Bajaj Auto Ltd Response to Exchange Query
Date of Communication: June 27, 2025
Nature of Query: The document is a response from Bajaj Auto Ltd to a query from the National Stock Exchange of India Limited (NSE) regarding the company's submission of audited financial results for the quarter and year ended 31 March 2025.
Company’s Clarification
The company's clarification addresses the submission of its financial results and an auditor's modified opinion:
- The company submitted its Statement of Audited Standalone Financial Results and Statement of Audited Consolidated Financial Results for the quarter and year ended 31 March 2025 on May 29, 2025, pursuant to Regulation 33 of the SEBI (Listing Obligations & Disclosure Requirements) Regulations, 2015.
- The annual standalone and consolidated financial results for the year ended March 31, 2025, were accompanied by an auditor's report with an unmodified opinion. No adjustments were required, and no qualifications or observations were given.
- The quarterly consolidated financial results for the quarter ended March 31, 2025, contained a modified opinion from the auditor.
- This modification is due to the company's investment in its associate, Pierer Bajaj AG (PBAG) in Austria. PBAG has a subsidiary, Pierer Mobility AG (PMAG), which is listed on European exchanges.
- A difference in regulations between India and Europe meant PBAG/PMAG publishes financial results on a six-monthly basis, not quarterly. Consequently, Bajaj Auto was unable to receive quarterly information from PBAG.
- For the quarter ended March 31, 2025 (Q4 FY25), the company accounted for its share of PBAG's consolidated loss for the six-month period ended March 31, 2025. This amount is €308.55 million (₹2809.36 crore). The carrying value of the investment in PBAG is €400.5 million.
- The auditor's modified report, dated May 29, 2025, states that due to the unavailability of quarterly information from PBAG, they are "unable to determine the impact of the Group's share of profit/loss from PBAG on consolidated profit after tax, other comprehensive income and earnings per share for the quarter ended December 31, 2024, and March 31, 2025."
- The company emphasizes that its limited review reports for the quarters ended March 31, 2024, and December 31, 2024, were also qualified for the same reason.
- The company concludes that there is no discrepancy in the documents it submitted on May 29, 2025.
Reference to Regulatory Compliance
The submission of financial results is explicitly stated to be in compliance with Regulation 33 of the SEBI (Listing Obligations & Disclosure Requirements) Regulations, 2015.
Details of Financial Results Clarification
The core clarification revolves around the accounting treatment of the investment in PBAG. The company received and accounted for a six-month loss in a single quarter due to regulatory differences, which is the sole reason for the auditor's modification on the quarterly results. The annual results are unaffected.
Topic Tags: Regulatory Response, Financial Results Clarification, SEBI Compliance, Auditor Modification, Associate Company Investment