Eicher Motors : RECA Financial Statements 2020-21

SPECIAL PURPOSE INDEPENDENT AUDITOR'S REPORT

TO THE DIRECTORS OF

ROYAL ENFIELD CANADA LIMITED

Report on Special Purpose Ind AS Financial Statements

We have audited the accompanying special purpose Ind AS financial statements of Royal Enfield Canada Limited (the "Company"), a company incorporated in Canada, 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 year 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 profit including other comprehensive income, its cash flows and changes in equity for the year 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: 21095169AAAABM9535

Place: Gurugram

Date: May 27, 2021

ROYAL ENFIELD CANADA LIMITED

BALANCE SHEET AS AT MARCH 31, 2021

ALL AMOUNTS ARE IN USD UNLESS OTHERWISE STATED

Particulars	Note No.	As at	As at
March 31, 2021	March 31, 2020
ASSETS
Current assets
(a) Financial assets
(i) Trade receivables	4	154,148	43,857
(ii) Cash and cash equivalents	5	20,472	30,534
Total current assets		174,620	74,391
Total assets		174,620	74,391
EQUITY AND LIABILITIES
Equity
(a) Equity share capital	6	13,280	13,280
(b) Other equity	7	86,581	48,577
Total equity		99,861	61,857
LIABILITIES
Current liabilities
(a) Financial liabilities
(i) Trade payables	8	51,587	-
(b) Current tax liabilities	9	14,314	6,760
(c) Other current liabilities	10	8,858	5,774
Total current liabilities		74,759	12,534
Total equity and liabilities		174,620	74,391
Summary of Significant accounting policies	3
The accompanying notes are an integral part of the financial statements
In terms of our report attached	For and on Behalf of the Board of Directors of Royal Enfield Canada Limited
For S.R. Batliboi & Co LLP
Chartered Accountants
ICAI Firm registration Number : 301003E/E300005

per Sanjay Vij	Vinod K. Dasari	Krishnan Ramaswamy
Partner	Director	Director
Membership No.: 095169
Place: Gurugram	Place: Chennai	Place: Milwaukee
Date: May 27,2021	Date: May 27,2021	Date: May 27,2021

ROYAL ENFIELD CANADA LIMITED

STATEMENT OF PROFIT AND LOSS FOR THE YEAR ENDED MARCH 31, 2021

ALL AMOUNTS ARE IN USD UNLESS OTHERWISE STATED

Particulars	Note No.	For the year ended March	For the year ended March
31,2021	31,2020
INCOME
Revenue from contract with customers	11	1,605,687	1,424,348
Other income	12	2,154	-
Total Income		1,607,841	1,424,348
EXPENSES
Purchases of traded goods	13	1,505,734	1,333,635
Finance costs	14	23,797	21,759
Other expenses	15	27,844	43,280
Total expenses		1,557,375	1,398,674
Profit before tax		50,466	25,674
Tax expense
Current tax	16	12,462	5,918
Deferred tax		-	-
Total tax expense		12,462	5,918
Profit for the year		38,004	19,756
Other Comprehensive Income		-	-
Total comprehensive income for the year		38,004	19,756
Earnings per share in USD
Basic	18	380.04	197.56
Diluted	18	380.04	197.56
(No face value of shares defined as such)
Summary of Significant accounting policies	3
The accompanying notes are an integral part of the financial statements
In terms of our report attached	For and on Behalf of the Board of Directors of Royal Enfield Canada Limited
For S.R. Batliboi & Co LLP

Chartered Accountants

ICAI Firm registration Number : 301003E/E300005

per Sanjay Vij	Vinod K. Dasari	Krishnan Ramaswamy
Partner	Director	Director
Membership No.: 095169
Place: Gurugram	Place: Chennai	Place: Milwaukee
Date: May 27,2021	Date: May 27,2021	Date: May 27,2021

ROYAL ENFIELD CANADA LIMITED

STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED MARCH 31, 2021

ALL AMOUNTS ARE IN USD UNLESS OTHERWISE STATED

a. Equity share capital

Particulars	Number of shares	Amount
Balance as at March 31, 2019	100	13,280
Changes in equity share capital during the year	-	-
Balance as at March 31, 2020	100	13,280
Changes in equity share capital during the year	-	-
Balance as at March 31, 2021	100	13,280
b. Other Equity
Particulars	Retained earnings
Balance as at March 31, 2019	28,821
Profit for the year	19,756
Balance as at March 31, 2020	48,577
Profit for the year	38,004
Balance as at March 31, 2021	86,581
Summary of Significant accounting policies	3
The accompanying notes are an integral part of the financial statements
In terms of our report attached	For and on Behalf of the Board of Directors of Royal Enfield Canada Limited
For S.R. Batliboi & Co LLP

Chartered Accountants

ICAI Firm registration Number : 301003E/E300005

per Sanjay Vij	Vinod K. Dasari	Krishnan Ramaswamy
Partner	Director	Director
Membership No.: 095169
Place: Gurugram	Place: Chennai	Place: Milwaukee
Date: May 27,2021	Date: May 27,2021	Date: May 27,2021