Annexure 1 to Independent Auditors’ Report

Referred to in paragraph 1 under the heading ‘Report on other legal and regulatory requirements’ of our report of even date to the members of Bajaj Auto Ltd.

1. The Company has maintained proper records showing full particulars, including quantitative details and situation of property, plant and equipment.
2. All property, plant and equipment have not been physically verified by the Management during the year but there is a regular program of verification designed to cover all items in a phased manner over a period of three years which, in our opinion, is reasonable having regard to the size of the Company and the nature of its assets. No material discrepancies were noticed on such verification.
3. According to the information and explanations given by the Management, the title deeds of immovable properties included in property, plant and equipment; and investment property are held in the name of the Company except for buildings acquired in the prior years having a gross block of₹ 15.02 crore and a net block of ₹ 11.68 crore whose final registration is pending as disclosed in note 2 to the standalone financial statements of the Company.
The inventory has been physically verified by Management during the year. In our opinion, the frequency of verification is reasonable. No material discrepancies were noticed on such physical verification. Inventories lying with third parties have been confirmed by them as at 31 March 2021 and no material discrepancies were noticed in respect of such confirmations
According to the information and explanations given to us, the Company has not granted any loans, secured or unsecured to companies, firms, limited liability partnerships or other parties covered in the register maintained under section 189 of the Companies Act, 2013 (the ‘Act’). Accordingly, the provisions of clause 3(iii) (a), (b) and (c) of the Order are not applicable to the Company and hence not commented upon
In our opinion and according to the information and explanations given to us, there are no loans, guarantees, and securities given in respect of which provisions of section 185 and 186 of the Act are applicable and hence not commented upon. In our opinion and according to the information and explanations given to us, provisions of section 186 of the Act in respect of investments made have been complied with by the Company
The Company has not accepted any deposits within the meaning of Sections 73 to 76 of the Act and the Companies (Acceptance of Deposits) Rules, 2014 (as amended). Accordingly, the provisions of clause 3 (v) of the Order are not applicable to the Company and hence not commented upon.
To the best of our knowledge and as explained, the Central Government has not specified the maintenance of cost records under Section 148(1) of the Act for the products of the Company.

The Company is regular in depositing with appropriate authorities undisputed statutory dues including provident fund, employees’ state insurance, income tax, customs duty, goods and service tax, cess and other statutory dues applicable to the Company.
According to the information and explanations given to us, no undisputed amounts payable in respect of provident fund, employees’ state insurance, income tax, customs duty, goods and service tax, cess and other statutory dues applicable to the Company, were outstanding, at the year end, for a period of more than six months from the date they became payable.
According to the records of the Company, the dues of income tax, sales tax, service tax, customs duty, excise duty, value added tax, goods and service tax and cess on account of any dispute, are as follows:

Name of the statute	Nature of dues	Amount (₹ In Crore)	Period to which the amount relates	Forum where the dispute is pending
The Central Excise Act, 1944	Excise Duty	327.48	Various years from 2010-11 to 2016-17	Supreme Court
	Excise Duty	1.43	Various years from 1985-86 to 2001-02	High Court
	Excise Duty	1.37	Various years from 1983-84 to 2014-15	Custom Excise and Service Tax Appellate Tribunal
	Excise Duty	0.60	Various years from 1991-92 to 2017-18	Commissioner Appeals
Finance Act, 2001	National Calamity Contingent Duty	342.00	Various years from 2007-08 to 2014-15	Supreme Court
Central Sales Tax Act, 1956 and Sales Tax Act of various States	Sales Tax	0.99	Various years from 1996-97 to 2001-02	High Court
	Sales Tax	80.96	Various years from 2001-02 to 2010-11	Appellate Tribunal
	Sales Tax	0.25	Financial year 2009-10	Appellate Authority
	Sales Tax	53.04	Various years from 1999-00 to 2016-17	Appellate Authority
The Income Tax Act, 1961	Income Tax	502.01	Various years from 2007-08 to 2011-12	Income Tax Appellate Tribunal
	Income Tax	87.32	Various years from 2012-13 to 2018-19	Commissioner of Income-Tax (Appeals)
The Finance Act, 1994	Service Tax	20.99	Various years from 2007-08 to 2011-12	Custom Excise and Service Tax Appellate Tribunal
The Customs Act, 1962	Customs Duty	3.85	Financial year 1984-85 and 1985-86	High Court
	Customs Duty	5.50	Various years from 1977-78 to 2013-14	Assistant Commissioner of Customs
Octroi	Octroi Duty	8.44	Various years from 1988-89 to 2004-05 and from 2012-13 to 2016-17	High Court
	Octroi Duty	4.23	Various years from 1981-82 to 1988-89	District Court

Note: The amounts disclosed above are net of the payments made to the respective authorities where the dispute is pending.

In our opinion and according to the information and explanations given by Management, the Company has not defaulted in repayment of sales tax deferral loans to the Government. The Company did not have any outstanding loans or borrowing dues payable to a financial institution or bank or dues to debenture holders during the year.
According to the information and explanations given by Management, the Company has not raised any money by way of initial public offer or further public offer (including debt instruments) and term loans. Accordingly, the provisions of clause 3 (ix) of the Order are not applicable to the Company and hence not commented upon.
Based on the audit procedures performed for the purpose of reporting the true and fair view of the financial statements and according to the information and explanations given by Management, we report that no fraud by the Company or no fraud on the Company by the officers and employees of the Company has been noticed or reported during the year.
According to the information and explanations given by Management, the managerial remuneration has been paid/provided in accordance with the requisite approvals mandated by the provisions of section 197 read with Schedule V to the Act.
In our opinion, the Company is not a Nidhi Company. Accordingly, the provisions of clause 3(xii) of the Order are not applicable to the Company and hence not commented upon
According to the information and explanations given by Management, transactions with related parties are in compliance with sections 177 and 188 of the Act where applicable and the details have been disclosed in the notes to the financial statements, as required by the applicable accounting standards.
According to the information and explanations given to us and on an overall examination of the Balance Sheet, the Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year under review. Accordingly, the provisions of clause 3(xiv) of the Order are not applicable to the Company and hence not commented upon.
According to the information and explanations given by Management, the Company has not entered into any non-cash transactions with directors or persons connected with him as referred to in section 192 of the Act.
According to the information and explanations given by Management, the provisions of section 45-IA of the Reserve Bank of India Act, 1934 are not applicable to the Company and hence not commented upon.

per Arvind Sethi
Partner
Membership Number: 89802
UDIN: 21089802AAAAAX8997
Pune: 29 April 2021

For S R B C & CO LLP
Chartered Accountants
ICAI Firm Registration Number: 324982E/E300003