TO THE MEMBERS OF BAJAJ AUTO LTD.
1. W e have audited the accompanying standalone financial statements of Bajaj Auto Ltd.(the Company), which comprise the Balance Sheet as at 31 March 2015, theStatement of Profit and Loss, the Cash Flow Statement for the year then ended, and asummary of the significant accounting policies and other explanatory information.
Managements responsibility for the standalone financial statements
2. The Companys Board of Directors is responsible for the matters stated insection 134(5) of the Companies Act, 2013 (the Act) with respect to thepreparation of these standalone financial statements to give a true and fair view of thefinancial position, financial performance and cash flows of the Company in accordance withthe accounting principles generally accepted in India, including the Accounting Standardsspecified under section 133 of the Act, read with rule 7 of the Companies (Accounts)Rules, 2014 and Accounting Standard 30, Financial Instruments: Recognition and Measurementissued by the Institute of Chartered Accountants of India to the extent it does notcontradict any other Accounting Standard referred to in section 133 of the Act read withrule 7 of Companies (Accounts) Rules, 2014. This responsibility also includes maintenanceof adequate accounting records in accordance with the provisions of the Act forsafeguarding of the assets of the Company and for preventing and detecting frauds andother irregularities; selection and application of appropriate accounting policies; makingjudgments and estimates that are reasonable and prudent; and design, implementation andmaintenance of adequate internal financial controls, that were operating effectively forensuring the accuracy and completeness of the accounting records, relevant to thepreparation and presentation of the financial statements that give a true and fair viewand are free from material misstatement, whether due to fraud or error.
3. Our responsibility is to express an opinion on these standalone financial statementsbased on our audit.
4. We have taken into account the provisions of the Act and the Rules made thereunderincluding the Accounting Standards and matters which are required to be included in theaudit report.
5. We conducted our audit in accordance with the Standards on Auditing specified undersection 143(10) of the Act and other applicable authoritative pronouncements issued by theInstitute of Chartered Accountants of India. Those Standards and pronouncements requirethat we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether the financial statements are free from materialmisstatement.
6. An audit involves performing procedures to obtain audit evidence about the amountsand the disclosures in the financial statements. The procedures selected depend on theauditors judgment, including the assessment of the risks of material misstatement ofthe financial statements, whether due to fraud or error. In making those risk assessments,the auditor considers internal financial control relevant to the Companyspreparation of the financial statements that give a true and fair view, in order to designaudit procedures that are appropriate in the circumstances, but not for the purpose ofexpressing an opinion on whether the Company has in place an adequate internal financialcontrols system over financial reporting and the operating effectiveness of such controls.An audit also includes evaluating the appropriateness of the accounting policies used andthe reasonableness of the accounting estimates made by the Companys Directors, aswell as evaluating the overall presentation of the financial statements.
7. We believe that the audit evidence we have obtained is sufficient and appropriate toprovide 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 explanationsgiven to us, the aforesaid standalone financial statements give the information requiredby the Act in the manner so required and give a true and fair view in conformity with theaccounting principles generally accepted in India, of the state of affairs of the Companyas at 31 March 2015, 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 (Auditors Report) Order, 2015, issuedby 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 thebooks and records of the Company as we considered appropriate and according to theinformation and explanations given to us, we give in the Annexure a statement on thematters 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 bestof 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 theCompany 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 Statementdealt with by this Report are in agreement with the books of account.
(d) In our opinion, the aforesaid standalone financial statements comply with theAccounting Standards specified under section 133 of the Act, read with rule 7 of theCompanies (Accounts) Rules, 2014 and Accounting Standard 30, Financial Instruments:Recognition and Measurement issued by the Institute of Chartered Accountants of India tothe extent it does not contradict any other Accounting Standard referred to in section 133of 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 31March 2015 taken on record by the Board of Directors, none of the directors isdisqualified as on 31 March 2015 from being appointed as a director in terms of section164 (2) of the Act.
(f) With respect to the other matters to be included in the Auditors Report inaccordance with rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinionand to the best of our knowledge and belief and according to the information andexplanations given to us:
i. The Company has disclosed the impact, if any, of pending litigations as at 31 March2015, on its financial position in its standalone financial statements;
ii. The Company has made provision as at 31 March 2015, as required under theapplicable law or Accounting Standards, for material foreseeable losses, if any, onlong-term contracts including derivative contracts;
iii. There has been no delay in transferring amounts, required to be transferred, tothe Investor Education and Protection Fund by the Company during the year ended 31 March2015.
For Dalal & Shah
Firm Registration Number: 102021W
Russell I Parera
Membership Number: 42190
Pune: 21 May 2015
Annexure to Independent Auditors Report
Referred to in paragraph 9 of the Independent Auditors Report of even date to themembers of Bajaj Auto Ltd. on the standalone financial statements as of and for the yearended 31 March 2015
1. (a) The Company is maintaining proper records showing full particulars, includingquantitative details and situation, of fixed assets.
(b) The fixed assets are physically verified by the Management according to a phasedprogramme designed to cover all the items over a period of three years which, in ouropinion, is reasonable having regard to the size of the Company and the nature of itsassets. Pursuant to the programme, a portion of the fixed assets has been physicallyverified by the Management during the year and no material discrepancies have been noticedon such verification.
2. (a) The inventory excluding stocks with third parties has been physically verifiedby the Management during the year. In respect of inventory lying with third parties, thesehave substantially been confirmed by them. In our opinion, the frequency of verificationis reasonable.
(b) In our opinion, the procedures of physical verification of inventory followed bythe Management are reasonable and adequate in relation to the size of the Company and thenature of its business.
(c) On the basis of our examination of the inventory records, in our opinion, theCompany is maintaining proper records of inventory. The discrepancies noticed on physicalverification of inventory as compared to book records were not material.
3. The Company has not granted any loans, secured or unsecured, to companies, firms orother parties covered in the register maintained under section 189 of the Act. Therefore,the provisions of clause 3(iii), (iii)(a) and (iii)(b) of the said Order are notapplicable to the Company.
4. In our opinion, and according to the information and explanations given to us, thereis an adequate internal control system commensurate with the size of the Company and thenature of its business for the purchase of inventory and fixed assets and for the sale ofgoods and services. Further, on the basis of our examination of the books and records ofthe Company, and according to the information and explanations given to us, we haveneither come across, nor have been informed of, any continuing failure to correct majorweaknesses in the aforesaid internal control system.
5. The Company has not accepted any deposits from the public within the meaning ofsections 73, 74, 75 and 76 of the Act and the Rules framed there under to the extentnotified.
6. The Central Government of India has not specified the maintenance of cost recordsunder sub-section (1) of section 148 of the Act for any of the products of the Company.
7. (a) According to the information and explanations given to us and the records of theCompany examined by us, in our opinion, the Company is regular in depositing theundisputed statutory dues, including provident fund, employees state insurance,income tax, sales tax, wealth tax, service tax, duty of customs, duty of excise, valueadded tax, cess and other material statutory dues, as applicable, with the appropriateauthorities.
(b) According to the information and explanations given to us and the records of theCompany examined by us, there are no dues of wealth-tax, cess which have not beendeposited on account of any dispute. The particulars of dues of income tax, sales tax,service tax, duty of customs, duty of excise, value added tax as at 31 March 2015, whichhave not been deposited on account of a dispute, are as follows:
|Name of the statute ||Nature of dues ||Amount ||Period to which the amount relates ||Forum where the dispute is pending |
|Excise Duty ||Additional demand received ||1.46 ||Various years ||Commissioner Appeals |
| ||Additional demand received ||24.66 ||Various years ||CEGAT |
| ||Additional demand received ||1.79 ||Various years ||High Court |
| ||Additional demand received ||6.13 ||Financial year 1983-84 ||Supreme Court |
|Sales Tax ||Additional demand received on the basis of assessment order ||91.04 ||Various years ||Joint Commissioner of Sales Tax |
|Sales Tax ||Additional demand received on the basis of assessment order ||0.10 ||Financial year 2010-11 ||Additional Commissioner of Sales Tax - Appeals |
| ||Additional demand received on the basis of assessment order || ||Financial year || |
| || ||33.20 ||2001-02 to 2004-05, 2008-09 and 2009-10 ||Tribunal |
|Income Tax ||Department appeal against CIT(A) order ||12.19 ||Financial year 2007-08 ||ITAT |
| ||Additional demand received on the basis of assessment order ||407.31 ||Financial year 2011-12 ||CIT(A) |
|Service Tax ||Other matters ||3.78 ||For the year 1997-2000 ||High Court |
| ||Denial of credit || ||Various years || |
| || ||2.38 ||2004 to 2008 ||CESAT |
|Customs Duty ||Recovery of duty by treating the vehicles as not fuel efficient ||3.85 ||Financial year 1984-86 ||High Court |
c) The amount required to be transferred to Investor Education and Protection Fund hasbeen transferred within the stipulated time in accordance with the provisions of theCompanies Act, 1956 and the Rules made thereunder.
8. The Company has no accumulated losses as at the end of the financial year and it hasnot incurred any cash losses in the financial year ended on that date or in theimmediately preceding financial year.
9. As the Company does not have any borrowings from any financial institution or banknor has it issued any debentures as at the Balance Sheet date, the provisions of clause3(ix) of the Order are not applicable to the Company.
10. In our opinion, and according to the information and explanations given to us, theCompany has not given any guarantee for loans taken by others from banks or financialinstitutions during the year. Accordingly, the provisions of clause 3(x) of the Order arenot applicable to the Company.
11. The Company has not raised any term loans. Accordingly, the provisions of clause3(xi) of the Order are not applicable to the Company.
12. 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, andaccording to the information and explanations given to us, we have neither come across anyinstance of material fraud on or by the Company, noticed or reported during the year, norhave we been informed of any such case by the Management.
For Dalal & Shah
Firm Registration Number: 102021W
Russell I Parera
Membership Number: 42190
Pune: 21 May 2015