TVS Motor Company Ltd

BSE: 532343 | NSE: TVSMOTOR | ISIN: INE494B01023 
Market Cap: [Rs.Cr.] 10,262.16 | Face Value: [Rs.] 1
Industry: Automobiles - Motorcycles / Mopeds

Auditor's Report
INDEPENDENT AUDITORS

FOR THE YEAR ENDED 31ST MARCH 2014

To the members of TVS Motor Company Limited

Report on the Financial Statements

We have audited the accompanying financial statements of TVS Motor Company Limited,Chennai ("the Company"), which comprise of the Balance Sheet as at 31stMarch 2014, 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.

Management's Responsibility for the Financial Statements

Management is responsible for the preparation of these financial statements that give atrue and fair view of the financial position, financial performance and cash flows of theCompany in accordance with the Accounting Standards referred to in sub-section (3C) ofSection 211 of the Companies Act, 1956 ("the Act"). This responsibility includesthe design, implementation and maintenance of internal control relevant to the preparationand presentation of the financial statements that give a true and fair view and are freefrom material misstatement, whether due to fraud or error.

Auditors' Responsibility

Our responsibility is to express an opinion on these financial statements based on ouraudit. We conducted our audit in accordance with the Standards on Auditing issued by theInstitute of Chartered Accountants of India. Those Standards require that we comply withethical requirements and plan and perform the audit to obtain reasonable assurance aboutwhether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts anddisclosures in the financial statements. The procedures selected depend on the auditor'sjudgment, including the assessment of the risks of material misstatement of the financialstatements, whether due to fraud or error. In making those risk assessments, the auditorconsiders internal control relevant to the Company's preparation and fair presentation ofthe financial statements in order to design audit procedures that are appropriate in thecircumstances but not for the purpose of expressing an opinion on the effectiveness of theentity's internal control. An audit also includes evaluating the appropriateness ofaccounting policies used and the reasonableness of the accounting estimates made bymanagement, as well as evaluating the overall presentation of the financial statements.

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

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us, the financial statements give the information required by the Act in themanner so required and give a true and fair view in conformity with the accountingprinciples 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 ended onthat date; and

c) in the case of the Cash Flow Statement, of the cash flows for the year ended on thatdate.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor's Report) Order, 2003 ("the Order")issued by the Central Government of India in terms of sub-section (4A) of Section 227 ofthe Act, we give in the Annexure a statement on the matters specified in paragraphs 4 and5 of the Order.

2. 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 comply with the Accounting Standards referred to in subsection (3C) of Section211 of the Companies Act, 1956; and

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 subsection (1) of Section 274 of the Companies Act, 1956.

For V. Sankar Aiyar & Co
Chartered Accountants
Firm Regn. No.: 109208W
S. VENKATRAMAN
Place: Bengaluru Partner
Date : 29th April 2014 Membership No.: 34319

Annexure referred to in our report of even date on the accounts for the year ended 31stMarch 2014.

(i) (a) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.

(b) Fixed assets are physically verified by the management at reasonable intervals. Inour opinion, the frequency of verification is reasonable having regard to the size of theCompany and the nature of its assets. No material discrepancies as compared to bookrecords were noticed on such verification.

(c) Since the disposal of fixed assets during the year is not substantial, thepreparation of financial statements on a going concern basis is not affected on thisaccount.

(ii) (a) The inventories have been physically verified by the management during theyear. In our opinion, the frequency of physical verification is reasonable.

(b) In our opinion and according to the information and explanations given to us, theprocedures for physical verification of inventory followed by the management arereasonable and adequate in relation to the size of the Company and the nature of itsbusiness.

(c) In our opinion, the Company has maintained proper records of inventory. Thediscrepancies between the physical stocks and the book stocks were not material and havebeen properly dealt with in the books of account.

(iii) (a) The Company has granted loans and advances to two Companies covered in theregister maintained under Section 301 of the Act. The maximum amount involved during theyear was Rs.54.57 crores and the year end balance aggregates to Rs.48.07 crores.

The Company has also granted interest free loan of Rs. 0.10 crores to a wholly ownedsubsidiary.

(b) In our opinion, the rate of interest and other terms and conditions on which suchloans and advances were granted, are not prima facie prejudicial to the interest of theCompany.

(c) The recovery of principal amount and interest thereon, as stipulated, are regular.

(d) During the year, the Company has not taken loan from any party covered in theregister maintained under Section 301 of the Act.

(iv) In our opinion and according to the information and explanations given to us,having regard to the explanation that some of the items are of special nature and suitablealternative sources are not available for obtaining comparable quotation, there areadequate internal control procedures commensurate with the size of the Company and thenature of its business, with regard to purchase of inventory, fixed assets and for thesale of goods and services. During the course of our audit, we have not observed anycontinuing failure to correct major weaknesses in the internal control system.

(v) (a) Based on the audit procedures applied by us and according to the informationand explanations provided by the management, we are of the opinion, that the contracts orarrangements that need to be entered in the register maintained under Section 301 of theAct, 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 of the Act and exceedingthe value by rupees five lakhs during the year in respect of each party have been made atprices which are reasonable having regard to the prevailing market prices at the relevanttime.

(vi) According to the information and explanations given to us, the Company has notaccepted any deposits from the public. Therefore, the provisions of Clause (vi) of thepara 4 of the Order are not applicable to the Company.

(vii) The Company has an Internal Audit System, which in our opinion is commensuratewith its size and nature of its business.

(viii) The Central Government has prescribed maintenance of cost records under Section209(1)(d) of the Act in respect of certain products manufactured by the Company. We havebroadly reviewed the books of account maintained by the Company pursuant to the rules madeby the Central Government for the maintenance of cost records under Section 209(1)(d) ofthe Act and are of the opinion that, prima facie, the prescribed accounts and records havebeen made and maintained.

(ix) (a) According to the records of the Company, the Company is generally regular indepositing undisputed statutory dues including Provident Fund, Employees' State Insurance,Investor Education and Protection Fund, Income Tax, Sales Tax, Wealth Tax, Service Tax,Customs Duty, Excise Duty and Cess and other statutory dues with the appropriateauthorities.

(b) According to the information and explanations given to us, no undisputed amountspayable in respect of Income Tax, Sales Tax, Wealth Tax, Service Tax, Customs Duty, ExciseDuty and Cess were in arrears as at 31st March 2014 for a period of more thansix months from the date they became payable.

(c) According to the information and explanations given to us and the records of theCompany, the dues of Sales Tax / Income Tax / Customs Duty / Wealth Tax / Service Tax /Excise Duty / Cess, which have not been deposited on account of any dispute are asfollows:-

Name of the Statute/ (Nature of dues) Period of dues Amount Forum where dispute is pending
(Rs. in Cr)
Central Excise Act, 1944 (Cenvat/Excise Duty) 1986-2011 31.86 Central Excise and Service Tax Appellate Tribunal, Chennai
1998-2013 19.43 Assistant/Deputy/ Commissioner of Central Excise, Hosur and Mysore
2008-2010 0.07 Hon'ble High Court of Karnataka
2005-2012 10.11 Hon'ble Supreme Court
Finance Act, 1994 (Service Tax) 1999-2012 4.26 Assistant/Deputy/Commissioner of Central Excise, Hosur and Mysore
Customs Act, 1962 (Customs Duty) 2011-2012 0.06 Assistant/Deputy/ Commissioner of Central Excise, Hosur and Mysore
1999-2001 1.87 Hon'ble High Court of Judicature at Madras
Sales Tax / VAT Laws (Sales Tax) 1998-2010 1.29 Department Authorities
1997-2010 0.47 Tribunals
1995-1998 0.05 Hon'ble High Court of Orissa
2008-2009 0.60 Hon'ble Supreme Court
Income Tax Act, 1961 (Income Tax and Interest thereon) 2009-2010 106.31 Commissioner of Income Tax (Appeals)

(x) The Company does not have any accumulated losses at the end of the financial year.The Company has not incurred any cash losses during the financial year covered by ouraudit and in the immediately preceding financial year.

(xi) On the basis of verification of records and according to the information andexplanations given to us, the Company has not defaulted in repayment of dues to FinancialInstitutions/Banks.

(xii) The Company has not granted any loans and advances on the basis of security byway of pledge of shares, debentures and other securities.

(xiii) The Company is not a chit fund or a nidhi or a mutual fund society. Therefore,the provisions of sub-para (xiii) of para 4 of the Order are not applicable to theCompany.

(xiv) The Company is not dealing or trading in shares, securities, debentures and otherinvestments other than in mutual fund investments. Proper records have been maintained inrespect of these mutual fund investments and timely entries have been made therein. Theinvestments have been held by the Company in its own name except to the extent ofexemption granted under Section 49 of the Act, in respect of shares held in subsidiarycompanies through the nominees.

(xv) In our opinion and according to the information and explanations given to us, theterms and conditions of guarantees given by the Company for loans taken by others are notprejudicial to the interest of the Company.

(xvi) In our opinion, the term loans availed have been utilised for the purpose forwhich they were raised.

(xvii) According to the information and explanations given to us, based on an overallexamination of the balance sheet of the Company and related information made available, wereport that funds raised on short term basis have not been used for long term investments.

(xviii) During the year, the Company has not made preferential allotment of any sharesto parties and Companies covered in the Register maintained under Section 301 of the Act.

(xix) During the year, the Company has not issued any secured debentures andaccordingly no securities were required to be created.

(xx) During the year, the Company has not raised any money by public issue. Therefore,the requirement of disclosure by the Management on the end use of money raised by publicissue and verification of the same is not applicable.

(xxi) Based upon the audit procedures performed for the purpose of reporting the trueand fair view of the financial statements and as per the information and explanationsgiven to us by the Management, no material fraud on or by the Company has been noticed orreported during the course of our audit.

For V. Sankar Aiyar & Co
Chartered Accountants
Firm Regn. No.: 109208W
S. VENKATRAMAN
Place: Bengaluru Partner
Date : 29th April 2014 Membership No.: 34319
   
Futures & Options Quote
Future Data Not present
Key Information

Key Executives:

Venu Srinivasan , Chairman & Managing Director

H Lakshmanan , Director

T Kannan , Director

C R Dua , Director


Company Head Office / Quarters:

Jayalakshmi Estates,
29(Old No 8) Haddows Road,
Chennai,
Tamil Nadu-600006
Phone : Tamil Nadu-91-044-28272233 / Tamil Nadu-
Fax : Tamil Nadu-91-044-28257121 / Tamil Nadu-
E-mail : ks.srinivasan@scl.co.in
Web : http://www.tvsmotor.in

Registrars:

Sundaram-Clayton Limited
Jayalakshmi Estates ,29 Haddows Road , ,Chennai - 600006

 
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