Mar 31, 2023
AUTOLINE INDUSTRIES LIMITED Report on the audit of the Standalone Financial Statements
We have audited the accompanying Standalone Financial Statements of AUTOLINE INDUSTRIES LIMITED (hereinafter referred as "the Company"), which comprise the Balance sheet as at March 31, 2023, 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 Notes to the Standalone Financial Statements, including a summary of significant accounting policies and other explanatory information (hereinafter collectively referred as the "Standalone Financial Statements").
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 Companies Act, 2013 (hereinafter referred as "the Act") in the manner so required and give a true and fair view in conformity with the Indian Accounting Standards prescribed Under Section 133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015 as amended (hereinafter referred as "Ind AS") and other accounting principles generally accepted in India, of the state of affairs (financial position) of the Company as at March 31,2023, its profit, other comprehensive income, its cash flows and the changes in equity for the year ended on that date.
We conducted our audit in accordance with the Standards on Auditing (hereinafter referred as "SAs") specified Under Section 143(10) of the Act. Our responsibilities under those Standards are further described in the Auditor''s responsibilities for the audit of the Standalone Financial Statements section of our report. We are independent of the Company in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India (hereinafter referred as "ICAI") together with the ethical requirements that are relevant to our audit of the Standalone Financial Statements under the provisions of the Act and the Rules there under, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the ICAI''s Code of Ethics. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Key audit matters are those matters that, in our professional judgment, were of the most significance in our audit of the standalone financial statements of the current period. These matters were addressed in the context of our audit of the standalone financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. We have determined the matters described below to be the key audit matters to be communicated in our report.
S. No. Key Audit Matter (KAM) |
Auditor''s Response |
We identified the recognition of revenue as a key audit |
⢠on a sample basis, tested the revenue recognised |
matter because revenue is one of the key performance |
including testing of cut off assertion as at the year |
indicators of the Company and is, therefore, subject to |
end |
an inherent risk of misstatement to meet targets or expectations and because errors in the recognition of revenue could have a material impact on the Company. |
⢠assessed the revenue recognised with substantive analytical procedures including review of price, quantity and product mix variances and analysis of discounts at the customer level |
⢠circularized balance confirmations to a sample of customers and evaluated the responses |
|
⢠Assessed the disclosures made by the Company. |
|
2 Going Concern: |
Our audit procedures included the following: |
As of 31 March 2023, the Company''s total liabilities did |
⢠Obtained an understanding & walking through |
not exceed its total assets, however, the company is |
the business planning process and assessing the |
continuously incurring losses over the past year, for the |
design, implementation, and operating effectiveness |
year ending March 31, 2023, it has earned profits. Note |
of management''s key internal controls over the |
3.5 to the financial statements explains how the directors |
assessment of going concern, including the |
of the Company have formed a judgement that the going |
preparation of cash flow forecasts & liquidity |
concern basis is appropriate in preparing the financial |
assessment. |
statements. |
⢠We assessed the accuracy of management''s cash |
The directors of the Company made their assessment of going concern by preparing a cash flow forecast in which some key assumptions were applied. |
flow forecasts by analyzing the key assumptions used, such as future revenue, gross profit, operating expenses, and capital expenditure with reference to historical production data, current performance, |
These key assumptions included forecasts of sales volumes, average selling prices, raw material costs and |
internal investment and production plans, as well as external market information. |
the availability of banking and other financing facilities as |
⢠Considering the accuracy and reliability of cash flow |
well as financial support from the Promoters. |
forecasts made by management in prior years by comparing them with the current year''s results. |
We identified going concern as a key audit matter due to the significant degree of management judgement required in assessing and forecasting the company''s future cash flows, which are inherently uncertain. Furthermore, management judgement and uncertainties could have a significant impact on the preparation of financial statements and may be subject to management |
⢠We evaluated the availability of banking and financing facilities by examining relevant documentation, including banking facility agreements signed before and after the reporting period. Additionally, We assessed the impact of any covenants and restrictive terms contained within these agreements. |
bias. |
⢠We also verified whether any waivers were obtained from the financial institutions from which borrowings were made. |
⢠Assessed the disclosures made by the Company in this regard. |
|
Based on our procedures we noted that the key assumptions used in the forecasts were within a reasonable range of our expectations. |
S. No. Key Audit Matter (KAM) |
Auditor''s Response |
3 Contingent Liabilities: |
Our audit procedures included the following: |
Evaluation of uncertain tax positions |
⢠We gained an understanding of how to identify claims, |
(Refer to Note 40 to the standalone financial statements) |
litigations, and contingent liabilities. We identified key controls in the process and performed tests on |
The company is currently involved in assessment |
selected controls. |
proceedings and related litigations with direct and |
⢠We obtained a summary of the company''s legal and |
indirect tax authorities, as well as certain other parties. |
tax cases and assessed management''s position by |
Estimating the probable outflow of economic resources |
discussing the probability of success in significant |
and determining the appropriate level of provisioning |
cases and the potential magnitude of any loss with |
and/or disclosures required involves a high level of |
the Legal Counsel, Head of Tax, and operational |
management judgement. The management''s judgement is supported by advice from independent tax and legal |
management. |
consultants, as deemed necessary. Any unexpected |
⢠The current status of direct and indirect tax |
adverse outcomes could have a significant impact on the |
assessments/litigations was reviewed. |
company''s reported profit and financial position. |
⢠Recent orders and communication received from tax authorities and certain other parties were read, along |
We identified this area as a key audit matter due to the uncertainty of the final result and the significant |
with management responses to such communication. |
management judgement in assessment. |
⢠When relevant, we read the most recent independent tax/legal advice obtained by management and evaluated the grounds presented therein. ⢠The adequacy of disclosure in the standalone financial statements was assessed. Based on the above procedures, we did not identify any material exceptions relating to management''s assessment of provisions and contingent liabilities. |
Information other than the Standalone Financial Statements and Auditor''s Report thereon (hereinafter referred as "other information")
The Company''s Management and Board of Directors are responsible for the preparation of the other information. The other information comprises the Board''s report and management discussion and analysis included in the annual report but does not include the Standalone Financial Statements and our report thereon.
Our opinion on the Standalone Financial Statements does not cover the other information and we do not express any form of assurance and/or conclusions thereon.
In connection with our audit of the Standalone Financial Statements, our responsibility is to read the other information identified above when it becomes available and, in doing so, consider whether the other information is materially inconsistent with the Standalone Financial Statements, or our knowledge obtained in the audit or otherwise appears to be materially misstated. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.
Board of Directors'' Responsibilities for the Standalone Financial Statements
The Company''s Management and Board of Directors are responsible for the matters stated in Section 134(5) of 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, cash flows and changes in equity of the Company in accordance with the accounting principles generally accepted in India, including the Ind AS. 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.
In preparing the Standalone Financial Statements, the Company''s Management and Board of Directors are responsible for assessing the Company''s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or to cease operations or has no realistic alternative but to do so.
The Board of Directors are responsible for overseeing the Company''s financial reporting process.
Auditor''s Responsibilities for the Audit of the Standalone Financial Statements
Our objectives are to obtain reasonable assurance about whether the Standalone Financial Statements as a whole are free from material misstatement, whether due to fraud or error and to issue an auditor''s report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with SAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these Standalone Financial Statements.
As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional scepticism throughout the audit. We are also:
a) Identify and assess the risks of material misstatement of the Standalone Financial Statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
b) Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances. Under Section 143(3) (i) of the Act, we are also responsible for expressing our opinion on whether the Company has an adequate internal financial controls system in place and the operating effectiveness of such controls.
c) Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management and the Board of directors.
d) Conclude on the appropriateness of management''s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company''s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor''s report to the related disclosures in the Standalone Financial Statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor''s report. However, future events or conditions may cause the Company to cease to continue as a going concern.
e) Evaluate the overall presentation, structure, and content of the Standalone Financial Statements, including the disclosures, and whether the Standalone Financial Statements represent the underlying transactions and events in a manner that achieves fair presentation.
Materiality is the magnitude of misstatements in the Standalone Financial Statements that, individually or in the aggregate, makes it probable that the economic decisions of a reasonably knowledgeable user of the Standalone Financial Statements may be influenced. We consider quantitative materiality and qualitative factors in (i) planning the scope of our audit work and in evaluating the results of our work, and (ii) evaluating the effect of any identified misstatements in the Standalone Financial Statements.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the Standalone Financial Statements of the current period and are therefore the key audit matters. We describe these matters in our auditor''s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.
The standalone financial statements of the Company for the year ended 31 March 2022 were audited by the predecessor auditor and had issued an unmodified opinion vide report dated May 28, 2022.
Our opinion is not modified in respect of this other matter.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2020 ("the Order"), issued by the Central Government in terms of Section 143 (11) of the Act, we give in "Annexure A", a statement on the matters specified in paragraphs 3 and 4 of the Order, to the extent applicable.
2. As required by Section 143 (3) of the Act and based on our audit 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 it appears from our examination of those books.
c) The Balance Sheet, the Statement of Profit and Loss (including Other Comprehensive Income), the Statement of Changes in Equity and the Statement of Cash Flows statement dealt with by this report agree with the books of account.
d) In our opinion, the aforesaid Standalone Financial Statements comply with the Ind AS specified under Section 133 of the Act.
e) On the basis of the written representations received from the directors as on March 31, 2023, taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2023, 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 the financial reporting of the Company and the operating effectiveness of such controls, refer to our separate report in "Annexure B". Our report expresses an unmodified opinion on the adequacy and operating effectiveness of the Company''s internal financial controls over financial reporting; and
g) With respect to the other matters to be included in the Auditor''s Report in accordance with rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us:
i. The Company has disclosed the impact of pending litigations as of March 31, 2023, on its financial position in its Standalone Financial Statements - Refer to note 40 to the Standalone Financial Statements.
ii. The Company has made provision, as required under the applicable law or Ind AS, for material foreseeable losses, if any, on long-term contracts including derivative contracts.
iii. There were no amounts that were required to be transferred to the Investor Education and Protection Fund by the Company.
iv. (a) The Management has represented that,
to the best of its knowledge and belief, no funds (which are material either individually or in the aggregate) have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the Company to or in any other person or entity, including foreign entity ("Intermediaries"), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall, whether, directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company ("Ultimate Beneficiaries") or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries;
(b) The Management has represented, that, to the best of its knowledge and belief, no funds (which are material either individually or in the aggregate) have been received by the Company from any person or entity, including foreign entity ("Funding Parties"), with the understanding, whether recorded in writing or otherwise, that the Company shall, whether, directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever
by or on behalf of the Funding Party ("Ultimate Beneficiaries") or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries;
(c) Based on the audit procedures that have been considered reasonable and appropriate in the circumstances, nothing has come to our notice that has caused us to believe that the representations under sub-clause (i) and (ii) of Rule 11(e), as provided under (a) and (b) above, contain any material misstatement; and
v. During the year Company as not declared/ paid any dividend hence reporting under rule 11 (f) is not applicable to that extent.
vi. Proviso to Rule 3(1) of the Companies (Accounts) Rules, 2014 for maintaining books of account using accounting software which has a feature of recording audit trail (edit log) facility is applicable to the Company with effect from April 1, 2023, and accordingly, reporting under Rule 11(g) of Companies (Audit and Auditors) Rules, 2014 is not applicable for the financial year ended March 31, 2023.
h) With respect to the other matters to be included in the auditor''s report in accordance with the requirements of Section 197(16) of the Act, as amended, we report that in our opinion and to the best of our information and according to the explanations given to us, the remuneration paid by the Company to its directors during the year is in accordance with the provisions of Section 197 of the Act. The remuneration paid to director by the company is in excess of the limit laid down under Section 197 of the Act, where requisite approvals are taken in the general meeting. The ministry of corporate affairs has not prescribed other details under section 197(16) which are required to comment upon by us.
SHARP & TANNAN ASSOCIATES
Chartered Accountants Firm''s Registration No.: 0109983W by the hand of
CA Arnob Choudhuri
Partner
Membership No.: (F) 156378 Pune, May 18, 2023 UDIN: 23156378BGXJCV4788
Mar 31, 2018
Report on the Standalone Financial Statements
We have audited the accompanying standalone financial statements of AUTOLINE INDUSTRIES 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, the Statement of changes in Equity for the year then ended, 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 stated in Section 134(5) of the Companies Act, 2013 (âthe Actâ) with respect to the preparation and presentation of these standalone Ind AS financial statements that give a true and fair view of the financial position, financial performance (including Other comprehensive income), cash flows and changes in equity of the Company in accordance with the accounting principles generally accepted in India, including the Indian Accounting Standards specified in the Companies (Indian Accounting Standards) Rules, 2015 as amended under Section 133 of the Act. 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 Ind AS financial statements that give a true and fair view and are free from material misstatements, whether due to fraud or error.
Auditor''s Responsibility
Our responsibility is to express an opinion on these standalone Ind AS financial statements based on our audit.
We have taken into account the provisions of the Act and the Rules made thereunder including 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.
We conducted our audit of the Ind AS financial statements in accordance with the Standards on Auditing specified under Section 143 (10) of the Act and other applicable authoritative pronouncements issued by the Institute of Chartered Accountants of India. Those Standards and pronouncements require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the Ind AS financial statements are free of material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the Ind AS financial statements. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the Ind AS 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 Ind AS 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 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 Ind AS 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 Ind AS financial statements
Opinion
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone Ind AS financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the company as at March 31, 2018, and its loss (including other comprehensive income), its cash flows and changes in equity for the year ended on that date.
Report on Other Legal and Regulatory Requirements
1) As required by the Companies (Auditor''s Report) Order, 2016 issued by the Central Government of India in terms of sub-section (11) of section 143 of the Act, (hereinafter referred to as the âthe Orderâ), and on the basis of such checks of the books and records of the company as we considered appropriate and according to the information and explanations given to us, we give in Annexure A, a statement on the matters specified in paragraphs 3 and 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 it appears from our examination of those books.
c) the Balance Sheet, the 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) in our opinion, the aforesaid standalone Ind AS financial statements comply with the Indian Accounting Standards specified under Section 133 of the Act.
e) On the basis of the written representations received from the directors as on March 31, 2018 taken on record by the Board of Directors, none 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.
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''.
g) With respect to the other matters to be included in the Auditor''s Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the 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 Ind AS financial statements. (Refer Note No.32 to the Ind AS financial statements)
ii. The Company did not have any long term contracts including derivative contracts for which there were any material foreseeable losses for the year ended March 31, 2018.
iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the company during the year ended March 31, 2018.
The Annexure referred to in our Independent Auditors'' Report to the members of the Company on the standalone Ind AS financial statements for the year ended 31st March, 2018, we report that:
i) a) The company has maintained proper records showing full particulars, including quantitative details and situations of its Fixed Assets.
b) According to the information and explanation given to us, the company has a regular programme of physical verification of its fixed assets by which fixed assets are verified in phased manner over a period of three years. In accordance with this programme, certain fixed assets were verified during the year. In our opinion, this periodicity of physical verification is reasonable having regards to the size of the Company and the nature of its business and no material discrepancies have been noticed on such physical verification.
c) According to the information and explanation given to us and on the basis of our examination of the records of the company, except for the following four cases, the title deeds were held in the name of the company.
Rs. In lakhs
Sr. No. |
Particulars |
Whether Leasehold Or Freehold |
Gross Block As On Balance Sheet Date |
Remarks |
1. |
Khasra no. 423, SIDCUL, Plot no.5 Uttarakhand |
Leasehold |
22.86 |
Lease Deed is held in the name of M/s Nirmiti Auto components Pvt. Ltd. which was amalgamated with the company |
2. |
Khasra no. 423, SIDCUL, Plot no. 8 Uttarakhand |
Leasehold |
134.48 |
|
3. |
E 12, 17(8), Bhosari, Pune Maharashtra |
Leasehold |
83.04 |
|
4. |
E 12 (7), Bhosari, Pune Maharashtra |
Leasehold |
232.05 |
ii) a) The inventories have been physically verified at reasonable intervals by the management
b) In our opinion and according to the information and explanations given to us, the procedures of physical verification of inventory followed by the management were reasonable and adequate in relation to the size of the company and the nature of business and discrepancies observed were properly dealt with in the books of accounts.
iii) The company had granted loan to one party covered in the register maintained under section 189 of the companies Act, 2013 amounting to '' 107,983,633 and the loan was repaid during the financial year concerned.
a) In our opinion, the rate of interest and other terms and conditions on which the loan had been granted to the party listed in the register maintained under section 189 of the Act were not, prima facie, prejudicial to the interest of the company.
b) Since loan was repayable on demand clause (b) and (c) are not commented by us.
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 Act, with respect to the loans and investment made.
v) The company has not accepted any deposit from public.
vi) As per information and explanations given to us, the Central Government has not prescribed maintenance of cost records as required under sub section (1) of Section 148 of the Companies Act, 2013.
vii) a) According to the records, the Company is regular in depositing undisputed statutory dues in respect of duty of customs, income-tax, However undisputed statutory dues including employees'' state insurance, provident fund, duty of excise, sales-tax, service tax, value added tax, Goods & service tax, cess, local body tax and other statutory dues have not been regularly deposited with the appropriate authorities and there have been delays in depositing the same.
According to the information and explanations given to us and according to the books and records as produced and examined by us, following undisputed statutory dues were in arrears as at 31 March 2018 for a period of more than six months from the date they became payable.
Sr. No. |
Name of statutory dues |
Nature of dues |
Amount (in Rs.) |
Period to which it relates |
Whether paid before balance sheet singing |
1 |
Maharashtra Municipal Corporation Act-1949 |
LBT |
4,65,76,482/- |
October 2013 to June 2017 |
No |
2 |
Employees'' Provident Funds & Miscellaneous Provisions Act, 1952 |
Provident Fund |
59,920/- |
April 2017 to August 2017 |
No |
3 |
Central Excise Act, 1944 |
Excise Duty |
19,02,837/- |
April 2017 and May 2017 |
No |
b) According to the information and explanations given to us and on the basis of our examination of books of accounts, there are no cases of dues of income tax, goods & service tax, sales tax, duty of customs, duty of excise, value added tax and cess as at 31st March 2018 which have not been deposited on account of disputes except for the following: -
Name of the Statute |
Nature of Dues |
Forum where Dispute is pending |
Period to which the amount relates |
Tax Amount involved (Rs.) |
Income Tax Act, 1961 |
Income Tax |
Income Tax Appellate Tribunal |
F.Y. 2009-10 |
8,26,620/-** |
Income Tax Act, 1961 |
Income Tax |
Income Tax Appellate Tribunal |
F.Y.2011-12 |
2,18,780/- |
The Maharashtra Value Added Tax Act, 2002 / Central Sales Tax Act, 1956 |
VAT / CST |
The Joint Commissioner of Sales Tax (Appeals) |
F.Y. 2000-01 F.Y. 2001-02 F.Y. 2006-07 F.Y. 2008-09 F.Y.2009-10 F.Y.2010-11 |
24,44,440/ 4,42,721/ 5,02,02,066/ 3,78,58,311/ 49,82,954/-* 1,12,46,257/- |
The Uttarakhand Value Added Tax Act 2005 |
VAT / CST |
The Jt. Commissioner of Commercial Taxes |
F.Y. 2012 -13 |
26,17,759/- * |
The Uttarakhand Value Added Tax Act 2005 |
VAT / CST |
The Jt. Commissioner of Commercial Taxes |
F.Y. 2013 - 14 |
46,59,711/- * |
The Maharashtra Value Added Tax Act, 2002 / Central Sales Tax Act, 1956 |
VAT/CST |
Dy. Commissioner of Sales Tax |
F.Y. 2007-08 F.Y.2012-13 F.Y.2012-13 |
12,54,78,819/ 3,20,29,880/ 13,30,78,630/- |
Central Sales Tax Act, 1956 |
CST |
The Jt. Commissioner of Commercial Taxes |
F.Y. 2007-08 |
41,91,200/- * |
Central Sales Tax Act, 1956 |
CST |
The Jt. Commissioner of Commercial Taxes |
F.Y. 2013-14 |
2,28,87,691/- |
The Maharashtra Value Added Tax Act, 2002 |
VAT |
The Jt. Commissioner of Commercial Taxes |
F.Y. 2013-14 |
3,34,44,323/- * |
The Maharashtra Value Added Tax Act, 2002 |
WCT |
The Jt. Commissioner of Commercial Taxes |
F.Y. 2013-14 |
87,33,143/- * |
* Amount paid under protest have been reduced from the amount of demand in arriving at the aforesaid disclosure.
** Amount is deposited under protest
viii) According to the information and explanations given to us, and based on documents and records verified by us in our opinion, company has defaulted in repayments of loans to Banks and Financial Institutions. The details of default as on March31, 2018 are as follows: -
Rs. In Lakhs
Sr. No. |
Particulars |
Amount of Default as on 31.03.2018 |
Period of default |
|
A |
Banks |
Principle |
Interest |
|
1 |
Bank of Baroda |
155.27 |
104.80 |
Less than 3 months |
2 |
Axis Bank Ltd |
- |
11.54 |
Less than 3 months |
3 |
The Catholic Syrian Bank Ltd |
10.00 |
6.77 |
Less than 3 months |
B |
Financial Institutions |
|||
1 |
J M Financial A R C Pvt. Ltd. |
158.45 |
129.91 |
Less than 3 months |
475.34 |
384.28 |
More than 3 months |
||
2 |
Tata Motors Finance Solution Ltd |
- |
9.04 |
Less than 3 months |
ix) The company did not raise money by way of initial public offer or further public offer ( including debt instrument) Accordingly, paragraph 3 (ix) of the order is not applicable, further term loans taken during the year were applied for the purpose for which they were raised.
x) According to information and explanation given to us , no fraud by the company or fraud on the company by its officers or employees has been noticed or reported to us during the year by the management.
xi) According to information and explanation given to us and based on our examination of the records, 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 for the year under consideration.
Also, for the previous three years, the company has filed application for approval of Central Government for amount paid/ provided towards managerial remuneration as required by the provisions of section 197 read with schedule V of the Act, amount involved was Rs. 180,00,000/- Company has obtained personal guarantee letter as a security of the said amount.
xii) In our opinion and according to the information and explanations given to us, the company is not a nidhi company. Accordingly, paragraph 3(xii) of the order is not applicable.
xiii) According to the information and explanations given to us and based on our examinations of the records of the company, transactions with the related parties are in compliance with sections 177 and 188 of the Act where applicable and details of such transactions have been disclosed in the financial statements as required by the applicable accounting standards.
xiv) The company had made preferential allotment of shares during the year under review and the requirements of section 42 of the Companies Act, 2013 have been complied with and the amount raised has been used for the purposes for which the funds were raised.
xv) According to the information and explanation given to us and based on our examination of the records of the Company, the Company has not entered into non-cash transaction with directors or persons connected with it. Accordingly, paragraph 3(xv) of the order is not applicable
xvi) In our opinion and 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.
âANNEXURE B'' TO THE INDEPENDENT AUDITORS'' REPORT
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 (âthe Actâ)
We have audited the internal financial controls over financial reporting of AUTOLINE INDUSTRIES LTD (âthe Companyâ) as of March 31, 2018 in conjunction with our audit of the Ind AS financial statements of the company for the year ended on that date.
Managementâs Responsibility for Internal Financial Controls
The company''s management is responsible for establishing and maintaining internal financial controls based on âthe 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 âInstitute of Chartered Accountants of Indiaâ (ICAI). 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 its business, including adherence to company''s 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 Companies Act, 2013.
Auditorsâ Responsibility
Our responsibility is to express an opinion on the Company''s internal financial controls over financial reporting of the company based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (the âGuidance Noteâ) issued by the Institute of Chartered Accountants of India and the Standards on Auditing prescribed under section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls. 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 were established and maintained and whether such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system 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 auditor''s judgment, including the assessment of the risks of material misstatement of the IND AS financial statements, whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Company''s internal financial controls system over financial reporting.
Meaning of Internal Financial Controls over Financial Reporting
A company''s internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of IND AS financial statements for external purposes in accordance with generally accepted accounting principles. A company''s internal financial control over financial reporting includes 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 IND AS financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company''s assets that could have a material effect on the financial statements .
Inherent Limitations of Internal Financial Controls over Financial Reporting
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 control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Opinion
In our opinion, the Company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at March 31, 2018, however company is required to strengthen its financial controls for obtaining balance confirmations from trade receivables and payables based on âthe 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 Indiaâ(ICAI).
FOR A R SULAKHE & CO.
CHARTERED ACCOUNTANTS
Firm Registration No 110540W
ANAND SULAKHE
PARTNER
Membership No: 33451
Date:- May 30, 2018
Place: - Pune
Mar 31, 2016
To The Members of Autoline Industries Limited
Report on the Standalone Financial Statements
We have audited the accompanying standalone financial statements of AUTOLINE INDUSTRIES LIMITED (âthe Companyâ), which comprise the Balance Sheet as at March 31, 2016; the Statement of Profit and Loss, the Cash Flow Statement for the year then ended, a summary of significant accounting policies and other explanatory information
Managementâs responsibility for the Standalone Financial Statements
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 and presentation 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 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 financial statements that give a true and fair view and are free from material misstatements, whether due to fraud or error.
Auditorâs 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 financial statements are free of 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 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 control 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 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.
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 cash flows for the year ended on that date.
EMPHASIS OF THE MATTER
Without qualification, we draw your attention to the following:-
Sub Note to Note No. 9 of schedule of notes to the financial statements for non provision of diminution in the value of investment amounting to Rs.32.84 crores in subsidiary Koderat Investments Limited (Cyprus), the note is self-explanatory and the matter is subjudice with Italian courts and therefore no effect has been given in these Standalone financial statements. In the given circumstances, we are unable to express our opinion on the matter.
Report on Other Legal and Regulatory Requirements
1) As required by the Companies (Auditorâs Report) Order, 2016 issued by the Central Government of India in terms of sub-section (11) of section 143 of the Act, (hereinafter referred to as the âthe Orderâ), and on such checks of the books and records of the company as we considered appropriate and according to the information and explanation given to us, we give Annexure A, a statement on the matters specified in paragraphs 3 and 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 March 31, 2016 and taken on record by the Board of Directors, none of the Directors is disqualified as on March 31, 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 âAnnexure Bâ; and
g) 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, in our opinion and to the 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 financial statements.
ii. The company has long-term contracts as at March 31, 2016 for which there were no material foreseeable losses. The Company did not have any derivative contracts as at March 31, 2016.
iii. There has been no delay in transferring amount, required to be transferred to the Investor Education and Protection Fund by the Company.
The Annexure referred to in our Independent Auditorsâ Report to the members of the Company on the standalone financial statements for the year ended March 31, 2016, we report that:
i) a) The company has maintained proper records showing full particulars, including quantitative details and situations of its Fixed Assets.
b) According to the information and explanation given to us, the company has a regular programme of physical verification of its fixed assets by which fixed assets are verified in phased manner over a period of three years. In accordance with this programme, certain fixed assets were verified during the year. In our opinion, this periodicity of physical verification is reasonable having regards to the size of the Company and the nature of its business and no discrepancies have been noticed on such physical verification.
c) According to the information and explanation given to us and on the basis of our examination of the records of the company, except for the following three cases, the title deeds were held in the name of the company
(Rs.In lakhs)
Sr. No. |
Particulars |
Whether Leasehold Or Freehold |
Gross Block as on Balance Sheet Date |
Net Block as on Balance Sheet Date |
Remarks |
1. |
F-II, Plot no.24,25 Pimpri, Pune, Maharashtra |
Leasehold |
101.97 |
69.12 |
Lease Deed is held in the name of M/s Western Pressing Pvt. Ltd. which was amalgamated with the company |
2. |
Khasra no. 423, SIDCUL, Plot no.5 Uttarakhand |
Leasehold |
22.86 |
20.32 |
Lease Deed is held in the name of M/s Nirmiti Auto components Pvt. Ltd. which was amalgamated with the company |
3. |
E 12, 17(8), Bhosari, Pune Maharashtra |
Leasehold |
83.04 |
47.97 |
Lease Deed is held in the name of M/s Nirmiti Autocomponents Pvt. Ltd. which was amalgamated with the company |
ii) a) The inventories have been physically verified at reasonable intervals by the management.
b) In our opinion and according to the information and explanations given to us, the procedures of physical verification of inventory followed by the management were reasonable and adequate in relation to the size of the company and the nature of its business.
iii) The company has granted loan to one party covered in the register maintained under section 189 of the Companies Act, 2013.
a) In our opinion, the rate of interest and other terms and conditions on which the loan had been granted to the party listed in the register maintained under section 189 of the Act were not, prima facie, prejudicial to the interest of the company.
b) Since loan is repayable on demand clause (b) and (c) are not commented by us.
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 Act, with respect to the loans and investment made.
v) The company has not accepted any deposit from public.
vi) As per information and explanation given to us, the Central Government has not prescribed maintenance of cost records as required under sub section (1) of Section 148 of the Companies Act, 2013.
vii) a) According to the records, the Company is regular in depositing undisputed statutory dues in respect of duty of customs. However undisputed statutory dues including provident fund, employeesâ state insurance, income-tax, sales-tax, service tax, duty of excise, value added tax, cess and other statutory dues have not been regularly deposited with the appropriate authorities and there have been delays in depositing the same.
Sr. No. |
Name of statutory dues |
Nature of dues |
Total (in Rs) |
Period to which it relates |
Whether paid before balance sheet signing |
1 |
Maharashtra Value Added Tax-2005 |
MVAT |
3,18,66,416 |
F.Y. 2013-14 |
No |
2 |
Maharashtra Value Added Tax-2005 |
MVAT |
2,72,73,326 |
F.Y. 2014-15 |
No |
3 |
Maharashtra Value Added Tax-2005 |
MVAT |
15,00,001 |
August, 2015 |
No |
4 |
Maharashtra Municipal Corporation Act-1949 |
LBT |
2,89,84,384 |
October 2013 to September 2015 |
No |
b) According to the information and explanations given to us, following amounts are payable in respect of income tax, sales tax, service tax, duty of customs, duty of excise, value added tax and cess as at March 31, 2016 on account of disputes:-
Name of the Statute |
Nature of Dues |
Forum where Dispute is pending |
Period to which the amount relates |
Tax Amount involved (Rs.) |
Income Tax Act, 1961 |
Income Tax |
Income Tax Appellate Tribunal |
F.Y. 2008-09 |
36,58,482/- |
Income Tax Act, 1961 |
Income Tax |
The Commissioner of Income Tax (Appeals), Pune |
F.Y. 2009-10 |
8,26,620/-1 |
Income Tax Act, 1961 |
Income Tax |
DRP-3 WZ, Mumbai |
F.Y.2011-12 |
4,32,090/- |
The Maharashtra Value Added Tax Act, 2002/ Central Sales Tax Act, 1956 |
VAT / CST |
The Joint Commissioner of Sales Tax (Appeals), Pune |
F.Y. 2000-01 F.Y. 2001-02 F.Y. 2002-03 F.Y. 2003-04 F.Y. 2004-05 F.Y. 2005-06 F.Y. 2006-07 F.Y. 2007-08 F.Y. 2008-09 F.Y.2009-10 F.Y.2010-11 F.Y.2011-12 |
1,34,44,440/-2 1,29,42,721/-* 95,983/ 6,11,670/-* 5,57,742/-* 1,47,11,024/-* 2,78,01,682/-* 4,73,28,640/-* 11,89,05,585/-* 3,34,50,514/-* 10,55,94,435/-* 4,07,123/- |
vii) According to the information and explanations given to us and according to the books and records as produced and examined by us, following undisputed statutory dues were in arrears as at March 31, 2016 for a period of more than six months from the date they became payable.
ix) The company did not raise money by way of initial public offer or further public offer (including debt instrument) and term loans during the year. Accordingly, paragraph 3 (ix) of the order is not applicable.
x) According to the information and explanations given to us, no material fraud on or by the company has been noticed or reported to us during the year by the management.
xi) According to the information and explanation given to us and based on our examination of the records, company is in the process of obtaining approval of Central Government for amount paid/provided towards managerial remuneration as required by the provisions of section 197 read with schedule V to the Act, amount involved was Rs.55,12,465/-. Company has obtained personal guarantee letter as a security of the said amount.
xii) In our opinion and according to the information and explanation given to us, the company is not a nidhi company. Accordingly, paragraph 3(xii) of the order is not applicable.
xiii) According to the information and explanations given to us and based on our examinations of the records of the company, transactions with the related parties are in compliance with sections 177 and 188 of the Act where applicable and details of such transactions have been disclosed in the financial statements as required by the applicable accounting standards.
xiv) The company had made preferential allotment of shares during the year under review and the requirements of section 42 of the Companies Act, 2013 have been complied with and the amount raised has been used for the purposes for which the funds were raised.
xv) According to the information and explanation given to us and based on our examination of the records of the Company, the Company has not entered into non-cash transactions with directors or persons connected with him. Accordingly, paragraph 3(xv) of the order is not applicable.
xvi) In our opinion and according to the information and explanation given to us, the Company is not required to be registered under section 45-IA of the Reserve Bank of India Act, 1934.
âANNEXURE Bâ TO THE INDEPENDENT AUDITORSâ REPORT
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 (âthe Actâ)
We have audited the internal financial controls over financial reporting of AUTOLINE INDUSTRIES LIMITED (âthe Companyâ) as of March 31, 2016 in conjunction with our audit of the standalone financial statements of the company for the year ended on that date.
Managementâs Responsibility for Internal Financial Controls
The companyâs management is responsible for establishing and maintaining internal financial controls based on âthe 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 âInstitute of Chartered Accountants of Indiaâ (ICAI). 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 its business, including adherence to 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 Companies Act, 2013.
Auditorsâ Responsibility
Our responsibility is to express an opinion on the Companyâs internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (the âGuidance Noteâ) and the Standards on Auditing, issued by ICAI and deemed to be prescribed under section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls both applicable to an audit of Internal Financial Control and both issued by the Institute of Chartered Accountants of India. 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 were established and maintained and whether such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system 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 judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.
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 system over financial reporting.
Meaning of Internal Financial Controls over Financial Reporting
Companyâs Internal financial control 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 internal financial control over financial reporting includes 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 authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized 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
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 control over financial reporting may become inadequate because of changes in conditions, o that the degree of compliance with the policies or procedures may deteriorate.
Opinion
In our opinion, the Company has, in all material respects, an adequate internal financial controls system over finance. reporting and such internal financial controls over financial reporting were operating effectively as at March 31, 201 however company is required to strengthen its financial control for obtaining balance confirmations from trade receivable & payables based on âthe 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 Indiaâ (ICAI).
FOR A. R. SULAKHE & CO
CHARTERED ACCOUNTANTS
FRN: - 110540W
ANAND SULAKHE
PARTNER
M. NO.33451
May 28, 2016
Pune
Mar 31, 2015
We have audited the accompanying standalone financial statements of
AUTOLINE INDUSTRIES LIMITED ("the Company"), which comprise the Balance
Sheet as at March 31,2015; the Statement of Profit and Loss, the Cash
Flow Statement for the year then ended, 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 stated
in Section 134(5) of the Companies Act, 2013 ("the Act") with respect
to the preparation and presentation of these standalone financial
statements that give a true and fair view ofthe financial position,
financial performance and cash flows ofthe 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 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 ofthe financial statements
that give a true and fair view and are free from material
misstatements, 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
thereunder.
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 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 financial control relevant to the Company's
preparation ofthe 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 financial
controls system over financial reporting and the operating
effectiveness of such controls. An audit also includes evaluating the
appropriateness of 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.
Basis for Qualified Opinion
Provision for Gratuity and Leave Encashment is made on an estimated
basis, which is not in accordance with Accounting Standard -15 Employee
Benefits. In the absence ofthe required information effect ofthe same
on the Standalone financial statements are not quantified.
Qualified Opinion
In our opinion and to the best of our information and according to the
explanations given to us, except for the paras mentioned in Basis for
qualified opinion 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 31,2015, and its loss and cash flows for the year ended on
that date.
EMPHASIS OF THE MATTER
Without qualification, we draw you attention to the following:-
Sub Note to Note No. 10 of schedule of notes to the financial
statements for non provision of diminution in the value of investment
amounting to Rs. 32.63 crores in subsidiary Kodrat Investments Limited
(Cyprus), the note is self-explanatory and the matter is subjudice with
Italian courts and therefore no effect has been given in these
Standalone financial statements. In the given circumstances we are
unable to express our opinion on the matter.
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 the Annexure a
statement on the matters specified in paragraphs 3 and 4 of the said
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 except for the paras mentioned in qualified
opinion;
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 exceptfor
Accounting Standard 15 Employee Benefits.
e) on the basis of written representations received from the directors,
as on March 31,2015 and taken on record by the Board of Directors, none
of the Directors is disqualified as on March 31,2015 from being
appointed as a Director in terms of Section 164 (2) of the Act; and
f) with respect to the other matters to be included in the Auditor's
Report in accordance with Rule 11 of the Companies (Audit and Auditors)
Rules, 2014, in our opinion and to the 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 financial statements.
ii. the Company has made provisions, as required under the applicable
law or accounting standards, for material foreseeable losses, if any,
on long term contracts including derivative contracts except for the
paras mentioned in qualified opinion
iii. There has been no delay in transferring amount, required to be
transferred, to the Investor Education and Protection Fund by the
company.
Annexure to the Independent Auditors' Report:
The Annexure referred to in our Independent Auditors' Report to the
members of the Company on the standalone financial statements for the
year ended March 31,2015,we report that:
i) a) The company has maintained proper records showing full
particulars, including quantitative details and situations of its
Fixed Assets
b) According to the information and explanation given to us, the
Company has a regular programme of physical verification of its fixed
assets by which fixed assets are verified in phased manner over a
period of three years. In accordance with this programme, certain fixed
assets were verified during the year and no material discrepancies were
noticed on such verification. In our opinion, this periodicity of
physical verification is reasonable having regards to the size of the
Company and the nature of its assets
ii) a) The inventories have been physically verified at reasonable
intervals by the management.
b) In our opinion and according to the information and explanations
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.
iii) The company has not granted loans to the parties covered in the
register under section 189 of Companies Act, 2013.
iv) In our opinion and accordingly to the information and explanations
given to us, there is adequate internal control system commensurate
with the size of the company and the nature of its business, for the
purchase of inventory, fixed assets and for the sale of goods and
services. During the course of our audit, we have not observed any
major weakness in the internal control system during;
v) The company has not accepted any deposit from public;
vi) The Central Government has not prescribed maintenance of cost
records under sub section (1) of Section 148 of the Act;
vii) a) Company is regular in depositing undisputed statutory dues in
respect of wealth tax, duty of customs. However undisputed statutory
dues including provident fund, employees' state insurance, income-tax,
sales-tax, service tax, duty of excise, value added tax, cess and other
statutory dues have not been regularly deposited with the appropriate
authorities and there have been delays in depositing the same.
According to the information and explanations given to us, and
according to the books and records as produced and examined by us
following undisputed statutory dues were in arrears as at March 31,
2015 for a period of more than six months from the date they became
payable-
Sr. Name of statutory dues Nature of Total (in Rs)
No. dues
1 MaharashtraValue Added MVAT 5,09,30,440
Tax-2005
2 MaharashtraValue Added CST 68,742
Tax-2005
3 MaharashtraMunicipal LBT 1,35,44,405
Corporation Act-1949
4 ProfessionalTax Act PT 11,51,925
Sr. Name of statutory dues Period to which it Whether paid
No. relates before balance
sheet signing
1 MaharashtraValue Added April 2012 to No
Tax-2005 August 2014
2 MaharashtraValue Added March2013 No
Tax-2005
3 MaharashtraMunicipal October2013to No
Corporation Act-1949 August 2014
4 ProfessionalTax Act April2014to No
August 2014
b) According to the information and explanations given to us, following
amounts are payable in respect of income tax, sales tax, service tax,
duty of customs, duty of excise, value added tax and cess as at March
31,2015 on account of disputes:-
Name of the Statute Nature of Forum where Dispute is
Dues pending
Income Tax Act,1961 Income Tax Income Tax Appellate Tribunal
Income Tax Act,1961 Income Tax Income Tax Appellate Tribunal
Income Tax Act,1961 Income Tax The Commissioner of Income
Tax (Appeals), Pune
The Maharashtra Value VAT / CST The Joint Commissioner of
Added Tax Act, 2002 / Sales Tax (Appeals), Pune
Central Sales Tax Act,
1956
Name of the Statute Period to which the Tax
amount relates Amount involved
(Rs.)
Income Tax Act,1961 F.Y.2007-08 4,01,94,113/-
Income Tax Act,1961 F.Y.2008-09 36,58,482/-
Income Tax Act,1961 F.Y.2009-10 8,26,620/-
The Maharashtra Value F.Y.2000-01 1,34,44,440/-*
Added Tax Act, 2002 / F.Y.2001-02 1,29,42,721/-*
Central Sales Tax Act,
1956 F.Y.2002-03 95,983/-
F.Y. 2003-04 6,11,670/-*
F.Y. 2004-05 5,57,742/-*
F.Y. 2005-06 1,47,11,024/-*
F.Y. 2006-07 2,78,01,682/-*
F.Y. 2007-08 5,13,84,343/-*
F.Y. 2008-09 12,74,05,585/-
F.Y.2009-10 49,82,954/-*
F.Y.2010-11 11,49,84,435/-1
* net of amounts paid under protest.
c) In our opinion and According to the information and explanations
given to us, amounts required to be transferred to the Investor
Education and Protection Fund in accordance with the relevant
provisions of the Companies Act, 1956 (1 of 1956) and rules made
thereunder have been transferred to such fund within time.
viii) According to the information and explanations given to us, the
company does not have any accumulated losses at the end of financial
year and has incurred cash losses during the current financial year and
immediately preceding financial year;
ix) According to the information and explanations given to us, the
company has defaulted in repayment of dues to banks, however during the
year facilities sanctioned to the company were rescheduled for
repayment by consortium of Company bankers and as such as on March 31,
2015 there were no defaults in repayment of dues to banks for this
rescheduled loan. Howeverforother facility, in our opinion, the company
has defaulted in repayment of its dues to banks forinterest amounting
to Rs. 34,59,928/- as at balance sheet date, delay ranging from 0 to 90
days and the same was paid till signing balance sheet;
x) In our opinion and according to information and explanation given to
us, the company has not given any guarantees for loans taken by others
from banks orfinancial Institution;
xi) Based on the information and explanations given to us by
management, prima facie the term loans were applied for the purpose
forwhich 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 to us during
the year by the management;
FOR A. R. SULAKHE & CO
CHARTERED ACCOUNTANTS
FRN: - 110540W
ANAND SULAKHE
Partner
M. NO.33451
Date: May 27, 2015
Place: Pune
Mar 31, 2014
We have audited the accompanying financial statements of Autoline
Industries Limited ("the Company"), which comprise the Balance Sheet as
at 31st March, 2014, and the Statement of Profit and Loss and 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 referred to in sub-section (3C) of section 211
of the Companies Act, 1956 ("the Act") read with the General Circular
No. 15/2013 dated September 13, 2013 of the Ministry of Corporate
Affairs in respect of Section 133 of the Companies Act, 2013. 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 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:
(i) in the case of the Balance Sheet, of the state of affairs of the
Company as at31st March, 2014;
(ii) in the case of the Statement of Profit and Loss, of the loss for
the year ended on that date; and
(iii) in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
Without qualifying our opinion, we draw attention to:-
Sub-note to note no. 9 regarding non provision for diminishing in value
of investment in subsidiary Koderat Investments Limited (Cyprus). The
note is self-explanatory. In the given circumstances we are unable to
give our opinion. Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2003, as
amended by the companies (Auditor''s Report) Amendment 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 and
on the basis of such checks of the books and records of the company as
we considered appropriate and according to information and explanation
given to us, we enclose in the annexure hereto a statement on the
matters specified in paragraphs 4 and 5 of the said Order to the extent
applicable to the company.
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 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, Statement of Profit and Loss, and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account.
d) in our opinion, the Balance Sheet, Statement of Profit and Loss, and
Cash Flow Statement comply with the Accounting Standards referred to in
subsection (3C) of section 211 of the Companies Act, 1956 read with the
General Circular No. 15/2013 dated September 13, 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 31st March, 2014, and taken on record by the Board of Directors,
none of the directors is disqualified as on 31st March, 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
[Annexure Referred to in paragraph 1 of the Auditors'' Report of even
date to the members of AUTOLINE INDUSTRIES LIMITED on the Accounts for
the Year Ended on 31st March, 2014]
1) In respect of Fixed Assets
a) The Company has generally maintained proper records showing
particulars including quantitative details and situation of Fixed
Assets on the basis of information available.
b) According to the information and explanation given to us, the fixed
assets are physically verified by the management according to the
phased programme which in our opinion is reasonable having regard to
the size of the company and the nature of its assets. On physical
verification by the management no major discrepancies between the book
record and physical inventory have been noticed.
c) In our opinion, the company has not disposed off a substantial part
of its Fixed Assets and the going concern status is not affected.
2) In respect of its Inventories:
a) The inventory of the Company has been physically verified by the
management during the year at regular interval. In our opinion the
frequency of verification is reasonable.
b) In our opinion, and according to the information and explanation
given to us, the procedures as explained to us and which are followed
by the management for physical verification of inventories are
reasonable and adequate in relation to the size of the Company and the
nature of its business.
c) According to the information and explanation given to us no material
discrepancies were noticed on physical verification of inventories as
compared to book records, discrepancies noticed were properly dealt
with, in the books of accounts, which were not material considering the
size of the companies operation.
3) a) As per the information and explanation given to us, the company
has not granted any secured or unsecured loan to companies, firms or
other parties covered in the Register maintained under Section 301 of the
Companies Act 1956 during the year .Consequently clause (iii) (b), (iii)
(c) & (iii) (d) of the order is not applicable.
b) As per the information and explanation given to us, the company has
not accepted any unsecured loan from companies, firms or other parties
covered in the Register maintained under Section 301 of the Companies
Act 1956 during the year. Consequently clause (iii) (f) & (iii) (g) of
the order is not applicable.
4) 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 the nature of its business with regard
to purchases of inventory, fixed assets and with regard to the sale of
goods and services. During the course of our audit, no major weakness
has been noticed in the internal controls system.
5) In respect of transaction covered under section 301 of the Companies
Act 1956 :
a) Based on the audit procedures applied by us and according to the
information and explanations provided by the Management, we are of the
opinion that the particulars of contracts or arrangements referred to
in section 301 of the Act have been entered in the register required to
be maintained under that section.
b) In our opinion and according to the information and explanations
given to us, the transaction made in pursuance of such contracts or
arrangements entered in the register maintained under section 301 of
the Companies Act, 1956 and exceeding the value of Rs. 5 lacs in respect
of each party during the year have been made at prices which are
reasonable having regard to the prevailing market prices at the
relevant time.
6) According to the information and explanation given to us, the
company has not accepted any deposits from public. Therefore, the
provisions of Clause 4(vi) of the Order are not applicable to the
Company.
7) The Company has an internal audit functions carried out during the
year by a firm of chartered accountants appointed as internal auditor
by the management and in our opinion, company''s present internal audit
system is commensurate with the size of the company and the nature of
its business.
8) We have broadly reviewed the books of account maintained by the
company in respect of products where, pursuant to the Rules made by the
Central Government of India, the maintenance of cost records has been
prescribed under clause (d) of subsection (1) of section 209 of the
Act, and are of the opinion that prima facie, the prescribed accounts
and records have been made and maintained. The same are verified by
external cost auditor appointed by company for carrying cost audit and
his report were awaited till date of signing the auditor''s report. We
have not, however, made a detailed examination of the records with a
view to determine whether they are accurate or complete.
9) a) According to the information and explanations given to us and
according to the books and records as produced and examined by us,
undisputed statutory dues including Provident Fund, Investor Education
and Protection Fund, E.S.I., Income Tax, Sales Tax, LBT, Wealth Tax,
Service Tax, Excise Duty, Customs Duty, Cess and any other material
statutory dues, to the extent applicable, have been generally regularly
deposited with the appropriate authorities. According to the
information and explanations given, no undisputed amount payable in
respect of aforesaid dues were outstanding as at 31st March, 2014, for
a period of more than six months from the date they became payable
except for MVAT Rs. 2,34,05,538/-, CST Rs. 68,742/- and LBT Rs.
32,79,434/-, which is till date of the signing of report.
b) As at 31st March 2014, according to the records of the Company and
on the basis of information and explanations given to us, except for
Income Tax & Sales Tax (VAT), there are no disputed dues in respect of
Custom Duty, Wealth Tax, Excise Duty, Service Tax and Cess.
Name of the Nature of
Dues Forum where
Dispute is Period to
which the
Tax Amount
Statute pending amount
relates involved (Rs.)
Income Tax
Act, Dues on
Assessment Income Tax
Appellate
Tribunal FY.
2008-09 36,58,482/-
1961
Income Tax
Act, Dues on
Assessment The Commissioner
of Income FY.
2009-10 8,26,620/-
1961 Tax (Appeals),
Pune
The Mahara
shtra VAT / CST The Joint
Commissioner of FY
2000-01
1,59,44,440/-
Value Added Sales Tax
(Appeals), Pune FY
2001-02 1,54,42,721/-
Tax Act,
2002
/ Central
Sales FY
2002-03 95,983/-
FY
2003-04 10,11,670/-
F.Y
2004-05 9,57,742/-
F.Y
2005-06 1,90,22,000/-
F.Y
2006-07 12,55,746/-
F.Y
2007-08 6,79,341/-
F.Y
2008-09 148,252/-
10) The Company has no accumulated losses as at 31st March, 2014, but
has incurred cash losses during the financial year ended on that date.
The Company has not incurred any cash losses in the immediately
preceding financial year.
11) Based on our audit procedures and on the information and
explanations given by the Management, in our opinion, the Company has
defaulted in repayment of its dues to banks as at the balance sheet
date. Following are the defaults :-
Sr.
No. Amount (Including
Interest) - Rs. in Lacs Period of Delay
(after due date) Paid before Signing
of Balance Sheet
1 186.38 0 to 30 days Yes
2 585.01 31 to 60 days Yes
3 2325.73 61 to 90 days Yes
4 203.92 Above 90 days Yes
5 3.33 0 to 30 days No
6 342.46 31 to 60 days No
7 332.12 61 to 90 days No
8 163.95 Above 90 days No
12) The Company has not granted any loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
13) In our opinion, considering the nature of activities carried on by
the Company during the year, the provisions of any special statute and
provisions applicable to chit fund / nidhi / mutual benefit fund /
societies are not applicable to the Company.
14) In our opinion and according to the information and explanations
given to us, the Company is not a dealer or trader in securities.
15) In our opinion, and according to the information and explanations
given to us, the Company has given corporate guarantee of $ 10.5
Million for the loans taken by a foreign subsidiary company from banks
or financial institutions. In our opinion the terms and conditions
thereof are not prejudicial to the interest of the company.
16) According to the information and explanation given to us, company
has raised term loan during the year. On the basis of the information
and explanation given to us and on an overall examination of the
financial statements of the company, we are of the opinion that, prima
facie the term loan is applied for the purposes for which they were
obtained.
17) According to the information and explanations given to us, and on
an overall examination of the Balance Sheet of the Company, we report
that the funds raised on short term basis have been used for long term
purposes.
18) According to the information and explanations given to us, the
Company has not made any preferential allotment of shares to parties
and companies covered in the register maintained under Section 301 of
the Companies Act, 1956.
19) No debentures have been issued during the year.
20) During the year the Company has not raised money by public issue.
21) During the course of our examination of the books of account
carried out in accordance with the generally accepted auditing
practices in India, and according to the information and explanations
given to us, we have neither come across any instance of fraud on or by
the Company, noticed or reported during the year, nor have we been
informed of such case by the Management.
FOR K V M D S & ASSOCIATES,
CHARTERED ACCOUNTANTS.
FIRM REG. NO.: 121347W
CA. VIJAY B. SHETH
PLACE: PUNE. PARTNER
DATE : 24th MAY, 2014. MEM. NO. 037634
Mar 31, 2013
Report on the Financial Statements
We have audited the accompanying financial statements of Autoline
Industries Limited ("the Company"), which comprise the Balance Sheet as
at 31st March, 2013, and the Statement of Profit and Loss and 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 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 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:
(i) in the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2013; (ii) in the case of the Statement of
Profit and Loss Account, of the profit/ loss for the year ended on that
date; and (iii) in the case of the Cash Flow Statement, of the cash
flows for the year ended on that date. Without qualifying our opinion,
we draw attention to:-
- Sub-note to note no. 9 regarding non provision for diminishing in
value of investment in subsidiary Koderat Investments Limited (Cyprus).
The note is self-explanatory. In the given circumstances we are unable
to give our opinion.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2003, as
amended by the companies (Auditor''s Report) Amendment 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 and
on the basis of such checks of the books and records of the company as
we considered appropriate and according to information and explanation
given to us, we enclose in the annexure hereto a statement on the
matters specified in paragraphs 4 and 5 of the said Order to the extent
applicable to the company.
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 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, Statement of Profit and Loss, and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account.
d) in our opinion, the Balance Sheet, Statement of Profit and Loss, and
Cash Flow Statement comply with the Accounting Standards referred to in
subsection (3C) of section 211 of the Companies Act, 1956;
e) on the basis of written representations received from the directors
as on 31st March, 2013, and taken on record by the Board of Directors,
none of the directors is disqualified as on 31st March, 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 AUDITORS'' REPORT
[ Annexure Referred to in paragraph 1 of the Auditors'' Report of even
date to the members of AUTOLINE INDUSTRIES LIMITED on the Accounts for
the Year Ended on 31st March, 2013]
1) In respect of Fixed Assets
a) The Company has generally maintained proper records showing
particulars including quantitative details and situation of Fixed
Assets on the basis of information available.
b) According to the information and explanation given to us, the fixed
assets are physically verified by the management according to the
phased programme which in our opinion is reasonable having regard to
the size of the company and the nature of its assets. On physical
verification by the management no major discrepancies between the book
record and physical inventory have been noticed.
c) In our opinion, the company has not disposed off a substantial part
of its Fixed Assets and the going concern status is not affected.
2) In respect of its Inventories: (Excluding stock with third parties &
material in transit).
a) The inventory of the Company has been physically verified by the
management during the year at regular interval. In our opinion the
frequency of verification is reasonable.
b) In our opinion, and according to the information and explanation
given to us, the procedures as explained to us and which are followed
by the management for physical verification of inventories are
reasonable and adequate in relation to the size of the Company and the
nature of its business.
c) According to the information and explanation given to us no material
discrepancies were noticed on physical verification of inventories as
compared to book records, discrepancies noticed were properly dealt
with, in the books of accounts, which were not material considering the
size of the companies operation.
3) a) As per the information and explanation given to us, the company
has granted unsecured loan to Autoline
Industrial Parks Limited (subsidiary company), which is covered in the
Register maintained under Section 301 of the Companies Act 1956. In
respect of the said loan, the maximum amount outstanding at any time
during the year was ~ 10,95,50,545/- and the year-end balance is ~
10,95,50,545/-.
b) In our opinion, and according to the information and explanations
given to us, 13 % per annum interest has been charged to subsidiary
company and other terms and conditions of loan given by the company are
not prima facie, prejudicial to the interest of the Company.
c) There is no prescribed stipulation of repayment of principal &
interest.
d) In respect of loan granted by company, the same are repayable on
demand and therefore question of overdue amount does not arise.
e) As per the information and explanation given to us, the company has
taken interest free unsecured loan from 2 parties covered in the
Register maintained under Section 301 of the Companies Act 1956. The
total amount of such loans received and outstanding as of 31st March,
2013 is ~ 1,45,23,221/-.
f) The advance accepted by the company is from Promoters & other party,
and as such the terms and conditions of this advance are not
prejudicial to the interest of the company.
g) There is no prescribed stipulation of repayment of principal &
interest.
4) In our opinion and according to the information and explanations
given to us, there are adequate internal control system commensurate
with the size of the Company and the nature of its business with regard
to purchases of inventory, fixed assets and with regard to the sale of
goods and services. During the course of our audit, no major weakness
has been noticed in the internal controls system.
5) In respect of transaction covered under section 301 of the Companies
Act 1956 :
a) Based on the audit procedures applied by us and according to the
information and explanations provided by the Management, we are of the
opinion that the particulars of contracts or arrangements referred to
in section 301 of the Act have been entered in the register required to
be maintained under that section.
b) In our opinion and according to the information and explanations
given to us, the transaction made in pursuance of such contracts or
arrangements entered in the register maintained under section 301 of
the Companies Act, 1956 and exceeding the value of ~ 5 lacs in respect
of each party during the year have been made at prices which are
reasonable having regard to the prevailing market prices at the
relevant time.
6) According to the information and explanation given to us, the
company has not accepted any deposits from public. Therefore, the
provisions of Clause 4(vi) of the Order are not applicable to the
Company.
7) The Company has an internal audit functions carried out during the
year by a firm of chartered accountants appointed as internal auditor
by the management and in our opinion, company''s present internal audit
system is commensurate with the size of the company and the nature of
its business.
8) We have broadly reviewed the books of account maintained by the
company in respect of products where, pursuant to the Rules made by the
Central Government of India, the maintenance of cost records has been
prescribed under clause (d) of subsection (1) of section 209 of the
Act, and are of the opinion that prima facie, the prescribed accounts
and records have been made and maintained. The same are verified by
external cost auditor appointed by company for carrying cost audit and
his report were awaited till date of signing the auditor''s report. We
have not, however, made a detailed examination of the records with a
view to determine whether they are accurate or complete.
9) a) According to the information and explanations given to us and
according to the books and records as produced and examined by us,
undisputed statutory dues including Provident Fund, Investor Education
and Protection Fund, E.S.I., Income Tax, Sales Tax (VAT), Wealth Tax,
Service Tax, Excise Duty, Customs Duty, Cess and any other material
statutory dues, to the extent applicable, have been generally regularly
deposited with the appropriate authorities. According to the
information and explanations given, no undisputed amount payable in
respect of aforesaid dues were outstanding as at 31st March, 2013, for
a period of more than six months from the date they became payable
except for MVAT~ 78,79,137/- and CST ~ 55,877/-, which is paid before
the signing of report.
b) As at 31st March 2013, according to the records of the Company and
on the basis of information and explanations given to us, except for
Income Tax & Sales Tax (VAT), there are no disputed dues in respect of
Custom Duty, Wealth Tax, Excise Duty, Service Tax and Cess.
Name of the Nature of Dues Forum where Period to which Tax Amount
Statute Dispute is
pending the amount
relates involved
Income Tax
Act, 1961 Transfer
Pricing Dispute
Resolution FY. 2008-09 " 41,13,836/-
Panel, Pune
The
Maharashtra VAT / CST The Joint FY. 2000-01 " 1,10,00,000/-
Value Added
Tax
Commissioner
Act, 2002 /
Central of Sales Tax
Sales Tax
Act, 1956 (Appeals),
Pune FY 2001-02 " 1,25,00,000/-
10) The Company has no accumulated losses as at 31st March, 2013, and
has not incurred any cash losses during the financial year ended on
that date and in the immediately preceding financial year.
11) Based on our audit procedures and on the information and
explanations given by the Management, in our opinion, the Company has
not defaulted in repayment of its dues to any financial institution or
bank or Debenture holder as at the balance sheet date.
12) The Company has not granted any loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
13) In our opinion, considering the nature of activities carried on by
the Company during the year, the provisions of any special statute and
provisions applicable to chit fund / nidhi / mutual benefit fund /
societies are not applicable to the Company.
14) In our opinion and according to the information and explanations
given to us, the Company is not a dealer or trader in securities.
15) In our opinion, and according to the information and explanations
given to us, the Company has given corporate guarantee for the loans
taken by a subsidiary company from banks or financial institutions. In
our opinion the terms and conditions thereof are not prejudicial to the
interest of the company.
16) According to the information and explanation given to us, company
has raised term loan during the year. On the basis of the information
and explanation given to us and on an overall examination of the
financial statements of the company, we are of the opinion that, prima
facie the term loan is applied for the purposes for which they were
obtained.
17) According to the information and explanations given to us, and on
an overall examination of the Balance Sheet of the Company, we report
that the funds raised on short term basis have been used for long term
purposes.
18) According to the information and explanations given to us, the
Company has not made any preferential allotment of shares to parties
and companies covered in the register maintained under Section 301 of
the Companies Act, 1956.
19) No debentures have been issued during the year.
20) During the year the Company has not raised money by public issue.
21) During the course of our examination of the books of account
carried out in accordance with the generally accepted auditing
practices in India, and according to the information and explanations
given to us, we have neither come across any instance of fraud on or by
the Company, noticed or reported during the year, nor have we been
informed of such case by the Management.
FOR K V M D S & ASSOCIATES,
(FORMERLY KNOWN AS GUJAR RAWAT SHETH & ASSOCIATES)
CHARTERED ACCOUNTANTS.
FIRM REGISTRATION NO: 121347W
PLACE : PUNE. VIJAY B SHETH
DATE : 18TH MAY, 2013. PARTNER.
MEM. NO. 037634
Mar 31, 2012
We have audited the attached BALANCE SHEET of AUTOLINE INDUSTRIES
LIMITED as at 31st March 2012, the Statement of Profit & Loss Account
and the Cash Flow Statement for the year ended on that date annexed
thereto. These financial statements are the responsibility of the
Company's Management. Our responsibility is to express an opinion on
these financial statements based on our audit.
1. We conducted our audit in accordance with auditing standards
generally accepted in India. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatements. 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 presentation of the
financial statements presentation. We believe that our audit provides a
reasonable basis for our opinion.
2. As required by the Companies (Auditor's Report) Order, 2003, as
amended by the Companies (Auditor's Report) Amendment order, 2004
(together the "Order"), issued by the Central Government of India in
terms of section 227 (4A) of Companies Act, 1956 and on the basis of
such checks of the books and records of the company as we considered
appropriate and according to information and explanation given to us,
we enclose in the annexure hereto a statement on the matters specified
in paragraph 4 & 5 of the said order to the extent applicable to
company.
3. Further to our comments in the Annexure referred to in paragraph 2
above we Report that:
a) We have obtained all the information and explanation 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 the
books of accounts of the company.
c) The Balance Sheet, Statement of Profit & Loss Account and the Cash
Flow Statement dealt with by this report are in agreement with the
Books of Accounts.
d) Without qualifying our opinion, we draw attention to -
(i) Sub-note to note no.9 regarding non provision for diminishing in
value of investment in subsidiary Koderat Investments Ltd. (Cyprus).
The note is self explanatory. In the given circumstances we are unable
to give our opinion.
e) In our opinion and subject to Note to Accounts, the Balance Sheet,
Statement of Profit & Loss Account and Cash Flow Statement dealt with
by this report comply with the requirement of the Accounting Standard
referred to in sub section (3C) of section 211 of Companies Act, 1956,
to the extent applicable.
f) On the basis of the written representation received from the
Directors as on 31st March 2012 and taken on record by the Board of
Directors, we report that none of the Directors is disqualified as on
31st March 2012 for being appointed as a Director of the Company in
terms of clause (g) of sub-section (1) of section 274 of the Companies
Act 1956.
g) In our opinion and to the best of our information and according to
the explanations given to us the said accounts read together with
Significant Accounting Policies, and Notes to Accounts and subject to
our observations in 3(d) above 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:
i) In case of the Balance Sheet, of the state of affairs of the Company
as on 31st March, 2012.
ii) In the case of the Statement of Profit & Loss Account of the Profit
for the year ended on that date.
iii) In case of Cash Flow Statement, of the Cash Flows for the year
ended on that date.
ANNEXURE TO AUDITOR'S REPORT
[ Annexure Referred to in paragraph 2 of the Auditors' Report of even
date to the members of AUTOLINE INDUSTRIES LIMITED on the Accounts for
the Year Ended on 31st March, 2012]
1) In respect of Fixed Assets
a) The Company has generally maintained proper records showing
particulars including quantitative details and situation of Fixed
Assets on the basis of information available.
b) According to the information and explanation given to us, the fixed
assets are physically verified by the management according to the
phased programme which in our opinion is reasonable having regard to
the size of the company and the nature of its assets. On physical
verification by the management no major discrepancies between the book
record and physical inventory have been noticed.
c) In our opinion, the company has not disposed off a substantial part
of its Fixed Assets and the going concern status is not affected.
2) In respect of its Inventories: (Excluding material in transit).
a) The inventory of the Company has been physically verified by the
Management during the year at regular interval. In our opinion the
frequency of verification is reasonable.
b) In our opinion, and according to the information and explanations
given to us, the procedures as explained to us and which are followed
by the Management for physical verification of inventory are reasonable
and adequate in relation to the size of the Company and the nature of
its business.
c) According to the information and explanations given to us no
material discrepancies were noticed on physical verification of stocks
as compared to book records, discrepancies noticed were properly dealt
with, in the books of accounts, which were not material considering the
size of the Company's operation.
3) a) As per the information and explanation given to us, the company
has granted unsecured loan to companies, firms or other parties covered
in the Register maintained under Section 301 of the Companies Act,
1956. The year end balance is Rs.11,06,00,780/- and has been given to two
parties.
b) In our opinion, and according to the information and explanations
given to us, rate of interest in case of one subsidiary company and
interest free loan to wholly own foreign subsidiary company and other
terms and conditions of loan given by the company, secured or
unsecured, to the parties listed in the register maintained under
Section 301 of the Companies Act, 1956 are not prima facie, prejudicial
to the interest of the Company.
c) There is no prescribed stipulation of repayment of principal &
interest.
d) In respect of loan granted by company, the same are repayable on
demand and therefore question of overdue amount does not arise.
e) As per the information and explanation given to us, the company has
taken unsecured loan, from wholly owned subsidiary covered in the
Register maintained under Section 301 of the Companies Act 1956. The
year end balance is Rs. 80,18,055/- and is from one party.
f) The advance accepted by the company is from wholly owned subsidiary
company and as such the terms and conditions of this advance are not
prejudicial to the interest of the company.
g) There is no prescribed stipulation of repayment of principal &
interest.
4) In our opinion and according to the information and explanations
given to us, having regard to the explanation that certain items
purchased/ services availed are of special nature for which suitable
alternative sources do not exist for obtaining comparative quotations,
there are adequate internal control system commensurate with the size
of the Company and the nature of its business with regard to purchases
of inventory, fixed assets and with regard to the sale of goods. During
the course of our audit, no major weakness has been noticed in the
internal controls system.
5) In respect of transaction covered under section 301 of the Companies
Act 1956 :
a) Based on the audit procedures applied by us and according to the
information and explanations provided by the Management, we are of the
opinion that the particulars of contracts or arrangements referred to
in section 301 of the Act have been entered in the register required to
be maintained under that section.
b) In our opinion and according to the information and explanations
given to us, the transaction made in pursuance of such contracts or
arrangements during the year have been made at prices which are
reasonable having regard to the prevailing market prices at the
relevant time.
6) The company has not accepted any deposits under the provisions of
sections 58A and 58AA or any other relevant provisions of the Act and
the Companies (Acceptance of Deposit) Rules, 1975 framed thereunder.
7) The Company has an internal audit system comprising of its own
internal management audit team, and also a firm of chartered
accountants appointed as internal auditor by the management and in our
opinion, company's present internal audit system is commensurate with
the size of the company and the nature of its business.
8) We have broadly reviewed the books of account maintained by the
company in respect of products where, pursuant to the Rules made by the
Central Government of India, the maintenance of cost records has been
prescribed under clause (d) of subsection (1) of section 209 of the
Act, and are of the opinion that prima facie, the prescribed accounts
and records have been made and maintained. The same are verified by
external cost auditor appointed by company for carrying cost audit and
has expressed their satisfaction for the cost record. We have not,
however, made a detailed examination of the records with a view to
determine whether they are accurate or complete.
9) a) According to the information and explanations given to us and
according to the books and records as produced and examined by us,
undisputed statutory dues including Provident Fund, Investor Education
and Protection Fund, E.S.I., Income Tax, Sales Tax (VAT), Wealth Tax,
Service Tax, Excise Duty, Customs Duty, Cess and any other material
statutory dues, to the extent applicable, have been generally regularly
deposited with the appropriate authorities. According to the
information and explanations given, except for Income Tax, VAT and TDS
liability which is paid before the signing of report, no undisputed
amounts payable in respect of aforesaid dues were outstanding as at
31st March, 2012, for a period of more than six months from the date
they became payable.
b) As at 31st March 2012, according to the records of the Company and
on the basis of information and explanations given to us, except for
Income Tax & Sales Tax (VAT), there are no disputed dues in respect of
Custom Duty, Wealth Tax, Excise Duty, Service Tax and Cess.
The disputed amount is in respect of liability under Income Tax Act,
1961 for Asst. Year 2008-09 relevant to Financial Year 2007-08 is
aggregating to Rs. 2,92,96,660/- , which has not been deposited as at
31st March. 2012. The appeal in respect of same is pending with The
Commissioner of Income Tax (Appeals) Pune.
The disputed amount is in respect of liability under The Maharashtra
Value Added Tax Act, 2002/ The Central Sales Tax Act, 1956 for
Financial Year 2000-01 is aggregating to Rs.1,10,00,000/- and for
Financial Year 2001- 02 is aggregating to Rs.1,25,00,000/- , which has
not been deposited as at 31st March, 2012. The appeal in respect of
same is pending with The Joint Commissioner of Sales Tax (Appeals)
Pune.
10) The company has no accumulated losses as at March 31, 2012, and has
not incurred any cash losses during the financial year ended on that
date and in the immediately preceding financial year.
11) Based on our audit procedures and on the information and
explanations given by the Management, in our opinion, the Company has
not defaulted in repayment of its dues to any financial institution or
bank or Debenture holder as at the balance sheet date.
12) The Company has not granted any loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
13) In our opinion, considering the nature of activities carried on by
the Company during the year, the provisions of any special statute and
provisions applicable to chit fund / nidhi / mutual benefit fund /
societies are not applicable to the Company.
14) In our opinion and according to the information and explanations
given to us, the Company is not a dealer or trader in securities.
15) In our opinion, and according to the information and explanations
given to us, the Company has given corporate guarantee for the loans
taken by a subsidiary company from banks or financial institutions. In
our opinion the terms and conditions thereof are not prejudicial to the
interest of the company.
16) According to the information and explanation given to us, company
has raised term loan during the year. On the basis of the information
and explanation given to us and on an overall examination of the
financial statements of the company, we are of the opinion that, prima
facie the term loan is applied for the purposes for which they were
obtained.
17) According to the information and explanations given to us, and on
an overall examination of the Balance Sheet of the Company, we report
that the funds raised on short term basis have been used for long term
purposes.
18) According to the information and explanations given to us, the
Company has not made any preferential allotment of shares to parties
and companies covered in the register maintained under Section 301 of
the Companies Act, 1956.
19) No debentures have been issued during the year.
20) During the year the Company has not raised money by public issue.
21) During the course of our examination of the books of account
carried out in accordance with the generally accepted auditing
practices in India, and according to the information and explanations
given to us, we have neither come across any instance of fraud on or by
the Company, noticed or reported during the year, nor have we been
informed of such case by the Management.
FOR GUJAR RAWAT SHETH & ASSOCIATES.
CHARTERED ACCOUNTANTS.
FIRM REGISTRATION NO: 121347W
PLACE : PUNE. (VIJAY B SHETH)
DATE : 28TH APRIL, 2012 PARTNER.
MEM. NO. 037634
Mar 31, 2010
We have audited the attached BALANCE SHEET of AUTOLINE INDUSTRIES
LIMITED as at 31st March 2010, the Profit & Loss Account and 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.
1. We conducted our audit in accordance with auditing standards
generally accepted in India. Those standards required that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatements. 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 presentation of the
financial statements presentation. We believe that our audit provides a
reasonable basis for our opinion.
2. As required by the Companies (Auditors Report) Order, 2003 and the
Companies (Auditors Report) (Amendment) Order, 2004 issued by the
Central Government of India in terms of section 227 (4A) of Companies
Act, 1956 and on the basis of such checks as we considered appropriate
and according to information and explanation given to us, we enclose in
the annexure hereto a statement on the matters specified in paragraph 4
& 5 of the said order to the extent applicable to company.
3. Further to our comments in the Annexure referred to in paragraph 2
above we Report that:
a) We have obtained all the information and explanation 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 the
books of accounts.
c) The Balance Sheet and Profit & Loss Account dealt with by this
report are in agreement with the Books of Accounts.
d) We draw attention to -
(i) note no. 3(1) ) in Schedule Ã24Ã regarding non provision for the
expired export obligation.
(ii) note no.10 in Schedule Ã24Ã regarding non provision for
diminishing in value of investment in subsidiary Koderat Investments
Ltd. (Cyprus). The note is self explanatory. In the given circumstances
we are unable to give our opinion.
e) In our opinion and subject to Note to Accounts Schedule Ã24Ã, the
Balance Sheet, Profit & Loss Account and Cash Flow Statement dealt with
by this report comply with the requirement of the Accounting Standard
referred to in sub section (3C) of section 211 of Companies Act, 1956,.
f) On the basis of the written representation received from the
Directors as on 31st March 2010 and taken on record by the Board of
Directors, we report that none of the Directors is disqualified as on
31st March 2010 for being appointed as a Director of the Company in
terms of clause (g) of sub-section (1) of section 274 of the Companies
Act 1956.
g) In our opinion and to the best of our information and according to
the explanations given to us the said accounts read together with
Significant Accounting Policies, and Notes to Accounts in Schedule Ã24Ã
and subject to our observations in 3(d) above 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:
i) In case of the Balance Sheet, of the state of affairs of the Company
as on 31st March, 2010.
ii) In the case of the Profit & Loss Account of the Profit for the year
ended on that date.
iii) In case of Cash Flow Statement, of the Cash Flows for the year
ended on that date.
ANNEXURE TO AUDITORS REPORT
[Annexure Referred to in paragraph 2 of the Auditors Report of even
date to the members of AUTOLINE INDUSTRIES LIMITED on the Accounts for
the Year Ended on 31st March, 2010]
1) In respect of Fixed Assets
a) The Company has generally maintained proper records showing
particulars including quantitative details and situation of Fixed
Assets on the basis of information available.
b) According to the information and explanation given to us, the fixed
assets are physically verified by the management according to the
phased programme which in our opinion is reasonable having regard to
the size of the company and the nature of its assets. On physical
verification by the management no major discrepancies between the book
record and physical inventory have been noticed.
c) In our opinion, the company has not disposed off a substantial part
of its Fixed Assets and the going concern status is not affected.
2) In respect of its Inventories :
a) The inventory of the Company has been physically verified by the
Management during the year. In our opinion the frequency of
verification is reasonable.
b) In our opinion, and according to the information and explanations
given to us, the procedures as explained to us and which are followed
by the Management for physical verification of inventory are reasonable
and adequate in relation to the size of the Company and the nature of
its business.
c) According to the information and explanations given to us no
material discrepancies were noticed on physical verification of stocks
as compared to book records, minor discrepancies noticed were properly
dealt with, in the books of accounts, which were not material
considering the size of the Companys operation.
3) a) As per the information and explanation given to us, the company
has granted unsecured loan to companies,
firms or other parties covered in the Register maintained under Section
301 of the Companies Act 1956. The year end balance is 15,65,78,840/-
and has been given to three parties.
b) The advance given by the Company is to subsidiaries and it is
interest free. The terms and conditions on which this advance given is
not prejudicial to the interest of the Company.
c&d) There is no prescribed stipulation of repayment of the Advance and
is payable on demand and therefore question of overdue amount does not
arise.
e) As per the information and explanation given to us, the company has
taken loans, secured or unsecured, from companies, firms or other
parties covered in the Register maintained under Section 301 of the
Companies Act 1956. The year end balance is Rs. 17,47,25,978/- and is
from two parties.
f) The advance accepted by the company is from subsidiary company and
as such the terms and conditions of this advance is not prejudicial to
the interest of the company.
g) There is no prescribed stipulation of repayment of the Advance and
is payable on demand.
4) In our opinion and according to the information and explanations
given to us, having regard to the explanation that certain items
purchased/ services availed are of special nature for which suitable
alternative sources do not exist for obtaining comparative quotations,
there are adequate internal control procedures commensurate with the
size of the Company and the nature of its business with regard to
purchases of inventory, fixed assets and with regard to the sale of
goods. During the course of our audit, no major weakness has been
noticed in the internal controls.
5) In respect of transaction covered under section 301 of the Companies
Act 1956 :
a) Based on the audit procedures applied by us and according to the
information and explanations provided by the Management we are of the
opinion that the transactions that need to be entered into the register
maintained under section 301 have been so entered.
b) In our opinion and according to the information and explanations
given to us, and excluding certain transactions of purchase of goods/
services availed and material of special nature for which alternative
quotations are not available, where each of such transaction is in
excess of five lakh rupees in respect of any party, transactions have
been made at prices which are prima facie reasonable having regard to
prevailing market prices at the relevant time.
6) According to information and explanation given to us, the Company
has not accepted any deposits during the year from public within the
meaning of the provisions of Sections 58A and 58AA of the Companies Act
1956 and the rules framed there under. Hence clause 4 (VI) of the order
is not applicable.
7) In our opinion, the Companys present internal audit system is
commensurate with its size and nature of its business.
8) The Central Government of India, under clause (d) of sub section (1)
of section 209 of the companies Act, 1956 has prescribed the
maintenance of cost records. As informed by the management the
prescribed accounts and records have been made and maintained. We have,
however, not made the examination of the records with a view to
determine whether they are accurate or complete.
9) a) According to the information and explanations given to us and
according to the books and records as
produced and examined by us, undisputed statutory dues including
Provident Fund, Investor Education and Protection Fund, E.S.I., Income
Tax, Sales Tax (VAT), Wealth Tax, Service Tax, Excise Duty, Customs
Duty, Cess and any other material statutory dues, to the extent
applicable, have been generally regularly deposited with the
appropriate authorities. According to the information and explanations
given, no undisputed amounts payable in respect of aforesaid dues were
outstanding as at 31st March, 2010, for a period of more than six
months from the date they became payable.
b) As at 31st March 2010, according to the records of the Company and
on the basis of information and explanations given to us, there are no
disputed dues in respect of Sales Tax (VAT), Income Tax, Custom Duty,
Wealth Tax, Excise Duty, Service Tax and Cess.
10) The company has no accumulated losses as at March 31, 2010, and has
not incurred any cash losses during the financial year ended on that
date and in the immediately preceding financial year.
11) Based on our audit procedures and on the information and
explanations given by the Management, in our opinion, the Company has
not defaulted in repayment of its dues to any financial institution or
bank or Debenture holder as at the balance sheet date.
12) The Company has not granted any loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
13) In our opinion, considering the nature of activities carried on by
the Company during the year, the provisions of any special statute and
provisions applicable to chit fund / nidhi / mutual benefit fund /
societies are not applicable to the Company.
14) In our opinion and according to the information and explanations
given to us, the Company is not a dealer or trader in securities.
15) In our opinion, and according to the information and explanations
given to us, the Company has given corporate guarantee for the loans
taken by a subsidiary company from banks or financial institutions. In
our opinion the terms and conditions thereof are not prejudicial to the
interest of the company.
16) According to the information and explanation given to us, company
has raised term loan during the year. On the basis of the information
and explanation given to us and on an overall examination of the
financial statements of the company, we are of the opinion that, prima
facie the term loan is applied for the purposes for which they were
obtained.
17) According to the information and explanations given to us, and on
an overall examination of the Balance Sheet of the Company, we report
that the funds raised on short term basis have been used for long term
purposes.
18) According to the information and explanations given to us, the
Company has not made any preferential allotment of shares to parties
and companies covered in the register maintained under Section 301 of
the Companies Act, 1956.
19) No debentures have been issued during the year.
20) During the year the Company has not raised money by public issue.
21) During the course of our examination of the books of account
carried out in accordance with the generally accepted auditing
practices in India, and according to the information and explanations
given to us, we have neither come across any instance of fraud on or by
the Company, noticed or reported during the year, nor have we been
informed of such case by the Management.
FOR GUJAR RAWAT SHETH & ASSOCIATES.
CHARTERED ACCOUNTANTS
FIRM REGISTRATIOIN NO. : 121347W
(MOHAN R. GUJAR)
PLACE : Pune PARTNER
DATE : 29th May, 2010 MEMBERSHIP NO. 030305
Mar 31, 2004
We have audited the attached BALANCE SHEET of AUTOLINE STAMPINGS
PRIVATE LIMITED, as at 31st March 2004 and the Profit & Loss Account
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.
1. We conducted our audit in accordance with auditing standards
generally accepted in India. Those standards required that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatements. 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 statements
presentation. We believe that our audit provides a reasonable basis
for our opinion.
2. As required by the Companies (Auditors Report) Order issued by the
department of companies affairs in terms of section 227 (4A) of
companies Act, 1956 and on the basis of such checks as we considered
appropriate and according to information and explanation given to us we
enclose in the annexure hereto a statement on the matters specified in
paragraph 4 & 5 of the said order to the extent applicable to company.
3. Further to our comments in the Annexure referred to in paragraph 2
above
We report that :
a) We have obtained all the information and explanation 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 the
books of accounts.
c) The Balance Sheet and Profit & Loss Account dealt with by this
report are in agreement with the Books of Accounts.
d) In our opinion , the Balance Sheet and Profit and Loss Accounts
dealt with by this report comply with the Accounting Standards referred
to in Section 211(3C) of the Companies Act, 1956, to the extent
applicable.
e) On the basis of the written representation received from the
Directors as on 31st March 2004 and taken on record by the Board of
Directors, we report that none of the Directors is disqualified as on
31st March 2004 for being appointed as a Director of the Company in
terms of clause (g) of sub-section (1) of section 274 of the Companies
Act 1956.
f) The Company has not provided for the benefits of the employees like
Gratuity, leave encashment. It is not possible for us to estimate the
liabilities on these accounts since no actuarial valuation has been
made for the same. Therefore, the profit for the year has been shown in
excess to that extent.
g) Subject to our comments in Para ( 3.f ) above, in our opinion and to
the best of our information and according to the explanations given to
us the said accounts read together with Significant Accounting
Policies, and Notes thereon gives 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 :
i) In case of the Balance Sheet, of the state of affairs of the Company
as on 31st March, 2004.
ii) In the case of the Profit & Loss Account of the Profit the year
ended on 31st March, 2004.
[ Annexure Referred to in paragraph 2 of the Auditors Report of even
date to the members of AUTOLINE STAMPINGS PRIVATE LIMITED on the
Accounts for the Year Ended on 31st March, 2004 ]
1) In respect of Fixed Assets
a) The Company has maintained proper records showing full particulars
including quantitative details and situation of Fixed Assets on the
basis of information available.
b) According to the information and explanation given to us, all the
major Assets have been physically verified by the Management during the
year. We have been informed that no material discrepancies were noticed
on such verification. In our opinion, method adopted by the Management
for physical verification is reasonable.
c) In our opinion, during the year the company has not disposed off a
substantial part of its Fixed Assets and the going concern status is
not affected.
2) In respect of its Inventories :
a) The inventory of the Company has been physically verified by the
Management during the year.
b) In our opinion, and according to the information and explanations
given to us, the procedures as explained to us and which are followed
by the Management for physical verification of inventory are reasonable
and adequate in relation to the size of the Company and the nature of
its business.
c) According to the information and explanations given to us no
material discrepancies were noticed on physical verification of stocks
as compared to book records. Minor discrepancies noticed were properly
dealt with, in the books of accounts, which were not material
considering the size of the Companys operation.
3) As per the information and explanation given to us, the company has
not granted or taken any loans, secured or unsecured, to/ from
companies, firms or other parties covered in the Register maintained
under Section 301 of the Companies Act 1956. Hence reporting under
clause 4 sub clause iii (b), iii (c) & iii (d) of the order is not
applicable to the Company.
4) There are adequate internal control procedures commensurate with the
size of the Company and the nature of its business, for the purchase of
inventory and fixed assets and for the sale of goods. As per the
information and explanation given to us, in our opinion there is no
continuing failure to correct major weaknesses in internal control.
5) In respect of transaction covered under section 301 of the Companies
Act 1956 :
a) Based on the audit procedures applied by us and according to the
information and explanations provided by the Management we are of the
opinion that the transactions that need to be entered into the register
maintained under section 301 have been so entered.
b) In our opinion, and according to the information and 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, and exceeding the value of Rupees five lacs in
respect of any party during the year have been made at prices which are
reasonable having regard to the market prices prevailing at the
relevant time.
6) According to information and explanation given to us, the Company
has not accepted any deposits during the year from public within the
meaning of the provisions of Sections 58A and 58AA of the Companies Act
1956 and the rules framed there under. Hence clause 4 (vi) of the order
is not applicable.
7) In our opinion, the Companys present internal audit system is
commensurate with its size and nature of its business.
8) Maintenance of cost records has not been prescribed by the Central
Government under clause (d) of sub section (1) of section 209 of the
companies Act, 1956. Hence clause 4 (viii) of the order is not
applicable.
9) a) According to the information and explanations given to us and
according to the books and records as produced and examined by us, in
our opinion, the undisputed statutory dues in respect of Providend
Fund, Investor education and protection fund, E.S.I., Income Tax, Sales
Tax, Excise Duty, Customs Duty, cess and other material statutory dues
as applicable have been regularly deposited by the Company during the
year with the appropriate authorities.
b) As at 31st March 2004, according to the records of the Company and
the information and explanations given to us, there are no disputed
dues in respect of Sales Tax, Income Tax, Custom Duty, Wealth Tax,
Excise Duty and Cess.
10. The company has neither accumulated losses as at March 31, 2004,
nor it has incurred any cash losses during the financial year ended on
that date or in the immediately preceding financial year.
11. Based on our audit procedures and on the information and
explanations given by the Management, in our opinion, the Company, has
not defaulted in repayment of its dues to any financial institution or
bank or Debenture holder as at the balance sheet date.
12. The Company has not granted any loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
13. In our opinion, considering the nature of activities carried on by
the Company during the year, the provisions of any special statute and
provisions applicable to chit fund / nidhi / mutual benefit fund /
societies are not applicable to the Company.
14. In our opinion and according to the information and explanations
given to us, the Company is not a dealer or trader in securities.
15. In our opinion, and according to the explanations given to us, the
Company has not given any guarantee for the loans taken by others from
banks or financial institutions during the year.
15. In our opinion, and according to the explanations given to us, the
Company has not given any guarantee for the loans taken by others from
banks or financial institutions during the year.
16. According to the information and explanation given to us, the term
loans raised during the year have been applied for the purpose for
which they were raised.
17. According to the information and explanations 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 vice versa.
18. The Company has not made any preferential allotment of shares to
parties and companies covered in the register maintained under Section
301 of the Companies Act, 1956 during the year.
19. No debentures have been issued during the year.
20. The Company has not raised any money by public issue during the
year.
21. During the course of our examination of the books of account
carried out in accordance with the generally accepted auditing
practices in India, and according to the information and explanations
given to us, we have neither come across any instance of fraud on or by
the Company, noticed or reported during the year, nor have we been
informed of such case by the Management.
FOR GUJAR RAWAT SHETH & ASSOCIATES.
CHARTERED ACCOUNTANTS.
( MOHAN R. GUJAR )
PARTNER.
M. No. 30305
PLACE : PUNE.
DATE : June 30, 2004.