further, on the basis of our examination and
according to the information and explanations given to us we have
neither come across nor have we been informed of any instance of major
weakness in the aforesaid internal control system.
(v) (a) In our opinion and according to the information and
explanations given to us the particulars of contracts or arrangements
referred to in section 301 of the Companies Act, 1956 have been entered
in the register required to be maintained under that section.
(b) In our opinion and according to the information and explanations
given to us, having regard to comment in (iv) above, the transactions
made in pursuance of such contracts or arrangements and exceeding the
value of rupees five lakhs in respect of 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) In our opinion and according to the information and explanations
given to us, the company has complied with the provisions of Section
58A, 58AA and any other relevant provisions of the Companies Act, 1956
and the Companies (Acceptance of Deposits) Rules, 1975, as applicable,
with regard to the deposits accepted from the public. According to the
information and explanations given to us, no order under the aforesaid
sections has been passed by the Company Law Board or National Company
Law Tribunal or Reserve Bank of India or any Court or any other
Tribunal, on the company.
(vii) In our opinion, the company has an internal audit system
commensurate with its size and nature of its business.
(viii) We have broadly reviewed the books of account maintained by the
company relating to the manufacture of motor vehicles and tractors
pursuant to the rules made by the Central Government for the
maintenance of cost records under section 209 (1) (d) of the Companies
Act, 1956 and we are of the opinion that prima facie the prescribed
accounts and records have been maintained and are being made up. We
have not, however, made a detailed examination of the records with a
view to determining whether they are accurate or complete. To the best
of our knowledge and according to the information given to us, the
Central Government has not prescribed the maintenance of cost records
under section 209 (1) (d) of the Companies Act, 1956, for any other
products of the Company.
(ix) (a) According to the information and explanations given to us and
according to the books and records as produced and examined by us, in
our opinion, the undisputed statutory dues including provident fund,
investor education and protection fund, income-tax, sales-tax, service
tax, value added tax, customs duty, excise duty, cess and other
material statutory dues as applicable have been generally regularly
deposited by the company during the year with the appropriate
authorities. According to the information and explanations given to us,
there are no arrears of outstanding statutory dues as mentioned above
as at 31st March, 2009 for a period of more than six months from the
date they became payable.
(b) As at 31st March, 2009 according to the records of the company and
the information and explanations given to us, the following are the
particulars of dues on account of income-tax, sales-tax, wealth tax,
service tax, customs duty, excise duty and cess matters that have not
been deposited on account of any dispute:
Nature of the Nature of Amount
statute the dues Rs. in crores
Income-Tax Laws Income-Tax 0.81
46.81
Sales-Tax Laws Sales-Tax 15.57
184.65
1.56
Service Tax Laws Service Tax 0.17
Excise Duty Laws Excise Duty 377.88
110.51
Custom Duty Laws Custom Duty 4.55
Period to which Forum where pending
the amount relates
various years
covering the period
1999 Appellate Authority Tribunal Level
2004-2008 Appellate Authority Commissioner
(Appeals)
1988-2009 Appellate Authority Commissioner
(Appeals)
1987-2008 High Court
1986-2006 Appellate Authority Tribunal Level
2002 Appellate Authority Commissioner
1987-2009 Appellate Authority Tribunal Level
2007-2009 Appellate Authority Commissioner
1996-2001 Appellate Authority Tribunal Level
(x) The company does not have accumulated losses as at 31st March, 2009
and has not incurred cash losses during the financial year ended on
that date and in the immediately preceding financial year.
(xi) In our opinion and according to the information and explanations
given to us, the company has not defaulted in repayment of dues to a
financial institution, bank or to debenture holders during the year.
(xii) In our opinion and according to the information and explanations
given to us, the company has not granted any loans and advances on the
basis of security by way of pledge of shares, debentures and other
securities.
(xiii) The provisions of any special statute as specified under
paragraph 4(xiii) of the said Order are not applicable to the company.
(xiv) In our opinion the company is not dealing in or trading in
shares, securities, debentures and other investments. Accordingly, the
provisions of paragraph 4(xiv) of the Order are not applicable to the
company.
(xv) According to the information and explanations given to us, the
company has not given any guarantees for loans taken by others from
banks or financial institutions, the terms and conditions, whereof, in
our opinion, are prejudicial to the interest of the company.
(xvi) In our opinion and according to the information and explanations
given to us, the term loans were applied for the purpose for which the
loans were obtained.
(xvii) Based on the information and explanations given to us and on an
overall examination of the balance sheet of the company, in our
opinion, funds raised on short term basis have not been used for long
term investments.
(xviii) The company has not made any preferential allotment of shares
to parties and companies covered in the register maintained under
section 301 of the Companies Act, 1956, during the year.
(xix) According to the information and explanations given to us, the
company has created security in respect of debentures issued during the
year.
(xx) The company has not raised any money by public issue during the
year.
(xxi) 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
significant fraud on or by the company, noticed or reported during the
year nor have we been informed of such case by the management.
For DELOITTE HASKINS & SELLS
Chartered Accountants
B.P. Shroff
(Partner)
Membership Number: 34382
Mumbai, 28th May, 2009 |
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