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Maharashtra Scooters Ltd.

BSE: 500266 Sector: Financials
NSE: MAHSCOOTER ISIN Code: INE288A01013
BSE 00:00 | 24 Jan 4352.75 24.85
(0.57%)
OPEN

4339.25

HIGH

4379.00

LOW

4339.25

NSE 00:00 | 24 Jan 4359.95 27.40
(0.63%)
OPEN

4374.00

HIGH

4386.05

LOW

4340.00

OPEN 4339.25
PREVIOUS CLOSE 4327.90
VOLUME 264
52-Week high 4948.00
52-Week low 3024.00
P/E 64.80
Mkt Cap.(Rs cr) 4,975
Buy Price 4326.00
Buy Qty 1.00
Sell Price 4375.00
Sell Qty 50.00
OPEN 4339.25
CLOSE 4327.90
VOLUME 264
52-Week high 4948.00
52-Week low 3024.00
P/E 64.80
Mkt Cap.(Rs cr) 4,975
Buy Price 4326.00
Buy Qty 1.00
Sell Price 4375.00
Sell Qty 50.00

Maharashtra Scooters Ltd. (MAHSCOOTER) - Auditors Report

Company auditors report

To the Members of Maharashtra Scooters Ltd.

Report on the Financial Statements

We have audited the accompanying Ind AS financial statements of MAHARASHTRA SCOOTERSLTD. ("the Company") which comprise the Balance Sheet as at 31 March 2018and the Statement of Profit and Loss (including Other Comprehensive Income) the Statementof Cash Flow and the Statement of Changes in Equity for the year then ended and a summaryof the significant accounting policies and other explanatory information (hereinafterreferred to as "the Ind AS financial statements").

Management's Responsibility for the Ind AS Financial Statement

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 that give a true and fair view of the financialposition financial performance including other comprehensive income cash flows andchanges in equity of the Company in accordance with the accounting principles generallyaccepted in India including the Indian Accounting Standards (Ind AS) prescribed underSection 133 of the Act.

This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding the assets of the Company andfor preventing and detecting frauds and other irregularities; selection and application ofappropriate accounting policies; making judgments and estimates that are reasonable andprudent; and design implementation and maintenance of adequate internal financialcontrols that were operating effectively for ensuring the accuracy and completeness ofthe accounting records relevant to the preparation and presentation of the Ind ASfinancial 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 Ind AS financial statements basedon our audit.

In conducting 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 conducted our audit of the Ind AS financial statements in accordance with theStandards on Auditing specified under section 143(10) of the Act. Those Standards requirethat we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether the Ind AS financial statements are free from materialmisstatement.

An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the Ind AS financial statements. The procedures selected depend on theauditor's judgment including the assessment of the risks of material misstatement of theInd 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.

We believe that the audit evidence obtained by us is sufficient and appropriate toprovide a basis for our audit opinion on the Ind AS financial statements.

Opinion

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 31 March 2018 and its profit total comprehensive income its cash flows and thechanges in equity for the year ended on that date.

Other Matter

The financial statements of the Company for the year ended 31 March 2017 were auditedby other auditor who expressed an unmodified opinion on these statements on 16 May 2017.

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 A" a statement on thematters specified in paragraphs 3 and 4 of the Order.

2. As required by section 143(3) of the Act based on our audit we report to theextent applicable 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 including Other ComprehensiveIncome the Statement of Cash Flow and Statement of

Changes in Equity dealt with by this Report are in agreement with the relevant books ofaccount.

d. In our opinion the aforesaid Ind AS financial statements comply with the IndianAccounting Standards prescribed under section 133 of the Act.

e. On the basis of the written representations received from the directors as on 31March 2018 taken on record by the Board of Directors none of the directors isdisqualified as on 31 March 2018 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". Our report expresses an unmodifiedopinion on the adequacy and operating effectiveness of the Company's internal financialcontrols over financial reporting.

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 as amended in our opinion and to the best of our information and according tothe explanations given to us:

I. The Company has disclosed the impact of pending litigations on its financialposition in its Ind AS financial statements - Refer Note 30 to Ind AS financialstatements;

II. The Company did not have any long-term contracts including derivative contracts 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.

For Kirtane & Pandit LLP
Chartered Accountants
Firm Reg. No. 105215W / W100057
Suhas Deshpande
Partner
Membership No.: 31787
Pune 16 May 2018

ANNEXURE "A" TO THE INDEPENDENT AUDITOR'S REPORT

(Referred to in paragraph 1 under 'Report on Other Legal and Regulatory Requirements'section of our report of even date)

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

(b) According to the information and explanations given to us property plant andequipment were physically verified by the management during the year and no materialdiscrepancies were noticed on such verification. In our opinion the frequency of physicalverification of property plant and equipment is reasonable.

(c) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company the title deeds of immovable properties areheld in the name of the Company.

(ii) As informed to us the physical verification of inventory has been conducted bythe management at reasonable intervals and the discrepancies noticed during

such physical verification were not material. The discrepancies noticed on physicalverification of inventory as compared to the book records have been properly dealt withthe Books of Account.

(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 Companies Act. Accordingly paragraph 3(iii) of the Order is notapplicable.

(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 given and investments made. Further the Company has not given anyguarantee or security in connection with a loan to any other body corporate or person.

(v) In our opinion and according to the information and explanations given to us theCompany has not accepted any deposits from the public under section 73 to

76 or any other relevant provisions of the Companies Act and the rules framed thereunder.

(vi) In our opinion and according to the information and explanations given to usmaintenance of Cost Records for the Company has not been specified by the

Central Government under sub-section (1) of section 148 of the Companies Act 2013.

(vii) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company amounts deducted/ accrued in the books ofaccount in respect of undisputed statutory dues including Provident Fund Income TaxSales Tax Value Added Tax Duty of Customs Duty of Excise Service Tax Goods &Service Tax Employees' State Insurance Cess and any other material statutory dues havebeen regularly deposited during the year by the Company with appropriate authorities.According to the information and explanations given to us no undisputed amounts payablein respect of statutory dues were in arrears as at 31 March 2018 for a period of more thansix months from the date they became payable. Details of dues of Income-tax Service TaxCustoms Duty Excise Duty and Value Added Tax which have not been deposited as on 31March 2018 on account of disputes are given below:-

Name of the statute Nature of the dues Amount unpaid (`) Period(s) to which the amount relate Forum where such dispute is pending
1 The Bombay Sales Tax Act 1959 and the Central Sales Tax Act 1956 Sales Tax 38808687 2001-02 and 2002-03 Maharashtra Sales Tax Tribunal Mumbai
2 Maharashtra Value Added Tax Act 2002 Value Added Tax 71825295 2005-06 Dy. Commissioner of Sales Tax (Appeals) Satara
3 Maharashtra Value Added Tax Act 2002 Value Added Tax 864747 2006-07 Jt. Commissioner of Sales Tax (Appeals) Kolhapur
4 Maharashtra Value Added Tax Act 2002 Value Added ax 140102 2012-13 Jt. Commissioner of Sales Tax (Appeals) Kolhapur
5 Income Tax Act 1961 Income Tax 3984285 1997-98 and 1998-99 Mumbai High Court
6 Income Tax Act 1961 Income Tax 2850745 2012-13 and 2013-14 Income tax Appellate Tribunal Pune
7 Income Tax Act 1961 Income Tax 1549388 2014-15 Commissioner of Income Tax Pune
8 Central Excise Act 1944 Excise Duty 319085 1985-86 to 1991-92 Customs Excise and Service Tax Appellate
Tribunal Mumbai
9 Central Excise Act 1944 Excise Duty 1214840 1985-86 to 1995-96 Mumbai High Court
10 Central Excise Act 1944 Excise Duty 465868 1994-95 and 1995-96 Assistant Commissioner Satara
11 Central Excise Act 1944 Excise Duty 28754 1987-88 Assistant Commissioner Satara

(viii) In our opinion and according to the information and explanations given to usthe Company has not defaulted in the repayment of loans or borrowings to financialinstitutions banks and government and dues to debenture holders.

(ix) In our opinion and according to the information and explanations given to us theCompany has not raised moneys by way of initial public offer or further public offer(including debt instruments) and term loans during the year.

(x) According to the information and explanations given to us no fraud by the Companyor on the Company by its officers or employees has been noticed or reported during theyear.

(xi) In our opinion and according to the information and explanations given to us theCompany has paid/ provided managerial remuneration in accordance with

the requisite approvals mandated by the provisions of section 197 read with Schedule Vto the Companies Act 2013.

(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) In our opinion and according to the information and explanations given to usthe Company is in compliance with section 177 and 188 of the Companies Act

2013 where applicable for all transactions with the related parties and the details ofrelated party transactions have been disclosed in the Ind AS financial statements asrequired by the applicable accounting standards.

(xiv) During the year the Company has not made any preferential allotment or privateplacement of shares or fully or partly convertible debentures and hence reporting underparagraph 3(xiv) of the Order is not applicable to the Company.

(xv) In our opinion and according to the information and explanations given to usduring the year the Company has not entered into any non-cash transactions with itsdirectors or persons connected with him. Accordingly paragraph 3(xv) of the Order is notapplicable.

(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 - Refer Note 33 to Ind AS financialstatements.

For Kirtane & Pandit LLP
Chartered Accountants
Firm Registration No. 105215W/W100057
Suhas Deshpande
Partner
Membership No. 31787
Pune 16 May 2018

ANNEXURE "B" TO THE INDEPENDENT AUDITOR'S REPORT

(Referred to in paragraph 2(f) under 'Report on Other Legal and RegulatoryRequirements' section of our report of even date)

Report on the Internal Financial Controls Over Financial Reporting under clause (i) ofsub-section 3 of section 143 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 2018 in conjunction with our audit

of the Ind AS 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.These responsibilities include the design implementation and maintenance of adequateinternal financial controls that were operating effectively for ensuring the orderly andefficient conduct of its business including adherence to 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 internal financialcontrols over financial reporting based on our audit. We conducted our audit in accordancewith the Guidance Note issued by the Institute of Chartered Accountants of India and theStandards on Auditing prescribed under section 143(10) of the Companies Act 2013 to theextent applicable to an audit of internal financial controls. Those Standards and theGuidance Note require that we comply with ethical requirements and plan and perform theaudit to obtain reasonable assurance about whether adequate internal financial controlsover financial reporting was established and maintained and if such controls operatedeffectively 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 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.

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 to the best of our information and according to the explanations givento us the Company has in all material respects an internal financial controls withreference to financial statements over financial reporting and such internal financialcontrols over financial reporting 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 Kirtane & Pandit LLP
Chartered Accountants
Firm Registration No. 105215W/W100057
Suhas Deshpande
Partner
Pune16 May 2018 Membership No. 31787