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Maharashtra Scooters Ltd.

BSE: 500266 Sector: Auto
NSE: MAHSCOOTER ISIN Code: INE288A01013
BSE LIVE 15:40 | 22 Aug 2258.25 -74.80
(-3.21%)
OPEN

2306.30

HIGH

2306.30

LOW

2250.25

NSE 15:44 | 22 Aug 2270.60 -52.90
(-2.28%)
OPEN

2312.15

HIGH

2312.15

LOW

2268.05

OPEN 2306.30
PREVIOUS CLOSE 2333.05
VOLUME 221
52-Week high 2449.00
52-Week low 1385.60
P/E 208.33
Mkt Cap.(Rs cr) 2,581
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 2306.30
CLOSE 2333.05
VOLUME 221
52-Week high 2449.00
52-Week low 1385.60
P/E 208.33
Mkt Cap.(Rs cr) 2,581
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Maharashtra Scooters Ltd. (MAHSCOOTER) - Auditors Report

Company auditors report

To

The Members of

Maharashtra Scooters Ltd.

Report on the Standalone Financial Statements

We have audited the accompanying standalone financial statements of MAHARASHTRASCOOTERS LTD. ("the Company") which comprise the Balance Sheet as at 31March 2017 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 Standalone Financial Statements

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 standalone financial statements that give a true and fair view of the financialposition financial performance and cash flows of the Company in accordance with theaccounting 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. This responsibility also includes maintenance of adequate accounting recordsin accordance with the provisions of the Act for safeguarding the assets of the Companyand for preventing and detecting frauds and other irregularities; selection andapplication of appropriate accounting policies; making judgments and estimates that arereasonable and prudent; and design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the accuracy andcompleteness of the accounting records relevant to the preparation and presentation ofthe financial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.

Auditor's Responsibility

Our responsibility is to express an opinion on these standalone financial statementsbased on our audit.

We have taken into account the provisions of the Act the accounting and auditingstandards and matters which are required to be included in the audit report under theprovisions of the Act and the Rules made thereunder.

We conducted our audit in accordance with the Standards on Auditing specified undersection 143(10) of the Act. Those Standards require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetherthe financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the financial statements. The procedures selected depend on theauditor's judgment including the assessment of the risks of material misstatement of thefinancial statements whether due to fraud or error. In making those risk assessments theauditor considers internal financial control relevant to the Company's preparation of thefinancial statements that give a true and fair view in order to design audit proceduresthat are appropriate in the circumstances. An audit also includes evaluating theappropriateness of the accounting policies used and the reasonableness of the accountingestimates made by the Company's Directors as well as evaluating the overall presentationof the financial statements.

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.

Opinion

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 2017 and its profit/loss and its cash flows for the year ended on thatdate.

Report on Other Legal and Regulatory Requirements

As required by the Companies (Auditors Report) Order 2016 ("The Order")issued by the Central Government of India in terms of sub-section 11 of section 143 of theAct we give in the Annexure A a statement on the matter specified in paragraphs 3 &4 of the order.

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.

(e) On the basis of the written representations received from the directors as on 31March 2017 taken on record by the Board of Directors none of the directors isdisqualified as on 31 March 2017 from being appointed as a director in terms of section164 (2) of the Act.

(f) 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 B'.

(g) With respect to the other matters to be included in the Auditor's Report inaccordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 in our opinionand to the best of our information and according to the explanations given to us:

i. The Company has disclosed the impact of pending litigations on its financialposition in its financial statements - Also refer Note 22 to the financial statements;

ii. The Company did not have any long term contract including derivative contract forwhich there were any material foreseeable losses;

iii. There has been no delay in transferring amounts required to be transferred tothe Investor Education and Protection Fund by the Company.

iv. The Company has provided requisite disclosures in the Standalone FinancialStatements as to holdings as well as dealings in specified Bank notes during the periodfrom 8 November 2016 to 30 December 2016. Based on audit procedures and relying onmanagement representation we report that the disclosures are in accordance with the Booksof accounts maintained by the Company and as produced to us by the Management - Also referNote 26 to the financial statements.

For P.C. PARMAR & CO.
Chartered Accountants
Firm Reg. No: 107604W
C.A. J.P. PARMAR
Proprietor
Pune 16 May 2017 Membership No. 46293

ANNEXURE A TO INDEPENDENT AUDITORS' REPORT

The Annexure referred to in our report to the members of MAHARASHTRA SCOOTERS LTD.

("the Company") for the year ended on 31 March 2017. We report that:

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

(b) The Management has carried out physical verification of fixed assets during theyear and no material discrepancies were noticed on such verification. In our opinion thefrequency of physical verification of fixed assets is reasonable.

(c) The title deeds of immovable properties are held in the name of the Company.

(ii) According to the information and explanations given to us physical verificationof inventory has been conducted at reasonable intervals by the Management and no materialdiscrepancies were noticed on physical verification during the year.

(iii) According to the information and explanations given to us the Company has notgranted any loans secured or unsecured to companies firms Ltd. Liability Partnershipsor other parties covered in the register maintained under section 189 of the CompaniesAct 2013.

Sub-clauses (a) (b) and (c) are not applicable.

(iv) In our opinion and according to information and explanations given to us theCompany has complied with the provisions of section 185 and 186 of the Companies Act 2013in respect of loans investments guarantees and security.

(v) The Company has not accepted deposits during the year.

(vi) Maintenance of Cost Records for the Company has not been specified by theCentral Government under sub-section (1) of section 148 of the Companies Act 2013.

(vii) (a) According to the records of the Company the Company has been generallyregular in depositing undisputed statutory dues including Provident

Fund employees' state insurance Income-Tax Sales-Tax service tax Custom DutyExcise Duty value added tax cess and any other statutory dues with the appropriateauthorities. According to information and explanations given to us there are no arrearsof statutory dues which have remained outstanding as at 31 March 2017 for a period of morethan six months from the date they became payable.

(b) According to information and explanations given to us and the records of theCompany the following dues of Sales Tax and Service Tax have not been deposited onaccount of dispute:

Nature of disputed Statutory dues Amount (?) Forum where dispute is pending
Sales Tax for the year 2001-02 8786623 Joint Commissioner of Sales Tax (Appeals)-I Kolhapur Division Kolhapur
Sales Tax for the year 2001-02 5295295 Joint Commissioner of Sales Tax (Appeals)-I Kolhapur Division Kolhapur
Sales Tax for the year 2002-03 17987580 Joint Commissioner of Sales Tax (Appeals)-I Kolhapur Division Kolhapur
Sales Tax for the year 2005-06 71825295 Maharashtra Sales Tax Tribunal Mumbai
Sales Tax for the year 2006-07 864747 Dy. Commissioner of Sales Tax (Appeals) Satara
Sales Tax for the year 2012-13 140102 Dy. Commissioner of Sales Tax (Appeals) Kolhapur

(viii) The Company has not defaulted in repayment of loans or borrowing to financialinstitutions banks government or dues to debenture holders.

(ix) The Company has not raised moneys by way of initial public offer or further publicoffer (including debt instruments) and term loans during the year.

(x) Based upon the audit procedures performed by us and according to information andexplanations given to us and representations made by Management no fraud by the Companyor on the Company by its officers or employees has been noticed or reported during theyear.

(xi) The managerial remuneration has been paid or provided in accordance with therequisite approvals mandated by the provisions of section 197 read with Schedule V of theCompanies Act.

(xii) In our opinion and according to the information and explanations given to us theCompany is not a Nidhi Company. Accordingly paragraph 3(xii) of the Order is notapplicable.

(xiii) According to the information and explanations given to us and based on ourexamination of the records of the Company transactions with the related parties are incompliance with sections 177 and 188 of Companies Act 2013 where applicable and thedetails have been disclosed in the Financial Statements as required by the applicableaccounting standards.

(xiv) According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has not made preferential allotmentor private placement of shares or fully or partly convertible debentures during the year.

(xv) According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has not entered into any non-cashtransactions with directors or persons connected with him. Accordingly paragraph 3(xv) ofthe Order is not applicable.

(xvi) According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has been classified as a CoreInvestment Company not requiring registration with Reserve Bank of India pursuant to theprovisions of section 45-IA of RBI Act 1934 - Also Refer Note 28 to the financialstatements. Accordingly separate report as required vide RBI Master DirectionDNBS.PPD.03/66.15.001/2016-17 dated 29 September 2016 is not required to be furnished.

For P.C. PARMAR & Co.
Chartered Accountants
Firm Regn. No. 107604W
C.A. J P. PARMAR
Proprietor
Membership No. 46293
Pune 16 May 2017

Annexure B to the Independent Auditors' Report of even date on the Standalone FinancialStatements of Maharashtra Scooters Ltd.

Report on the Internal Financial Controls under Clause (i) of sub-section 3 of section143 of the Companies Act 2013 ("the Act")

We have audited the internal financial controls over financial reporting of MaharashtraScooters Ltd. ("the Company") as of 31 March 2017 in conjunction with our auditof the standalone financial statements of the Company for the year ended on that date.

Management's Responsibility for Internal Financial Controls

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. These responsibilities includethe design implementation and maintenance of adequate internal financial controls thatwere operating effectively for ensuring the orderly and efficient conduct of its businessincluding adherence to Company's policies the safeguarding of its assets the preventionand detection of frauds and errors the accuracy and completeness of the accountingrecords and the timely preparation of reliable financial information as required underthe Companies Act 2013.

Auditors' Responsibility

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 issued by ICAI and deemedto be prescribed under section 143(10) of the Companies Act 2013 to the extentapplicable to an audit of internal financial controls both applicable to an audit ofInternal Financial Controls and both issued by the Institute of Chartered Accountants ofIndia. Those Standards and the Guidance Note require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetheradequate internal financial controls over financial reporting was established andmaintained and if such controls operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls system over financial reporting and their operatingeffectiveness.

Our audit of internal financial controls over financial reporting included obtaining anunderstanding of internal financial controls over financial reporting assessing the riskthat a material weakness exists and testing and evaluating the design and operatingeffectiveness of internal control based on the assessed risk. The procedures selecteddepend on the auditor's judgement including the assessment of the risks of materialmisstatement of the financial statements whether due to fraud or error. We believe thatthe audit evidence we have obtained is sufficient and appropriate to provide a basis forour audit opinion on the Company's internal financial controls system over financialreporting.

Meaning of Internal Financial Controls Over Financial Reporting

A company's internal financial control over financial reporting is a process designedto provide reasonable assurance regarding the reliability of financial reporting and thepreparation of financial statements for external purposes in accordance with generallyaccepted accounting principles. A company's internal financial control over financialreporting includes those policies and procedures that (1) pertain to the maintenance ofrecords that in reasonable detail accurately and fairly reflect the transactions anddispositions of the assets of the company; (2) provide reasonable assurance thattransactions are recorded as necessary to permit preparation of financial statements inaccordance with generally accepted accounting principles and that receipts andexpenditures 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

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

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 31 March 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 P.C. PARMAR & Co.
Chartered Accountants
Firm Regn. No. 107604W
C.A. J.P. PARMAR
Proprietor
Membership No. 46293
Pune 16 May 2017