1. We have audited the accompanying standalone financial statements of
Maruti Suzuki India Limited (the Company), which comprise the Balance
Sheet as at March 31, 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.
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.
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 March 31, 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 A, 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
(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 March 31, 2016 taken on record by the Board of
Directors, none of the directors is disqualified as on March 31, 2016
from being appointed as a director in terms of Section 164 (2) of the
(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 B.
(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 of pending litigations as at
March 31, 2016 on its financial position in its standalone financial
statements – Refer Notes 7 and 32;
ii. The Company has long-term contracts including derivative contracts
as at March 31, 2016 for which there were no material foreseeable
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 March 31, 2016.
Annexure A to Independent Auditors'' Report
Referred to in paragraph 9 of the Independent Auditors'' Report of even
date to the members of Maruti Suzuki India Limited on the standalone
financial statements as of and for the year ended March 31, 2016.
i. (a) The Company is maintaining proper records showing full
particulars, including quantitative details and situation, of fixed
The fixed assets of the Company have been physically verified by the
Management during the year except furniture and fixtures, office
appliances and certain other fixed assets having an aggregate net book
value of 2,141 million. The discrepancies noticed on such verification
were not material and have been properly dealt with in the books of
account. In our opinion, the frequency of verification is reasonable.
(b) The title deeds of immovable properties, as disclosed in Note 12 on
fixed assets to the financial statements, are held in the name of the
Company, except for the two immovable properties which amounts to gross
block of Rs. 16 million and net block of Rs. 14 million whose title
deeds are not held in the Company''s name.
ii. The physical verification of inventory excluding stocks with third
parties and tools and machinery spares having an aggregate value of Rs.
1,957 million 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. The
discrepancies noticed on physical verification of inventory as compared
to book records were not material.
iii. The Company has not granted any loans, secured or unsecured, to
companies, firms, Limited Liability Partnerships or other parties
covered in the register maintained under Section 189 of the Act.
Therefore, the provisions of Clause 3(iii), (iii) (a), (iii)(b) and
(iii)(c) of the said Order are not applicable to the Company.
iv. The Company has not granted any loans or made any investments, or
provided any guarantees or security to the parties covered under
Section 185 and 186. Therefore, the provisions of Clause 3(iv) of the
said Order are not applicable to the Company.
v. 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.
vi. Pursuant to the rules made by the Central Government of India, the
Company is required to maintain cost records as specified under Section
148(1) of the Act in respect of its products. We have broadly reviewed
the same, 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.
vii. (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 generally regular in depositing undisputed statutory dues in respect
of Income Tax and Service Tax, and is regular in depositing undisputed
statutory dues, including provident fund, employees'' state insurance,
sales tax, duty of customs , duty of excise , value added tax, cess and
other material statutory dues, as applicable, with the appropriate
(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 March 31, 2016 which have not been deposited on
account of a dispute, are as follows:
Amount under Amount deposited
Name of the statute dispute under dispute
(Rs. In million) (Rs. In million)
Income Tax Act, 1961 (Tax & Interest) 34,261 5,169
Wealth Tax Act, 1957 (Tax) 1 1
The Central Excise Act, 1944 (Duty, 17,444 2,096
Interest & Penalty)
The Finance Act, 1994 (Service Tax, 3,455 126
Interest & Penalty)
Haryana General Sales Tax Act 3 0
(Tax & Interest)
Delhi Sales Tax Act (Tax) 48 18
Customs Act, 1962 (Duty & Interest) 129 22
Name of the Statute Period to which the Forum where the dispute
amount relates is pending
Income Tax Act,1961 1991 to 2014 Income Tax Appellate
Tribunal/ High Court/
Wealth Tax Act,1957 1997 to 1998 High Court
The Central Excise
Act,1944 May 1989 to Customs Excise & Service
October 2015 Appellate Tribunal/ High
Court/ Supreme Court
The Finance Act,1994 July 2003 to Customs Excise & Service
December 2014 Tax Appellate Tribunal/
Sales Tax Act 1983 to 1988 Assessing authority
Delhi Sales Tax Act 1987 to 1991 Additional Commissioner
Customs Act, 1962 May 1991 to Commissioner Customs
viii. 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 loans or borrowings to any financial institution or
bank or Government or dues to debenture holders as at the balance sheet
ix. 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.
x. 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.
xi. 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.
xii. 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.
xiii. 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 (AS) 18,
Related Party Disclosures specified under Section 133 of the Act, read
with Rule 7 of the Companies (Accounts) Rules, 2014.
xiv. 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.
xv. 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.
xvi. 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 Price Waterhouse
Firm Registration Number: 301112E
Membership Number - 084451
Place: New Delhi
Date: Apri 26, 2016