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Eicher Motors Ltd.

BSE: 505200 Sector: Auto
NSE: EICHERMOT ISIN Code: INE066A01013
BSE 00:00 | 20 Nov 24597.60 -286.15
(-1.15%)
OPEN

24999.00

HIGH

25300.00

LOW

24462.20

NSE 00:00 | 20 Nov 24595.80 -301.30
(-1.21%)
OPEN

24897.10

HIGH

25350.00

LOW

24450.55

OPEN 24999.00
PREVIOUS CLOSE 24883.75
VOLUME 4103
52-Week high 32209.50
52-Week low 20301.10
P/E 34.04
Mkt Cap.(Rs cr) 67,078
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 24999.00
CLOSE 24883.75
VOLUME 4103
52-Week high 32209.50
52-Week low 20301.10
P/E 34.04
Mkt Cap.(Rs cr) 67,078
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Eicher Motors Ltd. (EICHERMOT) - Auditors Report

Company auditors report

To

The Members of

Eicher Motors Limited

REPORT ON THE STANDALONE IND AS FINANCIAL STATEMENTS

We have audited the accompanying standalone Ind AS financial statementsofEicher Motors Limited (“the Company”) which comprise the Balance Sheetas at March

31 2018 the Statement of Profit and Loss including the statement ofOther Comprehensive Income the Cash Flow Statement and the Statement of Changes in Equityfor the year then ended and a summary of significant accounting policies and otherexplanatory information.

MANAGEMENT'S RESPONSIBILITY FOR THE STANDALONE IND AS FINANCIALSTATEMENTS

The Company's Board of Directors is responsible for the mattersstated in Section 134(5) of the Companies Act 2013 (“the Act”) with respect tothe preparation of these standalone Ind AS financial statements that give a true and fairview of the financial position financial performance including other comprehensiveincome cash flows and changes in equity of the Company in accordance with accountingprinciples generally accepted in India including the Indian Accounting Standards (Ind AS)specified under

Section 133 of the Act read with the Companies (Indian

Accounting Standards) Rules 2015 as amended. This responsibility alsoincludes maintenance of adequate accounting records in accordance with the provisions ofthe Act for safeguarding of the assets of the Company and for preventing and detectingfrauds and other irregularities; selection and application of appropriate accountingpolicies; making judgements and estimates that are reasonable and prudent; and the designimplementation and maintenance of adequate internal financial control that were operatingeffectively for ensuring the accuracy and completeness of the accounting records relevantto the preparation and presentation of the Ind AS financial statements that give a trueand fair view and are free from material misstatement whether due to fraud or error.

AUDITOR'S RESPONSIBILITY

Our responsibility is to express an opinion on these standalone

Ind AS financial statements based on our audit. We have taken intoaccount the provisions of the Act the accounting and auditing standards and matters whichare required to be included in the audit report under the provisions of the Act and theRules made thereunder. We conducted our audit of the standalone Ind AS financialstatements in accordance with the Standards on Auditing issued by the Institute ofChartered

Accountants of India as specified under Section 143(10) of the Act.Those Standards require that we comply with ethical requirements and plan and perform theaudit to obtain reasonable assurance about whether the financial statements are free frommaterial misstatement.

An audit involves performing procedures to obtain audit evidence aboutthe amounts and disclosures in the financial statements. The procedures selected depend onthe auditor's judgement including the assessment of the risks of materialmisstatement of the standalone Ind AS financial statements whether due to fraud or error.In making those risk assessments the auditor considers internal financial controlrelevant to the Company's preparation of the standalone Ind AS financial statementsthat give a true and fair view in order to design audit procedures that are appropriate inthe circumstances. An audit also includes evaluating the appropriateness of accountingpolicies used and the reasonableness of the accounting estimates made by theCompany's Directors as well as evaluating the overall presentation of the standaloneInd AS financial statements. We believe that the audit evidence we have obtained issufficient and appropriate to provide a basis for our audit opinion on the standalone IndAS financial statements.

OPINION

In our opinion and to the best of our information and according to theexplanations given to us the standalone

Ind AS financial statements give the information required by the Act inthe manner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India of the state of affairs of the Company as at March31 2018 its profit including other comprehensive income its cash flows and the changesin equity for the year ended on that date.

OTHER MATTER

The Ind AS financial statements of the Company for the year ended March31 2017 included in these standalone Ind AS financial statements have been audited bythe predecessor auditor who expressed an unmodified opinion on those statements on May 52017.

REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS

1. As required by the Companies (Auditor's report) Order 2016(“the Order”) issued by the Central Government of India in terms of sub-Section(11) of Section 143 of the Act we give in the Annexure 1 a statement on the mattersspecified in paragraphs 3 and 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 explanationswhich to the best of our knowledge and belief were necessary for the purpose of our audit;

(b) In our opinion proper books of account as required by law havebeen kept by the Company so far as it appears from our examination of those books;

(c) The Balance Sheet Statement of Profit and Loss including theStatement of Other Comprehensive Income the Cash Flow Statement and Statement of Changesin Equity dealt with by this Report are in agreement with the books of account;

(d) In our opinion the aforesaid standalone Ind AS financialstatements comply with the Accounting Standards specified under Section 133 of the Actread with Companies (Indian Accounting Standards) Rules 2015 as amended;

(e) On the basis of written representations received from the directorsas on March 31 2018 and taken on record by the Board of Directors none of the directorsare disqualified as on March 31 2018 from being appointed as a director in terms ofSection 164 (2) of the Act;

(f) With respect to the adequacy of the internal financial controlsover financial reporting 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 othermatters to be included in the Auditor's Report in accordance with Rule 11 of theCompanies (Audit and Auditors) Rules 2014 in our opinion and to the best of ourinformation and according to the explanations given to us: i. The Company has disclosedthe impact of pending litigations on its financial position in its standalone Ind ASfinancial statements

– Refer Note 40 to the standalone Ind AS financial statements ii.The Company did not have any long-term contracts including derivative contracts for whichthere were any material foreseeable losses; iii. There has been no delay in transferringamounts required to be transferred to the Investor Education and Protection Fund by theCompany.

For S.R. Batliboi & Co. LLP

Chartered Accountants ICAI Firm Registration Number: 301003E/E300005

per Sanjay Vij

Partner

Membership Number: 095169 Place: Gurugram Date: May 9 2018

ANNEXURE 1 REFERRED TO IN PARAGRAPH 1 OF THE SECTION “REPORT ONOTHER LEGAL AND REGULATORY REQUIREMENTS” OF OUR REPORT OF EVEN DATE

Re: Eicher Motors Limited (‘the Company')

(i) (a) The Company has maintained proper records showing fullparticulars including quantitative details and situation of fixed assets.

(b) Property Plant and Equipment were physically verified by themanagement during the year in accordance with its plan of verifying in a phased manner andno material discrepancies were identified on such verification.

(c) According to the information and explanations given by themanagement the title deeds of immovable properties included in property plant andequipment/fixed assets are held in the name of the Company except the following:

Particulars

Carrying value as at March 31 2018

Remarks

(Rs. in crores)

Freehold land located at Alwar Rajasthan and Jhajjar Haryana

0.74

Pending registration in the name of the Company

(ii) The management has conducted physical verification of inventory atreasonable intervals during the year and no material discrepancies were noticed on suchphysical verification.

(iii) According to the information and explanations given to us theCompany has not granted any loans secured or unsecured to companies firms LimitedLiability

Partnerships or other parties covered in the register maintained underSection 189 of the Companies Act 2013. 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.

(iv) In our opinion and according to the information and explanationsgiven to us there are no loans investments guarantees and securities given in respectof which provisions of Section 185 and 186 of the Companies Act 2013 are applicable andhence not commented upon.

(v) The Company has not accepted any deposits from the public.

(vi) We have broadly reviewed the books of account maintained by theCompany pursuant to the rules made by the Central Government for the maintenance of costrecords under Section 148(1) of the Companies Act 2013 related to the manufacture ofcertain products of the Company and are of the opinion that prima facie the specifiedaccounts and records have been made and maintained. We have not however made a detailedexamination of the same.

(vii) (a) The Company is regular in depositing with appropriateauthorities undisputed statutory dues including provident fund employees' stateinsurance income-tax excise duty goods and service tax sales-tax service tax customsduty value added tax cess and other statutory dues applicable to it.

(b) According to the information and explanations given to us noundisputed amounts payable in respect of provident fund employees' state insuranceincome-tax excise duty goods and service tax sales-tax service tax customs dutyvalue added tax cess and other statutory dues were outstanding at the year end for aperiod of more than six months from the date they became payable.

(c) According to the records of the Company the dues of income-taxsales-tax service tax duty of custom duty of excise value added tax and cess onaccount of any dispute are as follows:

Name of Satatute Nature of Dues Forum where it is pending Period to which it relates

Amount involved (Rs. crores)

Amount unpaid (Rs. crores)

Central Excise Act 1944 Excise Duty Up to Commissioner (Appeals)'s level 1995-96 1996- 97 2016-17 2017-18

0.18

0.17

CESTAT 1983-84 to 2000-01 2012- 13 to 2015-16

1.54

1.42

High Court - Punjab and Haryana 1995-96 to 1998-99

0.18

-

The Central Sales Tax Sales Tax Commissioner of 1986-87 to

7.13

3.23

Act 1956 Sales Tax (Appeals) 1987-88 1994- 95 to 2002-03 2004-05 to 2010-11 2014- 15
Sales Tax Appellate 1988-89 1991-

0.93

0.72

Tribunal 92 to 1995-96 1997-98 to 2000-01 2002- 03 to 2004-05 2006-07
High Court - 1984-85 1985-

0.83

0.39

Allahabad and 86 2000-01
Madhya Pradesh 2004-05
Tamil Nadu Value Value Added Commissioner of 2010-11 2013-14

0.76

0.48

Added Tax Act 2006 Tax Sales Tax (Appeals)
Bihar Finance Act 1981 Sales Tax Commissioner of 2000-01

0.32

0.30

Sales Tax (Appeals)
High Court - Patna 2001-02

0.46

0.44

The Bihar Tax on Entry Tax Commissioner of 2013-14

0.10

-

Entry of Goods into Sales Tax (Appeals)
Local Areas for
Consumption Use or
Sale therein Act 1993
Uttar Pradesh Sales Sales Tax / Commissioner of 2013-14

0.02

-

Tax Act 1948 Uttar Value Added Sales Tax (Appeals)
Pradesh VAT Act 2008 Tax
Appellate Tribunal 1991-92 1993-

0.22

0.19

94 to 1995-96
1999-00
2001-02
High Court – 2000-01

0.43

0.29

Allahabad
Rajasthan Sales Tax Sales Tax / Commissioner of 1996-97 2000-

0.28

0.22

Act 1994 Rajasthan Value Added Sales Tax (Appeals) 01 2002-03
Value Added Tax Tax 2014-15
Act 2003 Sales Tax Appellate 1990-00

0.05

0.05

Tribunal
High Court – 1993-94

0.03

0.01

Rajasthan
Supreme Court of 1986-87 to

1.96

1.41

India 1988-89 1990-
91 1991-92
2001-02 to
2003-04
Delhi Sales Tax Sales Tax Sales Tax Appellate 1991-92 1992-

0.35

0.31

Act 1975 Tribunal 93 2000-01
2002-03
The Madhya Pradesh Sales Tax / Commissioner of 2000-01 2008-

0.02

0.02

General Sales Tax Act Value Added Sales Tax (Appeals) 09
1958 The Madhya Tax
Pradesh VAT Act 2002 Appellate Tribunal 2002-03

0.26

0.16

2004-05
The Maharashtra Value Value Added Commissioner of 2012-13

0.04

0.03

Added Tax Act 2002 Tax Sales Tax (Appeals)
The Orissa Value Value Added Commissioner of 2000-01 1993-

0.01

0.01

Added Tax Act 2004 Tax Sales Tax (Appeals) 94
West Bengal Value
Added Tax Act 2003
Finance Act 1994 Service Tax CESTAT 2006-07 to

0.39

0.36

2011-12
The Income Tax Act Income Tax Commissioner of 2012-13 2013-

6.98

6.98

1961 Income Tax (Appeals) 14 and 2014-15

(viii) The Company did not have any outstanding loans or borrowing duesin respect of a financial institution or bank or to government or dues to debentureholders during the year.

(ix) According to the information and explanations given by themanagement the Company has not raised any money way of initial public offer / furtherpublic offer / debt instruments and term loans hence reporting under clause (ix) is notapplicable to the Company and hence not commented upon.

(x) Based upon the audit procedures performed for the purpose ofreporting the true and fair view of the financial statements and according to theinformation and explanations given by the management we report that no fraud by theCompany and no material fraud on the Company by the officers and employees of the Companyhas been noticed or reported during the year.

EICHER MOTORS LIMITED

(xi) According to the information and explanations given by themanagement the managerial remuneration has been paid / provided in accordance with therequisite approvals mandated by the provisions of Section 197 read with Schedule V to theCompanies Act 2013.

(xii) In our opinion the Company is not a nidhi company. Thereforethe provisions of clause 3(xii) of the order are not applicable to the Company and hencenot commented upon.

(xiii) According to the information and explanations given by themanagement transactions with the related parties are in compliance with Sections 177 and188 of Companies Act 2013 where applicable and the details have been disclosed in thenotes to the financial statements as required by the applicable accounting standards.

(xiv) According to the information and explanations given to us and onan overall examination of the balance sheet the Company has not made any preferentialallotment or private placement of shares or fully or partly convertible debentures duringthe year under review and hence reporting requirements under clause 3(xiv) are notapplicable to the Company and not commented upon.

(xv) According to the information and explanations given by themanagement the Company has not entered into any non-cash transactions with directors orpersons connected with him as referred to in Section 192 of Companies Act 2013.

(xvi) According to the information and explanations given to us theprovisions of Section 45-IA of the Reserve Bank of India Act 1934 are not applicable tothe Company.

For S.R. Batliboi & Co. LLP

Chartered Accountants

ICAI Firm Registration Number: 301003E/E300005

per Sanjay Vij

Partner

Membership Number: 095169

Place: Gurugram

Date: May 9 2018

ANNEXURE 2 TO THE INDEPENDENT AUDITOR'S REPORT OF THE STANDALONEFINANCIAL STATEMENTS OF EICHER MOTORS LIMITED

REPORT ON THE INTERNAL FINANCIAL CONTROLS UNDER CLAUSE (I) OFSUBSECTION 3 OF SECTION 143 OF THE COMPANIES ACT 2013 (“THE ACT”)

We have audited the internal financial controls over financialreporting of Eicher Motors Limited (the Company) as of March 31 2018 in conjunction withour audit of the standalone financial statements of the Company for the year ended on thatdate.

MANAGEMENT'S RESPONSIBILITY FOR INTERNAL FINANCIAL CONTROLS

The Company's Management is responsible for establishing andmaintaining internal financial controls based on the internal control over financialreporting criteria established by the Company considering the essential components ofinternal control stated in the Guidance Note on Audit of Internal Financial Controls OverFinancial Reporting 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 thesafeguarding of its assets the prevention and detection of frauds and errors theaccuracy and completeness of the accounting records and the timely preparation ofreliable financial information as required under the Companies Act 2013.

AUDITOR'S RESPONSIBILITY

Our responsibility is to express an opinion on the Company's internalfinancial controls over financial reporting based on our audit. We conducted our audit inaccordance with the Guidance Note on Audit of Internal Financial Controls Over FinancialReporting (the “Guidance Note”) and the Standards on Auditing as specified underSection 143(10) of the Companies Act 2013 to the extent 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 aboutthe adequacy of the internal financial controls system over financial reporting and theiroperating effectiveness. Our audit of internal financial controls over financial reportingincluded obtaining an understanding of internal financial controls over financialreporting assessing the risk that a material weakness exists and testing and evaluatingthe design and operating effectiveness of internal control based on the assessed risk. Theprocedures selected depend on the auditor's judgement including the assessment ofthe risks of material misstatement of the financial statements whether due to fraud orerror.

We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our audit opinion on the internal financial controlssystem over financial reporting.

MEANING OF INTERNAL FINANCIAL CONTROLS OVER FINANCIAL REPORTING

A Company's internal financial control over financial reporting is aprocess designed to provide reasonable assurance regarding the reliability of financialreporting and the preparation of financial statements for external purposes in accordancewith generally accepted accounting principles.

A Company's internal financial control over financial reportingincludes those policies and procedures that (1) pertain to the maintenance of recordsthat 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 FINANCIALREPORTING

Because of the inherent limitations of internal financial controls overfinancial reporting including the possibility of collusion or improper managementoverride of controls material misstatements due to error or fraud may occur and not bedetected. Also projections of any evaluation of the internal financial controls overfinancial reporting to future periods are subject to the risk that the internal financialcontrol over financial reporting may become inadequate because of changes in conditionsor that the degree of compliance with the policies or procedures may deteriorate.

OPINION

In our opinion the Company has in all material respects an adequateinternal financial controls system over financial reporting and such internal financialcontrols over financial reporting were operating effectively as at

March 31 2018 based on the internal control over financial reportingcriteria established by the Company considering the essential components of internalcontrol stated in the Guidance Note on Audit of Internal Financial Controls Over

Financial Reporting issued by the Institute of Chartered Accountants ofIndia. For S.R. Batliboi & Co. LLP

Chartered Accountants

ICAI Firm Registration Number: 301003E/E300005

per Sanjay Vij

Partner

Membership Number: 095169

Place: Gurugram

Date: May 9 2018