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MRF Ltd.

BSE: 500290 Sector: Auto
NSE: MRF ISIN Code: INE883A01011
BSE 16:01 | 27 Mar 2018 MRF Ltd
NSE 05:30 | 01 Jan 1970 MRF Ltd
OPEN 70208.95
PREVIOUS CLOSE 69983.00
VOLUME 781
52-Week high 74499.00
52-Week low 51148.00
P/E 29.69
Mkt Cap.(Rs cr) 30,697
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 70208.95
CLOSE 69983.00
VOLUME 781
52-Week high 74499.00
52-Week low 51148.00
P/E 29.69
Mkt Cap.(Rs cr) 30,697
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

MRF Ltd. (MRF) - Auditors Report

Company auditors report

INDEPENDENT AUDITOR’S REPORT

TO THE MEMBERS OF MRF LIMITED

Report on the Standalone Financial Statements

We have audited the accompanying standalone financial statements of MRF LIMITED("the Company") which comprise the Balance Sheet as at 31st March 2016 theStatement of Profit and Loss the Cash Flow Statement for the period then ended and asummary of the significant 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 preparation ofthese standalone financial statements that 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. for

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 accounting and auditingstandards and matters which are required to be included in the audit report under theprovisions 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 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 financialcontrol system over financial reporting and the operating effectiveness of such controls.An audit also includes evaluating appropriateness of the accounting policies used and thereasonableness of the accounting estimates made by the Company’s Directors as wellas evaluating the overall presentation of the financial statements. We believe that theaudit evidence we have obtained is sufficient and appropriate to provide a basis for ouraudit 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 the period ended on 31st March 2016 its profit and its cash flows that date.

Report on Other Legal and Regulatory Requirements

As required by the Companies (Auditor’s Report) Order 2016 ("theOrder") issued by the Central Government of India in terms of sub- section (11) ofsection 143 of the Act we give in the "Annexure A" - a statement on the mattersspecified in paragraphs 3 and 4 of the Order. As required by section 143 (3) of the Actwe report that: (a) We have sought and obtained all the information and explanations whichto the best of 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 31stMarch 2016 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2016 from being appointed as a director in terms of section164 (2) of the Act.

(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. TheCompany has disclosed the impact of pending litigations on its financial position in itsfinancial statements Refer Note 27 (r) (iv) to the financial statements; ii. The Companyhas long-term contracts including derivative contracts for which there were no materialforeseeable losses. iii. There has been no delay in transferring amounts required to betransferred to the Investor Education and Protection Fund by the Company during the periodended 31st March 2016.

For Sastri & Shah For M. M. Nissim & Co.
Chartered Accountants Chartered Accountants
Firm Regn. No. 003643S Firm Regn. No. 107122W
(C R Kumar) (Dhiren Mehta)
Partner Partner
Mem. No. 26143 Mem. No. 109883
Chennai Dated May 03 2016

ANNEXURE "A" TO THE INDEPENDENT AUDITOR’S REPORT OF EVEN DATE ON THESTANDALONE FINANCIAL STATEMENTS OF MRF LIMITED

i) In respect of its Fixed Assets:

a) The Company has maintained proper records showing full particulars includingquantitative details and situation of Fixed Assets;

b) As explained to us the assets have been physically verified by the management inaccordance with a phased programme of verification which in our opinion is reasonableconsidering the size and the nature of its business. The frequency of verification isreasonable and no material discrepancies have been noticed on such physical verification;

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 are heldin the name of the Company.

ii) The inventory has been physically verified by the management during the period. Inour opinion the frequency of verification is reasonable. No material discrepancies werenoticed on such physical verification. As regards materials lying with third partiesconfirmations have been obtained.

iii) The Company has not granted any loans secured or unsecured limited liabilitypartnerships duringtheperiodtocompanies firms or other parties covered in the Registermaintained under Section 189 of the Act. Accordingly the Clauses 3(iii) (a) (b) and (c)of the Order are not applicable to the Company.

iv) In our opinion and according to the information and explanations given to us theCompany has complied with the provisions of Section 185 and 186 of the Act with respectto the investments made and corporate guarantees given to the subsidiary companies.

v) The Company has complied with the directives issued by Reserve Bank of India and theProvisions of Sections 73 to 76 of the Act and the rules framed thereunder with regard todeposits accepted from the public. We are informed by the management that no order hasbeen passed by the Company Law Board or National Company Law Tribunal or Reserve Bank ofIndia or any court or any other Tribunal on the Company.

vi) We have broadly reviewed the books of account maintained by the Company pursuant tothe rules made by the Central Government for the maintenance of cost records under section148 (1) of the Act and are of the opinion that prima facie the prescribedaccounts and records have been made and maintained.

vii) a) The Company is regular in depositing undisputed statutory dues includingprovident fund employees’ state insurance income tax sales-tax service tax dutyof customs duty of excise value added tax cess and any other statutory dues withappropriate authorities where applicable. According to the information and explanationsgiven to us there are no undisputed amounts payable in respect of such statutory dueswhich have remained outstanding as at 31st March 2016 for a period of more than sixmonths from the date they became payable. b) According to the records of the Company thedues outstanding of income-tax sales-tax service tax duty of customs duty of exciseand value added tax on account of any dispute are as follows:

Statute and nature of dues Financial year to which the matter pertains Forum where the dispute is pending Rs. Crore
CENTRAL SALES TAX
ACT 1956 & VAT
LAWS
Sales tax / VAT and penalty 2002-03 2005-06 to Appellate 7.92
2011-12 2013-14 to 2015-16 Commissioner
1997-98 to 2007-08 Appellate 10.20
2009-10 2010-11 & 2015-16 Tribunal
1996-97 2007-08 High Court 6.76
2012-13 to 2015-16
1996-97 2000-01 & Supreme 0.01
2001-02 Court
CUSTOMS ACT 1962
Customs Duty and 1992-93 to 1994-95 High Court 74.89
penalty
CENTRAL EXCISE ACT
1944
Excise duty and 1997-98 & 2006-07 Appellate 0.36
penalty & 2013-14 Commissioner
1993-94 1999-2000 Appellate 0.29
to 2001-2002 Tribunal
2001-02 Supreme 0.06
Court
INCOME TAX 1961
Income Tax 2001-02 2003-04 High Court 16.83
2007-08 2009-10
2010-11 & 2011-12

viii) The Company has not defaulted in repayment of its loans or borrowings to banksand debenture holders.

ix) The Company has not raised any moneys by way of Initial public offer or furtherPublic offer (Including debt instruments) during the period. Moneys raised by way of TermLoan were applied for the purpose for which those are raised.

x) On the basis of our examination and according to the information and explanationsgiven to us no fraud by the Company or any material fraud on the Company by its officersor employees has been noticed or reported during the period nor have we been informed ofany such case by the management.

xi) The managerial remuneration has been paid/provided in accordance with the requisiteapprovals mandated by the provisions of Section 197 read with Schedule V to the Act.

xii) The Company is not a nidhi Company and accordingly provisions of Clause (xii)ofPara 3 of the order are not applicable to the Company.

xiii) On the basis of our examination and according to the information and explanationsgiven to us we report that all the transaction with the related parties are in compliancewith section 177 and 188 of the Act and the details have been disclosed in the Financialstatements in Note No. 27 (i) as required by the applicable accounting standards.

xiv) The Company has not made any preferential allotment or private placement of shareor fully or partly convertible debentures during the period and accordingly provisions ofClause (xiv) of Para 3 of the Order are not applicable to the Company.

xv) According to the information and explanations given to us and based on ourexamination of the records of the company the company has not entered into any non-cashtransactions with directors or persons connected with him. Accordingly provisions ofClause (xv) of Para 3 of the Order are not applicable to the company.

xvi) The Company is not required to be registered under section 45-IA of the ReserveBank of India Act1934 and accordingly provisions Clause (xvi) of Para 3 of the Order arenot applicable to the Company.

For Sastri & Shah For M. M. Nissim & Co.
Chartered Accountants Chartered Accountants
Firm Regn. No. 003643S Firm Regn. No. 107122W
(C R Kumar) (Dhiren Mehta)
Partner Partner
Mem. No. 26143 Mem. No. 109883
Chennai Dated May 03 2016