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« Mar 12
Auditor's Report (Maruti Suzuki India) Year End : Mar '13
REPORT ON THE FINANCIAL STATEMENTS
 
 1.  We have audited the accompanying financial statements of Maruti
 Suzuki India Limited (the Company), which comprise the Balance
 Sheet as at 31st March 2013, and the Statement of Profit and Loss and
 Cash Flow Statement for the year then ended, and a summary of
 significant accounting policies and other explanatory information,
 which we have signed under reference to this report.
 
 MANAGEMENT''S RESPONSIBILITY FOR THE FINANCIAL STATEMENTS
 
 2.  The Company''s Management is responsible for the preparation of
 these 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 Standards referred to in sub-section
 (3C) of section 211 of ''the Companies Act, 1956'' of India (the
 ''Act) 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 sub-section (3C) of Section 211 of
 the Act.  This responsibility includes the design, implementation and
 maintenance of internal control 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 financial
 statements based on our audit. We conducted our audit in accordance
 with the Standards on Auditing issued by the Institute of Chartered
 Accountants of India. 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.
 
 4.  An audit involves performing procedures to obtain audit evidence,
 about the amounts and 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 auditors consider internal control relevant to the
 Company''s preparation and fair presentation of the financial
 statements in order to design audit procedures that are appropriate in
 the circumstances. An audit also includes evaluating the
 appropriateness of accounting policies used and the reasonableness of
 the accounting estimates made by Management,as well as evaluating the
 overall presentation of the financial statements.
 
 5.  We believe thatthe audit evidence we have obtained is sufficient
 and appropriate to provide a basis for our audit opinion.
 
 OPINION
 
 6.  In our opinion,and to the best of our information and according to
 the explanations given to us, the accompanying financial statements
 give the information required by the Act in the manner so required and
 give a true and fairview in conformity with theaccounting 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 2013;
 
 (b) in the case of the Statement of Profit and Loss, 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.
 
 EMPHASIS OF MATTER
 
 7.  We draw attention to Note 32(a)(vii) of the financial statements
 regarding demands received from Haryana State Industrial &
 Infrastructure Development Corporation Limited towards enhanced
 compensation for Company''s freehold land at Manesar amounting to Rs.
 5,012 million,Rs. 1,376 million and Rs. 86 million; against the demand
 of Rs. 5,012 million the Company''s impleadment application has been
 heard and the order has been reserved by the Hon''ble Supreme Court of
 India; against the demand of Rs. 1,376 million,the Company has filed an
 appeal with the Hon''ble High Court of Punjab and Haryana; and against
 the demand of Rs. 86 million, the Company is in the process of
 obtaining more information. Accordingly, no provision is considered
 necessary towards enhanced compensation for the aforesaid freehold
 land. Our opinion is not qualified in respect of this matter.
 
 REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS
 
 8.  As required by ''the Companies (Auditor''s Report) Order,
 2003'', as amended by''the Companies (Auditor''s Report) (Amendment)
 Order, 2004'', issued by the Central Government of India in terms of
 sub-section (4A) of section 227 of theAct (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 a
 statement on the matters specified in paragraphs 4and 5 ofthe Order.
 
 9.  As required by section 227(3) ofthe Act, we reportthat:
 
 (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
 audit;
 
 (b) In our opinion, proper books of account as required by Law have
 been kept bythe Company so faras appears from our examination of those
 books;
 
 (c) The Balance Sheet, Statement of Profit and Loss, and Cash
 FlowStatement dealt with by this Reportare in agreement with the books
 ofaccount;
 
 (d) In ouropinion,the Balance Sheet, StatementofProfitand Loss, and
 Cash Flow Statement dealt with by this report comply with the
 Accounting Standards referred to in sub- section (3C) of section 211 of
 the Act 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 sub-section (3C) of Section 211 of the Act;
 
 (e) On the basis of written representations received from the Directors
 as on 31st March 2013, and taken on record by the Board of Directors,
 none of the Directors is disqualified as on 31st March 2013, from being
 appointed as a Director in terms of clause (g) of sub-section (1) of
 section 274 of the Act.
 
 i.  (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 bythe Management according
 to a phased programme designed to cover all the items, except furniture
 and fixtures, office appliances and certain other assets having an
 aggregate net book value of Rs. 1,299 million, 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) In our opinion, and according to the information and explanations
 given to us, a substantial part of fixed assets has not been disposed
 off bythe Company during the year.
 
 ii.  (a) The inventory (excluding stocks with third parties) has been
 physically verified 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.
 
 (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) On the basis of our examination of the inventory records, in our
 opinion, the Company is maintaining proper records of inventory. The
 discrepancies noticed on physical verification of inventory as compared
 to book records were not material.
 
 iii. The Company has not taken/ granted any loans, secured or
 unsecured, from/ to companies, firms or other parties covered in the
 register maintained under Section 301 of the Act. Therefore, the
 provisions of Clause 4(iii)[(b),(c) and (d) /(f) and (g)] of the said
 Order are not applicable to the Company.
 
 iv.  In our opinion, and according to the information and explanations
 given to us, having regard to the explanation that for certain items of
 inventory purchased which are of special nature for which suitable
 alternative sources do not exist for obtaining comparative quotations,
 there is an adequate internal control system commensurate with the size
 of the Company and the nature of its business for the purchase of
 inventory, fixed assets and for the sale of goods and services.
 Further, on the basis of our examination ofthe books and records ofthe
 Company,and according to the information and explanations given to us,
 we have neither come across, nor have we been informed of any
 continuing failure to correct major weaknesses in the aforesaid
 internal control system.
 
 v.  (a) According to the information and explanations given to us,we
 are ofthe opinion that the particulars of all contracts or arrangements
 that need to be entered into the register maintained under Section 301
 ofthe Act have been so entered.
 
 (b) In our opinion and according to the information and explanations
 given to us, the transactions made in pursuance of such contracts or
 arrangements and exceeding the value of Rupees Five lakhs amounting to
 Rs. 49,485 million in respect of purchase of goods including components
 and services from the holding company where we are unable to comment as
 there are no comparable market prices available being goods including
 components and services of specialised nature.
 
 vi.  The Company has not accepted any deposits from the public
 withinthe meaning ofSections 58Aand 58AA ofthe Act and the rules framed
 there under.
 
 vii. In our opinion, the Company has an internal audit system
 commensurate with its size and the nature of its business.
 
 viii.  We have broadly reviewed the books of account maintained by the
 Company in respect of products where, pursuant to the rules made by the
 Central Government of India, the maintenance of cost records has been
 prescribed under clause (d) of sub- section (1) of Section 209 of the
 Act, and are of the opinion that,prima facie,the prescribed accounts
 and records have been made and maintained. We have not, however, made a
 detailed examination of the records with a view to determine whether
 they are accurate or complete.
 
 ix.  (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, investor education and protection fund,
 employees''state insurance, income tax, sales tax, wealth tax, service
 tax, customs duty, excise duty 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, wealth tax, service tax, customs duty and excise
 duty as at 31st March 2013 which have not been deposited on account of
 a dispute,are as follows:
 
                                                        (Rs. in million)
 
 Name of the statute                        Amount         Amount
 (Nature of dues)                           under dispute  deposited
                                                           under dispute
 
 Income Tax Act, 1961                           13,795          6,766 
 (Tax & Interest)
 
 Wealth Tax Act, 1957 (Tax)                          1              1
 
 Haryana General Sales Tax Act (Tax &                3              - 
 Interest)
 
 Delhi Sales Tax Act (Tax)                          47              2
 
 The Central Excise Act, 1944 (Duty,            10,680            377 
 Interest & Penalty)
 
 The Finance Act, 1994 (Service Tax,             2,782             14 
 Interest & Penalty)
 
 Customs Act, 1962 (Duty & Interest)                27             22
 
 Name of the Statute       Period to       Forum where the dispute 
                                           is pending 
                           which the
                           amount relates
 
 Income Tax Act 1961       1991 to 2012    Income Tax Appellate Tribunal
                                           / High Court/AO (Tax Deducted
                                           at Source)
 
 Wealth Tax Act 1957       1997 to 1998    High Court
 
 Haryana General Sales
 Tax Act                   1983 to 1988    Assessing Authority
 
 Delhi Sales Tax Act       1987 to 1991    Additional Commissioner
 
 The Central Excise Act
 1944                      May 1989 to     Customs Excise & Service Tax 
                                           Appellate 
                           August 2012     Tribunal/ High Court/ 
                                           Supreme Court
 
 The Finance Act 1994      September       Customs Excise & Service Tax 
                                           Appellate
                           2004 to         Tribunal/Commissioner 
                                          (Appeals) 
                           December
                           2012
 
 Customs Act 1962          February        Customs Excise & Service Tax
                                           Appellate
                           2003 to         Tribunal
                           August 2003
 
 For detailed listing refer Note 55 annexed to the financial statements
 
 x.  The Company has no accumulated losses as at the end of the
 financial year and it has not incurred any cash losses in the financial
 year end on that date or in the immediately preceding financial year.
 
 xi.  According to the records of the Company examined by us and the
 information and explanation given to us, the Company has not defaulted
 in repayment of dues to any financial institution or bank or debenture
 holders as at the balance sheet date.
 
 xii. The Company has not granted any loans and advances on the basis of
 security by way of pledge of shares, debentures and other securities.
 Therefore the provisions of Clause 4(xii) of the Order are not
 applicable to the Company.
 
 xiii.  As the provisions of any special statute applicable to chit
 fund/ nidhi/ mutual benefit fund/societies are not applicable to the
 Company, the provisions of Clause 4(xiii) of the 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 Clause 4(xiv) of the Order are not applicable to the
 Company.
 
 xv.  In our opinion,and according to the information and explanations
 given to us, the Company has not given any guarantee for loans taken by
 others from banks or financial institutions during the year.
 Accordingly, the provisions of Clause 4(xv) of the Order are not
 applicable to the Company.
 
 xvi. In our opinion, and according to the information and explanations
 given to us, the term loans have been applied, on an overall basis, for
 the purposes for which they were obtained.
 
 xvii.  According to the information and explanations given to us and on
 an overall examination ofthe balance sheet ofthe Company, we report
 that, no funds raised on short-term basis have been used for long-term
 investment.
 
 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 Act during the year.  Accordingly, the provisions of
 Clause 4(xviii) of the Order are not applicable to the Company.
 
 xix. The Company has not issued any debentures during the year and does
 not have any debentures outstanding as at the beginning ofthe year and
 at the year end. Accordingly, the provisions of Clause 4(xix) of the
 Order are not applicable to the Company.
 
 xx.  The Company has not raised any money by public issues during the
 year. Accordingly,the provisions of Clause 4(xx) of the Order are not
 applicable to the Company.
 
 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
 fraud on or by the Company, noticed or reported during the year, nor
 have we been informed ofany such case bythe Management.
 
                                    For Price Waterhouse
 
                                    Firm Registration Number: 301112E
 
                                    Chartered Accountants
 
                                    ABHISHEK RARA
 
                                    Partner 
 
                                    Membership Number: 077779
 
 Place : New Delhi
 
 Date : 26th April 2013
Source : Dion Global Solutions Limited
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