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Bajaj Auto Ltd.

BSE: 532977 Sector: Auto
NSE: BAJAJ-AUTO ISIN Code: INE917I01010
BSE 00:00 | 21 Sep 2795.65 0.35
(0.01%)
OPEN

2809.90

HIGH

2839.85

LOW

2675.75

NSE 00:00 | 21 Sep 2799.20 9.10
(0.33%)
OPEN

2806.00

HIGH

2843.00

LOW

2673.00

OPEN 2809.90
PREVIOUS CLOSE 2795.30
VOLUME 33916
52-Week high 3472.60
52-Week low 2604.00
P/E 18.99
Mkt Cap.(Rs cr) 80,898
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 2809.90
CLOSE 2795.30
VOLUME 33916
52-Week high 3472.60
52-Week low 2604.00
P/E 18.99
Mkt Cap.(Rs cr) 80,898
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Bajaj Auto Ltd. (BAJAJ-AUTO) - Auditors Report

Company auditors report

To the Members of Bajaj Auto Limited

Report on the Standalone Ind AS Financial Statements

We have audited the accompanying standalone Ind AS financial statements of Bajaj AutoLimited (‘the Company') which comprise the Balance Sheet as at 31 March 2018 theStatement of Profit and Loss including the Statement of Other Comprehensive Income theCash Flow Statement and the Statement of Changes in Equity for the year then ended and asummary of significant accounting policies and other explanatory information.

Management's responsibility for the standalone Ind AS 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 Ind AS financial statements that give a true and fair view of thefinancial position financial performance including other comprehensive income cash flowsand changes in equity of the Company in accordance with accounting principles generallyaccepted in India including the Indian Accounting Standards (Ind AS) specified undersection 133 of the Act read with the Companies (Indian Accounting Standards) Rules 2015as amended. This responsibility also includes maintenance of adequate accounting recordsin accordance with the provisions of the Act for safeguarding of 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 the design implementation and maintenance of adequateinternal financial control that were operating effectively for ensuring the accuracy andcompleteness of the accounting records relevant to the preparation and presentation ofthe Ind AS financial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.

Auditors‘ responsibility

Our responsibility is to express an opinion on these standalone Ind AS financialstatements based on our audit. We have taken into account the provisions of the Act theaccounting and auditing standards and matters which are required to be included in theaudit report under the provisions of the Act and the Rules made thereunder. We conductedour audit of the standalone Ind AS financial statements in accordance with the Standardson Auditing issued by the Institute of Chartered Accountants of India as 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 anddisclosures in the financial statements. The procedures selected depend on the auditor'sjudgment including the assessment of the risks of material misstatement of the standaloneInd 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 standalone Ind AS financial statements that give a true and fair viewin order to design audit procedures that are appropriate in the circumstances. An auditalso includes evaluating the appropriateness of accounting policies used and thereasonableness of the accounting estimates made by the Company's Directors as well asevaluating the overall presentation of the standalone Ind AS financial statements. Webelieve that the audit evidence we have obtained is sufficient and appropriate to providea basis for our audit opinion on the standalone Ind AS financial statements.

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us the standalone 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 31 March 2018 its profit including other comprehensive income its cash flows andthe changes in equity for the year ended on that date.

Other matter

The Ind AS financial statements of the Company for the year ended 31 March 2017 havebeen audited by the predecessor auditor who expressed an unmodified opinion on thosestatements on 18 May 2017.

Report on other legal and regulatory requirements

1. 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 ofthe Act we give in the Annexure 1 a statement on the matters specified in paragraphs 3and 4 of the Order.

2. 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 purpose 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 Statement of Profit and Loss including the Statement of OtherComprehensive Income the Cash Flow Statement and Statement of Changes in Equity dealtwith by this Report are in agreement with the books of account;

(d) In our opinion the aforesaid standalone Ind AS financial statements comply withthe Accounting Standards specified under section 133 of the Act read with Companies(Indian Accounting Standards) Rules 2015 as amended;

(e) On the basis of written representations received from the directors as on 31 March2018 and taken on record by the Board of Directors none of the directors is disqualifiedas on 31 March 2018 from being appointed as a director in terms of section 164 (2) of theAct;

(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 2' to this report;

(g) 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 information and according to the explanations given to us:

i. The Company has disclosed the impact of pending litigations on its financialposition in its standalone Ind AS financial statements – Refer Note 34 to thestandalone Ind AS financial statements;

ii. The Company has made provision as required under the applicable law or accountingstandards for material foreseeable losses if any on long-term contracts includingderivative contracts – Refer Note 32 (c) to the standalone Ind AS financialstatements;

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

For S R B C & CO LLP Chartered Accountants

ICAI Firm Registration Number: 324982E/E300003

per Arvind Sethi Partner

Membership Number: 89802 Pune: 18 May 2018

Annexure 1 to Independent Auditors' Report

Referred to in paragraph 1 under the heading ‘Report on other legal and regulatoryrequirements' of our report of even date to the members of Bajaj Auto Limited

1 . (a) The Company has maintained proper records showing full particulars includingquantitative details and situation of property plant and equipment.

(b) All property plant and equipment have not been physically verified by theManagement during the year but there is a regular programme of verification designed tocover all items in a phased manner over a period of three years which in our opinion isreasonable having regard to the size of the Company and the nature of its assets. Nomaterial discrepancies were noticed on such verification.

(c) According to the information and explanations given by the Management the titledeeds of immovable properties included in property plant and equipment; and investmentproperty are held in the name of the Company except for buildings acquired in the prioryears having a gross block of H 15.02 crore and a net block of H 12.39 crore whose finalregistration is pending as disclosed in Note 2 to the standalone financial statements ofthe Company.

2 . The inventory has been physically verified by the Management during the year. Inour opinion the frequency of verification is reasonable. No material discrepancies werenoticed on such physical verification. Inventories lying with third parties have beenconfirmed by them as at 31 March 2018 and no material discrepancies were noticed inrespect of such confirmations.

3 . According to the information and explanations given to us the Company has notgranted any loans secured or unsecured to companies firms limited liabilitypartnerships or other parties covered in the register maintained under section 189 of theCompanies Act 2013 (‘the Act'). Accordingly the provisions of clause 3(iii) (a)(b) and (c) of the Order are not applicable to the Company and hence not commented upon.

4 . In our opinion and according to the information and explanations given to us thereare no loans guarantees and securities given in respect of which provisions of section185 of the Act are applicable and hence not commented upon. In our opinion and accordingto the information and explanations given to us provisions of section 186 of the Act inrespect of investments made have been complied with by the Company.

5 . The Company has not accepted any deposits within the meaning of Sections 73 to 76of the Act and the Companies (Acceptance of Deposits) Rules 2014 (as amended).Accordingly the provisions of clause 3 (v) of the Order are not applicable to the Companyand hence not commented upon.

6 . To the best of our knowledge and as explained the Central Government has notspecified the maintenance of cost records under section 148(1) of the Act for the productsof the Company.

7 . (a) The Company is regular in depositing with appropriate authorities undisputedstatutory dues including provident fund employees' state insurance income-taxsales-tax service tax customs duty excise duty value added tax goods and service taxcess and other statutory dues applicable to it. (b) According to the information andexplanations given to us no undisputed amounts payable in respect of provident fundemployees' state insurance income-tax service tax sales-tax customs duty excise dutyvalue added tax goods and service tax cess and other statutory dues were outstanding atthe year end for a period of more than six months from the date they became payable.

(c) According to the records of the Company the dues of income-tax sales-tax servicetax customs duty excise duty value added tax goods and service tax and cess on accountof any dispute are as follows:

( Rs. In Crore )
Name of the statute Nature of dues Amount Period to which the amount relates Forum where the dispute is pending
Denial of exemption under Notification No.: 50/2003/demand of duty of excise 333.61 Various years Supreme Court
The Central Denial of CENVAT credit/demand of duty of excise 7.79 Various years High Court
Excise Act 1944 Denial of CENVAT credit/demand of duty of excise 1.44 Various years CESTAT
Denial of CENVAT credit/demand of duty of excise 2.88 Various years Commissioner Appeals
Additional demand received on the basis of assessment order 0.99 Various years High Court
Additional demand received on the basis of assessment order 39.79 Various years Tribunal
Sales tax
Additional demand received on the basis of assessment order 0.25 Various years Commissioner Appeals
Additional demand received on the basis of assessment order 98.49 Various years Joint Commissioner of Sales Tax
Income Tax 58.50 Financial year 2007-08 and 2008-09 ITAT
The Income Tax Act 1961 Income Tax 495.44 Financial year 2009-10 2010-11 and 2013-14 CIT (A)
Service Tax 3.78 July 1997 to March 2000 High Court
The Finance Act 1994 Distribution of input service tax credit availed/demand of service tax in various matters 21.45 April 2005 to February 2010 and April 2007 to March 2012 CESTAT
Demand of service tax on various matters 0.88 July 1997 to September 2004 Commissioner Appeals
The Customs Act 1962 Recovery of duty of customs by treating the vehicles as not fuel efficient 3.85 Financial year 1984–86 High Court
Demand for penalty and fine 0.17 Financial year 2014-15 and 2017-18 Commissioner Appeals
Octroi Octroi 4.23 Financial year 1981-82 to 1988-89 High Court

Note: The amounts disclosed above are net of the payments made to the respectiveauthorities where the dispute is pending.

8. In our opinion and according to the information and explanations given by theManagement the Company has not defaulted in repayment of sales tax deferral loans to theGovernment. The Company did not have any outstanding loans or borrowing dues in respect ofa financial institution or bank or dues to debenture holders during the year.

9. According to the information and explanations given by the Management the Companyhas not raised any money way of initial public offer or further public offer (includingdebt instruments) and term loans. Accordingly the provisions of clause 3 (ix) of theOrder are not applicable to the Company and hence not commented upon.

10. Based on the audit procedures performed for the purpose of reporting the true andfair view of the financial statements and according to the information and explanationsgiven by the Management we report that no fraud by the Company or material fraud on theCompany by the officers and employees of the Company has been noticed or reported duringthe year.

11. According to the information and explanations given by the Management themanagerial remuneration has been paid/provided in accordance with the requisite approvalsmandated by the provisions of section 197 read with Schedule V to the Act.

12. In our opinion the Company is not a Nidhi Company. Accordingly the provisions ofclause 3(xii) of the Order are not applicable to the Company and hence not commented upon.13. According to the information and explanations given by the Management transactionswith the related parties are in compliance with sections 177 and 188 of the Act whereapplicable and the details have been disclosed in the notes to the financial statementsas required by the applicable accounting standards.

14. According to the information and explanations given to us and on an overallexamination of the balance sheet the Company has not made any preferential allotment orprivate placement of shares or fully or partly convertible debentures during the yearunder review. Accordingly the provisions of clause 3(xiv) of the Order are not applicableto the Company and hence not commented upon.

15. According to the information and explanations given by the Management the Companyhas not entered into any non-cash transactions with directors or persons connected withhim as referred to in section 192 of the Act.

16. According to the information and explanations given by the Management theprovisions of section 45-IA of the Reserve Bank of India Act 1934 are not applicable tothe Company.

For S R B C & CO LLP Chartered Accountants

ICAI Firm Registration Number: 324982E/E300003

per Arvind Sethi Partner

Membership Number: 89802

Pune: 18 May 2018

Annexure 2 to Independent Auditors' Report

Referred to in paragraph 2(f) under the heading ‘Report on other legal andregulatory requirements' of our report of even date to the members of Bajaj Auto Limited

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 Bajaj AutoLimited (‘the Company') as of 31 March 2018 in conjunction with our audit of thestandalone 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 Reporting (the‘Guidance Note') issued by the Institute of Chartered Accountants of India. Theseresponsibilities include the design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the orderly and efficientconduct of its business including adherence to the Company's policies the safeguardingof its assets the prevention and detection of frauds and errors the accuracy andcompleteness of the accounting records and the timely preparation of reliable financialinformation as required under the Act.

Auditors‘ responsibility

Our responsibility is to express an opinion on the Company's internal financialcontrols over financial reporting with reference to these standalone financial statementsbased on our audit. We conducted our audit in accordance with the Guidance Note and theStandards on Auditing as specified under section 143(10) of the Act to the extentapplicable to an audit of internal financial controls and both issued by the Institute ofChartered Accountants of India. Those Standards and the Guidance Note require that wecomply with ethical requirements and plan and perform the audit to obtain reasonableassurance about whether adequate internal financial controls over financial reporting withreference to these standalone financial statements was established and maintained and ifsuch controls operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls over financial reporting with reference to thesestandalone financial statements and their operating effectiveness. Our audit of internalfinancial controls over financial reporting included obtaining an understanding ofinternal financial controls over financial reporting with reference to these standalonefinancial statements assessing the risk that a material weakness exists and testing andevaluating the design and operating effectiveness of internal control based on theassessed risk. The procedures selected depend on the auditor's judgment including theassessment of the risks of material misstatement of the financial statements whether dueto fraud or error.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the internal financial controls over financialreporting with reference to these standalone financial statements.

Meaning of internal financial controls over financial reporting with reference to thesestandalone financial statements

A company's internal financial control over financial reporting with reference to thesestandalone financial statements is a process designed to provide reasonable assuranceregarding the reliability of financial reporting and the preparation of financialstatements for external purposes in accordance with generally accepted accountingprinciples. A company's internal financial control over financial reporting with referenceto these standalone financial statements includes those policies and procedures that

(1) pertain to the maintenance of records that in reasonable detail accurately andfairly reflect the transactions and dispositions of the assets of the company;

(2) provide reasonable assurance that transactions are recorded as necessary to permitpreparation of financial statements in accordance with generally accepted accountingprinciples and that receipts and expenditures of the Company are being made only inaccordance with authorisations of management and directors of the company; and

(3) provide reasonable assurance regarding prevention or timely detection ofunauthorised acquisition use or disposition of the company's assets that could have amaterial effect on the financial statements.

Inherent limitations of internal financial controls over financial reporting withreference to these standalone financial statements

Because of the inherent limitations of internal financial controls over financialreporting with reference to these standalone financial statements including thepossibility of collusion or improper management override of controls materialmisstatements due to error or fraud may occur and not be detected. Also projections ofany evaluation of the internal financial controls over financial reporting with referenceto these standalone financial statements to future periods are subject to the risk thatthe internal financial control over financial reporting with reference to these standalonefinancial statements may become inadequate because of changes in conditions or that thedegree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion the Company has in all material respects adequate internal financialcontrols over financial reporting with reference to these standalone financial statementsand such internal financial controls over financial reporting with reference to thesestandalone financial statements were operating effectively as at 31 March 2018 based onthe internal control over financial reporting criteria established by the Companyconsidering the essential components of internal control stated in the Guidance Noteissued by the Institute of Chartered Accountants of India.

For S R B C & CO LLP Chartered Accountants

ICAI Firm Registration Number: 324982E/E300003

per Arvind Sethi Partner

Membership Number: 89802

Pune: 18 May 2018