TVS Motor Company
BSE: 532343 | NSE: TVSMOTOR | ISIN: INE494B01023 | Auto - 2 & 3 Wheelers
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| Auditor's Report | Year End : Mar '09 |
We have audited the attached Balance Sheet of TVS Motor Company
Limited, Chennai - 600 006 as at 31st March 2009 and the Profit and
Loss Account for the year ended on that date annexed thereto and the
Cash Flow Statement for the year ended on that date. 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.
1. We have conducted our audit in accordance with auditing standards
generally accepted in India. These standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free from any 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 presentation of the
financial statements. We believe that our audit provides a reasonable
basis for our opinion.
2. As required by the Companies (Auditors Report) Order, 2003 and
amended by the Companies (Auditors Report) (Amendment) Order 2004
issued by the Central Government 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.
3. Further to our comments in the Annexure referred to above, we state
that:
(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 by the Company so far as appears from our examination of such
books;
(c) The Balance Sheet, Profit and Loss Account and Cash Flow Statement
dealt with by this report are in agreement with the books of account;
(d) In our opinion, the Balance Sheet, Profit and Loss Account 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 Companies
Act, 1956;
(e) On the basis of written representations received from the Directors
of the Company as on 31 st March 2009 and taken on record by the Board
of Directors, we report that none of the directors is disqualified from
being appointed as a director in terms of clause (g) of sub-section 1
of Section 274 of the Companies Act, 1956 on the said date;
(f) In our opinion and to the best of our information and according to
the explanations given to us, the said accounts read together with the
notes thereon (including the notes under Accounting Standard 11) 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 so far as it relates to the Balance Sheet, of the state of
affairs of the Company as at 31st March 2009;
(ii) in so far as it relates to the Profit and Loss Account, of the
profit of the Company for the year ended on that date; and
(iii) in so far as it relates to the Cash Flow Statement, of the cash
flows for the year ended on that date.
Annexure referred to in our report of even date on the accounts for the
year ended 31st March 2009
(i) (a) The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
(b) All the assets have not been physically verified by the management
during the year but there is a regular programme of verification at
reasonable intervals, which, in our opinion, is reasonable having
regard to the size of the Company and the nature of its assets. No
material discrepancies were noticed on such verification.
(c) The assets disposed off during the year are not substantial and
therefore do not affect the going concern status of the Company.
(ii) (a) The inventory other than in-transit has been physically
verified at reasonable intervals during the year by the management. In
our opinion the frequency of such verification is adequate. In respect
of inventory with third parties which have not been physically
verified, there is a process of obtaining confirmation from such
parties.
(b) In our opinion and according to the information and explanations
given to us, the procedures for physical verification of inventory
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, the Company has maintained proper records of
inventory. The discrepancies between the physical stocks and the book
stocks were not material and have been properly dealt with in the books
of account.
(iii) (a) During the year the Company has granted loans and advances to
three companies covered in the register maintained under section 301 of
the Companies Act, 1956 amounting to Rs.21 crores (Balance due as at
the year end Rs.87.31 crores from four parties).
(b) In our opinion, the rate of interest and other terms and conditions
on which such loans and advances are made are not prima facie
prejudicial to the interest of the Company.
(c) The receipt of principal amount and interest thereon were regular.
(d) As on the date of Balance Sheet, there was no overdue amount
recoverable on the said loans and advances.
(e) During the year the Company has taken an unsecured loan of Rs. 10
crores from a company covered in the register maintained under section
301 of the Companies Act, 1956. (Amount outstanding at the year end Rs.
Nil)
(f) In our opinion the rate of interest and the terms and other
conditions of loan taken by the Company were not prima facie
prejudicial to the interest of the Company.
(g) The repayment of the principal amount and interest thereon were
regular.
(iv) In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the Company and the nature of its
business, with regard to purchase of inventory, fixed assets and for
the sale of goods and services. During the course of our audit, no
major weakness has been noticed in the internal control system.
(v) (a) Based on the audit procedures applied by us and according to
the information and explanations provided by the management, we are of
the opinion that the contracts or arrangements that need to be entered
in the register maintained under Section 301 of the Companies Act,
1956, have been properly entered in the said register.
(b) In our opinion and according to the information and explanations
given to us, transactions entered in the register maintained under
Section 301 and exceeding during the year by Rupees five lakhs in
respect of each party have been made at prices which are reasonable
having regard to the prevailing market prices at the relevant time.
(vi) The Company has not accepted any deposit from the public.
(vii) The Company has an internal audit system, which in our opinion is
commensurate with its size and 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 under
Section 209(1 )(d) of the Companies Act, 1956 for maintenance of cost
records in respect of automotive two and three wheelers and are of the
opinion that prima facie, the prescribed accounts and records have been
made and maintained.
(ix) (a) According to the records provided to us, the Company is
regular in depositing undisputed statutory dues including Provident
Fund, Employees State Insurance, Investors Education and Protection
Fund, Income Tax, Sales Tax, Wealth Tax, Service Tax, Customs Duty,
Excise Duty and Cess and other statutory dues with the appropriate
authorities.
(b) 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 31 st March 2009 for a period of more than six months from the date
they became payable.
(c) According to the information and explanations given to us, the
following are the details of the disputed dues, that were not deposited
with the concerned authorities
Name of the Nature of
statute dues
Central Excise Central Excise
Act, 1944 dues
Finance Service
Act, 1994 Tax
Customs Act, 1962 Customs Duty
Kamataka Electricity Electricity Tax
(Taxation on
Consumption)
Act, 1959
The Tamil Nadu Tax Electricity Tax
on Consumption or
Sale of Electricity
Act, 2003 read with
Amendment Act, 2007
Sales Tax laws of Sales Tax
various States
Income Tax Act, 1961 Income Tax &
Interest there on
Amount Forum where the
(Rs. in crores) dispute is pending
Central Excise and
(a) 5.16 Service Tax Appellate
Tribunal
(b) 0.32 Commissioner of
Central Excise (Appeals)
(c) 19.37 Asst./Deputy/
Commissioner of
Central Excise
Central Excise and
(a) 1.66 Service Tax Appellate
Tribunal
(b) 0.15 Commissioner of Central
Excise (Appeals)
(c) 12.25 Asst./Deputy/
Commissioner of
Central Excise
1.13 Commissioner of
Customs
0.33 High Court of
Judicature at
Bangalore
0.30 High Court of
Judicature at Madras,
Chennai
(a) 0.56 Sales Tax Appellate
Tribunals
(b) 2.60 Asst./Deputy/Joint/
Addl Commissioners
of Sales Tax at
variousStates
(a) 2.32 Supreme Court of
India
(b) 28.82 Income Tax
Tribunal,
(c) 10.48 Commissioner of
Income-Tax(Appeals)
(x) The Company neither has accumulated losses as at the end of the
financial year nor has incurred cash losses during the financial year
and in the immediately preceding year.
(xi) Based on our verification and according to the information and
explanations given by the management, the Company has not defaulted in
repayment of dues to its banks.
(xii) Based on our examination and according to the information and
explanations given to us, the Company has not granted loans and
advances on the basis of security by way of pledge of shares,
debentures and other securities.
(xiii) The Company is not a chit / nidhi / mutual benefit fund /
society and as such this clause of the order is not applicable.
(xiv) The Company is not dealing or trading in shares, securities,
debentures and other investments other than in mutual fund intruments.
Proper records have been maintained in respect of these transactions
and contracts and timely entries have been made therein. The
investments have been held by the Company in its own name except to the
extent of exemption granted under section 49 of the Act, in respect of
shares held in subsidiary companies through the nominees.
(xv) In our opinion the terms and conditions of guarantees given by the
Company for loans taken by others are not prejudicial to the interests
of the Company.
(xvi) The term loans availed by the Company were utilised for the
purpose for which the loans were obtained.
(xvii) On the basis of our examination, the Company has not used funds
raised on short term basis for long term investments.
(xviii) During the year, the Company has not allotted any shares on
preferential basis to parties and Companies covered in the register
maintained under section 301 of the Companies Act, 1956.
(xix) During the year, the Company has not issued any secured
debentures.
(xx) During the year, the Company has not raised any money by public
issue.
(xxi) Based on the audit procedures adopted and information and
explanations given to us by the management, no fraud on or by the
Company has been noticed or reported during the course of our audit.
For Sundaram & Srinivasan
Chartered Accountants
M. BALASUBRAMANIYAM
Hosur Partner
June 26, 2009 Membership No.F7945 |
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