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Goodyear India Ltd.

BSE: 500168 Sector: Auto
NSE: GOODYEAR ISIN Code: INE533A01012
BSE LIVE 09:40 | 24 Aug 816.75 -3.25
(-0.40%)
OPEN

812.10

HIGH

817.95

LOW

812.05

NSE 05:30 | 01 Jan Stock Is Not Traded.
OPEN 812.10
PREVIOUS CLOSE 820.00
VOLUME 214
52-Week high 944.65
52-Week low 530.00
P/E 16.45
Mkt Cap.(Rs cr) 1,884
Buy Price 815.60
Buy Qty 10.00
Sell Price 817.95
Sell Qty 3.00
OPEN 812.10
CLOSE 820.00
VOLUME 214
52-Week high 944.65
52-Week low 530.00
P/E 16.45
Mkt Cap.(Rs cr) 1,884
Buy Price 815.60
Buy Qty 10.00
Sell Price 817.95
Sell Qty 3.00

Goodyear India Ltd. (GOODYEAR) - Auditors Report

Company auditors report

TO THE MEMBERS OF GOODYEAR INDIA LIMITED

Report on the Indian Accounting Standards (Ind AS) Financial Statements

1. We have audited the accompanying financial statements of Goodyear India Limited(“the Company”) which comprise the Balance Sheet as at March 31 2017 theStatement of Profit and Loss (including Other Comprehensive Income) the Cash FlowStatement and the Statement of Changes in Equity for the year then ended and a summary ofthe significant accounting policies and other explanatory information.

Management's Responsibility for the Ind AS Financial Statements

2. The Company's Board of Directors is responsible for the matters stated in Section134(5) of the Companies Act 2013 (“the Act”) with respect to the preparation ofthese Ind AS financial statements to give a true and fair view of the financial positionfinancial performance (including other comprehensive income) cash flows and changes inequity of the Company in accordance with the accounting principles generally accepted inIndia including the Indian Accounting Standards specified in the Companies (IndianAccounting Standards) Rules 2015 (as amended) under Section 133 of the Act. Thisresponsibility also includes maintenance of adequate accounting records in accordance withthe provisions of the Act for safeguarding of the assets of the Company and for preventingand detecting frauds and other irregularities; selection and application of appropriateaccounting policies; making judgments and estimates that are reasonable and prudent; anddesign implementation and maintenance of adequate internal financial controls that wereoperating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the Ind AS financial statementsthat give a true and fair view and are free from material misstatement whether due tofraud or error.

Auditors' Responsibility

3. Our responsibility is to express an opinion on these Ind AS financial statementsbased on our audit.

4. We have taken into account the provisions of the Act and the Rules made thereunderincluding the accounting and auditing standards and matters which are required to beincluded in the audit report under the provisions of the Act and the Rules madethereunder.

5. We conducted our audit of the Ind AS financial statements in accordance with theStandards on Auditing specified under Section 143(10)of the Act and other applicableauthoritative pronouncements issued by the Institute of Chartered Accountants of India.Those Standards and pronouncements require that we comply with ethical requirements andplan and perform the audit to obtain reasonable assurance about whether the Ind ASfinancial statements are free from material misstatement.

6. An audit involves performing procedures to obtain audit evidence about the amountsand the disclosures in the Ind AS financial statements. The procedures selected depend onthe auditors' judgment including the assessment of the risks of material misstatement ofthe Ind AS financial statements whether due to fraud or error. In making those riskassessments the auditor considers internal financial control relevant to the Company'spreparation of the Ind AS financial statements that give a true and fair view in order todesign audit procedures that are appropriate in the circumstances. An audit also includesevaluating the appropriateness of the accounting policies used and the reasonableness ofthe accounting estimates made by the Company's Directors as well as evaluating theoverall presentation of the Ind AS 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 Ind AS financial statements.

Opinion

8. In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid Ind AS financial statements give the information required bythe 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 March 31 2017 and its profit (including other comprehensive income) its cashflows and the changes in equity for the year ended on that date.

Emphasis of Matter

9. We draw attention to Note 28 to the Ind AS financial statements regarding theSupreme Court's judgement in respect of the authority of the State to levy an ‘entrytax'. The Company has sought legal advice with regard to leviability of tax as notified bythe Haryana Government in view of the parameters defined in the Supreme Court judgement.Considering the legal advice and uncertainties associated the Company has currentlyassessed the obligation towards entry tax as a contingent liability which is notquantifiable as the enabling rules have not been notified and the company has not receivedany notices or demands.

Our conclusion is not qualified in respect of this matter.

Other Matter

10. The financial information of the Company for the 15 months period from January 12015 to March 31 2016 and the transition date opening balance sheet as at January 1 2015included in these Ind AS financial statements are based on the previously issuedstatutory financial statements for the 15 months period from January 1 2015 to March 312016 and the year ended December 31 2014 prepared in accordance with the Companies(Accounting Standards) Rules 2006 (as amended) which were audited by us on which weexpressed an unmodified opinion dated May 30 2016 and February 27 2015 respectively. Theadjustments to those financial statements for the differences in accounting principlesadopted by the Company on transition to the Ind AS have been audited by us.

Our opinion is not qualified in respect of this matter.

Report on Other Legal and Regulatory Requirements

11. As required by the Companies (Auditor's Report) Order 2016 issued by the CentralGovernment of India in terms of subsection (11) of section 143 of the Act (“theOrder”) and on the basis of such checks of the books and records of the Company aswe considered appropriate and according to the information and explanations given to uswe give in the Annexure B a statement on the matters specified in paragraphs 3 and 4 ofthe Order.

12. 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. However the back up ofthe books of accounts and other books and papers maintained in electronic mode has notbeen maintained on servers physically located in India.

(c) The Balance Sheet the Statement of Profit and Loss (including other comprehensiveincome) the Cash Flow Statement and the Statement of Changes in Equity dealt with by thisReport are in agreement with the books of account.

(d) In our opinion the aforesaid Ind AS financial statements comply with the IndianAccounting Standards specified under Section 133 of the Act.

(e) On the basis of the written representations received from the directors as on March31 2017 taken on record by the Board of Directors none of the directors is disqualifiedas on March 31 2017 from being appointed as a director in terms of Section 164 (2) of theAct.

(f) With respect to the maintenance of accounts and other matters connected therewithreference is made to our comment in Paragraph 10 (b) above that the back up of the booksof accounts and other books and papers maintained in electronic mode has not beenmaintained on servers physically located in India.

(g) With respect to the adequacy of the internal financial controls over financialreporting of the Company and the operating effectiveness of such controls refer to ourseparate Report in Annexure A.

(h) 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 March 312017 on its financial position in its Ind AS financial statements – Refer Notes 6 11and 28 to the Ind AS financial statements;

ii The Company does not have derivative contracts and in respect of other long-termcontracts there are no material foreseeable losses as at March 31 2017;

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 March 312017.

iv The Company has provided requisite disclosures in the financial statements as toholdings as well as dealings in Specified Bank Notes (SBN) during the period from November8 2016 to December 30 2016 including information about exchange of SBN of ‘Rs. 500denomination' with SBN of ‘Rs. 1000 denomination'. Based on audit procedures andrelying on the management representation we report that the disclosures are in accordancewith books of account maintained by the Company and as produced to us by the Managementas explained in Note 5(e) to the Ind AS financial statements.

For Price Waterhouse & Co Bangalore LLP
Firm Registration Number: 007567S/ S-200012
Chartered Accountants
Abhishek Rara
New Delhi Partner
May 26 2017 Membership Number 077779

Annexure A to Independent Auditors' Report

Referred to in paragraph 12 (g) of the Independent Auditors' Report of even date to themembers of Goodyear India Limited on the Ind AS financial statements for the year endedMarch 31 2017

Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143 of the Act

1. We have audited the internal financial controls over financial reporting of GoodyearIndia Limited (“the Company”) as of March 31 2017 in conjunction with our auditof the Ind AS financial statements of the Company for the year ended on that date.

Management's Responsibility for Internal Financial Controls

2. The Company's management is responsible for establishing and maintaining internalfinancial controls based on the internal control over financial reporting criteriaestablished by the Company considering the essential components of internal control statedin the Guidance Note on Audit of Internal Financial Controls Over Financial Reportingissued by the Institute of Chartered Accountants of India (ICAI). These responsibilitiesinclude the design implementation and maintenance of adequate internal financial controlsthat were operating effectively for ensuring the orderly and efficient conduct of itsbusiness including adherence to company's policies the safeguarding of its assets theprevention and detection of frauds and errors the accuracy and completeness of theaccounting records and the timely preparation of reliable financial information asrequired under the Act.

Auditors' Responsibility

3. Our responsibility is to express an opinion on the Company's internal financialcontrols over financial reporting based on our audit. We conducted our audit in accordancewith the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting(the “Guidance Note”) and the Standards on Auditing deemed to be prescribedunder section 143(10) of the Act to the extent applicable to an audit of internalfinancial controls both applicable to an audit of internal financial controls and bothissued by the ICAI. Those Standards and the Guidance Note require that we comply withethical requirements and plan and perform the audit to obtain reasonable assurance aboutwhether adequate internal financial controls over financial reporting was established andmaintained and if such controls operated effectively in all material respects.

4. Our audit involves performing procedures to obtain audit evidence about the adequacyof the internal financial controls system over financial reporting and their operatingeffectiveness. Our audit of internal financial controls over financial reporting includedobtaining an understanding of internal financial controls over financial reportingassessing the risk that a material weakness exists and testing and evaluating the designand operating effectiveness of internal control based on the assessed risk. The proceduresselected depend on the auditor's judgement including the assessment of the risks ofmaterial misstatement of the financial statements whether due to fraud or error.

5. We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Company's internal financial controls systemover financial reporting.

Meaning of Internal Financial Controls Over Financial Reporting

6. A company's internal financial control over financial reporting is a processdesigned to provide reasonable assurance regarding the reliability of financial reportingand the preparation of financial statements for external purposes in accordance withgenerally accepted accounting principles. A company's internal financial control overfinancial reporting includes those policies and procedures that (1) pertain to themaintenance of records that in reasonable detail accurately and fairly reflect thetransactions and dispositions of the assets of the company; (2) provide reasonableassurance that transactions are recorded as necessary to permit preparation of financialstatements in accordance with generally accepted accounting principles and that receiptsand expenditures of the company are being made only in accordance with authorisations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorised acquisition use or disposition of thecompany's assets that could have a material effect on the financial statements.

Inherent Limitations of Internal Financial Controls Over Financial Reporting

7. Because of the inherent limitations of internal financial controls over financialreporting including the possibility of collusion or improper management override ofcontrols material misstatements due to error or fraud may occur and not be detected.Also projections of any evaluation of the internal financial controls over financialreporting to future periods are subject to the risk that the internal financial controlover financial reporting may become inadequate because of changes in conditions or thatthe degree of compliance with the policies or procedures may deteriorate.

Opinion

8. In our opinion the Company has in all material respects an adequate internalfinancial controls system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at March 31 2017 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note on Audit ofInternal Financial Controls Over Financial Reporting issued by the Institute of CharteredAccountants of India.

For Price Waterhouse & Co Bangalore LLP
Firm Registration Number: 007567S/ S-200012
Chartered Accountants
Abhishek Rara
New Delhi Partner
May 26 2017 Membership Number 077779

Annexure B to Independent Auditors' Report

Referred to in paragraph 11 of the Independent Auditors' Report of even date to themembers of Goodyear India Limited on the Ind AS financial statements as of and for theyear ended March 31 2017

i. (a) The Company is maintaining proper records showing full particulars includingquantitative details and situation of property plant and equipment and intangibleassets.

(b) The property plant and equipment are physically verified by the Managementaccording to a phased programme designed to cover all the items over a period of threeyears which in our opinion is reasonable having regard to the size of the Company andthe nature of its assets. Pursuant to the programme a portion of the fixed assets hasbeen physically verified by the Management during the year and no material discrepancieshave been noticed on such verification.

(c) The title deeds of immovable properties as disclosed in Note 3 on property plantand equipment to the financial statements are held in the name of the Company.

ii. The physical verification of inventory including stocks with third parties havebeen conducted at reasonable intervals by the Management during the year. Thediscrepancies noticed on physical verification of inventory as compared to book recordswere not material and have been appropriately dealt with in the books of accounts.

iii. The Company has not granted any loans secured or unsecured to companies firmsLimited Liability Partnerships or other parties covered in the register maintained underSection 189 of the Act. Therefore the provisions of Clause 3(iii) (iii)(a) (iii)(b) and(iii)(c) of the said Order are not applicable to the Company.

iv. The Company has not granted any loans or made any investments or provided anyguarantees or security to the parties covered under Section 185 and 186. Therefore theprovisions of Clause 3(iv) of the said Order are not applicable to the Company.

v. 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.

vi. Pursuant to the rules made by the Central Government of India the Company isrequired to maintain cost records as specified under Section 148(1) of the Act in respectof its products. We have broadly reviewed the same and are of the opinion that primafacie the prescribed accounts and records have been made and maintained. We have nothowever made a detailed examination of the records with a view to determine whether theyare accurate or complete.

vii. (a) According to the information and explanations given to us and the records ofthe Company examined by us in our opinion the Company is generally regular in depositingundisputed statutory dues in respect of provident fund employees' state insurance incometax service tax duty of excise value added tax though there has been a slight delay ina few cases and is regular in depositing undisputed statutory dues including sales taxduty of customs cess 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 there are no dues of duty of customs which have not been depositedon account of any dispute. The particulars of dues of income tax sales tax service taxduty of excise and value added tax as at March 31 2017 which have not been deposited onaccount of a dispute are as follows:

Name of the statute Nature of dues Amount (Rs. in lakhs) Period to which the amount relates Forum where the dispute is pending
Central and State Sales Tax/Value 316 1979-1980; First level of Appellate Authority i.e. Assistant
Tax Acts Added Tax (Net of payment under protest of 31) 1987-1988; Commissioner/ Deputy Commissioner/ Joint
1997-1998; Commissioner/ Commissioner/ Commercial
2000-2016 Tax Appellate and Revisional Board
29 2003-2004; Sales Tax Tribunal
(Net of payment under protest of 10) 2006-2007; 2008-2010 1978-1979; 2002-04; 2008-09 1997-1998
(Net of payment under protest of 14) High Court
The Central Excise Act 1944 and Excise Duty/ Service Tax 102 (Net of payment under protest of 103) Supreme Court of India
Finance Act 1994 19 1997-1998 High Court
1299 1997-1999 The Customs Excise and Service Tax
(Net of payment under protest of 411) 2004-2015 Appellate Tribunal (CESTAT)
230 2005-2015 Commissioner (Appeals)
(Net of payment under protest of 4)
The Income Tax Income Tax Nil 1971-76 Supreme Court of India
Act 1961 (Net of payment under protest of 32)
631 2005-2009 High Court
(Net of payment under protest of 513)
3726 2004-2007: The Income Tax Appellate Tribunal
(Net of payment under protest of 200) 2009-2012

viii. As the Company does not have any loans or borrowings from any financialinstitution or bank or Government nor has it issued any debentures as at the balancesheet date the provisions of Clause 3(viii) of the Order are not applicable to theCompany.

ix. The Company has not raised any moneys by way of initial public offer furtherpublic offer (including debt instruments) and term loans. Accordingly the provisions ofClause 3(ix) of the Order are not applicable to the Company.

x. During the course of our examination of the books and records of the Companycarried 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 by the Company or on the Company by its officers or employeesnoticed or reported during the year nor have we been informed of any such case by theManagement.

xi. The Company has paid/ provided for managerial remuneration in accordance with therequisite approvals mandated by the provisions of Section 197 read with Schedule V to theAct.

xii. As the Company is not a Nidhi Company and the Nidhi Rules 2014 are not applicableto it the provisions of Clause 3(xii) of the Order are not applicable to the Company.

xiii. The Company has entered into transactions with related parties in compliance withthe provisions of Sections 177 and

188 of the Act. The details of such related party transactions have been disclosed inthe financial statements as required under Indian Accounting Standard (Ind AS) 24 RelatedParty Disclosures specified in the Companies (Indian Accounting Standards) Rules 2015 (asamended) under Section 133 of the Act.

xiv. The Company has not made any preferential allotment or private placement of sharesor fully or partly convertible debentures during the year under review. Accordingly theprovisions of Clause 3(xiv) of the Order are not applicable to the Company.

xv. The Company has not entered into any non cash transactions with its directors orpersons connected with him. Accordingly the provisions of Clause 3(xv) of the Order arenot applicable to the Company.

xvi. The Company is not required to be registered under Section 45-IA of the ReserveBank of India Act 1934. Accordingly the provisions of Clause 3(xvi) of the Order are notapplicable to the Company.

For Price Waterhouse & Co Bangalore LLP
Firm Registration Number: 007567S/ S-200012
Chartered Accountants
Abhishek Rara
New Delhi Partner
May 26 2017 Membership Number 077779