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18.05 (1.83%)
14.7 (1.49%) | Auditor's Report (Mahindra and Mahindra) | Year End : Mar '12 |
1. We have audited the attached Balance Sheet of Mahindra & Mahindra
Limited as at 31st March, 2012, the Statement of Profit and Loss and
the Cash Flow Statement of the Company for the year ended on that date,
both 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 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 misstatements. An audit
includes examining, on a test basis, evidence supporting the amounts
and the disclosures in the financial statements. An audit also includes
assessing the accounting principles used and the significant estimates
made by the 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 (CARO)
issued by the Central Government 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.
4. Further to our comments in the Annexure referred to in paragraph 3
above, we report as follows:
(a) 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;
(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 Balance Sheet, the Statement of Profit and Loss
and the Cash Flow Statement dealt with by this 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 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:
(i) in the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2012;
(ii) in the case of the Statement of Profit and Loss, of the profit of
the Company for the year ended on that date; and
(iii) in the case of the Cash Flow Statement, of the cash flows of the
Company for the year ended on that date.
5. On the basis of the 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 Section
274(1) (g) of the Companies Act, 1956.
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 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) The fixed assets disposed off during the year, in our opinion, do
not constitute a substantial part of the fixed assets of the Company
and such disposal has, in our opinion, not affected the going concern
status of the Company.
ii. In respect of its inventory:
(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 explanation
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 maintained proper records of its
inventories and no material discrepancies were noticed on physical
verification.
iii. The Company has neither granted nor taken any loans, secured or
unsecured, to/from companies, firms or other parties listed in the
Register maintained under Section 301 of the Companies Act, 1956.
iv. In our opinion and according to the information and explanations
given to us, having regard to the explanations that some of the items
purchased are of special nature and suitable alternative sources are
not readily available for obtaining comparable quotations, there is an
adequate internal control system commensurate with the size of the
Company and the nature of its business with regard to purchases of
inventory and fixed assets and the sale of goods and services. During
the course of our audit, we have not observed any major weakness in
such internal control system.
v. In respect of contracts or arrangements entered in the Register
maintained in pursuance of Section 301 of the Companies Act, 1956, to
the best of our knowledge and belief and according to the information
and explanations given to us:
(a) The particulars of contracts or arrangements referred to in Section
301 that needed to be entered in the Register maintained under the said
Section have been so entered.
(b) Where each of such transaction is in excess of Rs. 5 lakhs in
respect of any party, having regard to the explanations that some of
the items purchased are of special nature and suitable alternative
sources are not readily available for obtaining comparable quotations,
the transactions have been made at prices which are prima facie
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 Sections
58A and 58AA or any other relevant provisions of the Companies Act,
1956 and the Companies (Acceptance of Deposits) Rules, 1975 with regard
to the deposits accepted from the public. According to the information
and explanations given to us, no order has been passed by the Company
Law Board or the National Company Law Tribunal or the Reserve Bank of
India or any Court or any other Tribunal.
vii. In our opinion, the Company has an adequate internal audit system
commensurate with the size and the nature of its business.
viii. We have broadly reviewed the books of account maintained by the
Company 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 in respect of manufacture of motor vehicles and tractors and
are of the opinion that prima facie the prescribed accounts and records
have been made and maintained. We have, however, not 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 and explanations given to us, the Central Government has
not prescribed the maintenance of cost records for any other product of
the Company.
ix. According to the information and explanations given to us in
respect of statutory dues:
(a) The Company has generally been regular in depositing undisputed
dues, including Provident Fund, Investor Education and Protection Fund,
Employees'' State Insurance, Income-tax, Sales Tax, Wealth Tax, Service
Tax, Value Added Tax, Customs Duty, Excise Duty, Cess and other
material statutory dues applicable to it with the appropriate
authorities.
(b) There were no undisputed amounts payable in respect of Income- tax,
Wealth Tax, Customs Duty, Excise Duty, Cess and other material
statutory dues in arrears as at 31st March, 2012 for a period of more
than six months from the date they became payable.
(c) Details of dues of Income-tax, Sales Tax, Wealth Tax, Service Tax,
Customs Duty, Excise Duty and Cess which have not been deposited as on
31st March, 2012 on account of disputes are given below:
Statute Nature of
Dues Forum where the
Dispute is pending Period to
which the Amount
involved
amount
relates (Rs. in
crores)
Income-Tax
Laws Income-Tax Appellate Authority
- Tribunal Level 1998-2009 799.66
Appellate Authority
- Commissioner
(Appeals) 1995-2009 29.72
Sales Tax
Laws Sales Tax High Court 1987-2008 181.88
Appellate Authority
- Tribunal Level 1987-2010 8.65
Appellate Authority
- Commissioner
(Appeals) 1997-2010 43.26
Service Tax
Laws Service
Tax Appellate Authority
- Tribunal Level 2002-2009 5.95
Appellate Authority
- Commissioner 2004-2010 36.94
Excise Duty
Laws Excise
Duty Supreme Court 1991-1996 475.52
Appellate Authority
- Tribunal Level 1987-2009 536.86
Appellate Authority
- Commissioner 2001-2010 81.23
Customs Duty
Laws Customs
Duty Appellate Authority
- Tribunal Level 1992-2001 0.76
x. The Company does not have accumulated losses as at 31st March, 2012
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 the repayment of dues to
banks, financial institutions and debenture holders.
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 the
clause (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 interests of the Company.
xvi. In our opinion and according to the information and explanations
given to us, the term loans have been applied for the purposes for
which they were obtained.
xvii. In our opinion and according to the information and explanations
given to us and on an overall examination of the Balance Sheet, we
report that funds raised on short term basis have not been used during
the year 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 the debentures issued in
earlier years.
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
(Registration No.117364W)
B. P. Shroff
Partner
(Membership No.34382)
MUMBAI : 30th May, 2012 |
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