MOTHERSON SUMI SYSTEMS LIMITED
ANNUAL REPORT 2011-2012
AUDITORS` REPORT
1. We have audited the attached Balance Sheet of Motherson Sumi Systems
Limited (the "Company") as at March 31, 2012, and the related Statement of
Profit and Loss and Cash Flow Statement for the year ended on that date
annexed thereto, which we have signed under reference to this report. These
financial statements are the responsibility of the Company`s Management.
Our responsibility is to express an opinion on these financial statements
based on our audit.
2. We conducted our audit in accordance with the auditing standards
generally accepted in India. Those Standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures
in the financial statements. An audit also includes assessing the
accounting principles used and significant estimates made by Management, as
well as evaluating the overall financial statement presentation. We believe
that our audit provides a reasonable basis for our opinion.
3. As required by the Companies (Auditor`s Report) Order, 2003, as amended
by the Companies (Auditor`s Report) (Amendment) Order, 2004 (together the
"Order"), issued by the Central Government of India in terms of sub-section
(4A) of Section 227 of `The Companies Act, 1956` of India (the `Act`) and
on the basis of such checks of the books and records of the Company as we
considered appropriate and according to the information and explanations
given to us, we give in the Annexure a statement on the matters specified
in paragraphs 4 and 5 of the Order.
4. Further to our comments in the Annexure referred to in paragraph 3
above, we report that:
(a) We have obtained all the information and explanations which, to 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 the Company so far as appears from our examination of those books;
(c) The Balance Sheet, Statement of Profit and Loss and Cash Flow Statement
dealt with by this report are in agreement with the books of account;
(d) In our opinion, the Balance Sheet, Statement of Profit and Loss and
Cash Flow Statement dealt with by this report comply with the accounting
standards referred to in subsection (3C) of Section 211 of the Act;
(e) On the basis of written representations received from the directors, as
on March 31, 2012 and taken on record by the Board of Directors, none of
the directors is disqualified as on March 31, 2012 from being appointed as
a director in terms of clause (g) of sub-section (1) of Section 274 of the
Act;
(f) In our opinion and to the best of our information and according to the
explanations given to us, the said financial statements together with the
notes thereon and attached thereto give, in the prescribed manner, the
information required by the Act, and give a true and fair view in
conformity with the accounting principles generally accepted in India:
(i) in the case of the Balance Sheet, of the state of affairs of the
company as at March 31, 2012;
(ii) in the case of the Statement of Profit and Loss, of the profit for the
year ended on that date; and
(iii) in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
For Price Waterhouse
Firm Registration Number: 012754N
Chartered Accountants
Anupam Dhawan
Place : Noida Partner
Date : May 28, 2012 Membership Number: F084451
ANNEXURE TO AUDITORS` REPORT
Referred to in paragraph 3 of the Auditors` Report of even date to the
members of Motherson Sumi Systems Limited on the financial statements as of
and for the year ended March 31, 2012
1.(a) The Company is maintaining proper records showing full particulars,
including quantitative details and situation, of fixed assets.
(b) The fixed assets are physically verified by the Management according to
a phased programme designed to cover all the items over a period of 3 years
which, in our opinion, is reasonable having regard to the size of the
Company and the nature of its assets. Pursuant to the programme, a portion
of the fixed assets has been physically verified by the Management during
the year and no material discrepancies between the book records and the
physical inventory have been noticed.
(c) In our opinion, and according to the information and explanations given
to us, a substantial part of fixed assets has not been disposed of by the
Company during the year.
2.(a) The inventory (including stocks with third parties) has been
physically verified by the Management during the year. In our opinion, the
frequency of verification is reasonable.
(b) In our opinion, the procedures of physical verification of inventory
followed by the Management are reasonable and adequate in relation to the
size of the Company and the nature of its business.
(c) On the basis of our examination of the inventory records, in our
opinion, the Company is maintaining proper records of inventory. The
discrepancies noticed on physical verification of inventory as compared to
book records were not material.
3.(a) The Company has granted an unsecured loan to a Company covered in the
register maintained under Section 301 of the Act. The maximum amount
involved during the year and the year-end balance of such loans aggregated
to Rs. 1,000 Lakhs and Rs. 1,000 Lakhs respectively.
(b) In our opinion, the rate of interest and other terms and conditions of
such loans are not prima facie prejudicial to the interest of the Company.
(c) In respect of the aforesaid loan, the Company is repaying the principal
amounts, as stipulated, and is also regular in payment of interest, as
applicable.
(d) In respect of the aforesaid loans, there is no overdue amount more than
Rupees One Lakh.
(e) The Company has not taken any loans, secured or unsecured, from
companies, firms or other parties covered in the register maintained under
Section 301 of the Act. Accordingly, clauses (iii) (e), (iii) (f) and (iii)
(g) of paragraph 4 of the Order are not applicable
4. In our opinion, and according to the information and explanations given
to us, there is an adequate internal control system commensurate with the
size of the Company and the nature of its business for the purchase of
inventory and fixed assets and for the sale of goods and services. Further,
on the basis of our examination of the books and records of the Company,
and according to the information and explanations given to us, we have
neither come across, nor have been informed of, any continuing failure to
correct major weaknesses in the aforesaid internal control system.
5.(a) In our opinion, and according to the information and explanations
given to us, the particulars of contracts or arrangements referred to in
Section 301 of the Act have been entered in the register required to be
maintained under that section.
(b) In our opinion, and according to the information and explanations given
to us, the transactions made in pursuance of such contracts or arrangements
and exceeding the value of Rupees Five Lakhs in respect of any party during
the year have been made at prices which are reasonable having regard to the
prevailing market prices at the relevant time.
6. The Company has not accepted any deposits from the public within the
meaning of Sections 58A and 58AA of the Act and the rules framed there
under.
7. In our opinion, the Company has an internal audit system commensurate
with its size and the nature of its business.
8. We have broadly reviewed the books of account maintained by the Company
in respect of products where, pursuant to the rules made by the Central
Government of India, the maintenance of cost records has been prescribed
under clause (d) of subsection (1) of Section 209 of the Act, and are of
the opinion that, prima facie, the prescribed accounts and records have
been made and maintained. We have not, however, made a detailed examination
of the records with a view to determine whether they are accurate or
complete.
9.(a) According to the information and explanations given to us and the
records of the Company examined by us, in our opinion, the Company is
regular in depositing the undisputed statutory dues, including provident
fund, investor education and protection fund, employees` state insurance,
income tax, sales tax, wealth tax, service tax, customs duty, excise duty
and other material statutory dues, as applicable, with the appropriate
authorities.
(b) According to the information and explanations given to us and the
records of the Company examined by us, the particulars of dues of income
tax, sales tax, wealth tax, service tax, customs duty and excise duty as at
March 31, 2012 which have not been deposited on account of a dispute, are
as follows:
Name of Statut Nature of Amount Period to which Forum where the
dues (Rs.000) the amount dispute is pending
relates
Uttar Pradesh Sales Tax 10,083 2003-2004 Supreme Court of
Trade Tax Act India
Central Excise Excise Duty 678 2003-04 & 2005-06 Customs, Excise
Act, 1944 and Service Tax
Appellate
Tribunal
Central Excise Service Tax 3,275 2002-03 & 2003-04 Commissioner of
Act, 1944 Central Excise
(Appeals), Noida
Uttar Pradesh Value Added 52 2010-11 Additional
Trade Tax Act Tax Commissioner
(Appeals), Noida
Income Tax Income Tax 562 AY 2002-03 Income Tax
Act, 1961 Appellate Tribunal
Income Tax Income Tax 3,164 AY 2005-06 Commissioner of
Act, 1961 Income Tax
(Appeals)
Central Excise Central Excise 19 2000-01 to 2003-04 Supreme Court of
Act, 1944 India
Central Excise Service Tax 74 2006-07 Commissioner
Act, 1944 (Appeals),
Bangalore
Central Excise Service Tax 68 2007-08 Customs, Excise
Act, 1944 and Service Tax
Appellate Tribunal,
Bangalore
Central Excise Service Tax 190 2008-09 Commissioner
Act, 1944 (Appeals)
Central Excise Service Tax 44 2006-07 & 2007-08 Customs, Excise and
Act, 1944 Service Tax
Appellate Tribunal
Central Excise Service Tax 563 2008-09 to 2009-10 Commissioner of
Act, 1944 Central Excise
(Appeal)
Central Excise Service Tax 385 2007-08 to 2010-11 Customs, Excise
Act, 1944 and Service Tax
Appellate Tribunal
Central Excise Central 1,370 2003-04 Customs, Excise and
Act, 1944 Excise Service Tax
Appellate Tribunal,
Chennai
Central Central 1,436 2000-01 to Customs, Excise and
Excise Excise 2001-02 Service Tax
Act, 1944 Appellate Tribunal,
Delhi
Central Excise Central Excise 90 2007-08 to Commissioner
Act, 1944 2008-09 (Appeals)
Central Excise Central Excise 1,720 2007-08 Customs, Excise and
Act, 1944 Service Tax
Appellate Tribunal,
Gurgaon
Central Excise Service Tax 2,786 1999-00 to Hon`ble High Court,
Act, 1944 2001-02 Allahabad
UP Tax on Entry Tax 3,307 1999-00 to Hon`ble High Court,
Entry of Goods 2001-02 Allahabad
Rules, 1999
Uttar Pradesh Value Added 15,561 2007-08 Joint Commissioner
Value Added Tax (Corporate Circle),
Tax Act, 2008 Commercial Tax
Department, Noida
Central Sales Central Sales 3,564 2007-08 Joint Commissioner
Tax Act, 1956 Tax (Corporate Circle),
Commercial Tax
Department, Noida
Central Central 22,492 2005-06 to Customs, Excise and
Excise Excise 2008-09 Service Tax
Act, 1944 Appellate Tribunal,
Noida
UP Trade Tax Sales Tax 484 2006-07 Additional
Act, 1948 Commissioner
(Appeals)
Central Service Tax 311 1999-2000 Hon`ble High Court,
Excise Chennai
Act, 1944
Sales Tax Sales Tax 437 2006-07 Additional
Commissioner
(Appeals)
10. The Company has no accumulated losses.
11. According to the records of the Company examined by us and the
information and explanation given to us, the Company has not defaulted in
repayment of dues to any financial institution or bank or debenture holders
as at the balance sheet date.
12. The Company has not granted any loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
13. The provisions of any special statute applicable to chit fund/ nidhi/
mutual benefit fund/ societies are not applicable to the Company.
14. In our opinion, the Company is not a dealer or trader in shares,
securities, debentures and other investments.
15. In our opinion, and according to the information and explanations given
to us, the terms and conditions of the guarantees given by the Company for
loans taken by others from banks or financial institutions during the year,
are not prejudicial to the interest of the Company.
16. In our opinion, and according to the information and explanations given
to us, the term loans have been applied, on an overall basis, for the
purposes for which they were obtained.
17. On the basis of an overall examination of the balance sheet of the
Company, in our opinion, and according to the information and explanations
given to us, there are no funds raised on a short-term basis which have
been used for long-term investment.
18. The Company has not made any preferential allotment of shares to
parties and companies covered in the register maintained under Section 301
of the Act during the year.
19. The Company has not issued any debentures during the year; and does not
have any debentures outstanding as at the year end.
20. The Company has not raised any money by public issues during the year.
21. During the course of our examination of the books and records of the
Company, carried out in accordance with the generally accepted auditing
practices in India, and according to the information and explanations given
to us, we have neither come across any instance of fraud on or by the
Company, noticed or reported during the year, nor have we been informed of
any such case by the Management.
For Price Waterhouse
Firm Registration Number: 012754N
Chartered Accountants
Anupam Dhawan
Place : Noida Partner
Date : May 28, 2012 Membership Number: F084451 |