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Goodyear India Ltd.

BSE: 500168 Sector: Auto
NSE: GOODYEAR ISIN Code: INE533A01012
BSE 16:01 | 27 Mar 2018 Goodyear India Ltd
NSE 05:30 | 01 Jan 1970 Goodyear India Ltd
OPEN 1108.00
PREVIOUS CLOSE 1116.80
VOLUME 5623
52-Week high 1258.45
52-Week low 699.00
P/E 20.86
Mkt Cap.(Rs cr) 2,630
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 1108.00
CLOSE 1116.80
VOLUME 5623
52-Week high 1258.45
52-Week low 699.00
P/E 20.86
Mkt Cap.(Rs cr) 2,630
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Goodyear India Ltd. (GOODYEAR) - Auditors Report

Company auditors report

To The Members Of

Goodyear India Limited

Report on the Financial Statements

1. We have audited the accompanying financial statements of Goodyear India Limited("the Company") which comprise the Balance Sheet as at March 31 2016 theStatement of Profit and Loss the Cash Flow Statement for the 15 months period fromJanuary 1 2015 to March 31 2016 ("the period") and a summary of thesignificant accounting policies and other explanatory information.

Management’s Responsibility for the Financial Statements

2. The Company’s Board of Directors is responsible for the matters stated inSection 134(5) of the Companies Act 2013 ("the Act") with respect to thepreparation of these financial statements to give a true and fair view of the financialposition financial performance and cash flows of the Company in accordance with theaccounting principles generally accepted in India including the Accounting Standardsspecified under Section 133 of the Act read with Rule 7 of the Companies (Accounts)Rules 2014. 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 design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the accuracy andcompleteness of the accounting records relevant to the preparation and presentation ofthe financial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.

Auditors’ Responsibility

3. Our responsibility is to express an opinion on these standalone financial statementsbased on our audit.

4. We have taken into account the provisions of the Act and the Rules made thereunderincluding the accounting standards and matters which are required to be included in theaudit report.

5. We conducted our audit in accordance with the Standards on Auditing specified underSection 143(10) of the Act and other applicable authoritative pronouncements issued by theInstitute of Chartered Accountants of India. Those Standards and pronouncements requirethat we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether the financial statements are free from materialmisstatement.

6. An audit involves performing procedures to obtain audit evidence about the amountsand the disclosures in the financial statements. The procedures selected depend on theauditors’ judgment including the assessment of the risks of material misstatement ofthe financial statements whether due to fraud or error. In making those risk assessmentsthe auditor considers internal financial control relevant to the Company’spreparation of the financial statements that give a true and fair view in order to designaudit procedures that are appropriate in the circumstances but not for the purpose ofexpressing an opinion on whether the Company has in place an adequate internal financialcontrols system over financial reporting and the operating effectiveness of such controls.An audit also includes evaluating the appropriateness of the accounting policies used andthe reasonableness of the accounting estimates made by the Company’s Directors aswell as evaluating the overall presentation of the financial statements.

7. We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the financial statements.

Opinion

8. In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid financial statements give the information required by the Actin the 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 2016 and its profit and its cash flows for the 15 months period from January 1 2015to March 31 2016.

Report on Other Legal and Regulatory Requirements

9. As required by ‘the Companies (Auditor’s Report) Order 2015’ issuedby the Central Government of India in terms of subsection (11) of section 143 of the Act(hereinafter referred to as the "Order") and on the basis of such checks of thebooks and records of the Company as we considered appropriate and according to theinformation and explanations given to us we give in the Annexure a statement on thematters specified in paragraphs 3 and 4 of the Order.

10. 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 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. However the back up ofthe books of accounts and other books and papers maintained in electronic mode has notbeen maintained on servers physically located in India.

(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 financial statements comply with the AccountingStandards specified under Section 133 of the Act read with Rule 7 of the Companies(Accounts) Rules 2014.

(e) On the basis of the written representations received from the directors as on March31 2016 taken on record by the Board of Directors none of the directors is disqualifiedas on March 31 2016 from being appointed as a director in terms of Section 164 (2) of theAct.

(f) With respect to the maintenance of accounts and other matters connected therewithreference is made to our comment in Paragraph 10 (b) above that the back up of the booksof accounts and other books and papers maintained in electronic mode has not beenmaintained on servers physically located in India.

(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 knowledge and belief and according to the information andexplanations given to us:

i. The Company has disclosed the impact if any of pending litigations as at March 312016 on its financial position in its standalone financial statements – Refer Notes7 12 19 and 32 to the financial statements;

ii. The Company does not have derivative contracts and in respect of other long-termcontracts there are no material foreseeable losses as at March 31 2016;

iii. There has been no delay in transferring amounts required to be transferred tothe Investor Education and Protection Fund by the Company during the 15 months period fromJanuary 1 2015 to March 31 2016.

For Price Waterhouse & Co Bangalore LLP
Firm Registration Number: 007567S/ S-200012
Chartered Accountants
Abhishek Rara
New Delhi Partner
May 30 2016 Membership Number 077779

Annexure to Independent Auditors’ Report

Referred to in paragraph 9 of the Independent Auditors’ Report of even date to themembers of Goodyear India Limited on the financial statements as of and for the 15 monthsperiod ended March 31 2016

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

(b) The fixed assets are physically verified by the Management according to a phasedprogramme designed to cover all the items over a period of three years which in ouropinion is reasonable having regard to the size of the Company and the nature of itsassets. Pursuant to the programme a portion of the fixed assets has been physicallyverified by the Management during the year and no material discrepancies have been noticedon such verification.

ii. (a) The inventory including stocks with third parties has been physically verifiedby the Management during the year. In our opinion the frequency of verification isreasonable.

(b) In our opinion the procedures of physical verification of inventory followed bythe Management are reasonable and adequate in relation to the size of the Company and thenature of its business.

(c) On the basis of our examination of the inventory records in our opinion theCompany is maintaining proper records of inventory. The discrepancies noticed on physicalverification of inventory as compared to book records were not material.

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 Act.Therefore the provisions of Clause 3(iii) (iii)(a) and (iii)(b) of the said Order arenot applicable to the Company.

iv. In our opinion and according to the information and explanations given to usthere is an adequate internal control system commensurate with the size of the Company andthe nature of its business for the purchase of inventory and fixed assets and for the saleof goods. The Company’s operations do not involve sale of services. Further on thebasis of our examination of the books and records of the Company and according to theinformation and explanations given to us we have neither come across nor have beeninformed of any continuing failure to correct major weaknesses in the aforesaid internalcontrol system.

v. The Company has not accepted any deposits from the public within the meaning ofSections 73 74 75 and 76 of the Act and the rules framed there under to the extentnotified.

vi. We have broadly reviewed the books of account maintained by the Company in respectof products where pursuant to the rules made by the Central Government of India themaintenance of cost records has been specified under subsection (1) of Section 148 of theAct and are of the opinion that prima facie the prescribed accounts and records havebeen made and maintained. We have not however made a detailed examination of the recordswith a view to determine whether they are accurate or complete.

vii. (a) According to the information and explanations given to us and the records ofthe Company examined by us in our opinion the Company is generally regular in depositingundisputed statutory dues in respect of provident fund sales tax and income tax thoughthere has been a slight delay in a few cases and is regular in depositing undisputedstatutory dues including employees’ state insurance wealth tax service tax dutyof customs duty of excise value added tax cess and other material statutory dues asapplicable with the appropriate authorities.

(b) According to the information and explanations given to us and the records of theCompany examined by us there are no dues of wealth-tax duty of customs and cess whichhave not been deposited on account of any dispute. The particulars of dues of income taxsales tax service tax duty of excise and value added tax as at March 31 2016 which havenot been deposited on account of a dispute are as follows:

Name of the statute Nature of dues Amount (Rs. in lakhs) Period to which the amount relates Forum where the dispute is pending
Central and State Tax Acts Sales Tax/ Value Added Tax 1401 (Net of payment under protest of 41) 1979-1980; 1987-1988; 1997-1998; 2000-2016 First level of Appellate Authority i.e. Assistant Commissioner/ Deputy Commissioner/ Joint Commissioner/Commissioner/Commercial Tax Appellate and Revisional Board
29 (Net of payment under protest of 10) 2003-2004; 2008-2010 Sales Tax Tribunal
7 (Net of payment under protest of 14) 1978-1979; 2002-2003 High Court
The Central Excise Act 1994 Excise Duty/ Service Tax 102 (Net of payment under protest of 103) 1997-1998 Supreme Court of India
797 (Net of payment under protest of 395) 2004-2014 The Customs Excise and Service Tax Appellate Tribunal (CESTAT)
170 (Net of payment under protest of 16) 2007-2014 Commissioner (Appeals)
The Income Tax Act 1961 Income Tax Nil (Net of payment under protest of 32) 1970-1975 Supreme Court of India
26 2005-2006 High Court
3810 (Net of payment under protest of 713) 2004-2011 The Income Tax Appellate Tribunal
17 2006-2007 Commissioner of Income Tax (Appeals)

c) The amount required to be transferred to Investor Education and Protection Fund hasbeen transferred within the stipulated time in accordance with the provisions of theCompanies Act 1956 and the rules made thereunder.

viii. The Company has no accumulated losses as at the end of the financial year and ithas not incurred any cash losses in the financial year ended on that date or in theimmediately preceding financial year.

ix. As the Company does not have any borrowings from any financial institution or banknor has it issued any debentures as at the balance sheet date the provisions of Clause3(ix) of the Order are not applicable to the Company.

x. In our opinion and according to the information and explanations given to us theterms and conditions of the guarantees given by the Company for loans taken by others frombanks or financial institutions during the year are not prejudicial to the interest ofthe Company.

xi. The Company has not raised any term loans. Accordingly the provisions of Clause3(xi) of the Order are not applicable to the Company.

xii. During the course of our examination of the books and records of the Companycarried out in accordance with the generally accepted auditing practices in India andaccording to the information and explanations given to us we have neither come across anyinstance of material fraud on or by the Company noticed or reported during the year norhave we been informed of any such case by the Management.

For Price Waterhouse & Co Bangalore LLP
Firm Registration Number: 007567S/ S-200012
Chartered Accountants
Abhishek Rara
New Delhi Partner
May 30 2016 Membership Number 077779