INDEPENDENT AUDITOR’S REPORT
TO
THE MEMBERS,
SCOOTERS INDIA LIMITED,
LUCKNOW
REPORT ON THETHE STANDALONE Ind AS FINANCIAL STATEMENTS
Opinion
We have audited the standalone financial statements of Scooters India Limited
(“the Company”), which comprise the standalone balance sheet as at 31st March
2023 and the statement of Profit and Loss, statement of changes in equity and the
standalone statement of cash flows for the year then ended 31st March 2023, and
notes to the standalone financial statements, including a summary of significant
accounting policies and other explanatory information (together referred to as
“standalone financial statements”).
In our opinion and to the best of our information and according to the explanations
given to us, the aforesaid standalone financial statements give the information
required by the Companies Act 2013 (The Act) in the manner so required and give
a true and fair view in conformity with the Indian accounting standards prescribed
under section 133 of the act read with the companies (Indian Accounting
Standards) rules, 2015, as amended (“Ind AS”) and other accounting principles
generally accepted in India, of the state of affairs of the Company as at March 31,
2023, and profit/loss, changes in equity and its cash flows for the year ended on
that date.
Basis for Opinion
We conducted our audit in accordance with the Standards on Auditing (SAs)
specified under section 143(10) of the Companies Act, 2013. Our responsibilities
under those Standards are further described in the Auditor’s Responsibilities for the
Audit of the Financial Statements section of our report. We are independent of the
Company in accordance with the Code of Ethics issued by the Institute of
Chartered Accountants of India together with the ethical requirements that are
relevant to our audit of the financial statements under the provisions of the
Companies Act, 2013 and the Rules thereunder, and we have fulfilled our other
ethical responsibilities in accordance with these requirements and the Code of
Ethics. We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our opinion.
Emphasis of Matter
We draw attention to the following matters in the Notes to the financial statements:
Emphasis of Matter
1. Kind attention is drawn to Point No. 2(ii) of Note No. 1, The company has ceased
to be a going concern entity and financial statement of company for the current
FY 2022-23 has been prepared on the “Non going concern basis”.
2. Kind attention is drawn to Point No. 2(x) of Note No. 1, The company has made
no contribution against Provident fund, Gratuity and Leave encashment liability
after 31.03.2021.
3. Kind attention is drawn to Note No. 21 regarding trade payables of Rs. 533.14
lacs, the details of name and respective amount payable is neither ascertainable
nor produced before the auditor by the company.
4. Kind attention is drawn to Note No. 23, regarding advance and deposit (Other
Current Liabilities) of Rs. 33.79 lacs, the details of name and respective amount
payable is neither ascertainable nor produced before the auditor by the company.
5. Kind attention is drawn to Note No. 36, regarding various contingent liabilities and
commitments, the figures and amount involved as on date is neither updated nor
confirmed by the management and its consequent affects over the financial
statement of the company.
6. Kind attention is drawn to Note No. 46 regarding sanction of loan from Govt of India
of Rs. 20.00 crore received during FY 2013-14, against which company has repaid
only 4.00 Crore only and defaulted for balance 16.00 crores. balance 57.00 crore is
payable by the company to Govt. of India.
7. Kind attention is drawn to Note No. 46, company has received loan of 41.00 crores
(@13.50%) on 29.08.2021 (out of total sanction loan of Rs. 65.12 crores) to
discharge the pending liabilities and to repay back from the sales proceeds of the
assets of the company. Rs 41.00 crore along with Interest still to be repaid against
the said loan to Govt of India.
8. Kind attention is drawn to Note No. 51, regarding letter no 3(1)/2020-PE-VI, dated
28.01.2021 issued by the Govt. of India, Ministry of Heavy Industries & Public
Enterprises, Department of Heavy Industry, New Delhi, consequent there upon the
total land about 147.499 acre has been returned back to UPSIDA on 01.12.2022.
Our Opinion is not modified on the above matter.Key Audit matters
Key audit matters are those matters that, in our professional judgment were of
most significance in our audit of the financial statement of the current period.
These matters were addressed in the context of our audit of the financial statement
as a whole, and in forming of our opinion thereon, and we do not provide a
separate opinion on these matters. We have determined the matters described
below to be the key audit matters to be communicated in our report.
1. There are huge balances lying outstanding and recoverable against trade
receivables, advances, security deposits and others receivables, the name wise,
age wise and respective amounts details thereof are not provided by the company,
therefore the possibilities of recovery and amount thereof is indeterminate and its
consequential affect over the financial statement.
Our Opinion is not modified on the above matter
Other Matters
1. The balance lying with the LIC of India is Rs. 8.74 crore against gratuity and leave
encashment but neither the actuarial valuation of the same has been done nor any
maturity valuation certificate of the same has been received from the LIC of India.
2. The Bank Guarantee of Rs. 1,00,000.00 was given by “Maarz Mechatronics Pvt
Ltd.” against vehicle provided by the company to them. The said bank guarantee
expired on 18/12/2019. Neither the said vehicle was returned by Maarz
Mechatronics Pvt Ltd to the company nor company has encashed the Bank
guarantee and recovered the amount.
3. Ministry of Heavy Industries & Public Enterprises, Department of Heavy Industry,
New Delhi letter no 3(1)/2020-PE-VI, dated 28.01.2021 issued by the Govt. of
India, has ordered for the closure of the company but shares of the company has
not yet delisted from Bombay Stock Exchange and trade mark & brand of Vikram
and Vijay super has not yet been sold out till the end of financial year 31.03.2023.
Our opinion is not modified in respect of above matters.Information Other Than the Financial Statements and Auditors Reports Thereon
The company's Board of Directors is responsible for the other information. The other
information comprises the information included in Board's Report, Management Discussion
& Analysis Report, Business Responsibility Report, but does not include the financial
statements and our auditor's report thereon. The Board's Report, Management Discussion &
Analysis Report, Business Responsibility Report is expected to be made available to us after
the date of this auditors report.
Our opinion on the financial statements does not cover the other information and we will not
express any form of assurance conclusion thereon.
Responsibility of Management and those charged with Governance for the
Financial Statements
The Company's Board of Directors is responsible for the matters stated in section 134(5) of
the Companies Act, 2013 (“the Act”) with respect to the preparation of these standalone
financial statements that give a true and fair view of the financial position, financial
performance, (changes in equity) and cash flows of the Company in accordance with the
accounting principles generally accepted in India, including the accounting Standards
specified under section 133 of the Act. This responsibility also includes maintenance of
adequate accounting records in accordance with the provisions of the Act for safeguarding
of the assets of the Company and for preventing and detecting frauds and other
irregularities; selection and application of appropriate accounting policies; making
judgments and estimates that are reasonable and prudent; and design, implementation
and maintenance of adequate internal financial controls, that were operating effectively for
ensuring the accuracy and completeness of the accounting records, relevant to the
preparation and presentation of the financial statement that give a true and fair view and
are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, The Board of Directors is responsible for assessing
the Company's ability to continue as a going concern, disclosing, as applicable, matters
related to going concern and using the going concern basis of accounting unless
management either intends to liquidate the Company or to cease operations, or has no
realistic alternative but to do so.
Those Board of Directors are also responsible for overseeing the company's financial
reporting process.
Auditor’s Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the standalone financial
statements as a whole are free from material misstatement, whether due to fraud or error,
and to issue an auditor's report that includes our opinion. Reasonable assurance is a high
level of assurance, but is not a guarantee that an audit conducted in accordance with SAs
will always detect a material misstatement when it exists. Misstatements can arise from
fraud or error and are considered material if, individually or in the aggregate, they could
reasonably be expected to influence the economic decisions of users taken on the basis of
these Standalone Financial Statements.
As part of an audit in accordance with SAs, we exercise professional judgment and
maintain professional skepticism throughout the audit. We also
a) Identify and assess the risk of material misstatement of the Standalone Financial
Statements, whether due to fraud or error, design and perform audit procedures
responsive to those risks, and obtain audit evidence that is sufficient and
appropriate to provide a basis for our opinion. The risk of not detecting a material
misstatement resulting from fraud is higher than for one resulting from error, as
fraud may involve collusions, forgery, intentional omissions, misrepresentations, or
the override of internal control.
b) Obtain an understanding of internal control relevant to the audit in order to design
audit procedures that are appropriate in the circumstances, under section 143(3) (i)
of the Act we are also responsible for expressing our opinion whether the company
has adequate internal financial control system in place and the operating
effectiveness of such controls.
c) Evaluate the appropriateness of accounting policies used and the reasonableness
of accounting estimates and related disclosures made by management.
d) Conclude on the appropriateness of management's use of the going concern basis
of accounting and, based on the audit evidence obtained, whether a material
uncertainty exists related to events or conditions that may cast significant doubt on
the company's ability to continue as a going concern. If we conclude that a material
uncertainty exists, we are required to draw attention in our auditor's report to the
related disclosures are inadequate, to modify our opinion. Our conclusions are
based on the audit evidence obtained up to the date of our auditor's report.
However, future events or condition may cause the company to cease to continue
as a going concern.
e) Evaluate the overall presentation, structure and content of the Standalone
Financial Statements, including the disclosures, and whether the Standalone
Financial Statements represents the underlying transactions and events in a
manner that achieves fair representation.
Materiality is the magnitude of misstatements in the standalone financial statements that,
individually or in aggregate, makes it probable that the economic decisions of a reasonably
knowledgeable user of the Standalone Financial Statements may be influenced. We
consider quantitative materiality and qualitative factors in (i) planning the scope of our audit
work and in evaluating the results of our work; and (ii) to evaluate the effect of any
identified misstatements in the Standalone Financial Statements.
We communicate with those charged with governance regarding among other matters, the
planned scope and timing of the audit and significant audit finding including any significant
deficiencies in Internal Control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied
with relevant ethical requirements regarding independence and to communicate with them
all relationships and other matters that may reasonably be thought to bear on our
independence, and where applicable, related safeguards.
Report on Other Legal and Regulatory Requirements
1. As required by section 143(3) of the Act, based on our audit, we report, that:
a) We have sought and 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
division so far as it appears from our examination of those books.
c) The Balance sheets, the statement of profit and loss dealt with by this report are in
agreement with the books of account.
d) In our opinion, the aforesaid Standalone Financial Statements comply with the
Indian Accounting Standards prescribed under section 133 of the Act, read with Rule
7 of the Companies (Accounts) Rules, 2014.
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e) On the basis of the written representations received from the directors as on 31
March, 2023 taken on record by the Board of Directors, none of the directors is
disqualified as on 31st March, 2023 from being appointed as a director in terms of
Section 164 (2) of the Act
f) As required by the Companies (Auditor's Report) Order, 2020 (‘'the order”) issued by
the Central Government of India in terms of sub section (11) Section 143 of the Act,
we give in the Annexure A, statement on the matters specified in paragraphs 3 and
4 of the Order, to the extent applicable.
g) With respect to the other matter to be include in the Auditors' Report in accordance
with Rule 11 of the Companies (audit and Auditors) Rules, 2014 in our opinion and to
the best of our information and accordance to the explanation given to us:
i. The company has disclosed the impact of pending litigation on its financial
position in its Financial Statements. (Refer note no. 36 to the financial
statements).
ii. The company has not made provisions as required under the applicable
law or accounting standards, for material foreseeable losses, if any, on
long-term controls contracts. The company does not any derivate contract.
iii. There were no amounts which were required to be transferred to the
investor education and Protection Fund by the company.
2. With respect to the adequacy of the internal financial controls over financial
reporting of the company and the operating effectiveness of such controls, refer to
our separate report in “Annexure B”.
3. As required by sub section 143 (5) of the Act, we give in “Annexure C” a statement
on the matters specified by the Comptroller and Auditor General of India for the
company.
For S. Srivastava & Co
Chartered Accountants
FRN 004570C
(Sudarshan Kumar Vij)
M.N. 007859
Partner
UDIN NO. 23007859BGRDDU9401
Place: Lucknow
Date: 29/05/2023
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