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Escorts Ltd.

BSE: 500495 Sector: Auto
NSE: ESCORTS ISIN Code: INE042A01014
BSE 16:01 | 27 Mar 2018 Escorts Ltd
NSE 05:30 | 01 Jan 1970 Escorts Ltd
OPEN 818.40
PREVIOUS CLOSE 807.55
VOLUME 72778
52-Week high 921.90
52-Week low 421.10
P/E 35.50
Mkt Cap.(Rs cr) 10,125
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 818.40
CLOSE 807.55
VOLUME 72778
52-Week high 921.90
52-Week low 421.10
P/E 35.50
Mkt Cap.(Rs cr) 10,125
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Escorts Ltd. (ESCORTS) - Auditors Report

Company auditors report

To The Members of Escorts Limited

Report on the Standalone Financial Statements

We have audited the accompanying standalone financial statements of Escorts Limited('the Company') which comprise the balance sheet as at March 31 2015 the statement ofprofit and loss and the cash flow statement for the year then ended and a summary ofsignificant 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 preparationand presentation of these standalone financial statements that give a true and fair viewof the financial position financial performance and cash flows of the Company inaccordance with the accounting principles generally accepted in India including theAccounting Standards specified under Section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014. This responsibility also includes maintenance ofadequate accounting records in accordance with the provisions of the Act for safeguardingthe assets of the Company and for preventing and detecting frauds and otherirregularities selection and application of appropriate accounting policies makingjudgements and estimates that are reasonable and prudent and design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the accuracy and completeness of the accounting records relevant to thepreparation and presentation of the financial statements that give a true and fair viewand are free from material misstatement 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 accountingand auditing standards and matters which are required to be included in the audit reportunder the provisions 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 but not for the purpose of expressing anopinion on whether the Company has in place an adequate internal financial controls systemover financial reporting and the operating effectiveness of such controls. An audit alsoincludes evaluating the appropriateness of the accounting policies used and thereasonableness of the accounting estimates made by the Company's Directors as well asevaluating the overall presentation of 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 March 31 2015 and its profit and its cash flows for the year ended on that date.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor's Report) Order 2015 ("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 in the paragraph 3and 4 of the Order.

2. As required bySection 143 (3) oftheAct we reportthat:

(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 March312015 taken on record by the Board of Directors none of the directors is disqualifiedas on March 31 2015 from being appointed as a director in terms of Section 164 (2) of theAct; and

(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 financial statements - Refer Note 34a of the 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 34c of the financial statements;

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

For S. N. Dhawan & Co.

Chartered Accountants (Firm Registration No. 000050N)

(Vijay Dhawan)

Partner

M.No.:12565

Place: New Delhi Dated: May 28 2015

Annexure to Independent Auditor’s Report

The Annexure referred to in our Independent Auditor's Report to the members of theCompany on the standalone financial statements for the year ended March 31 2015 wereport that:

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

(b) The Company has a regular programme of physical verification of its fixed assets bywhich fixed assets are verified in a phased manner over a period of three years. Inaccordance with this programme certain fixed assets were verified during the year and nomaterial discrepancies were noticed on such verification. In our opinion this periodicityof physical verification is reasonable having regard to the size of the Company and thenature of its assets.

(ii) (a) As explained to us the inventories have been physically verified by themanagement at reasonable intervals during the year except for materials lying with thirdparties for which certificates confirming stocks held by them have been obtained in mostof the cases.

(b) In our opinion and according to the information and explanations given to us theprocedures of physical verification of inventories followed by the management arereasonable and adequate in relation to the size of the Company and the nature of itsbusiness.

(c) In our opinion and according to information and explanations given to us theCompany has maintained proper records of its inventories. Discrepancies noticed onphysical verification of inventories were not material and have been properly dealt within the books of account.

(iii) The Company has not granted any loans secured or unsecured to companies firmsor other parties covered in the register maintained under Section 189 of the CompaniesAct.

(iv) In our opinion and according to the information and explanations given to usthere are adequate internal control procedures commensurate with the size of the Companyand the nature of its business for the purchase of inventory and fixed assets and for thesale of goods and services. During the course of our audit we have neither come acrossnor have been informed of any continuing failure to correct major weaknesses in theinternal control systems.

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

(vi) We have broadly reviewed the books of account maintained by the Company pursuantto the Rules made by the Central Government for the maintenance of cost records underSection 148(1) of the Companies Act 2013 in respect of the products manufactured by theCompany and are of the opinion that prima facie the prescribed accounts have beenmade and maintained. We have however not made a detailed examination of the records witha view to determine whether they are accurate and complete.

(vii) (a) The Company is generally regular in depositing with appropriate authoritiesundisputed statutory dues including provident fund employees' state insuranceincome-tax sales-tax wealth tax service tax duty of customs duty of excise valueadded tax cess and any other statutory dues applicable to it.

According to the information and explanations given to us no undisputed amountspayable in respect of provident fund employees' state insurance income-tax sales-taxwealth tax service tax duty of customs duty of excise value added tax cess were inarrears as at March 31 2015 for a period of more than six months from the date theybecame payable.

(b) According to the information and explanations given to us the details of statutorydues of income tax or sales tax or wealth tax or service tax or duty of customs or duty ofexcise or value added tax or cess which have not been deposited on account of any disputeare given below:

Name of the Statute Nature of Dues Amount* (H Crores) Period to which the amount relates Forum where dispute is pending
Sales Tax Acts Sales Tax 25.88 1987-2014 Adjudicating Authority/ Appellate Authority/ High Court
Central ExciseAct 1944 Excise Duty 1.94 1992-2013 Adjudicating Authority/ Appellate Authority
Central ExciseAct 1944 Excise Duty 11.90 1995-2012 CESTAT
Finance Act 1994 Service Tax 2.09 2005-201 1 CESTAT
Income Tax Act 1961 Income Tax 0.53 2007-2008 (A.Y 2008-2009) ITAT
Haryana Local Area Development Tax Act 2000 Local Area Development Tax 12.90 2006-2008 Supreme Court

* net of deposits

(c) According to the information and explanations given to us the amounts which wererequired to be transferred to the investor education and protection fund in accordancewith the relevant provisions of the Companies Act 1956 (1 of 1956) and rules thereunderhas been transferred to such fund within time.

(viii) The Company does not have accumulated losses as at March 31 2015 and has notincurred cash losses during the financial period covered by our audit and in theimmediately preceding financial year.

(ix) In our opinion and according to the information and explanations given to us theCompany has not defaulted in repayment of dues to a financial institution or bank ordebenture holders.

(x) In our opinion and according to the information and the explanations given to usthe Company has not given any guarantee for loans taken by others from banks or financialinstitutions.

(xi) To the best of our knowledge and belief and according to the information andexplanations given to us the term loans availed by the Company were applied for thepurposes for which the loans were obtained.

(xii) To the best of our knowledge and according to the information and explanationsgiven to us no fraud on or by the Company has been noticed or reported during the period.

For S. N. Dhawan & Co.

Chartered Accountants

(Firm Registration No. 000050N)

(Vijay Dhawan)

Partner

M.No.:12565

Place: New Delhi

Dated: May 28 2015