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TVS Motor Company

BSE: 532343|NSE: TVSMOTOR|ISIN: INE494B01023|SECTOR: Auto - 2 & 3 Wheelers
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« Mar 15
Auditor's Report (TVS Motor Company) Year End : Mar '16
1.  We have audited the accompanying standalone financial statements of
 TVS Motor Company Limited, Chennai (''the Company''), which comprises the
 Balance Sheet as at 31st March 2016, the Statement of Profit and Loss,
 the Cash Flow Statement for the year then ended, and a summary of
 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
 that 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.
 
 3.  This responsibility also includes maintenance of adequate
 accounting records in accordance with the provisions of the Act for
 safeguarding 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.
 
 Auditors'' Responsibility
 
 4.  Our responsibility is to express an opinion on these Standalone
 financial statements based on our audit. We have taken into account the
 provisions of the Act, the accounting and auditing standards and
 matters which are required to be included in the audit report under the
 provisions of the Act and the Rules made thereunder.  We conducted our
 audit in accordance with the Standards on Auditing specified under
 Section 143(10) of the Act.  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.
 
 5.  An audit involves performing procedures to obtain audit evidence
 about the amounts and disclosures in the financial statements. The
 procedures selected depend on the auditor''s 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 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.
 
 6.  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.
 
 Opinion
 
 7.  In our opinion and to the best of our information and according to
 the explanations given to us, the 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 31st March 2016, and its profit and its cash flows for the year
 ended on that date.
 
 Report on Other Legal and Regulatory Requirements
 
 8.  As required by the Companies (Auditor''s Report) Order, 2016 (''the
 Order''), issued by the Central Government of India in terms of
 sub-section (11) of Section 143 of the Act, we give in the Annexure A,
 a statement on the matters specified in paragraphs 3 and 4 of the said
 Order, to the extent applicable.
 
 9.  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 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 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;
 
 (e) on the basis of written representations received from the directors
 as on 31st March 2016, and taken on record by the Board of Directors,
 none of the directors is disqualified as on 31st March 2016, from being
 appointed as a director in terms of Section 164 (2) of the Act;
 
 (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; and
 
 (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 information and
 according to explanations give to us:
 
 i. the Company has disclosed the impact of pending litigations on its
 financial position in its financial statements - Refer Note No. XXIII
 [12(a)] to the financial statements.
 
 ii. the Company did not have any long term contracts including
 derivative contracts for which there were any material foreseeable
 losses - Refer Note No.  XXIII [2] to the financial statements.
 
 iii. there has been no delay in transferring amounts, required to be
 transferred to the Investor Education and Protection Fund by the
 Company.
 
 (i) (a) The Company has maintained proper records showing full
 particulars, including quantitative details and situation of fixed
 assets.
 
 (b) The Company has a regular programme of physically verifying all the
 fixed assets at its plants / offices in a phased manner over a period
 of 2 years, which in our opinion is reasonable having regard to the
 size of the Company and the nature of its assets.  No material
 discrepancies as compared to book records were noticed on such
 verification.
 
 (c) According to the information and explanations given to us and on
 the basis of our examination of the records of the Company, the title
 deeds of immovable properties are held in the name of the Company.
 
 (ii) The inventories have been physically verified by the management
 during the year.
 
 In our opinion, the frequency of physical verification is reasonable.
 The discrepancies noticed on verification between the physical stocks
 and the book stocks were not material and have been properly dealt with
 in the books of account.
 
 (iii) The Company has granted unsecured loans to companies covered in
 the register maintained under Section 189 of the Act, in respect of
 which:- a) The terms and conditions of the grant of such loans were, in
 our opinion, prima facie, not prejudicial to the Company''s interest.
 
 b) The schedule of repayment of principal and payment of interest has
 been stipulated; the receipt of interest is regular.
 
 c) The amount is not overdue.
 
 (iv) In our opinion and according to the information and explanations
 given to us, the Company has complied with the provisions of Section
 185 and 186 of the Act in respect of grant of loans, making investments
 and providing guarantees and securities, as applicable.
 
 (v) According to the information and explanations given to us, the
 Company has not accepted any deposits from the public. Therefore, the
 provisions of Clause (v) of the para 3 of the Order are not applicable
 to the Company.
 
 (vi) The Central Government has prescribed the maintenance of cost
 records under Section 148 (1) of the Act in respect of certain products
 manufactured by the Company.  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
 148(1) of the Act and are the opinion that, prima facie, the prescribed
 accounts and records have been made and maintained.
 
 (vii) (a) According to the records of the Company, the Company is
 generally regular in depositing undisputed statutory dues payable
 including Provident Fund, Employees'' State Insurance, Income Tax, Sales
 Tax, Wealth Tax, Service Tax, Customs Duty, Excise Duty, Value Added
 Tax and Cess and other material statutory dues with the appropriate
 authorities. According to the information and explanations given to us,
 no undisputed amounts payable in respect of Income Tax, Sales Tax,
 Wealth Tax, Service Tax, Customs Duty, Excise Duty and Cess were in
 arrears as at 31st March 2016 for a period of more than six months from
 the date they became payable.
 
 (b) According to the information and explanations given to us and the
 records of the Company, the dues of Sales Tax / Income Tax / Customs
 Duty / Wealth Tax / Service Tax / Excise Duty / Value
 
 Added Tax / Cess which have not been deposited on account of any
 dispute are as follows:
 
 Name of the Statute /      Period        Amount   Forum where
 (Nature of dues)           of dues   (Rs. in Cr)  dispute is pending
 
                                                   Central Excise and
                           1998-2015       29.95   Service Tax 
                                                   Appellate 
 Central Excise                                    Tribunal, Chennai 
 Act, 1944
 
 (Cenvat/Excise Duty)                              Assistant / Deputy /
                           2009-2015       16.15   Commissioner of 
                                                   Central
                                                   Excise, Hosur and 
                                                   Mysore
 
                                                   Assistant / Deputy /
                           1999-2011        3.60   Commissioner of 
                                                   Central
 Finance Act, 1994
                                                   Excise, Hosur and 
                                                   Mysore
 (Service Tax)
 
                                                   Central Excise and
                                                   Service
                           2002-2014        1.46   Tax Appellate 
                                                   Tribunal,
                                                   Chennai / Bangalore
 
                                                   Assistant / Deputy /
                           2011-2012        0.09   Commissioner of
                                                   Central
 Customs Act, 1962
                                                   Excise, Hosur and
                                                   Mysore 
 (Customs Duty)
 
                                                   Hon''ble High Court of
                           1999-2001        1.87
                                                   Judicature at Madras
 
                           1998-2014        0.87   Department 
                                                   Authorities
 
                                                   Joint Commissioner 
 Sales Tax /               2004-2005        0.04
                                                  (Appeals)
 VAT Laws
 (Sales Tax)               1998-2013        0.33   Tribunals
 
                                                   Hon''ble High Court of
                           2006-2015       13.67
                                                   Orissa
 
 Income Tax Act, 1961      2007-2016        7.89   Department 
                                                   Authorities 
 (TDS)
 
 Wealth Tax Act, 1957      2007-2009        0.98   *Commissioner Appeal
 
 * The Company is in the process of filing appeal.
 
 (viii) On the basis of verification of records and according to the
 information and explanations given to us, the Company has not defaulted
 in repayment of loans or borrowings to Financial Institutions / Banks.
 The Company has not raised any monies against issue of debentures.
 
 (ix) In our opinion and according to the information and explanations
 given to us, the term loans availed by the Company have been applied
 for the purpose for which they were obtained. The Company has not
 raised monies by way of initial public offer or further public offer
 (including debt instruments) during the year.
 
 (x) Based upon the audit procedures performed for the purpose of
 reporting the true and fair view of the financial statements and as per
 the information and explanations given to us by the Management, no
 material fraud by the Company and no fraud on the Company by its
 officers or employees has been noticed or reported during the year.
 
 (xi) In our opinion and according to the information and explanations
 given to us, the Company has paid/ provided managerial remuneration in
 accordance with the requisite approvals mandated by the provisions of
 Section 197 read with Schedule V to the Act.
 
 (xii) The Company is not a Nidhi Company and hence reporting under
 clause (xii) of the Order is not applicable.
 
 (xiii) In our opinion and according to the information and explanations
 given to us the Company is in compliance with Section 188 and Section
 177 of the Act, where applicable, for all transactions with the related
 parties and the details of related party transactions have been
 disclosed in the financial statements as required by the applicable
 accounting standards.
 
 (xiv) During the year, the Company has not made any preferential
 allotment or private placement of shares or fully or partly convertible
 debentures and hence reporting under clause (xiv) of the Order is not
 applicable to the Company.
 
 (xv) In our opinion and according to the information and explanations
 given to us, during the year the Company has not entered into any
 non-cash transactions with its directors or persons connected with him
 and hence provisions of Section 192 of the Act are not applicable.
 
 (xvi) The Company is not required to be registered under Section 45-IA
 of the Reserve Bank of India Act, 1934.
 
                                          For V. Sankar Aiyar & Co
 
                                             Chartered Accountants
 
                                           Firm Regn. No.: 109208W
 
 
 
                                                    S. VENKATRAMAN 
 
 Place:Bengaluru                                           Partner
 
 Date :3rd May 2016                          Membership No.: 34319
Source : Dion Global Solutions Limited
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