Eicher Motors : RE UK Financial Statements 2020-21

SPECIAL PURPOSE INDEPENDENT AUDITOR'S REPORT

TO THE DIRECTORS OF

ROYAL ENFIELD UK LIMITED

Report on Special Purpose Ind AS Financial Statements

We have audited the accompanying special purpose Ind AS financial statements of Royal Enfield UK Limited (the "Company"), a company incorporated in the United Kingdom, which comprise the Balance Sheet as at March 31, 2021, the Statement of Profit and Loss, the Cash Flow Statement and the Statement of Changes in Equity for the period ended March 31, 2021, and a summary of the significant accounting policies and other explanatory information (together hereinafter referred to as "Special Purpose Ind AS Financial Statements").

Management's Responsibility for the Special Purpose Ind AS Financial Statements

The Management of the Company is responsible for the preparation of these Special Purpose Ind AS Financial Statements that give a true and fair view of the financial position, financial performance including other comprehensive income, cash flows and changes in equity of the Company in accordance with accounting principles generally accepted in India, including Indian Accounting Standards (Ind AS) specified under Section 133 of the Companies Act, 2013 (the "Act"), read with the Companies (Indian Accounting Standard) Rules, 2017. The 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 the appropriate accounting policies; making judgements and estimates that are reasonable and prudent; and the 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 Special purpose Ind AS Financial Statements that give a true and fair view and are free from material misstatement, due to fraud or error.

Auditors' Responsibility

Our responsibility is to express an opinion on these Special Purpose Ind AS Financial Statements based on our audit. We conducted our audit in accordance with the Standards on Auditing issued by the Institute of Chartered Accountants of India. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial controls relevant to the Company's preparation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company's internal financial controls. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Management, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on these Special Purpose Financial Statements.

Opinion

In our opinion and to the best of our information and according to the explanations given to us, the Special Purpose Ind AS Financial Statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Company as at March 31, 2021, its loss including other comprehensive income, its cash flows and changes in equity for the period ended on that date.

Other Matters

This report on the Special Purpose Ind AS Financial Statements has been issued solely for the purpose of enabling Eicher Motors Limited to prepare its Consolidated Financial Statements and should not be used for any other purpose without our prior written consent. Accordingly, we do not accept of assume any liability or any duty of care for any other purpose or to any other person to whom this report is shown or into whose hands it may come without prior consent in writing.

For S.R. Batliboi & Co. LLP

Chartered Accountants

ICAI Firm registration number: 301003E/E300005

per Sanjay Vij Partner

Membership No.: 095169

UDIN: 21095169AAAABN4708

Place: Gurugram

Date: May 27, 2021

ROYAL ENFIELD UK LIMITED

BALANCE SHEET AS AT MARCH 31, 2021

ALL AMOUNTS ARE IN GBP UNLESS OTHERWISE STATED

Particulars	Note No.	As at	As at
		March 31, 2021	March 31, 2020
ASSETS
Current assets
(a) Inventories	4	1,121,992	-
(b) Financial assets
(i) Cash and cash equivalents	5	591,488	91,968
(c) Other current assets	6	858,272	290
Total current assets		2,571,752	92,258
Total assets		2,571,752	92,258
EQUITY AND LIABILITIES
Equity
(a) Share Capital	7	100,000	100,000
(b) Other equity	8	(519,832)	(19,480)
Total equity		(419,832)	80,520
LIABILITIES
Current liabilities
(a) Financial liabilities
(i) Trade payables	9	2,014,614	11,738
(ii) Other financial liabilities	10	87,322	-
(c) Other current liabilities	11	889,648	-
Total current liabilities		2,991,584	11,738
Total liabilities		2,991,584	11,738
Total equity and liabilities		2,571,752	92,258
See accompanying notes forming part of the financial statements
As per our report of even date
For S.R. Batliboi & Co. LLP		For and on Behalf of Board of Director
Chartered Accountants		of Royal Enfield UK Limited
ICAI Firm registration number: 301003E/E300005
per Sanjay Vij		Amit Chitnis
Partner		Director
Membership No : 095169
Place: Gurugram		Place: Leicestershire, UK
Date: May 27, 2021		Date: May 27, 2021

ROYAL ENFIELD UK LIMITED

STATEMENT OF PROFIT AND LOSS FOR THE YEAR ENDED MARCH 31, 2021 ALL AMOUNTS ARE IN GBP UNLESS OTHERWISE STATED

Particulars	Note No.
Income
Revenue from operations	12
Other income	13
Total Income
Expenses
Purchases of traded goods	14
Change in inventories of traded goods	15
Employee benefits expenses	16
Other expenses	17
Total expenses
Loss before tax
Tax expense
Current tax
Deferred tax
Total tax expense
Loss for the year
Other comprehensive income
Total Comprehensive loss for the year, net of tax
Earning per share
(a) Basic	19
(b) Diluted	19

See accompanying notes forming part of the financial statements

As per our report of even date

For S.R. Batliboi & Co. LLP

Chartered Accountants

ICAI Firm registration number: 301003E/E300005

per Sanjay Vij Partner

Membership No : 095169

Place: Gurugram

Date: May 27, 2021

For the year ended	For the year ended
March 31, 2021	March 31, 2020
4,403,786	-
42,105	-
4,445,891	-
5,054,727	-
(1,121,992)	-
696,133	-
317,375	19,480
4,946,243	19,480
(500,352)	(19,480)
-	-
-	-
-	-
(500,352)	(19,480)
-	-
(500,352)	(19,480)
(5.00)	(1.92)
(5.00)	(1.92)

For and on Behalf of Board of Director

of Royal Enfield UK Limited

Amit Chitnis

Director

Place: Leicestershire, UK

Date: May 27, 2021

ROYAL ENFIELD UK LIMITED

STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED MARCH 31, 2021 ALL AMOUNTS ARE IN GBP UNLESS OTHERWISE STATED

a. Equity share capital

Particulars	Number of	Amount
shares
Balance as at March 31, 2019	-	-
Changes in equity share capital during the year	100,000	100,000
Balance as at March 31, 2020	100,000	100,000
Changes in equity share capital during the year	-	-
Balance as at March 31, 2021	100,000	100,000
b. Other Equity
Particulars	Retained earnings
Balance as at March 31, 2019	-
Loss for the year	(19,480)
Balance as at March 31, 2020	(19,480)
Profit for the year	(500,352)
Balance as at March 31, 2021	(519,832)
Summary of Significant accounting policies	3
The accompanying notes are an integral part of the financial statements
As per our report of even date
For S.R. Batliboi & Co. LLP	For and on Behalf of Board of Director
Chartered Accountants	of Royal Enfield UK Limited
ICAI Firm registration number: 301003E/E300005

per Sanjay Vij	Amit Chitnis
Partner	Director
Membership No : 095169
Place: Gurugram	Place: Leicestershire, UK
Date: May 27, 2021	Date: May 27, 2021