Mar 31, 2018
Report on the Ind AS Standalone Financial Statements
1. We have audited the accompanying Ind AS Standalone Financial Statements of Amtek Auto Limited (âthe Companyâ), which comprise the Balance Sheet as at March 31, 2018, the Statement of Profit and Loss (including Other Comprehensive Income), the Cash Flow Statement and the Statement of Changes in Equity for the year then ended, and a summary of the significant accounting policies and other explanatory information.
Managementâs Responsibility for the Standalone Financial Statements
2. The Companyâs Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 (âthe Actâ) with respect to the preparation of these Standalone Financial Statements that give a true and fair view of the state of affairs (financial position), profit or loss (financial performance including other comprehensive income), cash flows and changes in equity of the Company in accordance with the accounting principles generally accepted in India, including the Ind AS prescribed under section 133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015 as amended, and other accounting principles generally accepted in India.
3. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding 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 Standalone Financial Statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
Auditorâs Responsibility
4. Our responsibility is to express an opinion on these Standalone Financial Statements based on our audit. We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made thereunder and the order issued under section 143(11) of the Act. We conducted our audit in accordance with the Standards on Auditing specified under Section 143(10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether these Standalone Financial Statements are free from material misstatement.
5. 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 auditorâs 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 Companyâs preparation of the financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Companyâs Directors, as well as evaluating the overall presentation of the financial statements.
6. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our qualified audit opinion on these Standalone Financial Statements.
Basis for Qualified Opinion
7. Attention is invited to :
a. Note No. 3.54 (b) of the accompanying Standalone Financial Statements, stating therein that the provision for impairment has currently been worked out on the basis of value of assets referred to in the Valuation reports [of approved valuers, who valued Companyâs entire assets pursuant to the requirements of Corporate Insolvency Resolution Process (âCIRPâ)]; without any reference to determination of âvalue-in-useâ. This is contrary to the requirements of Ind AS 36 âImpairment of Assetsâ. The monetary impact of the same has not been ascertained.
b. Note No. 3.55 (i) of the accompanying Standalone Financial Statements, stating therein that the Company has reassessed the fair value of investment made by the Company in âAmtek Global Technologies Pte. Ltd.â at Rs. 64707.59 Lakhs (as against its book value of Rs. 0.07 Lakhs as at March 31, 2018) on the basis of (i) valuation reports of two approved valuers and (ii) the resolution plan, as pass-through to the existing financial creditors of the Company, with no guarantee. In the absence of latest financial statements and other financial information of the subject entity being available with the Company, we are unable to comment upon the correctness or otherwise of the value ascribed to such investment and also to its realizability.
c. Note No.3.59 of the accompanying Standalone Financial Statements, wherein it is stated that certain compliances are pending in respect of GDR Listing matter with âLondon Stock Exchangeâ, and initialization of delisting process. The charges if any and the consequential effects thereof for pending compliances is presently not ascertainable and as such cannot be commented upon by us.
d. Note No 3.57 (b) relating to excess managerial remuneration under Companies Act, 2013 aggregating to Rs. 3.31 Lakhs of the Vice Chairman and Managing Director for the period 01st April, 2017 to 23rd June, 2017. The Vice Chairman and Managing Director of the Company has resigned during the year and the Company will seek approval for non recovery of excess remuneration paid / charged to statement of profit and loss from the Ministry of Corporate Affairs with consequential penalty, if any and compounding fees as per provisions of Companies Act, 2013. Pending the same, no adjustments have been made for the amount of Rs. 3.31 Lakhs and the consequential penalty, if any, and the compounding fees. In the absence of the decision of the Ministry of Corporate Affairs pursuant to the application to be made by the Company we are unable to ascertain the impact on loss and on retained earnings on this account for the year ended 31st March, 2018 (Refer Note 3.57(b)).
Qualified Opinion
8. In our opinion and to the best of our information and according to the explanations given to us, except for the effects (to the extent ascertained and not) of the matter described in the Basis for Qualified Opinion paragraph above, the aforesaid Standalone 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 including Ind AS specified under Section 133 of the Act, of the state of affairs (financial position) of the Company as at March 31, 2018, and its loss (financial performance including other comprehensive income), its cash flows and the changes in equity for the year ended on that date.
Material uncertainty related to going concern
9. We draw attention to Note No. 3.57 of the accompanying Standalone Financial Statements, stating therein that the resolution plan was voted upon (between April 4, 2018 and April 5, 2018) & duly approved by the Committee of Creditors and has been further approved by NCLT vide their order dated July 25, 2018 and therefore the Standalone Financial Statements have been prepared on a âgoing concernâ basis. However, the same is dependent on the successful implementation of the resolution plan. Our opinion is not modified in respect of this matter.
Other Matter
10. The comparative financial information for the year ended March 31, 2017 included in the accompanying Standalone Financial Statements was audited by M/s Manoj Mohan & Associates; whose audit report dated June 10, 2017 expressed qualified opinion. Our opinion is not modified in respect of this matter.
Report on Other Legal and Regulatory Requirements
11. As required by the Companies (Auditorâs Report) Order, 2016 (âthe Orderâ) issued by the Central Government of India in terms of Section 143 (11) of the Act, we give in the âAnnexure-Aâ, a statement on the matters specified in paragraphs 3 and 4 of the Order.
12. Further to our comments in âAnnexure-Aâ, as required by Section143(3) of the Act, we report that:
a. We have sought and except for the matter described in the Basis for Qualified Opinion paragraph, obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purpose of our audit;
b. Except for the effects of the matter described in the Basis for Qualified Opinion paragraph, in our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books;
c. The Balance Sheet, Statement of Profit and Loss including Other Comprehensive Income, the Cash Flow Statement and the Statement of Changes in Equity dealt with by this Report are in agreement with the books of account;
d. Except for the effects of the matter described in the Basis for Qualified Opinion paragraph, in our opinion, the aforesaid Ind AS Standalone Financial Statements comply with Ind AS Accounting Standards prescribed under section 133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015 as amended;
e. The matter described in the âBasis for Qualified Opinionâ paragraph above, in our opinion, may have an adverse effect on the functioning of the Company;
f. The information with regard to written representations received from the directors, as on March 31, 2018 and taken on record by the Board of Directors has not been made available to us. Therefore, we are unable to comment on whether or not any of the Directors is disqualified as on March 31, 2018 from being appointed as a director in terms of Section 164(2) of the Act;
g. The qualification relating to the maintenance of accounts and other matters connected therewith are as stated in the Basis for Qualified Opinion paragraph above;
h. We have also audited the internal financial controls over financial reporting of the Company as on March 31, 2018 in conjunction with our audit of the Standalone Financial Statements of the Company for the year ended on that date and our separate Report in âAnnexure-Bâ, to this report expressed qualified opinion;
i. With respect to the other matters to be included in the Auditorâs Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014 (as amended), in our opinion and to the best of our information and according to the explanations given to us:
i. the Company, as detailed in Note No. 3.38 of the accompanying Standalone Financial Statements, has disclosed the impact of pending litigations on its financial position;
ii. the Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses;
iii. there were no amounts which were required to be transferred to the Investor Education and Protection Fund by the Company;
Annexure-A to Independent Auditorsâ Report
Referred to in Paragraph 11 of the Independent Auditorsâ Report of even date to the members of Amtek Auto Limited on the Standalone Financial Statements for the year ended March 31, 2018
1. (a) According to the information and explanations given to us and on the basis of the books and records examined by us in the normal course of audit and to the best of our knowledge and belief, we state that the Company has maintained proper records showing full particulars including quantitative details and situation of fixed assets (in respect of fixed assets physically verified from external agency(ies) as required under CIRP). However, the reconciliation of Fixed Asset Register maintained prior to April 1, 2017 with books of account could not be verified as the same did not contain full particulars upto date with regard to asset-wise original cost, depreciation and written-down-value.
(b) During the year under audit, Company got all its fixed assets verified from external agency(ies) as required under CIRP. All discrepancies noticed upon such physical verification have been properly dealt with in the books of account. In the absence of formal fixed asset verification policy of the Company, we are unable to comment about the frequency of verification of the fixed assets whether reasonable having regard to the size of the Company and the nature of its assets.
(c) According to information and explanations given to us and on the basis of our examination of the records of the Company the title deeds of immovable properties are duly registered/held in the name of the Company. It may be noted that the original deeds being pledged with Financial Creditors were not made available and we have verified information from the Form C issued by financial creditors of the Company filed pursuant to the requirements of Insolvency and Bankruptcy Code, 2016 [IBC], and/or copies available with the Company.
2. According to information and explanations given to us and on the basis of our examination of the records of the Company, the physical verification in respect of inventory has been carried out by the Management at reasonable intervals including as on March 31, 2018. The discrepancies observed on physical verification of inventory were not material and the same has been properly dealt with in the books of account. In this regard, further reference is drawn to Note No. 3.41 and 3.54 (a) of the accompanying Standalone Financial Statements, wherein disclosure is made for write down of inventories owning to techno-economical reasons.
3. According to the information and explanations given to us and based on such tests which we considered necessary, we report that the Company (during the year) 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. Therefore the provisions of paragraph (iii) (a) of the above order are not applicable to the Company. Further, out of the loans granted in the earlier years to the parties covered in the register maintained under section 189 of the Companies Act 2013, there is no stipulation with regard to the repayment of principal/interest on loan, therefore we are unable to express our opinion with regard to paragraph (iii) (b) and (iii) (c) of the said order.
4. In our opinion and according to the information and explanations given to us, the Company has complied with the provisions of section 185 and 186 of the Companies Act, 2013, with respect to the loans, investments, guarantees and security, as applicable.
5. In our opinion and according to the information and explanations given to us, the Company has not accepted any deposits from the public during the year under audit. Therefore, directives issued by Reserve Bank of India and the provisions of Sections 73 to 76 or any other relevant provisions of the Companies Act, 2013 and the rules framed there under are not applicable to the Company.
6. The Central Government has prescribed the maintenance of cost records under section (1) of section 148 of the Companies Act, 2013, for certain products manufactured by the Company and on the basis of records produced before us for our verification; we are of the opinion that, prima facie, the prescribed accounts and cost records are not complete. However, we have not carried out any detailed examination of such accounts and records.
7. (a) On the basis of records of the Company examined by us, in our opinion, undisputed statutory dues including provident fund, employeesâ state insurance, income-tax, sales-tax, service tax, duty of custom, duty of excise, value added tax, cess have not been regularly deposited with the appropriate authorities and there have been delays in a large number of cases. Undisputed amounts payable in respect thereof, which were outstanding at the year-end for a period of more than six months from the date they became payable are as follows:
Statement of Arrears of Statutory Dues Outstanding for More than Six Months.
Name of Statute |
Nature of dues |
Amount (in lakhs) |
Period to which it relates |
Due Date |
Date of Payment |
Remarks, if any |
Finance Act, 1994 |
Service Tax |
82.58 |
Until Marchâ17 |
31-03-2017 |
- |
Not paid till audit report date |
Finance Act, 1994 |
Service Tax |
75.06 |
April- Juneâ17 |
5th of the following month |
- |
Not paid till audit report date |
Central Excise Act,1944 |
Excise |
316.64 |
April- Juneâ2017 |
5th of the following month |
- |
Not paid till audit report date |
Karnataka VAT Act, 2003 |
Sales Tax |
0.12 |
Until Marchâ17 |
31-03-2017 |
- |
Not paid till audit report date |
ESI Act, 1948 |
ESI |
0.44 |
Until Marchâ17 |
31-03-2017 |
15-09-2018 |
- |
ESI Act, 1948 |
ESI |
1.55 |
April- Septemberâ 2017 |
21st of the following month |
15-09-2018 |
- |
Income Tax Act, 1961 |
TCS |
0.50 |
Until Marchâ17 |
31-03-2017 |
- |
Not paid till audit report date |
Labour Welfare Fund Act |
Welfare Fund |
0.03 |
April- Septemberâ 2017 |
Payable yearly (January of the following year) |
- |
Not paid till audit report date |
(b) The dues outstanding in respect of income-tax, sales-tax, service-tax, duty of customs, duty of excise and value added tax on account of any dispute, are as follows:
Statement of disputed dues
Name of the Statute |
Nature of Dues |
Disputed Amount (Rs. in Lakhs) |
Period to which it relates |
Forum where Dispute is pending |
Central Excise Act |
Excise Duty |
237.97 |
Octâ2010- Marâ2014 |
Punjab & Haryana High Court |
Central Excise Act |
Excise Duty |
202.65 |
Aprâ2015- Marâ2016 |
Punjab & Haryana High Court |
Finance Act, 1994 |
Service Tax |
71.64 |
2009-2013 |
Excise & Service Tax Appellate Tribunal, Chandigarh |
Finance Act, 1994 |
Service Tax |
7.95 |
2015-2016 |
Assistant Commissioner, Central Tax, Division VII, Pune-1 Commissionerate |
Finance Act, 1994 |
Service Tax |
1.87 |
2016-17 |
Assistant Commissioner, Central Tax, Division VII, Pune-1 Commissionerate |
Sales Tax Act |
Sales Tax |
1162.30 |
2015-16 |
Commissionerate Appeal, Faridabad |
Sales Tax Act |
Sales Tax |
22.64 |
2008-09 |
Deputy Commissioner, Sales Tax, Pune (Maharashtra) |
Sales Tax Act |
Sales Tax |
10.13 |
2009-10 |
Deputy Commissioner, Sales Tax, Pune (Maharashtra) |
Sales Tax Act |
Sales Tax |
252.87 |
2012-13 |
Deputy Commissioner, Sales Tax, Pune (Maharashtra) |
Sales Tax Act |
Sales Tax |
293.44 |
2012-13 |
Deputy Commissioner, Sales Tax, Pune (Maharashtra) |
Sales Tax Act |
HVAT |
479.19 |
2014-15 |
Commissionerate Appeal, Faridabad |
Sales Tax Act |
CST |
538.72 |
2014-15 |
Commissionerate Appeal, Faridabad |
Income Tax Act,1961 |
Income Tax |
467.30 |
2006-07 |
Income Tax Appellate Tribunal |
Income Tax Act,1961 |
Income Tax |
358.62 |
2007-08 |
Income Tax Appellate Tribunal |
8. The Company has defaulted in repayment of loans and borrowings to the banks and financial institutions and towards debenture holders during the year. Pursuant to the continuing defaults of the Company, a corporate insolvency resolution process (âCIRPâ) under The Insolvency and Bankruptcy Code, 2016 (âIBCâ) was initiated against the Company vide an order of the Principal Bench of the National Company Law Tribunal (âNCLTâ) dated July 24, 2017. Accordingly, no payments could be made thereafter to the banks, financial institutions and debenture holders, until the resolution process is concluded. The details of outstanding amounts as on July 24, 2017 is as follows:
S. No |
Name of the Lender |
Amount outstanding as on 24-07-2017 as (Rs. in Lakhs) |
Amount outstanding on 31-03-2018(Rs. in Lakhs) |
Period of Default |
|
||
1 |
10% Non-Convertible Debentures (NCDs) |
250.88 |
250.88 |
||||
2 |
10.25% Non-Convertible Debentures (NCDs) |
809.16 |
809.16 |
April 2015 to March 2018 |
|||
3 |
10.50% Non-Convertible Debentures (NCDs) |
603.28 |
603.28 |
||||
4 |
11.25% Non-Convertible Debentures (NCDs) |
263.53 |
263.53 |
||||
5 |
11.50% Non-Convertible Debentures (NCDs) |
105.90 |
105.90 |
|
6 |
Asset Care & Reconstruction Enterprise Ltd |
368.45 |
368.45 |
|
7 |
Alchemist ARC |
27.01 |
27.01 |
|
8 |
Allahabad Bank |
213.97 |
213.97 |
|
9 |
Andhra Bank |
674.35 |
674.35 |
|
10 |
Axis Bank |
34.70 |
34.53 |
|
11 |
Bank of Baroda |
483.42 |
482.37 |
|
12 |
Bank of India |
142.63 |
141.93 |
|
13 |
Bank of Maharashtra |
304.85 |
304.85 |
|
14 |
Canara Bank |
577.70 |
576.82 |
|
15 |
Central Bank of India |
108.06 |
108.06 |
|
16 |
Citi Bank |
75.91 |
75.91 |
|
17 |
Corporation Bank |
882.91 |
882.91 |
|
18 |
CTBC Bank |
33.79 |
33.79 |
|
19 |
Dena Bank |
70.20 |
70.20 |
|
20 |
Deutsche Bank |
383.54 |
383.54 |
April 2015 to |
21 |
Edelweiss ARC |
172.46 |
172.46 |
|
22 |
Federal Bank |
6.96 |
6.96 |
March 2018 |
23 |
IDBI Bank |
1715.72 |
1709.25 |
|
24 |
IFCI Ltd |
477.00 |
477.00 |
|
25 |
Indian Bank |
71.32 |
70.97 |
|
26 |
Indian Overseas Bank |
453.50 |
453.50 |
|
27 |
Karnataka Bank |
54.44 |
54.44 |
|
28 |
Kotak Mahindra Bank |
38.62 |
38.62 |
|
29 |
LIC of India |
412.60 |
412.60 |
|
30 |
Oriental Bank of Commerce |
107.32 |
107.32 |
|
31 |
Punjab National Bank Intl Ltd |
71.32 |
70.97 |
|
32 |
State Bank of Bikaner & Jaipur |
185.50 |
185.50 |
|
33 |
Standard Chartered Bank |
526.81 |
525.87 |
|
34 |
State Bank of India |
436.67 |
436.37 |
|
35 |
State Bank of Mysore |
233.25 |
233.35 |
|
36 |
State Bank of Patiala |
211.79 |
211.79 |
|
37 |
Syndicate Bank |
96.19 |
96.19 |
38 |
UCO Bank |
57.82 |
57.82 |
April 2015 to |
39 |
Union Bank of India |
185.83 |
184.96 |
|
40 |
Union Bank of India |
97.72 |
97.72 |
March 2018 |
The Company has not taken any loan from Government.
9. In our opinion and according to the information and explanations given to us, the Company has not raised moneys by way of initial public offer or further public offer (including debt instruments) during the year. However the moneys raised by way of term loans during the year have been applied for the purpose for which those were raised.
10. According to the information and explanations given to us, no fraud by the Company and no fraud on the Company by its officers or employees has been noticed or reported during the year.
11. According to the information and explanations given to us, and based on our examination of the records of the Company, the Company has paid/provided for managerial remuneration in accordance with the requisite approvals mandated by the provisions of Section 197 of the Companies Act, 2013 read with Schedule V to the Companies Act, 2013 except for the remuneration paid/provided to Companyâs Executive Vice Chairman and Managing Director who has resigned during the year and the excess remuneration paid to him over the requisite approvals during the period of the service cannot be recovered from him and the Company will accordingly seek approval of writing off the same from the Ministry of Corporate Affairs (Refer Note 3.57(b)).
12. According to the information and explanation given to us, the Company is not a Nidhi Company. Therefore the provisions of paragraph 3(xii) of the Order are not applicable to the Company.
13. According to the information and explanations given to us, and based on our examination of the records of the Company, transactions with the related parties are in compliance with section 177 and 188 of the Companies Act, 2013.The details of such transactions have been disclosed in the Standalone Financial Statements as required by the applicable Ind AS.
14. According to the information and explanations given to us, the Company has not made preferential allotment or private placement of shares or fully or partly convertible debentures during the year under audit. Therefore, the provisions of paragraph 3(xiv) of the Order are not applicable to the Company.
15. According to information and explanations given to us, and based on our examination of the records of the Company, the Company has not entered into any non-cash transactions with directors or person connected with him. Accordingly, provisions of paragraph 3 (xv) of the Order are not applicable to the Company.
16. According to the information and explanations given to us, the Company is not required to be registered under section 45-IA of the Reserve Bank of India Act, 1934.
Annexure-B to Independent Auditorsâ Report
Referred to in Paragraph 12(g) of the Independent Auditorsâ Report of even date to the members of Amtek Auto Limited on the Standalone Ind AS Financial Statements for the year ended March 31, 2018
Independent Auditorâs Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 (âthe Actâ)
1. In conjunction with our audit of the Standalone Ind AS Financial Statements of Amtek Auto Limited (âthe Companyâ) as at and for the year ended March 31, 2018, we have audited the internal financial controls over financial reporting of the Company as at that date.
Managementâs Responsibility for Internal Financial Controls
2. The Companyâs Board of Directors is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued by the Institute of Chartered Accountants of India (âICAIâ). These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of the Companyâs business, including adherence to the Companyâs policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Act.
Auditorâs Responsibility
3. Our responsibility is to express an opinion on the Companyâs internal control over financial reporting based on our audit. We conducted our audit in accordance with the Standards on Auditing issued by the Institute of Chartered Accountants of India (âICAIâ) and deemed to be prescribed under Section 143(10) of the Act, to the extent applicable to an audit of internal financial controls over financial reporting, and the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (âthe Guidance Noteâ) issued by the ICAI. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects.
4. Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal control over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditorâs judgement, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.
5. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Companyâs internal financial controls over financial reporting. Meaning of Internal Financial Controls over Financial Reporting.
6. A Companyâs internal financial controls over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A Companyâs I internal control over financial reporting include those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the Company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the Company are being made only in accordance with authorisations of management and directors of the Company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorised acquisition, use, or disposition of the Companyâs assets that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls over Financial Reporting
7. Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial controls over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Qualified Opinion
8. According to the information and explanations given to us and based on our audit, the following material weaknesses have been identified as at March 31, 2018:
The Company did not have an appropriate and proper internal control system to determine the recoverable amount of âvalue-in-useâ to assess the impairment provision of assets on timely basis, valuation of inventories with regard to deficient inventory records, non-maintenance of detailed fixed assets register prior to April 1, 2017 which may potentially result in Company recognizing inventory at incorrect amounts and impairment of assets not being recognized at correct amount or on timely basis.
A âmaterial weaknessâ is a deficiency, or a combination of deficiencies, in internal financial control over financial reporting, such that there is a reasonable possibility that a material misstatement of the Companyâs annual or interim financial statements will not be prevented or detected on a timely basis.
In our opinion, except for the possible effects of the material weaknesses described above on the achievement of the objectives of the control criteria, the Company has, in all material respects, maintained adequate internal financial controls over financial reporting as of March 31, 2018, based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India, and the Companyâs internal financial controls over financial reporting were operating effectively as of March 31, 2018.
We have considered the material weakness identified and reported above in determining the nature, timing, and extent of audit tests applied in our audit of the Standalone Financial Statements of the Company as at and for the year ended March 31, 2018, and the material weakness has affected our opinion on the standalone financial statements of the Company and we have expressed a qualified opinion on the Standalone Financial Statements.
For SCV & Co. LLP
(formerly known as S.C. Vasudeva & Co.)
Chartered Accountants
Firm Regn No.000235N/N500089
(Abhinav Khosla)
Place : New Delhi Partner
Date : November 12, 2018 Membership No. 087010
Mar 31, 2016
We have audited the accompanying Standalone financial statements of
Amtek Auto Limited ("the company"), which comprise the balance sheet as
at 31st March 2016, the statement of profit and loss for the six months
ended 31st March 2016, the cash flow statement for the six months ended
on that date, and a summary of significant accounting policies and
other explanatory information.
Management''s Responsibility for the Standalone Financial Statements
The company''s board of directors is responsible for the matters
specified 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 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, read with
Rule 7 of the Companies (Accounts) Rules, 2014. This responsibility
also includes the 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 the 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 control, that were operating effectively for
ensuring the accuracy and completeness of the accounting records,
relevant to the preparation and presentation of the standalone
financial statements that give a true and fair view and are free from
material misstatement, whether due to fraud or error.
Auditor''s Responsibility
Our responsibility is to express an opinion on these standalone
financial statements based on our audit.
We have taken into account the provisions of the Act, the accounting
and auditing standards and matters which are required to be included in
the audit report under the provisions of the Act and the rules made
there under.
We conducted our audit in accordance with the standards on auditing
specified under section 143(10) of the Act. Those standards require
that we comply with ethical requirements and plan and perform the audit
to obtain reasonable assurance about whether the standalone financial
statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the standalone 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 control relevant
to the company''s preparation of the financial statements that give a
true and fair view in order to design audit procedures that are
appropriate in the circumstances. An audit also includes evaluating the
appropriateness of the accounting policies used and the reasonableness
of the accounting estimates made by the company''s directors, 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 the standalone
financial statements.
Opinion
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 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, 2016 and its loss, and its cash
flows for the six months ended on that date.
Report on other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2016 ("the
Order") issued by the Central Government of India in terms of sub
section (11) of section 143 of the act, we give in the annexure A , a
statement on the matters specified in paragraph 3 & 4 of the Order.
2. As required by section 143(3) of the Act, 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 company so far as appears from our examination of those
books;
c) the balance sheet, the statement of profit and loss, and the cash
flow statement 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 accounting standards specified under section 133 of the Act,
read with Rule 7 of the Companies (Accounts) Rules, 2014;
e) On the basis of written representations received from the directors
as on 31st March 2016 and taken on record by the board of directors,
none of the directors is disqualified as on 31st March 2016, from being
appointed as a director in terms of Section 164(2) of the Act;
f) 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; and
g) With respect to the other matters included in the Auditor''s Report
in accordance with Rule 11 of the Companies (Audit & Auditors) Rules,
2014, in our opinion and to best of our information and according to
the explanations given to us :
i) The company has disclosed the impact of pending litigations on its
financial position in its standalone financial statements (Refer to
Note 29).
ii) The company did not have any long-term contract including
derivatives contract for which there were any material foreseeable
losses.
iii) There were no amounts which were required to be transferred to the
Investor Education and Protection Fund by the company.
The Annexure referred to in Independent Auditors'' Report to the members
of the Company on the standalone financial statements for the six
months ended 31st March 2016.
(i) (a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets.
(b) As explained to us, fixed assets, according to the practice of the
Company, have been physically verified by the management at reasonable
intervals. In our opinion, the frequency of physical verification of
fixed assets is reasonable having regard to the size of the Company and
nature of its assets. According to the information and explanations
given to us, no material discrepancies were noticed on such physical
verification.
(c) According to the information and explanations given to us and on
the basis of our examination of the records of the Company, the title
deeds of immovable properties are held in the name of the Company.
(ii) We have been informed that the inventories are physically verified
during the period by the management at reasonable intervals. The
frequency of physical verification, in our opinion, is reasonable
having regard to the size of the company and nature of its business.
The discrepancies noticed on verification between the physical
inventories and the book records were not material in relation to the
operation of the Company and the same have been properly dealt with in
the books of account.
(iii) The company has granted unsecured loans to companies covered in
the register maintained under Section 189 of the Companies Act, 2013
during the period under review:
(a) The terms and conditions of grant of such loan are not prejudicial
to the interest of the company.
(b) The schedule of repayment is stipulated and there is no
irregularity in this regard.
(c) No amount is overdue for more than 90 days as on 31st March, 2016.
(iv) In our opinion and according to the information and explanations
given to us, the company has complied with the provisions of section
185 and 186 of the Companies Act 2013 in respect of loans, investments,
guarantees and security.
(v) Since the company has not accepted any deposit from public, the
directives issued by the Reserve Bank of India and the provisions of
section 73 to 76 or any other relevant provisions of the Companies Act,
2013 and the rules framed there under with regard to the deposits
accepted from the public are not applicable.
(vi) The Central Government has prescribed the maintenance of cost
records under section (1) of section 148 of the Companies Act, and on
the basis of records produced before us for our verification; we are of
the opinion that, prima facie, the prescribed accounts and cost records
have been maintained. However we are neither required to carry out nor
have carried out any detailed examination of such accounts & records.
(vii) (a) According to the information and explanations given to us and
as per the records of the company, the company has been regular in
depositing undisputed statutory dues including provident fund, income
tax, service tax, duty of custom, duty of excise, value added tax, cess
and other statutory dues with appropriate authorities during the six
months ended 31st March 2016.
According to the information and explanations given to us, no disputed
amounts payable in respect of aforesaid dues were in arrears as at 31st
March 2016 for a period of more than six months from the date they
become payable.
(b) According to information and explanations given to us, the dues of
income tax, sales tax, service tax, custom duty, excise duty, value
added tax and cess which have not been deposited on account of matters
pending before appropriate authorities are as follows:-
Sr. Name of the Statute Nature Period to which
No. of Dues the amount relates
1 Income Tax Act, 1961 Income Tax Block Assessement
from A.Y. 2005-06
to 2010-11
TOTAL
Name of the Statute Forum where Amount
dispute is (Rs.
pending in lacs)
Income tax Act,1961 Income Tax
Appellant
Tribunal, Delhi 825.92
TOTAL 825.92
(viii) According to the information and explanations given to us and as
per our verification of the records of the company, there had been
delays in payment of installments and Interest on term loan to the
banks during the six months ending 31st March 2016. The same have been
given in details in Note No. 2.31.
(ix) According to the information and explanations given to us and as
per our verification of the records of the company, the Company has not
raised moneys by way of initial public offer or further public offer
(including Debt instruments). The term loans availed by the company
have been applied for the purpose for which the loans were obtained.
(x) According to the information and explanations given to us, no fraud
by the company or on the company by its officers or employees has been
noticed or reported during the six months ended 31st March 2016.
(xi) According to the information and explanations give to us and based
on our examination of the records of the Company, the Company has
paid/provided for managerial remuneration in accordance with the
requisite approvals mandated by the provisions of section 197 read with
Schedule V to the Act.
(xii) In our opinion, and according to the information and explanations
given to us, the company is not a Nidhi company. Therefore, the
provisions of Clause 3 (xii) of the Order are not applicable to the
Company.
(xiii) According to the information and explanations given to us and as
per our verification of the records of the company all transactions
with the related parties are in compliance with the Sections 177 and
188 of the Companies Act,2013 where applicable and the details have
been disclosed in the Financial Statements as required by the
applicable accounting standards.
(xiv) According to the information and explanations given to us and as
per our verification of the records of the company, the Company has not
made any preferential allotment or private placement of shares or fully
or partly convertible debentures during the period under review.
Accordingly, the provisions of Clause 3 (xiv) of the order are not
applicable to the Company.
(xv) According to the information and explanations given to us and as
per our verification of the records of the company, the company has not
entered into any non-cash transactions with directors or persons
connected with it .Accordingly, the provisions of Clause 3 (xv) of the
order are not applicable to the Company.
(xvi) In our opinion, the company is not required to be registered
under section 45-IA of the reserve Bank of India Act, 1934.
Accordingly, the provisions of Clause 3 (xvi) of the order are not
applicable to the Company.
For & on behalf of
Manoj Mohan & Associates
Chartered Accountants
ICAI Firm Regd. No.009195C
Sd/-
(Manoj Kumar Agarwal)
Place : New Delhi Partner
Dated:30th May, 2016 Membership No -76980
Sep 30, 2015
We have audited the accompanying Standalone financial statements of
AMTEK AUTO LIMITED ("the company"), which comprise the balance sheet as
at 30th September 2015, the statement of profit and loss & the cash
flow statement for the year then ended, and a summary of significant
accounting policies and other explanatory information.
Management's Responsibility for the Standalone Financial Statements
The company's board of directors is responsible for the matters
specified 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 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, read with
Rule 7 of the Companies (Accounts) Rules, 2014. This responsibility
also includes the 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 the 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 control, that were operating effectively for
ensuring the accuracy and completeness of the accounting records,
relevant to the preparation and presentation of the Standalone
financial statements that give a true and fair view and are free from
material misstatement, whether due to fraud or error.
Auditor's Responsibility
Our responsibility is to express an opinion on these Standalone
financial statements based on our audit. We have taken into account the
provisions of the Act, the accounting and auditing standards and
matters which are required to be included in the audit report under the
provisions of the Act and the rules made there under.
We conducted our audit in accordance with the standards on auditing
specified under section 143(10) of the Act. Those standards require
that we comply with ethical requirements and plan and perform the audit
to obtain reasonable assurance about whether the Standalone financial
statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the Standalone financial statements. The
procedures selected depend on the auditor's judgment, including the
assessment of the risks of material misstatement of the Standalone
financial statements, whether due to fraud or error. In making those
risk assessments, the auditor considers internal financial control
relevant to the company's preparation of the Standalone financial
statements that give a true and fair view in order to design audit
procedures that are appropriate in the circumstances, but not for the
purpose of expressing an opinion on whether the company has in place an
adequate internal controls system over financial reporting and the
operating effectiveness of such controls. An audit also includes
evaluating the appropriateness of the accounting policies used and the
reasonableness of the accounting estimates made by the company's
directors, as well as evaluating the overall presentation of the
Standalone financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion on the Standalone
financial statements.
Opinion
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 Act in the manner so
required and give a true and fair view in conformity with the
accounting principles generally accepted in India;
a) in the case of the balance sheet, of the state of affairs of the
company as at September 30, 2015;
b) in the case of the statement of profit and loss, of the Loss for the
year ended on that date; and
c) in the case of the cash flow statement, of the cash flow for the
year ended on that date.
Report on other Legal and Regulatory Requirements
1. As required by the Companies (Auditor's Report) Order, 2015 ("the
Order") issued by the Central Government of India in terms of sub
section (11) of section 143 of the Act, we give in annexure - 1, a
statement on the matters specified in paragraph 3 & 4 of the Order.
2. As required by section 143(3) of the Act, 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 company so far as appears from our examination of those
books.
c) the balance sheet, the statement of profit and loss, and the cash
flow statement 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 accounting standards specified under section 133 of the Act,
read with Rule 7 of the Companies (Accounts) Rules, 2014
e) On the basis of written representations received from the directors
as on 30th September 2015, taken on record by the board of directors,
none of the directors is disqualified as on 30th September 2015, from
being appointed as a director in terms of Section 164(2) of the Act.
f) With respect to the other matters included in the Auditor's Report
in accordance with Rule 11 of the Companies (Audit & Auditors) Rules,
2014, in our opinion and to our best of our information and according
to the explanations given to us :
i) The company has disclosed the impact of pending litigations on its
financial position in its Standalone financial statements (Refer to
note no- 2.27).
ii) The company did not have any long-term contract including
derivatives contract for which there were any material foreseeable
losses.
iii) There were no amounts which were required to be transferred to the
Investor Education and Protection Fund by the company.
(i) (a) The company has maintained proper records showing full
particulars, including quantitative details and situation of the fixed
assets.
(b) All the fixed assets have been physically verified by the
management during the year. There is a regular program of verification,
which, in our opinion, is reasonable having regard to the size of the
company and nature of its assets. As per the information/reports
submitted by the company, no material discrepancies have been noticed
on such verification.
(ii) (a) We have been informed that the inventory of stores and spares
are physically verified during the year by the management on a
continuous basis as per program of perpetual inventory. The inventories
of other items have been physically verified at the year-end. The
frequency of physical verification, in our opinion, is reasonable
having regard to the size of the company and nature of its business.
(b) In our opinion and according to the explanation given to us, the
procedures of physical verification of inventory followed by the
management are reasonable and adequate in relation to the size of the
company and the nature of its business.
(c) The company is maintaining proper records of inventory. The
discrepancies noticed on verification by the management between the
physical stock and book records, though not material, have been
properly dealt within the books of account and are not material.
(iii) (a) The Company during the year under report, has given granted
unsecured loans and advances to its Subsidiaries, associates, joint
ventures, firms or other parties covered in the register maintained
under section 189 of the Companies Act, 2013 ('the Act'). The balance
outstanding as at the end of the year and maximum balance at any time
during the year was Rs. 1,22,590.29 lacs and Rs. 1,22,590.29 Lacs
respectively.
(b) In our opinion and according to the information and explanations
given to us, the rate of interest, wherever applicable and other terms
and conditions are not prima-facie prejudicial to the interest of the
company.
(iv) In our opinion and according to the information and explanations
given to us, there is adequate internal control system commensurate
with the size of the company and nature of its business, with regard to
the purchases of inventory, fixed assets and with regard to the sale of
goods and services. During the course of our audit, we have not
observed any continuing failure to correct major weakness in internal
control system of the company.
(v) Since the company has not accepted any deposit from public, the
provisions of section 73 to 76 and the rules framed there under with
regard to filing of statutory returns as required under these
provisions and the relevant rules are not applicable to the company.
(vi) We have broadly reviewed the cost records maintained by the
company and report that prima-facie, the directions specified by the
Central Government under sub-section (1) of section 148 of the
Companies Act, with regard to maintenance of cost records have been
complied with.
(vii) (a) According to the information and explanations given to us and
as per the records of the company, the company has been regular in
depositing undisputed statutory dues including provident fund, income
tax, wealth tax, service tax, duty of custom, duty of excise, value
added tax, cess and other statutory dues with appropriate authorities
during the year.
(b) According to information and explanations given to us and as per
our verification of records of the company, the company does not have
any dues that have not been deposited on account of any dispute.
(c) As per the information and explanations given to us and based on
the records of the company produced to us, the company does not have
any amount that is required to be transferred to investor education and
protection fund in accordance with the relevant provisions of the Act
and the rules made there under.
(viii) The company does not have accumulated losses as at the end of
this financial year and has not incurred cash losses during the current
financial year under report and also during the immediately preceding
financial year.
(ix) According to the information and explanations given to us and as
per our verification of the records of the company, there had been
delays in payment of installments and Interest of term loan to the
bank/financial institution during the year. The amount overdue as on
the date of balance sheet was Rs.1,07,544.60 Lacs Principal and
Rs.17,061.71 Lacs interest with Average delay of less than 90 Days
(x) According to the information and explanations given to us, the
company has given corporate guarantee of Rs.1,56,300 Lacs for the loans
availed by Subsidiaries, associates, joint ventures and other group
companies from banks and financial institutions and terms and
conditions are not prejudicial to the interests of the company.
(xi) According to the information and explanations given to us, the
term loans availed by the company have been applied for the purpose for
which the loans were obtained.
(xii) According to the information and explanations given to us, no
fraud on or by the company has been noticed or reported during the
year.
For & on behalf of
Manoj Mohan & Associates
Chartered Accountants
ICAI Firm Regd. No.009195C
Sd/-
(Manoj Kumar Agarwal)
Place : New Delhi Partner
Dated:28th November, 2015 Membership No -76980
Sep 30, 2014
We have audited the accompanying financial statements of Amtek Auto
Limited ("the company") as at 30th September 2014, which comprises the
Balance Sheet as at September 30, 2014, the Statement of Profit and
Loss, and the Cash Flow Statement for the year then ended, and a
summary of significant accounting policies and other explanatory
information.
Management''s Responsibility for the financial Statements
Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position,
financial performance and cash flows of the Company in accordance with
the Accounting Standards notified under the Companies Act, 1956 ("the
Act") read with the General Circular 15/2013 dated 13th September, 2013
of the Ministry of Corporate Affairs in respect of section 133 of the
Companies Act, 2013 and in accordance with the accounting principles
generally accepted in India. This responsibility includes the design,
implementation and maintenance of internal control relevant to the
preparation and presentation of the financial statements that give a
true and fair view and are free from material misstatement, whether due
to fraud or error.
Auditor''s Responsibility
Our responsibility is to express an opinion on these 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 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 control relevant to the Company''s preparation and
fair presentation 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 entity''s
internal control. An audit also includes evaluating the appropriateness
of accounting policies used and the reasonableness of the accounting
estimates made by 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.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid 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:
a) in the case of the Balance Sheet, of the state of affairs of the
Company as at September 30, 2014;
b) in the case of Statement of Profit and Loss, of the profit of the
Company for the year ended on that date; and
c) in the case of the Cash Flow Statement, of the Cash Flows of the
Company for the year ended on that date. Report on Other Legal and
Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2003 ("the
Order") as amended by the Companies (Auditor''s Report) (Amendment)
Order, 2004 issued by the Central Government of India in terms of
sub-section (4A) of section 227 of the Act (hereinafter referred to as
the "Order") and on the basis of such checks of books and records of
the Company as we considered appropriate and according to the
information and explanation given to us, we give in the Annexure, a
statement on the matters specified in paragraphs 4 and 5 of the Order.
2. As required by section 227(3) of the Act, we report that:
a) we have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
b) in our opinion proper books of accounts as required by law have been
kept by the Company so far as appears from our examination of those
books;
c) the Balance Sheet, Statement of Profit and Loss and the Cash Flow
Statement dealt with by this Report are in agreement with the books of
accounts;
d) in our opinion, the Balance Sheet, Statement of Profit and Loss and
the Cash Flow Statement comply with the Accounting Standards notified
under the Companies Act, 1956, read with the General Circular 15/2013
dated 13th September, 2013 of the Ministry of Corporate Affairs in
respect of section 133 of the Companies Act, 2013;
e) On the basis of written representations received from the directors
as on September 30, 2014, and taken on record by the Board of
Directors, none of the directors is disqualified as on September 30,
2014, from being appointed as a director in terms of clause (g) of
sub-section (1) of section 274 of the Companies Act, 1956.
ANNEXURE TO INDEPENDENT AUDITOR''S REPORT REFERRED TO IN POINT 1 OF
PARAGRAPH 5 OF OUR REPORT OF EVEN DATE OF AMTEK AUTO LIMITED FOR THE
YEAR ENDED 30th September 2014
(i) (a) The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
(b) As explained to us, fixed assets, according to the practice of the
Company, have been physically verified by the management at reasonable
intervals. In our opinion, the frequency of physical verification of
fixed assets is reasonable having regard to the size of the company and
nature of its assets. According to the information and explanations
given to us, no material discrepancies were noticed on such physical
verification.
(c) During the year, the company has not disposed off substantial part
of fixed assets, the going concern status of the company is not
affected.
(ii) (a) The inventories have been physically verified during the year
by the management. In our opinion, the frequency of physical
verification is reasonable.
(b) The procedure for physical verification of inventories followed by
the management are reasonable and adequate in relation to the size of
the company and nature of its business.
(c) In our opinion, the company has maintained proper records of
inventories. The discrepancies noticed on verification between the
physical stocks and the book records were not material & the same have
been properly dealt with in the books of accounts.
(iii) The Company, during the year under report, has given loans &
advances to its subsidiary companies and joint ventures, firms or other
parties covered in the register maintained under Section 301 of the
Companies Act, 1956.
(a) The balance at the end of the year and the maximum amount involved
during the year was Rs. 1,00,245.72 Lacs and Rs. 1,00,245.72 Lacs
respectively.
(b) In our opinion and according to the information and explanations
given to us, the rate of interest, where- ever applicable and other
terms and conditions are not prima-facie prejudicial to the interest of
the company.
(c) In respect of the loan granted to its subsidiaries, the loan is
interest free and being repayable on demand are not overdue.
(iv) In our opinion and according to the information and explanations
given to us, there are adequate internal control systems commensurate
with the size of the Company and the nature of its business with regard
to purchase of inventories, consumable stores, fixed assets and with
regard to sale of goods and services. During the course of our audit,
we have not observed any continuing failure to correct major weaknesses
in internal controls.
(v) (a) According to the information and explanations given to us, we
are of the opinion that the particulars of contracts or arrangement
referred to in section 301 of the act has been entered in the register
required to be maintained under section 301 of the Companies Act, 1956.
(b) In our opinion and according to the information & explanations
given to us, the transactions made in pursuance of contracts or
arrangements entered in the register maintained under section 301 of
the Companies act, 1956 & exceeding the value of Rs. 5 lacs in respect
of any party during the year have been made at prices which are
reasonable having regard to prevailing market prices at the relevant
time.
(vi) The company has not accepted public deposits within the meaning
and provisions of sec 58A and 58AA of the companies Act, 1956.
(vii) In our opinion, the company has an internal audit system
commensurate with the size and nature of its business.
(viii) The Central government has prescribed maintenance of cost
accounting records under section 209 (1) (d) of the Companies Act,
1956. We have broadly reviewed the accounts and records of the company
in this connection and are of the opinion that prima facie, the
prescribed accounts and records have been properly maintained.
(ix) (a) The company is regular in depositing with appropriate
authorities undisputed statutory dues including provident fund,
investor education protection fund, employees state insurance, income
tax, sales tax, wealth tax, service tax, custom duty, excise duty, cess
and other material statutory dues applicable to it.
(b) According to the information and explanation given to us, no
undisputed amounts payable in respect of income tax, wealth tax,
service tax, sales tax / VAT, custom duty, excise duty and cess were in
arrears, as at 30th September 2014 for a period of more than six months
from the date they became payable
(c) According to the information & explanation given to us, disputed
statutory dues aggregating to Rs. 0.74 Lacs not deposited on account of
matters pending before appropriate authorities are as under:
Sr. Name of the Nature Period to Forum where Amount
No. Statute of Dues which dispute is (Rs. in lacs)
it relates pending
1. Central Service 2011 Assistant 0.74
Service Tax Tax Commissioner
(Appeal)
Total 0.74
(x) The company does not have accumulated losses at the end of the
financial year 30th September, 2014. Further, it has not incurred any
cash losses in current financial year and in the immediately preceding
financial year.
(xi) In our opinion and according to the information and explanations
given to us, the company has not defaulted in repayment of dues to
banks, financial institutions or debenture holders.
(xii) The company has not granted any loans and advances on the basis
of security by way of pledge of shares, debentures and other
securities.
(xiii) In our opinion, the Company is not a chit fund or a nidhi /
mutual benefit fund / society. Therefore, the provisions of clause of
4(xiii) of the Companies (Auditors'' Report) Order, 2003 are not
applicable to the company.
(xiv) In our opinion, the company is not dealing in or trading in
shares, securities, debentures and other investments. Accordingly, the
provisions of clause 4(xiv) of the Companies (Auditors'' Report) Order,
2003 (as amended) are not applicable to the company. The company,
however, is maintaining proper records of transactions and contracts in
respect of long term investment made by it and timely entries have been
made therein. Further, all the securities including shares, debentures
and other investments have been held by the company in its own name.
(xv) The company has given corporate guarantee of Rs. 79,151.85 Lacs
for Amtek Global Technologies PTE Ltd (wholly owned subsidiary) and
terms and conditions are not prima-facie prejudicial to the interest of
the company.
(xvi) According to the information and explanation given to us, in our
opinion, term loan availed by the company were, prima facie, applied by
the company during the year under report for the purpose for which the
term loans were obtained, other than temporary deployment pending
applications.
(xvii) According to the information and explanation given to us and on
an overall examination of the balance sheet of the company, we report
that no funds raised on short term basis have been used for long term
investment and no long term funds have been used to finance short term
assets except permanent working capital.
(xviii) According to the information & explanation given to us, the
company, during the year under report, has not made any preferential
allotment, to parties and companies covered in the register maintained
under section 301 of the Companies Act, 1956.
(xix) The company has not issued any debentures during the year and
therefore the question of creating security / charge does not arise.
(xx) According to information and explanation given to us and the
records of the company examined by us, the Company has not raised any
money by public issue during the year but FCCB are converted into
equity shares.
(xxi) According to the information and explanations given to us, no
fraud on or by the company has been noticed or reported during the
course of our audit.
For & on behalf of
Manoj Mohan & Associates
Chartered Accountants
ICAI Firm Regd. No.009195C
Sd/-
(Manoj Kumar Agarwal)
Place of Signature : New Delhi Partner
Dated : 24th November, 2014 Membership No -76980
Sep 30, 2013
Report on the Financial Statements
We have audited the accompanying financial statements of Amtek Auto
Limited ("the company") as at 30th September 2013, which comprises of
the Balance Sheet as at September 30, 2013; the Statement of Profit and
Loss and the Cash Flow Statement for the 15 months period ended; and a
summary of significant accounting policies and other explanatory
information.
Management''s Responsibility for the financial Statements
Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position,
financial performance and cash flows of the Company in accordance with
the Accounting Standards referred to in sub-section (3C) of section 211
of the Companies Act, 1956 ("the Act"). This responsibility includes
the design, implementation and maintenance of internal control relevant
to the preparation and presentation of the financial statements that
give a true and fair view and are free from material misstatement,
whether due to fraud or error.
Auditor''s Responsibility
Our responsibility is to express an opinion on these 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 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 control relevant to the Company''s preparation and
fair presentation of the financial statements in order to design audit
procedures that are appropriate in the circumstances. An audit also
includes evaluating the appropriateness of accounting policies used and
the reasonableness of the accounting estimates made by 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.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid 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:
a) in the case of the Balance Sheet, of the state of affairs of the
Company as at September 30, 2013;
b) in the case of Statement of Profit and Loss, of the profit for the
15 months period ended on that date; and
c) in the case of the Cash Flow Statement, of the cash flows for the 15
months period ended on that date. Report on Other Legal and Regulatory
Requirements
1. As required by the Companies (Auditor''s Report) Order, 2003 ("the
Order") as amended issued by the Central Government of India in terms
of sub-section (4A) of section 227 of the Act, we give in the Annexure,
a statement on the matters specified in paragraphs 4 and 5 of the
Order.
2. As required by section 227(3) of the Act, we report that:
a) we have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
b) in our opinion proper books of accounts as required by law have been
kept by the Company so far as appears from our examination of those
books;
c) the Balance Sheet, Statement of Profit and Loss and the Cash Flow
Statement dealt with by this Report are in agreement with the books of
accounts;
d) in our opinion, the Balance Sheet, Statement of Profit and Loss and
the Cash Flow Statement comply with the Accounting Standards referred
to in sub section (3C) of section 211 of the Companies Act, 1956;
e) On the basis of written representations received from the directors
as on September 30, 2013, and taken on record by the Board of
Directors, none of the directors is disqualified as on September 30,
2013, from being appointed as a director in terms of clause (g) of
sub-section (1) of section 274 of the Companies Act, 1956.
f) Since the central Government has not issued any notification as to
the rate at which the cess is to be paid under section 441A of the
Companies Act, 1956 nor has it issued any rules under the said section,
prescribing the manner in which such cess is to be paid, no cess is due
and payable by the Company.
ANNEXURE TO INDEPENDENT AUDITOR''S REPORT REFERRED TO IN POINT 1 OF
PARAGRAPH 5 OF OUR REPORT OF EVEN DATE OF AMTEK AUTO LIMITED FOR THE 15
MONTHS PERIOD ENDED 30th SEPTEMBER 2013
(i) (a) The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
(b) As explained to us, fixed assets, according to the practice of the
Company, have been physically verified by the management at reasonable
intervals. In our opinion, the frequency of physical verification of
fixed assets is reasonable having regard to the size of the company and
nature of its assets. According to the information and explanations
given to us, no material discrepancies were noticed on such physical
verification.
(c) During the period, the company has not disposed off substantial
part of the fixed assets, and the going concern status of the company
is not affected.
(ii) (a) The inventories have been physically verified during the
period by the management. In our opinion, the frequency of physical
verification is reasonable.
(b) The procedure for physical verification of inventories followed by
the management is reasonable and adequate in relation to the size of
the company and nature of its business.
(c) In our opinion, the company has maintained proper records of
inventories. The discrepancies noticed on verification between the
physical stocks and the book records were not material & the same have
been properly dealt with in the books of accounts.
(iii) The Company, during the period under report, has given loans &
advances to its subsidiary companies, associates and joint ventures,
firms or other parties covered in the register maintained under Section
301 of the Companies Act, 1956.
(a) The balance at the end of the period and the maximum amount
involved during the period was Rs. 50,319.03 lacs.
(b) In our opinion and according to the information and explanations
given to us, the rate of interest, wherever applicable and other terms
and conditions are not prima facie prejudicial to the interest of the
company.
(c) In respect of the loan granted to its subsidiaries, the loan is
interest free and being repayable on demand are not overdue.
(iv) In our opinion and according to the information and explanations
given to us, there are adequate internal control systems commensurate
with the size of the Company and the nature of its business with regard
to purchase of inventories, consumable stores, fixed assets and with
regard to sale of goods and services. During the course of our audit,
we have not observed any continuing failure to correct major weaknesses
in internal controls Systems of the Company.
(v) (a) According to the information and explanations given to us, we
are of the opinion that the particulars of contracts or arrangement
that need to be entered in the register required to be maintained under
section 301 of the Companies Act, 1956 have been so entered.
(b) In our opinion and according to the information & explanations
given to us, the transactions made in pursuance of contracts or
arrangements entered in the register maintained under section 301 of
the Companies act, 1956 in respect of any party during the period have
been made at prices which are reasonable having regard to prevailing
market prices at the relevant time.
(vi) The company has not accepted public deposits within the meaning
and provisions of section 58A and 58AA of the companies Act, 1956.
(vii) In our opinion, the company has an internal audit system
commensurate with the size and nature of its business.
(viii) The Central government has prescribed maintenance of cost
accounting records under section 209 (1) (d) of the Companies Act,
1956. We have broadly reviewed the accounts and records of the company
in this connection and are of the opinion that prima facie, the
prescribed accounts and records have been made and maintained.
(ix) (a) The company is regular in depositing with appropriate
authorities undisputed statutory dues including provident fund,
investor education protection fund, employees state insurance, income
tax, sales tax, wealth tax, service tax, custom duty, excise duty, cess
and other material statutory dues applicable to it.
(b) According to the information and explanation given to us, no
undisputed amounts payable in respect of income tax, wealth tax, sales
tax/VAT, custom duty, excise duty and cess were in arrears, as at 30th
September, 2013 for a period of more than six months from the date they
became payable.
(c) The disputed statutory dues aggregating to Rs. 4,026.62 lacs not
deposited on account of matters being pending before appropriate
authorities are given here under:
Sr. Name of the
Statute Nature Year to which Forum where Amount
No. of Dues the amount dispute is (Rs.
relates pending in
lacs)
1. Haryana Sales
Tax Act Sales Tax 1991 Appellant Sales 10.79
& Central Sales
Tax Act Tax Tribunal
2. Haryana Sales
Tax Act Sales Tax 2011 Joint
commissioner 0.40
& Central Sales
Tax Act (Appeal)
3. Income Tax
Act, 1961 Income Tax Block
Assessment Income Tax 4,015.43
from A.Y.
2005-06 Appellate
Tribunal
to 2010-11
Total 4,026.62
(x) The company does not have accumulated losses for the period 15
months end 30th September, 2013. Further, it has not incurred any cash
loss in current financial period or in the immediately preceding
financial year.
(xi) In our opinion and according to the information and explanations
given to us, the company has not defaulted in repayment of dues to
banks, financial institutions or debenture holders.
(xii) The company has not granted any loans and advances on the basis
of security by way of pledge of shares, debentures and other
securities.
(xiii) In our opinion, the Company is not a chit fund or a nidhi /
mutual benefit fund / society. Therefore, the provisions of clause of
4(xiii) of the Companies (Auditors'' Report) Order, 2003 are not
applicable to the company.
(xiv) In our opinion, the company is not dealing in or trading in
shares, securities, debentures and other investments. Accordingly, the
provisions of clause 4(xiv) of the Companies (Auditors'' Report) Order,
2003 (as amended) are not applicable to the company. The company,
however, is maintaining proper records of transactions and contracts in
respect of long term investment made by it and timely entries have been
made therein. Further, all the securities including shares, debentures
and other investments have been held by the company in its own name.
(xv) The company has given corporate guarantees of Rs. 1,39,874.62 lacs
for Amtek Global Technologies Pte. Ltd. (wholly owned subsidiary) and
terms and conditions are not prima-facie prejudicial to the interest of
the company.
(xvi) According to the information and explanation given to us, in our
opinion, term loan availed by the company were, prima facie, applied by
the company during the period under report for the purpose for which
the term loans were obtained, other than temporary deployment pending
applications.
(xvii) According to the information and explanation given to us and on
an overall examination of the balance sheet of the company, we report
that no funds raised on short term basis have been used for long term
investment and no long term funds have been used to finance short term
assets except permanent working capital.
(xviii) According to the information & explanation given to us, the
company, during the period under report, has not made any preferential
allotment, to parties and companies covered in the register maintained
under section 301 of the Companies Act, 1956.
(xix) The company has not issued any debentures during the period and
therefore the question of creating security/ charge does not arise.
(xx) According to information and explanation given to us and the
records of the company examined by us, the Company has not raised any
money by public issue during the period.
(xxi) According to the information and explanations given to us, no
fraud on or by the company has been noticed or reported during the
course of our audit.
For & on behalf of
Manoj Mohan & Associates
Chartered Accountants
Firm Regn. No.009195C
Sd/-
(Manoj Kumar Agarwal)
Place : New Delhi Partner
Dated : 29th November, 2013 Membership No -76980
Jun 30, 2010
We have audited the attached Balance Sheet of Amtek Auto Limited as at
30th June 2010, the Profit and Loss Account and also the Cash Flow
Statement for the year ended on that date annexed thereto. These
financial statements are the responsibility of the Companys
management. Our responsibility is to express an opinion on these
financial statements based on our audit.
We conducted our audit in accordance with auditing standards generally
accepted in India (Indian GAAP). Those Standards require that we plan
and perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
As required by the Companies (Auditors Report) Order, 2003 (as
amended) by the companies (Auditors Report) (amended) order, 2004
(together the order) issued by the Central Government of India in terms
of sub-section (4A) of section 227 of the Companies Act, 1956, we
enclose in the Annexure, a statement on the matters specified in
paragraph 4 and 5 of the said order.
Further to our comments in the Annexure referred to above, we report
that:
(i) We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
(ii) In our opinion, proper books of account, as required by law, have
been kept by the Company so far as appears from our examination of
those books.
(iii) The Balance Sheet,Profit and Loss Account and Cash Flow Statement
of the Company, dealt with by this report are in agreement with the
books of account.
(iv) In our opinion, the Balance Sheet, Profit and Loss Account and
Cash Flow Statement dealt with by this report comply with the
accounting standards referred to in sub-section (30 of section 211 of
the Companies Act, 1956;
(v) On the basis of written representations received from the
directors, as on 30th June 2010 and taken on record by the Board of
Directors, we report that none of the directors is disqualified as on
30th June 2010 from being appointed as a director in terms of clause
(g) of sub-section (1) of section 274 of the Companies Act, 1956;
(vi) In our opinion and to the best of our information and according to
the explanations given to us, the said accounts give the information
required by the Companies Act, 1956, in the manner so required and give
a true and fair view in conformity with the accounting principles
generally accepted in India:
(a) in the case of the Balance Sheet, of the state of affairs of the
Company as at 30th June 2010;
(b) in the case of the Profit and Loss Account, of the Profithr the
year ended on that date; and
(c) in the case of Cash Flow Statement, of the cash flow for the year
ended on that date.
ANNEXURE REFERRED TO IN PARAGRAPH 3 OF OUR REPORT OF EVEN DATE OF AMTEK
AUTO LIMITED FOR THE YEAR ENDED 30th JUNE 2010
(i) (a) The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
(b) As explained to us, fixed assets, according to the practice of the
Company, have been physically verified by the management at reasonable
intervals. In our opinion, the frequency of physical verification of
fixed assets is reasonable having regard to the size of the Company and
nature of its assets. According to the information and explanations
given to us, no material discrepancies were noticed on such physical
verification.
(c) During the year, the Company has not disposed off substantial part
of the fixed assets and the going concern status of the Company is not
affected.
(ii) (a) The inventory has been physically verified during the year by
the management. In our opinion, the frequency of physical verification
is reasonable.
(b) The procedure for physical verification of inventories followed by
the management is reasonable and adequate in relation to the size of
the Company and nature of its business.
(c) The Company is maintaining proper records of inventory. The
discrepancies noticed on verification between the physical stocks and
the book records were not material.
(iii) The Company, during the year under report, has given loans &
advances to its seven subsidiariy companies and joint ventures, firms
or other parties covered in the register maintained under Section 301
of the Companies Act, 1956.
a) The balance at the end of the year and the maximum amount involved
during the year was Rs.68,778.83 lacs.
b> In our opinion and according to the information and explanations
given to us, the rate of interest, where-ever applicable and other
terms and conditions are not prima-facie prejudicial to the interest of
the Company.
c) In respect of the loan granted to its subsidiaries, the loan is
interest free and being repayable on demand are not overdue.
(iv) In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the Company and the nature of its
business with regard to purchase of inventories, consumable stores,
fixed assets and with regard to sale of goods and services. During the
course of our audit, we have not observed any continuing failure to
correct major weaknesses in internal controls.
(v) (a) According to the information and explanations given to us, we
are of the opinion that the particulars of contracts or arrangement
referred to in section 301 of the act has been entered in the register
required to be maintained under section 301 of the Companies Act, 1956.
(b) In our opinion and according to the information & explanations
given to us, the transactions made in pursuance of contracts or
arrangements entered in the register maintained under section 301 of
the Companies act, 1956 in respect of any party during the year have
been made at prices which are reasonable having regard to prevailing
market prices at the relevant time.
(vi) In our opinion and according to the information and explanation
given to us, the Company has complied with all the provisions of
section 58A and 58AA and any other relevant provisions of the Companies
Act, 1956 and the Companies (Acceptance of Deposits) Rules, 1975 with
regard to deposits accepted from public. No order has been passed by
the Company Law Board, Reserve Bank of India, National Company Law
Tribunal or any other Court or any Tribunal.
(vii) In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business.
(viii) The Central government has prescribed maintenance of cost
accounting records under section 209 (1) (d) of the Companies Act, 1956
in respect of certain machining activities of the Company. We have
broadly reviewed the accounts and records of the Company in this
connection and are of the opinion that prima facie, the prescribed
accounts and records have been properly maintained.
(ix) (a) The Company is regular in depositing with appropriate
authorities undisputed statutory dues including provident fund,
investor education protection fund, employees state insurance, income
tax, sales tax, wealth tax, service tax, custom duty, excise duty, cess
and other material statutory dues applicable to it.
(b) The disputed statutory dues aggregating to Rs.30.04 lacs, that have
not been deposited on account of matters pending before appropriate
authorities are as under:
Sr. Name of the Statute Nature Period to
No. of Dues which it
relates
1. Haryana Sales Tax Act Sales Tax 1991
& Central Sales Tax Act
2. Excise Duty Cenvat 2008
Total
Name of the Statue Forum where Amount
dispute is (Rs.
pending in lacs)
Haryana Sales Tax Act
& Central Sales Tax Act Appellete Sales 10.62
Tax Tribunal
Excise Duty Commissionerate 19.42
Delhi III
Total 30.04
(x) The Company has no accumulated losses and has not incurred any cash
loss during the year under report or in the immediately preceding
financial year.
(xi) in our opinion and according to the information and explanations
given to us, the Company has not defaulted in repayment of dues to
financial institutions, banks or debenture holders.
(xii) The Company has not granted any loans and advances on the basis
of security by way of pledge of shares, debentures and other
securities.
(xiii) In our opinion, the Company is not a chit fund or a nidhi /
mutual benefit fund / society. Therefore, the provisions of clause of
4(xiii) of the Companies (Auditors Report) Order, 2003 are not
applicable to the Company.
(xiv) In our opinion, the Company is not dealing in or trading in
shares, securities, debentures and other investments. Accordingly, the
provisions of clause 4(xiv) of the Companies (Auditors Report) Order,
2003 [as amended) are not applicable to the Company. The Company,
however, is maintaining proper records of transactions and contracts in
respect of long term investment made by it and timely entries have been
made therein. Further, all the securities including shares, debentures
and other investments have been held by the Company in its own name.
(xv) The Company has given guarantees for credit facilities taken by
others from Banks or Financial Institutions, the terms and conditions
whereof are not prejudicial to the interest of the Company.
(xvi) According to the information and explanation given to us, in our
opinion, term loan availed by the Company were, prima facie, applied by
the Company during the year under report for the purpose for which the
term loans were obtained, other than temporary deployment pending
applications.
(xvii) According to the information and explanation given to us and on
an overall examination of the balance sheet of the Company, we report
that no funds raised on short term basis have been used for long term
investment and no long term funds have been used to finance short term
assets except permanent working capital.
(xviii) According to the information & explanation given to us, the
Company, during the year under report, has made preferential allotment
of 1,50,00,000 equity shares of Rs.2/- each at a premium of Rs.131/-
per shares against warrants issued by it in the earlier years, to
parties and companies covered in the register maintained under section
301 of the Companies Act, 1956. The Company has also received
application money against 2,40,00,000 warrants (carrying
option/entitlement to subscribe to 1 number of equity share of Rs.2/-
each at a premium of Rs.178/- per share to parties and Companies
covered in the register maintained under section 301 of the companies
Act, 1956. According to the information & explanation given to us, the
prices at which shares have been issued, is not pre- judicial to the
interest of the Company.
(xix) According to information and explanation given to us and the
records of the Company examined by us, the Company has issued Non
Convertible Debentures and has created security in favour of the
debenture holders.
(xx) According to information and explanation given to us and the
records of the Company examined by us, the Company has not raised any
money by public issue during the year.
(xxi) According to the information and explanations given to us, no
fraud on or by the Company has been noticed or reported during the
course of our audit.
For & on behalf of
Manoj Mohan & Associates
Chartered Accountants
Firm Regn. No.009195C
Sd/-
(M. K. Aggarwal)
Place : New Delhi Partner
Dated : 24th November 2010 Membership No.-76980
Jun 30, 2009
We have audited the attached Balance Sheet of Amtek Auto Limited as at
30th June 2009, the Profit and Loss Account and also the Cash Flow
Statement for the year ended on that date annexed thereto. These
financial statements are the responsibility of the Companys
management. Our responsibility is to express an opinion on these
financial statements based on our audit.
We conducted our audit in accordance with auditing standards generally
accepted in India (Indian GAAP). Those Standards require that we plan
and perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
As required by the Companies (Auditors Report) Order, 2003 (as
amended) by the companies (Auditors Report) (amended) order, 2004
(together the order) issued by the Central Government of India in terms
of sub-section (4A) of section 227 of the Companies Act, 1956, we
enclose in the Annexure, a statement on the matters specified in
paragraph 4 and 5 of the said order.
Further to our comments in the Annexure referred to above, we report
that:
(i) We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
(ii) In our opinion, proper books of account, as required by law, have
been kept by the company so far as appears from our examination of
those books.
(iii) The Balance Sheet ,Profit and Loss Account and Cash Flow
Statement of the company, dealt with by this report are in agreement
with the books of account.
(iv) In our opinion, the Balance Sheet, Profit and Loss Account and
Cash Flow Statement dealt with by this report comply with the
accounting standards referred to in sub-section (3C) of section 211 of
the Companies Act, 1956;
(v) On the basis of written representations received from the
directors, as on 30th June 2009 and taken on record by the Board of
Directors, we report that none of the directors is disqualified as on
30th June 2009 from being appointed as a director in terms of clause
(g) of sub-section (1) of section 274 of the Companies Act, 1956;
(vi) In our opinion and to the best of our information and according to
the explanations given to us, the said accounts give the information
required by the Companies Act, 1956, in the manner so required and give
a true and fair view in conformity with the accounting principles
generally accepted in India:
(a) in the case of the Balance Sheet, of the state of affairs of the
Company as at 30th June 2009;
(b) in the case of the Profit and Loss Account, of the Profit for the
year ended on that date; and
(c) in the case of Cash Flow Statement, of the cash flow for the year
ended on that date.
ANNEXURE REFERRED TO IN PARAGRAPH 3 OF OUR REPORT OF EVEN DATE OF AMTEK
AUTO LIMITED FOR THE YEAR ENDED 30TH JUNE 2009
(i) (a) The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
(b) As explained to us, fixed assets, according to the practice of the
Company, have been physically verified by the management at reasonable
intervals. In our opinion, the frequency of physical verification of
fixed assets is reasonable having regard to the size of the company and
nature of its assets. According to the information and explanations
given to us, no material discrepancies were noticed on such physical
verification.
(c) During the year, the company has not disposed off substantial part
of the fixed assets and the going concern status of the company is not
affected.
(ii) (a) The inventory has been physically verified during the year by
the management. In our opinion, the frequency of physical verification
is reasonable.
(b) The procedure for physical verification of inventories followed by
the management are reasonable and adequate in relation to the size of
the company and nature of its business.
(d) The company is maintaining proper records of inventory. The
discrepancies noticed on verification between the physical stocks and
the book records were not material.
(iii) The Company, during the year under report, has given loans &
advances to its seven subsidiaries companies and joint ventures, firms
or other parties covered in the register maintained under Section 301
of the Companies Act, 1956.
a) The maximum amount involved during the year was Rs.68,501.76 lacs.
b) In our opinion and according to the information and explanations
given to us, the rate of interest, where- ever applicable and other
terms and conditions are not prima-facie prejudicial to the interest of
the company.
c) In respect of the loan granted to its subsidiaries, the loan is
interest free and being repayable on demand are not overdue.
(iv) In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the Company and the nature of its
business with regard to purchase of inventories, consumable stores,
fixed assets and with regard to sale of goods and services. During the
course of our audit, we have not observed any continuing failure to
correct major weaknesses in internal controls.
(v) (a) According to the information and explanations given to us, we
are of the opinion that the particulars of contracts or arrangement
referred to in section 301 of the act has been entered in the register
required to be maintained under section 301 of the Companies Act, 1956.
(b) In our opinion and according to the information & explanations
given to us, the transactions made in pursuance of contracts or
arrangements entered in the register maintained under section 301 of
the Companies act, 1956 in respect of any party during the year have
been made at prices which are reasonable having regard to prevailing
market prices at the relevant time.
(vi) In our opinion and according to the information and explanation
given to us, the company has complied with all the provisions of
section 58A and 58AA and any other relevant provision of the Companies
Act, 1956 and the Companies (Acceptance of Deposits) Rules, 1975 with
regard to deposits accepted from public. No order has been passed by
the Company Law Board, Reserve Bank of India, National Company Law
Tribunal or any other Court or any Tribunal.
(vii) In our opinion, the company has an internal audit system
commensurate with the size and nature of its business.
(viii) The Central government has prescribed maintenance of cost
accounting records under section 209 (1) (d) of the Companies Act, 1956
in respect of certain machining activities of the company. We have
broadly reviewed the accounts and records of the company in this
connection and are of the opinion that prima facie, the prescribed
accounts and records have been properly maintained.
(ix) (a) The company is regular in depositing with appropriate
authorities undisputed statutory dues including provident fund,
investor education protection fund, employees state insurance, income
tax, sales tax, wealth tax, service tax, custom duty, excise duty, cess
and other material statutory dues applicable to it.
(b) The disputed statutory dues aggregating to Rs.30.04 lacs, that have
not been deposited on account of matters pending before appropriate
authorities are as under:
Sr. Name of the
Statute Nature Period to Forum where Amount
No. of Dues which it dispute is (Rs.
relates pending in lacs)
1. Haryana Sales
Tax Act Sales Tax 1991 Appellete Sales 10.62
Central Sales Tax Tribunal
Tax Act
2. Excise Duty Convat 2008 Commissionerate 19.04
Delhi III
Total 30.04
(x) The company has no accumulated losses and has not incurred any cash
loss during the year under report or in the immediately preceding
financial year.
(xi) In our opinion and according to the information and explanations
given to us, the company has not defaulted in repayment of dues to
financial institutions, banks or debenture holders.
(xii) The company has not granted any loans and advances on the basis
of security by way of pledge of shares, debentures and other
securities.
(xiii) In our opinion, the Company is not a chit fund or a nidhi /
mutual benefit fund / society. Therefore, the provisions of clause of
4(xiii) of the Companies (Auditors Report) Order, 2003 are not
applicable to the company.
(xiv) In our opinion, the company is not dealing in or trading in
shares, securities, debentures and other investments. Accordingly, the
provisions of clause 4(xiv) of the Companies (Auditors Report) Order,
2003 (as amended) are not applicable to the company. The company,
however, is maintaining proper records of transactions and contracts in
respect of long term investment made by it and timely entries have been
made therein. Further, all the securities including shares, debentures
and other investments have been held by the company in its own name.
(xv) The company has given guarantees for credit facilities taken by
others from Banks or Financial Institutions, the terms and conditions
whereof are not prejudicial to the interest of the company.
(xvi) According to the information and explanation given to us, in our
opinion, term loan availed by the company were, prima facie, applied by
the company during the year under report for the purpose for which the
term loans were obtained, other than temporary deployment pending
applications.
(xvii) According to the information and explanation given to us and on
an overall examination of the balance sheet of the company, we report
that no funds raised on short term basis have been used for long term
investment and no long term funds have been used to finance short term
assets except permanent working capital.
(xviii) According to the information & explanation given to us, the
company, during the year under report, has not made preferential
allotment of shares/warrants to parties and companies covered in the
register maintained under section 301 of the Companies Act, 1956.
(xix) According to information and explanation given to us and the
records of the company examined by us, the company has issued Non
Convertible Debentures and has created security in favour of the
debenture holders.
(xx) According to information and explanation given to us and the
records of the company examined by us, the Company has not raised any
money by public issue during the year.
(xxi) According to the information and explanations given to us, no
fraud on or by the company has been noticed or reported during the
course of our audit.
For & on behalf of
Manoj Mohan & Associates
Chartered Accountants
Sd/-
Place : New Delhi (M. K. Aggarwal)
Dated:2nd December, 2009 (Partner)
Membership No. - 76980