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AIA Engineering Ltd.

BSE: 532683 Sector: Engineering
NSE: AIAENG ISIN Code: INE212H01026
BSE LIVE 15:40 | 18 Oct 1397.70 1.45
(0.10%)
OPEN

1392.10

HIGH

1420.00

LOW

1392.00

NSE 15:31 | 18 Oct 1408.75 11.50
(0.82%)
OPEN

1395.05

HIGH

1423.00

LOW

1393.10

OPEN 1392.10
PREVIOUS CLOSE 1396.25
VOLUME 570
52-Week high 1641.00
52-Week low 1188.50
P/E 32.12
Mkt Cap.(Rs cr) 13,180
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 1392.10
CLOSE 1396.25
VOLUME 570
52-Week high 1641.00
52-Week low 1188.50
P/E 32.12
Mkt Cap.(Rs cr) 13,180
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

AIA Engineering Ltd. (AIAENG) - Auditors Report

Company auditors report

To

The Members of

AIA Engineering Limited

Report on the Standalone Ind AS Financial Statements

We have audited the accompanying standalone Ind AS financial statementsof AIA Engineering Limited (‘the Company') which comprise the Balance Sheet asat 31st March 2017 the

Statement of Profit income) the Statement of Cash Flows and theStatement of Changes in Equity for the year then ended and a summary of the significantaccounting policies and other explanatory information (herein after referred to as“standalone Ind AS financial statements”).

Management's Responsibility for the Standalone FinancialStatements

The Company's Board of Directors is responsible for the mattersstated in Section 134(5) of the Companies Act 2013

(“the Act”) with respect to the preparation of thesestandalone Ind AS financial statements that give a true and fair view of the financialposition financial performance including other comprehensive income cash flows andchanges in equity of the Company in accordance with the accounting principles generallyaccepted in India including the Indian Accounting Standards (Ind AS) prescribed underSection 133 of the Act read with relevant rules issued thereunder.

This responsibility also includes maintenance of adequate accountingrecords in accordance with the provisions of the Act for safeguarding the assets of theCompany and for preventing and detecting frauds and other irregularities; selection andapplication of appropriate accounting policies; making judgments and estimates that arereasonable and prudent; and design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the accuracy andcompleteness of the accounting records relevant to the preparation and presentation ofthe standalone Ind AS financial statements that give a true and fair view and are freefrom material misstatement whether due to fraud or error.

Auditor's Responsibility

Our responsibility is to express an opinion on these standalone Ind ASfinancial statements based on our audit.

We have taken into account the provisions of the Act the accountingand auditing standards and matters which are required to be included in the audit reportunder the provisions of the Act and the Rules made thereunder.

We conducted our audit of standalone Ind AS financial statement inaccordance 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 theaudit to obtain reasonable assurance about whether the standalone Ind AS financialstatements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence aboutthe amounts and the disclosures in the standalone Ind AS financial statements. Theprocedures selected depend on the auditor's judgment including the assessment of therisks of material misstatement of the standalone Ind AS financial statements whether dueto fraud or error. In making those risk assessments the auditor considers internalfinancial control relevant to the Company's preparation of the standalone Ind ASfinancial statements that give a true and fair view in order to design audit proceduresthat are appropriate in the circumstances.

An audit also includes evaluating the appropriateness of the accountingpolicies used and the reasonableness of the accounting estimates made by theCompany's Directors as well as evaluating the overall presentation of the standalone

Ind AS financial statements.

We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our audit opinion on the standalone Ind AS financial .statements

In our opinion and to the best of our information and according to theexplanations given to us the aforesaid standalone Ind AS financial statements give theinformation required by the

Act in the manner so required and give a true and fair view inconformity with the accounting principles generally accepted in India including the IndAS of the financial position of the Company as at 31st March 2017 and its financialperformance including other comprehensive income its cash flows and the changes in equityfor the year ended on that date.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor's Report) Order 2016(“the Order”) issued by the Central Government of

India in terms of Section 143(11) of the Act we give in the

AnnexureAastatementonthemattersspecifiedin the paragraph 3 and 4 ofthe order to the extent applicable.

2. As required by Section 143(3) of the Act we report that:

(a) we have sought and obtained all the information and explanationswhich to the best of our knowledge and belief were necessary for the purposes of ouraudit.

(b) in our opinion proper books of account as required by law have beenkept by the Company so far as it appears from our examination of those books;

(c) the Balance Sheet the Statement of Profit and Loss the Statementof Cash Flows and the Statement of changes in Equity dealt with by this report are inagreement with the books of account;

(d) in our opinion the aforesaid standalone Ind AS financialstatements comply with the Indian Accounting Standards specified under Section 133 the Actread with relevant rules issued thereunder;

(e) on the basis of the written representations received from thedirectors as on 31st March 2017 taken on record by the Board of Directors none of thedirectors is disqualified as on 31st March 2017 from being appointed as a director interms of Section 164 (2) of the Act;

(f) with respect to the adequacy of the internal financial controlsover financial reporting of the Company and the operating effectiveness of such controlsrefer to our separate report in “Annexure B”; and

(g) with respect to the other matters to be included in theAuditor's report in accordance with rule 11 of the Companies (Audit and Auditors)rules 2014 read with Companies (Audit and Auditors) Amendment rules 2017 in our opinionand to the best of our information and according to the explanations given to us: i. theCompany has disclosed the impact of pending litigations on its financial position in itsstandalone Ind AS financial statements Refer Note 40(1)(a) to the standalone Ind ASfinancial statements; ii. the Company has made provision as required under the applicablelaw or accounting standards for material foreseeable losses if any on long-termcontracts including derivative contracts Refer Note 41 to the standalone Ind AS financialstatements; iii. there has been no delay in transferring amounts required to betransferred to the Investor Education and protection Fund by the Company; and iv. theCompany has provided requisite disclosures in its standalone Ind AS financial statementsas to holdings as well as dealings in Specified Bank

Notes during the period from 8th November 2016 to 30th December 2016and these are in accordance with the books of account maintained by the Company. ReferNote 15 to the standalone Ind AS financial statements.

For talati & talati
Chartered Accountants
(Firm Regn No: 110758W)
Anand Sharma
Place : Ahmedabad (Partner)
Date : 25th May 2017 Mem No: 129033

TO INDEPENDENT AUDITOR'S REPORT

(Referred to in paragraph 1 under the heading of “Report onOther Legal and Regulatory Requirements” of our report of even date)

(i) In respect of its fixed assets:

(a) The Company is maintaining proper records showing full particularsincluding quantitative details and fix situationof (b) As explained to us majority of thefixed have been physically verified by the management during the year and there is aregular programme of having verification regard to the size of the Company and the natureof its assets. No material discrepancies were noticed on suchverification

(c) Based on our audit procedures and on the basis of information andexplanations given to us by the management the title deeds of immovable properties areheld in the name of the Company.

(ii) The inventories have been physically verified during the year bythe management. In our opinion the frequency of verification is reasonable. As explainedto us there were no material discrepancies noticed on physical verification ofinventories as compared to the book records.

(iii) During the year the Company has not given any loans secured orunsecured to the companies firms LLP other parties covered in the register maintainedunder

Section 189 of the Companies Act 2013. Hence Clause (iii) (a) (b)and (c) are not applicable to the Company.

(iv) Based on our audit procedures and on the basis of information andexplanations given to us by the management provisions of Section 185 and 186 of theCompanies Act 2013 in respect of loans investments guarantees and security have beencomplied with.

(v) In our opinion and according to the information and explanationsgiven to us the Company has not accepted any deposit and hence the provisions of Section73 to 76 or any other relevant provisions of the Companies Act and the Companies(Acceptance of Deposits) rules 2014 with regard to the deposits accepted are notapplicable to the Company. Therefore the provisions of Clause (v) of paragraph 3 of theorder are not applicable to the company. According to the information and explanationsgiven to us no order has been passed by Company Law Board or National Company LawTribunal or reserve

Bank of India or any Court or any other Tribunal.

(vi) We have broadly reviewed the cost records maintained by theCompany pursuant to the Companies (Cost records and Audit) rules 2014 prescribed by theCentral

Government under Section 148(1) of the Companies Act

2013 and are of the opinion that prima facie the prescribed costrecords have been so made and maintained. We have however not made a detailedexamination of the cost records with the view to determine whether they are accurate orcomplete.

(vii) In respect of statutory dues:

(a) According to the records of the Company the Company is regular indepositing with appropriate authorities undisputed statutory dues including providentFund Employees' State Insurance Income

Tax Sales Tax Service Tax Duty of Customs Duty of Excise ValueAdded Tax Cess and any other statutory dues applicable to it. According to theinformation and explanations given to us no undisputed amounts payable in respect of theaforesaid statutory dues were in arrears as at 31st

March 2017 for a period of more than six months from the date theybecame payable.

(b) The disputed statutory dues aggregating to Rs 13947.26 lacs thathave not been deposited on account of disputed statutory matters pending beforeappropriate authorities are as under:

(Rs in lacs)

Name of the statute Nature of dues Amt. under dispute not yet deposited as on 31st March 2017 periods to which the amount relates(F.Y.) Forum where the dispute is pending
Central Excise Excise Duty including interest and penalty as applicable 5.43 prior to 2006 Gujarat High Court
2.34 2006-07 to 2008-09 Asst. Commissioner (Nagpur)
31.39 2006-07 to 2007-08 CESTAT (Ahmedabad)
1434.24 2009-10 to 2012-13 DGCEI (Ahmedabad)
16.08 2011-12 to 2015-16 Deputy Commissioner (Ahmedabad)
Service Tax Service Tax including interest and penalty as applicable 91.90 2007-08 to 2011-12 CESTAT (Ahmedabad)
8.55 2009-10 Joint Commissioner (Ahmedabad)
5.69 2010-11 to 2016-17 Joint Commissioner (Ahmedabad)
98.18 2010-11 to 2016-17 Commissioner (Appeals) (Ahmedabad)
153.92 2010-11 to 2016-17 CESTAT (Ahmedabad)
411.19 2016-17 principal Commissioner (Ahmedabad)
Sales Tax Sales Tax including interest and penalty as applicable 19.76 2001-02 Sales Tax- Tribunal (Nagpur)
VAT VAT including interest and penalty as applicable 9.31 2009-10 Tribunal (Ahmedabad)
8.57 2010-11 Joint Commissioner (Ahmedabad)
0.64 2011-12 Joint Commissioner (Ahmedabad)
9.79 2013-14 Tribunal (Trichy)
Income Tax Income Tax 407.44 2005-06 Gujarat High Court
64.45 2005-06 ITAT (Ahmedabad)
1100.66 2006-07 Gujarat High Court
893.05 2007-08 ITAT (Ahmedabad)
1832.35 2008-09 ITAT (Ahmedabad)
1828.30 2009-10 ITAT (Ahmedabad)
1729.92 2010-11 ITAT (Ahmedabad)
1610.63 2011-12 CIT (Appeals) (Ahmedabad)
2173.48 2012-13 CIT (Appeals) (Ahmedabad)
tOtAL 13947.26

(viii) Based on our audit procedures and on the basis of informationand explanations given to us by the management we are of the opinion that the Company hasnot defaulted in repayment of dues to the Financial

Institutions Banks Government or Debenture Holders. (ix) The Companyhas not raised any money by way of initial public offer or further public offer (includingdebt instruments) during the year under audit. According to the information andexplanations given to us the term loans were applied for the purpose for which they wereobtained.

(x) Based on the audit procedures performed and representation obtainedfrom management we report that no case of material fraud by the Company or on the

Company by its officer or employee has been noticed or reported for theyear under audit.

(xi) Based on our audit procedures and on the basis of information andexplanations given to us by the management managerial remuneration has been paid orprovided in accordance with the requisite approvals mandated by the provisions of Section197 read with Schedule V to the Companies Act 2013.

(xii) The Company is not a Nidhi Company. Therefore; the provisions ofClause (xii) of paragraph 3 of the Order are not applicable to the Company.

(xiii) Based on our audit procedures and on the basis of informationand explanations given to us by the management all transactions with the related partiesare in compliance with Section 177 and 188 of Companies Act 2013 wherever applicable andthe details of such related party transactions have been disclosed in the

Standalone Ind AS Financial Statements etc. as required by theapplicable accounting standards; (xiv) Based on our audit procedures and on the basis ofinformation and explanations given to us by the management the Company has not made anypreferential allotment or private placement of shares or fully or partly convertibledebentures during the year under review.

Therefore the provisions of Clause (xiv) of paragraph 3 of the Orderare not applicable to the Company.

(xv) Based on our audit procedures and on the basis of information andexplanations given to us by the management the Company has not entered into any non-cashtransactions with directors or persons connected with him.

(xvi) The Company is not required to be registered under Section 45-IAof the Reserve Bank of India Act 1934.

For talati & talati
Chartered Accountants
(Firm Regn No: 110758W)
Anand Sharma
Place : Ahmedabad (Partner)
Date : 25th May 2017 Mem No: 129033

ANNEXURE B

TO INDEPENDENT AUDITORS' REPORT

(Referred to in paragraph 2(f) under the heading of “Report onOther Legal and Regulatory Requirements” of our report of even date)

REPORT ON THE INTERNAL FINANCIAL CONTROLS UNDER CLAUSE (I) OFSUB-SECTION 3 OF SECTION 143 OF THE COMPANIES ACT 2013 (“THE ACT”)

We have audited the internal financial controls over financialreporting of AIA Engineering Limited (“the Company”) as of 31st March 2017 inconjunction with our audit of the standalone financial statements of the Company for theyear ended on that date.

MANAGEMENT'S RESPONSIBILITY FOR INTERNAL FINANCIAL CONTROLS

The Company's management is responsible for establishing andmaintaining internal financial controls based on the internal control over financialreporting criteria established the Company considering the essential components ofinternal control stated in the Guidance Note on audit of internal financial controls overfinancial reporting (the “Guidance Note”) issued by the Institute of CharteredAccountants of India (“ICAI”).

These responsibilities include the design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the orderly and efficient conduct of its business including adherence toCompany's policies the safeguarding of its assets the prevention and detection offrauds and errors the accuracy and completeness of the accounting records and the timelypreparation of reliable financial information as required under the Companies Act 2013.

AUDITORS' RESPONSIBILITY

Our responsibility is to express an opinion on the Company'sinternal financial controls over financial reporting based on our audit. We conducted ouraudit in accordance with the Guidance Note on audit of internal financial controls overfinancial reporting and the Standards on Auditing both issued by ICAI and deemed to beprescribed under Section 143(10) of the Companies Act 2013 to the extent applicable toan audit of internal financial controls. Those Standards and the Guidance

Note require that we comply with ethical requirements and plan andperform the audit to obtain reasonable assurance about whether adequate internal financialcontrols over financial reporting was established and maintained and if such controlsoperated effectively in all material respects. our audit involves performing procedures toobtain audit evidence about the adequacy of the internal financial controls system overfinancial reporting and their operating effectiveness. Our audit of internal financialcontrols over financial reporting included obtaining an understanding of internalfinancial controls over financial reporting assessing the risk that a material weaknessexists and testing and evaluating the design and operating effectiveness of internalcontrol based on the assessed risk. The procedures selected depend on the auditor'sjudgment including the assessment of the risks of material misstatement of the financialstatements whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our audit opinion on the Company's internalfinancial controls system over financial reporting.

MEANING OF INTERNAL FINANCIAL CONTROLS OVER FINANCIAL REPORTING

A Company's internal financial control over financial reporting isa process designed to provide reasonable assurance regarding the reliability of financialreporting and the preparation of financial statements for external purposes in accordancewith generally accepted accounting principles. A Company's internal financial controlover financial reporting includes those policies and procedures that (1) pertain to themaintenance of records that in reasonable detail accurately and fairly reflect thetransactions and dispositions of the assets of the Company; (2) provide reasonableassurance that transactions are recorded as necessary to permit preparation of financialstatements in accordance with generally accepted accounting principles and that receiptsand expenditures of the Company are being made only in accordance with authorizations ofmanagement and directors of the Company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorized acquisition use or disposition of theCompany's assets that could have a material effect on the financial statements.

INHERENT LIMITATIONS OF INTERNAL FINANCIAL CONTROLS OVER FINANCIALREPORTING

Because of the inherent limitations of internal financial controls overfinancial reporting including the possibility of collusion or improper managementoverride of controls material misstatements due to error or fraud may occur and not bedetected. Also projections of any evaluation of the internal financial controls overfinancial reporting to future periods are subject to the risk that the internal financialcontrol over financial reporting may become inadequate because of changes in conditionsor that the degree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion the Company has in all material respects an adequateinternal financial controls system over financial reporting and such internal financialcontrols over financial reporting were operating effectively as at 31st March 2017 basedon the internal control over financial reporting criteria established by the Companyconsidering the essential components of internal control stated in the Guidance Note onaudit of internal financial controls over financial reporting issued by the Institute ofChartered Accountants of India.

For talati & talati
Chartered Accountants
(Firm Regn No: 110758W)
Anand Sharma
Place : Ahmedabad (Partner)
Date : 25th May 2017 Mem No: 129033