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Scooters India Ltd.

BSE: 505141 Sector: Auto
NSE: N.A. ISIN Code: INE959E01011
BSE 00:00 | 28 May 21.65 0.75
(3.59%)
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21.75

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NSE 05:30 | 01 Jan Scooters India Ltd
OPEN 20.00
PREVIOUS CLOSE 20.90
VOLUME 1202
52-Week high 50.55
52-Week low 14.25
P/E
Mkt Cap.(Rs cr) 189
Buy Price 20.30
Buy Qty 500.00
Sell Price 21.75
Sell Qty 10.00
OPEN 20.00
CLOSE 20.90
VOLUME 1202
52-Week high 50.55
52-Week low 14.25
P/E
Mkt Cap.(Rs cr) 189
Buy Price 20.30
Buy Qty 500.00
Sell Price 21.75
Sell Qty 10.00

Scooters India Ltd. (SCOOTERSINDIA) - Auditors Report

Company auditors report

To the members of SCOOTERS INDIA LIMITED

Revised Report on the Audit of the Standalone Ind AS Financial Statements

Our report dated 27 May 2019 on the accounts for the year ended 31 March 2019 hasbeen revised to give effect to the observations made by the Comptroller &AuditorGeneral of India in the supplementary audit carried out by them under Section 143(6)(a) ofthe Companies Act 2013.

Qualified opinion

We have audited the accompanying Standalone Ind AS financial statements of ScootersIndia Limited ('the company') which comprises the Balance sheet as at 31 March 2019 andthe statement of Profit &Loss Account (including Other Comprehensive Income)the CashFlow Statement and the Statement of changes in Equity for the year then ended and asummary of Significant Accounting Policies and other explanatory information.

In our opinion and to the best of our information and according to explanations givento us except for the matters described in Paragraph (a) of the Basis for QualifiedOpinion paragraph the said standalone Ind AS financial statements give theinformation required by the act in the manner so required and give a true and fair view inconformity with the accounting principles generally accepted in India of the state ofaffairs of the company as at 31 March 2019 and its profit/loss total comprehensiveincome / loss its cash flows and the changes in equity for the year ended on that date.

Basis for Qualified Opinion

We conducted our audit in accordance with the Standards on Auditing (SAs) specifiedunder section 143(10) of the Companies Act 2013. Our responsibilities under thoseStandards are further described in the Auditor's Responsibilities for the Audit of theFinancial Statements section of our report. We are independent of the Company inaccordance with the Code of Ethics issued by the Institute of Chartered Accountants ofIndia together with the ethical requirements that are relevant to our audit of thefinancial statements under the provisions of the Companies Act 2013 and the Rulesthereunder and we have fulfilled our other ethical responsibilities in accordance withthese requirements and the Code of Ethics. We believe that the audit evidence we haveobtained is sufficient and appropriate to provide a basis for our opinion.

a) Attention is invited to Note No.2 of 'Significant Accounting Policies &Notes to the Financial Statements' it was observed that lots of assets are shown in thebooks of accounts of the company under different assets head at its residual value.Further the remaining useful life of those machines was NIL but the assets are still inuse and are being installed in the factory and further no depreciation has been chargedby the company as they are shown at their residual value since Financial Year 2016-17.However as per Ind AS - 16 depreciation can be seized only if the asset is demortized/sale or is held for sale. Moreover as per IND AS-16 the company should have torevalue these assets and charge depreciation on the revalued amount. While discussing thisissue with the management it was told to us that such machines could not be revalued byany valuation officer as these machines were bought from Italy with the name of InnocentiMachines and the size of these machines is very heavy.

Key Audit Matters

Key audit matters are those matters that in our professional judgment were of mostsignificance in our audit of the financial statements of the current period. These matterswere addressed in the context of our audit of the financial statements as a whole and informing our opinion thereon and we do not provide a separate opinion on these matters.For detailed matters please refer Annexure-1.

Management's responsibility for the 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 preparationand presentation of these Ind AS financial statements that give a true and fair view ofthe financial position financial performance cash flows of the Company in accordancewith accounting principles generally accepted in India including the Accounting Standardsspecified under section 133 of the Act read with the Companies (Indian AccountingStandards) Rules 2015 as amended and other accounting principles generally accepted inIndia.

This responsibility also includes maintenance of adequate accounting records inaccordance 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.

In preparing the financial statements management is responsible for assessing theCompany's ability to continue as a going concern disclosing as applicable mattersrelated to going concern and using the going concern basis of accounting unless managementeither intends to liquidate the Company or to cease operations or has no realisticalternative but to do so.

Those Board of Directors are also responsible for overseeing the Company's financialreporting process.

Auditor's 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 standalone 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 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 Ind AS financial statements.

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.

Our objectives are to obtain reasonable assurance about whether the financialstatements as a whole are free from material misstatement whether due to fraud or errorand to issue an auditor's report that includes our opinion. Reasonable assurance is a highlevel of assurance but is not a guarantee that an audit conducted in accordance with SAswill always detect a material misstatement when it exists. Misstatements can arise fromfraud or error and are considered material if individually or in the aggregate theycould reasonably be expected to influence the economic decisions of users taken on thebasis of these financial statements.

Other Matters

All the Observations has already been covered above in Basis of Qualified Opinion andKey Matters. Further no such other matter is required to be opined as per our auditobservation.

Report on Other Legal and Regulatory Requirements

As required by the Companies (Auditor's report) Order2016 ("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 A' statement on the matters specified inparagraphs 3 and 4 of the Order.

Further we are enclosing our report in terms of section 143(5) of the Act on thebasis of such checks of the books and records of the company as we consider appropriateand according to the information and explanation given to us in the 'Annexure B'on the directions and sub-directions issued by Comptroller and Auditor General of India.

As required by section 143 (3) of the Act we report that:

We have sought and obtained all the information and explanations which to the best ofour knowledge and belief were necessary for the purpose of our audit;

a) 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;

b) The Balance Sheet Statement of Profit and Loss including the Statement of OtherComprehensive Income/loss Statement of Cash Flow and Statement of Changes in Equity dealtwith by this Report are in agreement with the books of account;

c) In our opinion the aforesaid standalone Ind AS financial statements comply with theIndian Accounting Standards specified under section 133 of the Indian Companies Act 2013.

d) On the basis of written representations received from the directors as on March 312019 and taken on record by the Board of Directors none of the directors is disqualifiedas on March 31 2019 from being appointed as a director in terms of section 164 (2) ofthe Act;

e) 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 C'.Our report expresses an unmodified opinion on theadequacyand operating effectiveness of the Company's internal financial controls overfinancial reporting;

f) 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 Ind AS financial statements – Refer Note No.33 of 'SignificantAccounting Policies & Notes to the financial Statement;

(ii) The Company has made provisions as required under the applicable law oraccounting standard for foreseeable lossesif any refer to note no 4 8 16 & 22 ofthe 'Significant accounting Policies & Notes to the financial statement'.

(iii) There has been no amount that is required to be transferred to the InvestorEducation and Protection Fund by the Company.

For Asija & Associates LLP
Chartered Accountants
FRN : 003155C/C400011
UDIN:-19402982AAAAAD4453CA
Kamal Kr. Ferwani
Senior Partner
M. No.: - 402982
Place : Lucknow
Date : 02-07-2019

ANNEXURE-A

TO THE MEMBERS OF SCOOTERS INDIA LIMITED LUCKNOW ON THE ACCOUNTS OF THE COMPANY FORTHE YEAR ENDED 31 MARCH 2019

On the basis of such checks as we considered appropriate and according to theinformation and explanation given to us during the course of our audit we report that:

(i) In respect of company's fixed assets:

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

b) The company has regular program of physical verification of its fixed assets i.e.on quarterly basis. In accordance with this program fixed assets were verified during theyear by an external Chartered Accountants firm and no material discrepancies were noticedon such verification.

c) According to the information and explanation given to us and on the basis of ourexamination of the records of the company title deeds of immovable properties are held inthe name of the company as at Balance sheet.

(ii) As explained to us the Company has a regular program of physical verification ofinventories i.e. on quarterly basis the physical verification of inventory (excludingInventory with third parties) have been carried out by external Chartered Accountants firmand no material discrepancies were noticed on such verification.

(iii) According to the information and explanation 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 theAct.

(iv) In our opinion and According to the information and explanation given to us theCompany has not granted any loan investments guarantees and security covered undersection 185 or 186 of the Act accordingly clause (iv) of the Order is not applicable tothe Company.

(v) According to the information and explanation given to us the Company has notaccepted any deposit during the year in terms of section 73 to 76 or any other relevantprovisions of the Companies Act 2013.

(vi) The Central Government has not prescribed the maintenance of cost record undersection 148(1)of the Act for the goods manufactured by the company.

(vii) According to the information and explanations given to us in respect ofstatutory dues:

(a) As per the records the Company is regular in depositing undisputed statutory duesincluding Provident Fund Employee State Insurance Sales Tax Service Tax Customs DutyExcise Duty Value Added Tax Cess and any other statutory dues to the extent applicableto it with the appropriate authorities and as informed no undisputed amount wereoutstanding as at 31 March 2019 for aperiod of more than six months the date of becomingpayable except the following :

S. No. Name of the Statue Nature of the Period dues Amount (Rs. in Lakhs)
1 Kerala Sales Tax Sales Tax 92-93 93-94 & 94 94-95 4.22
Total 4.22

(b) The disputed statutory dues aggregating Rs.1667.54 Lakhs that have not beendeposited on account of matters pending before appropriate authorities. For details ofsuch amounts please refer Annexure 2.

(viii) In our opinion and according to the information and explanations given to usthe Company has not defaulted in the repayment of dues to financial institution or banksor debenture holders except for the Interest Free Plan loan amounting to Rs.20.00/-Crores provided by the Government of India through sanction letter dated 23-07-2013 whichthe company has to repay in five equal instalments commencing from 23-07-2016however onlyfirst instalment of Rs.4.00/- Crores has been paid by the company till now and remainingtwo instalments amounting to Rs. 8.00/- Crores (4.00/- Crore each) which were due dated23-07-2017 and 23-07-2018 have not been paid till the end of Current Financial Year.

(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 however the company hasraised term loan in earlier year which has been applied for the purpose for which theyhave been raised.

(x) Based upon the audit procedures performed and information given to us we reportthat no fraud on by the company has been noticed or reported during the year bymanagement. However as explained to us by the management that in the financial year2008-09 Board of Directors revealed that a commercial agreement was executed by the thenCMD without the authority of the board and after due consideration the Board decided torefer the matter to the appropriate authority for the future action however no action onthe same was reported to us.

(xi) Being a Government Company pursuant to Notification no.G.S.R. 463(E) dated 5June 2015 issued by Government of India Provisions of section 197 of the Act is notapplicable to the company.

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

(xiii) As per section 177 of the Companies Act 2013 every listed company shall haveto constitute an Audit Committee which as per Rule 6A provide approval to all the relatedparty transactions proposed to be entered in the company. HoweverAccording to theinformation and explanation given to usthe company has not formed an audit committee asper Section 177 therefore the Related Party Transactions entered by the company were notauthorised by the Audit Committee. Further the company has complied with the section 188of the Act where applicable and details of such transactions have been disclosed in thefinancial statements as required by the applicable accounting standards.

(xiv) According to the information and explanation given to us and based on ourexamination of the company the Company has not made any preferential allotment or privateplacement of shares or fully or partly convertible debentures during the year.

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

(xvi) The Company is not required to be registered under section 45-IA of the ReserveBank of India Act 1934.

For Asija & Associates LLP
Chartered Accountants
FRN: 003155C/C400011
UDIN:-19402982AAAAAD4453
CA Kamal Kr. Ferwani
Senior Partner
M. No.: - 402982
Place:- Lucknow
Date:- 02-07-2019