Maruti Suzuki India Ltd

BSE: 532500 | NSE: MARUTI | ISIN: INE585B01010 
Market Cap: [Rs.Cr.] 1,01,382.58 | Face Value: [Rs.] 5
Industry: Automobiles - Passenger Cars

Auditor's Report
INDEPENDENT AUDITORS

To the Members of Maruti Suzuki India Limited

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 March2014, and the Statement of Profit and Loss and Cash Flow Statement for the year thenended, 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 financialstatements that give a true and fair view of the financial position, financial performanceand cash flows of the Company in accordance with the Accounting Standards referred to insub-section (3C) of section 211 of ‘the Companies Act, 1956’ of India (the"Act") and Accounting Standard 30, Financial Instruments: Recognition andMeasurement issued by the Institute of Chartered Accountants of India to the extent itdoes not contradict any other accounting standard referred to in sub-section (3C) ofSection 211 of the Act/ issued pursuant to the Companies (Accounting Standards) Rules,2006 as per Section 211(3C) of the Companies Act, 1956 read with the General Circular15/2013 dated 13th September 2013 of the Ministry of Corporate Affairs inrespect of Section 133 of the Companies Act, 2013. This responsibility includes thedesign, implementation and maintenance of internal control relevant to the preparation andpresentation of the financial statements that give a true and fair view and are free frommaterial misstatement, whether due to fraud or error.

AUDITORS’ RESPONSIBILITY

3. Our responsibility is to express an opinion on these financial statements based onour audit. We conducted our audit in accordance with the Standards on Auditing and otherapplicable authoritative pronouncements issued by the Institute of Chartered Accountantsof India. Those Standards require that we comply with ethical requirements and plan andperform the audit to obtain reasonable assurance about whether the financial statementsare free from material misstatement.

4. An audit involves performing procedures to obtain audit evidence, about the amountsand 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 auditors consider internal control relevant to the Company’s preparation and fairpresentation of the financial statements in order to design audit procedures that areappropriate in the circumstances but not for the purpose of expressing an opinion on theeffectiveness of the entity’s internal control. An audit also includes evaluating theappropriateness of accounting policies used and the reasonableness of the accountingestimates made by Management, as well as evaluating the overall presentation of thefinancial statements.

5. We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion.

OPINION

6. In our opinion, and to the best of our information and according to the explanationsgiven to us, the accompanying financial statements give the information required by theAct in the manner so required and give a true and fair view 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 31stMarch 2014;

(b) in the case of the Statement of Profit and Loss, of the profit for the year endedon that date; and

(c) in the case of the Cash Flow Statement, of the cash flows for the year ended onthat date.

EMPHASIS OF MATTER

7. We draw attention to Note 32 (vii) to the financial statements regarding demandsreceived from Haryana State Industrial & Infrastructure Development CorporationLimited ("HSIIDC") towards enhanced compensation for the Company’s freeholdland at Manesar amounting to Rs 7,496 million and Rs 1,376 million. In respect of thedemand 0f Rs 7,496 million; pursuant to the Supreme Court of India setting aside thejudgment of and remitting the case back to the Punjab & Haryana High Court ("HighCourt") for fresh determination of the compensation amount payable to the landowners,the Company has filed an impleadment application before the High Court. In respect of thedemand for Rs 1,376 million; the Company’s appeal with the High Court is pendingadjudication. In respect of the aforesaid demands, the Company has made a payment of Rs3,700 million to HSIIDC under protest. As the amount(s), if any, of the final priceadjustment(s) is/ are not determinable at this stage, no provision is considered necessarytowards enhanced compensation for the aforesaid freehold land.

REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS

8. As required by ‘the Companies (Auditor’s Report) Order, 2003’, asamended by ‘the Companies (Auditor’s Report) (Amendment) Order, 2004’,issued by the Central Government of India in terms of subsection (4A) of section 227 ofthe Act (hereinafter referred to as the "Order"), and on the basis of suchchecks of the books and records of the Company as we considered appropriate and accordingto the information and explanations given to us, we give in the Annexure a statement onthe matters specified in paragraphs 4 and 5 of the Order.

9. As required by section 227(3) of the Act, we report that:

(a) We have obtained all the information and explanations which, to the best of ourknowledge 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 theCompany so far as appears from our examination of those books;

(c) The Balance Sheet, Statement of Profit and Loss and Cash Flow Statement dealt withby this Report are in agreement with the books of account;

(d) In our opinion, the Balance Sheet, Statement of Profit and Loss,and Cash FlowStatement dealt with by this report comply with the Accounting Standards referred to insub-section (3C) of Section 211 of the Act and Accounting Standard 30, FinancialInstruments: Recognition and Measurement issued by the Institute of Chartered Accountantsof India to the extent it does not contradict any other accounting standard referred to insubsection (3C) of Section 211 of the Act/ issued pursuant to the Companies (AccountingStandards) Rules, 2006 as per Section 211(3C) of the Companies Act, 1956 read with theGeneral Circular 15/2013 dated 13th September 2013 of the Ministry of CorporateAffairs in respect of Section 133 of the Companies Act, 2013;

(e) On the basis of written representations received from the directors as on 31stMarch 2014, and taken on record by the Board of Directors, none of the directors isdisqualified as on 31st March 2014, from being appointed as a director in termsof clause (g) of sub-section (1) of section 274 of the Act.

For Price Waterhouse
Firm Registration Number: 301112E
Chartered Accountants
ABHISHEK RARA
Place: New Delhi Partner
Date: 25th April 2014 Membership Number - 077779

ANNEXURE TO AUDITORS’ REPORT

Referred to in paragraph 8 of the Auditors’ Report of even date to the members ofMaruti Suzuki India Limited on the financial statements as of and for the year ended 31stMarch 2014

i. (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, except furniture and fixtures, officeappliances and certain other assets having an aggregate net book value of Rs 1,412million, over a period of three years which, in our opinion, is reasonable having regardto the size of the Company and the nature of its assets. Pursuant to the programme, aportion of the fixed assets has been physically verified by the Management during the yearand no material discrepancies have been noticed on such verification.

(c) In our opinion and according to the information and explanations given to us, asubstantial part of fixed assets has not been disposed off by the Company during the year.

ii. (a) The inventory, excluding stocks with third parties, has been physicallyverified by the Management during the year. In respect of inventory lying with thirdparties, these have substantially been confirmed by them. In our opinion, the frequency ofverification is 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.

iii. (a) The Company has not granted any secured/ unsecured loans, to companies / firms/ other parties covered in the register maintained under Section 301 of the Act.Accordingly, the provisions of clause 4(iii) (b),(c) and (d) of the said Order are notapplicable to the Company.

(e) The Company has taken unsecured loan from its holding company Suzuki MotorCorporation covered in the register maintained under Section 301 of the Act. The maximumamount involved during the year and the year-end balance of such loans aggregated to Rs1,741 million and Rs 1,666 million, respectively.

(f) In our opinion, the rate of interest and other terms and conditions of such loansare not prima facie prejudicial to the interest of the Company.

(g) In respect of the aforesaid loans, as per the repayment schedule, the Company wouldbegin repayments from September 2014.

iv. In our opinion, and according to the information and explanations given to us,having regard to the explanation that except for certain items of inventory purchasedwhich are of special nature for which suitable alternative sources do not exist forobtaining comparative quotations, there is an adequate internal control systemcommensurate with the size of the Company and the nature of its business for the purchaseof inventory and fixed assets and for the sale of goods and services. Further, on thebasis of our examination of the books and records of the Company, and according to theinformation and explanations given to us, we have neither come across, nor have beeninformed of, any continuing failure to correct major weaknesses in the aforesaid internalcontrol system.

v. (a) According to the information and explanations given to us, we are of the opinionthat the particulars of all contracts or arrangements that need to be entered into theregister maintained under section 301 of the Companies Act, 1956 have been so entered.

(b) In our opinion and according to the information and explanations given to us, thetransactions made in pursuance of such contracts or arrangements and exceeding the valueof Rupees Five Lakhs amounted to Rs 42,444 millions in respect of purchase of goodsincluding components and services from the holding company where we are unable to commentas there are no comparable market prices available being goods including components andservices of specialized nature.

vi. The Company has not accepted any deposits from the public within the meaning ofSections 58A and 58AA of the Act and the rules framed there under .

vii. In our opinion, the Company has an internal audit system commensurate with itssize and the nature of its business.

viii. We have broadly reviewed the books of account maintained by the Company inrespect 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) ofSection 209 of the Act, and are of the opinion that, prima facie, the prescribed accountsand records have been made and maintained. We have not, however, made a detailedexamination 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 ofthe Company examined by us, in our opinion, the Company is regular in depositing theundisputed statutory dues, including provident fund, investor education and protectionfund, employees’ state insurance, income tax, sales tax, wealth tax, service tax,customs duty, excise duty and other material statutory dues, as applicable, with theappropriate authorities.

(b) According to the information and explanations given to us and the records of theCompany 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 2014 which have notbeen deposited on account of a dispute, are as follows:

Name of the statute (Nature of dues) Amount under dispute Amount deposited under dispute Period to which the amount relates Forum where the dispute is pending
Income Tax Act, 1961 (Tax & Interest) 20,910 7,135 1991 to 2014 Income Tax Appellate Tribunal/ High Court/ AO(TDS)
Wealth Tax Act, 1957 (Tax) 1 1 1997 to 1998 High Court
Haryana General Sales Tax Act (Tax & Interest) 3 - 1983 to 1988 Assessing Authority
Delhi Sales Tax Act (Tax) 50 2 1987 to 1991 Additional Commissioner
The Central Excise Act, 1944 (Duty, Interest & Penalty) 14,773 378 April 1986 to March 2013 CIT(A)/Customs Excise & Service Tax Appellate Tribunal/ High Court/ Supreme Court
The Finance Act, 1994 (Service Tax, Interest & Penalty) 4,638 14 April 2002 to December 2013 CIT(A)/Customs Excise & Service Tax Appellate Tribunal/Commissioner (Appeals)
Customs Act, 1962 (Duty & Interest) 27 22 February 2003 to August 2003 Customs Excise & Service Tax Appellate Tribunal

x. 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.

xi. According to the records of the Company examined by us and the information andexplanation given to us, the Company has not defaulted in repayment of dues to anyfinancial 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 wayof pledge of shares, debentures and other securities. Therefore, the provisions of Clause4(xii) of the Order are not applicable to the Company.

xiii. As the provisions of any special statute applicable to chit fund/ nidhi/ mutualbenefit fund/ societies are not applicable to the Company, the provisions of Clause4(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 theOrder are not applicable to the Company.

xv. 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 4(xv) of the Order arenot applicable to the Company.

xvi. In our opinion, and according to the information and explanations given to us, theterm loans have been applied, on an overall basis, for the purposes for which they wereobtained. xvii. According to the information and explanations given to us and on anoverall examination of the balance sheet of the company, in our opinion, there are nofunds raised on short-term basis which have been used for long-term investment.

xviii. The Company has not made any preferential allotment of shares to parties andcompanies 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 theCompany.

xix. The Company has not issued any debentures during the year and does not have anydebentures outstanding as at the beginning of the 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, andaccording to the information and explanations given to us, we have neither come across anyinstance of fraud on or by the Company, noticed or reported during the year, nor have webeen informed of any such case by the Management.

For Price Waterhouse
Firm Registration Number: 301112E
Chartered Accountants
ABHISHEK RARA
Place: New Delhi Partner
Date: 25th April 2014 Membership Number - 077779
   
Futures & Options Quote
Expiry Date :
2,502.50    [8.15] ([0.32]%)
Instrument: FUTSTK
Expiry Date: 31-Jul-2014
Open Price: 2,519
Average Price: 2,514.88
No. of Contracts Traded: 7,169
Open Interest: 10,32,625
Underlying: MARUTI
Market Lot: 125
Previous Close: 2,502.50
Day's High | Low: 2,530.25 | 2,495
Turnover (Cr.): 225.36
Open Int. Change: -2,91,750 ([22.03]% )
Key Information

Key Executives:

O Suzuki , Director

R C Bhargava , Chairman

Amal Ganguli , Director

D S Brar , Director


Company Head Office / Quarters:

Plot No 1 Nelson Mandela Road,
Vasant Kunj,
New Delhi,
New Delhi-110070
Phone : New Delhi-91-11-46781000 / New Delhi-
Fax : New Delhi-91-11-46150275/6 / New Delhi-
E-mail : msilinvestorrelations@maruti.co.in
Web : http://www.marutisuzuki.com

Registrars:

Karvy Computershare Pvt Ltd
Plot No 17-24 ,Vittal Rao Nagar ,Madhapur ,Hyderabad-500081

 
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