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AIA Engineering Ltd.

BSE: 532683 Sector: Engineering
NSE: AIAENG ISIN Code: INE212H01026
BSE LIVE 15:40 | 09 Dec 1286.10 11.85
(0.93%)
OPEN

1270.00

HIGH

1293.95

LOW

1264.80

NSE LIVE 15:44 | 09 Dec 1285.40 16.00
(1.26%)
OPEN

1270.00

HIGH

1291.85

LOW

1260.05

OPEN 1270.00
PREVIOUS CLOSE 1274.25
VOLUME 1000
52-Week high 1355.00
52-Week low 700.00
P/E 27.00
Mkt Cap.(Rs cr) 12127.92
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 1270.00
CLOSE 1274.25
VOLUME 1000
52-Week high 1355.00
52-Week low 700.00
P/E 27.00
Mkt Cap.(Rs cr) 12127.92
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

INDEPENDENT AUDITOR’S REPORT

To

THE MEMBERS OF

AIA ENGINEERING LIMITED

REPORT ON THE STANDALONE FINANCIAL STATEMENTS

We have audited the accompanying standalone financial statements of AIA ENGINEERINGLIMITED ("the Company") which comprise the Balance Sheet as at 31st March2016 the Statement of Profit and Loss the Cash Flow Statement for the year then endedand a summary of the 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 Section134(5) of the Companies Act 2013 ("the Act") with respect to the preparation ofthese standalone financial statements that give a true and fair view of the financialposition financial performance and cash flows of the Company in accordance with theaccounting principles generally accepted in India including the Accounting Standardsspecified under Section 133 of the Act read with Rule 7 of the Companies (Accounts)Rules 2014. This responsibility also includes maintenance of adequate accounting recordsin accordance with the provisions of the Act for safeguarding of the assets of the Companyand 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 financial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.

AUDITOR’S RESPONSIBILITY

Our responsibility is to express an opinion on these standalone financial statementsbased on our audit.

We have taken into account the provisions of the Act the accounting and auditingstandards and matters which are required to be included in the audit report under theprovisions of the Act and the Rules made thereunder.

We conducted our audit in accordance with the Standards on Auditing specified underSection 143(10) of the Act. Those Standards require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetherthe financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the financial statements. The procedures selected depend on theauditor’s judgment including the assessment of the risks of material misstatement ofthe financial statements whether due to fraud or error. In making those risk assessmentsthe auditor considers internal financial control relevant to the Company’spreparation of the financial statements that give a true and fair view in order to designaudit procedures that are appropriate in the circumstances. An audit also includesevaluating the appropriateness of the accounting policies used and the reasonableness ofthe accounting estimates made by the Company’s Directors as well as evaluating theoverall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide 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 explanationsgiven to us the aforesaid standalone financial statements give the information requiredby the Act in the manner so required and give a true and fair view in conformity with theaccounting principles generally accepted in India of the state of affairs of the Companyas at 31st March 2016 and its profit and its cash flows 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 ("theOrder") issued by the Central Government of India in terms of Sub-Section (11) ofSection 143 of the Companies Act 2013 we give in the "Annexure - A" astatement on the matters specified in paragraphs 3 and 4 of the Order to the extentapplicable.

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 bestof 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 theCompany so far as it appears from our examination of those books.

(c) The Balance Sheet the Statement of Profit and Loss and the Cash Flow Statementdealt with by this Report are in agreement with the books of account.

(d) In our opinion the aforesaid standalone financial statements comply with theAccounting Standards specified under Section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014.

(e) On the basis of the written representations received from the directors as on 31stMarch 2016 taken on record by the Board of Directors none of the Directors isdisqualified as on 31st March 2016 from being appointed as a Director in terms of Section164 (2) of the Act.

(f) With respect to the adequacy of the internal financial controls over financialreporting of the Company and the operating effectiveness of such controls refer to ourseparate Report in "Annexure - B".

(g) With respect to the other matters to be included in the Auditor’s Report inaccordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 in our opinionand 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 financialposition in its financial statements – Refer Note 32 (1) (a) to the financialstatements;

ii. The Company has made provision as required under the applicable law or accountingstandards for material foreseeable losses if any on long-term contracts includingderivative contracts – Refer Note 33 to the financial statements;

iii. There has been no delay in transferring the amount required to be transferred tothe Investor Education and Protection Fund by the Company.

For TALATI & TALATI
Chartered Accountants
(Firm Regn No: 110758W)
ANAND ShARMA
PLACE : AHMEDABAD (Partner)
DATE : 25th May 2016 Mem No : 129033

ANNEXURE A

TO INDEPENDENT AUDITOR’S REPORT

(Referred to in paragraph 1 under the heading of "Report on Other Legal andRegulatory Requirements" of our report of even date.)

(i) In respect of its fixed assets:

(a) The Company is maintaining proper records showing full particulars includingquantitative details and situation of fixed assets;

(b) As explained to us majority of the fixed assets have been physically verified bythe management during the year and there is a regular programme of verification which inour opinion is reasonable having regard to the size of the Company and the nature of itsassets. No material discrepancies were noticed on such verification.

(c) Based on our audit procedures and on the basis of information and explanationsgiven to us by the management the title deeds of immovable properties are held in thename of the Company.

(ii) The inventories have been physically verified during the year by the management.In our opinion the frequency of verification is reasonable. As explained to us therewere no material discrepancies noticed on physical verification of inventories as comparedto the book records.

(iii) During the year the Company has not given any loans secured or unsecured to thecompanies firms LLP or other parties covered in the register maintained under Section189 of the Companies Act 2013. Hence Clause (iii) (a) (b) and (c) are not applicable tothe Company.

(iv) Based on our audit procedures and on the basis of information and explanationsgiven to us by the management provisions of Section 185 and 186 of the Companies Act2013 in respect of loans investments guarantees and security have been complied with.

(v) In our opinion and according to the information and explanations given to us theCompany has not accepted any deposit and hence the provisions of Section 73 to 76 or anyother relevant provisions of the Companies Act and the Companies (Acceptance of Deposits)Rules 2014 with regard to the deposits accepted are not applicable to the Company.Therefore the provisions of Clause (v) of paragraph 3 of the Order are not applicable tothe Company. According to the information and explanations given to us no order has beenpassed by Company Law Board or National Company Law Tribunal or Reserve Bank of India orany Court or any other Tribunal.

(vi) We have broadly reviewed the cost records maintained by the Company pursuant tothe Companies (Cost Records and Audit) Rules 2014 prescribed by the Central Governmentunder Section 148(1) of the Companies Act 2013 and are of the opinion that prima faciethe prescribed cost records have been so made and maintained. We have however not made adetailed examination of the Cost Records with the view to determine whether they areaccurate or complete.

(vii) In respect of statutory dues:

(a) According to the records of the Company the Company is regular in depositing withappropriate authorities undisputed statutory dues including Provident FundEmployees’ State Insurance Income Tax Sales Tax Service Tax Duty of Customs Dutyof Excise Value Added Tax Cess and any other statutory dues applicable to it. Accordingto the information and explanations given to us no undisputed amounts payable in respectof the aforesaid statutory dues were in arrears as at 31st March2016 for a period of morethan six months from the date they became payable.

(b) The disputed Statutory dues aggregating to Rs. 3241.22 lacs that have not beendeposited on account of disputed statutory matters pending before appropriate authoritiesare as under:

(Rs. in lacs)
Name of the statute Nature of dues Amt. under dispute not yet deposited as on 31st March 2016 periods to which the amount relates(F.y) Forum where the dispute is pending
Central Excise Excise Duty 5.43 Prior to 2006 High Court
including interest 2.34 2006-07 to 2008-09 Asst. Commissioner
and penalty as 31.39 2006-07 to 2007-08 CESTAT
applicable
1315.11 2009-10 to 2012-13 CESTAT
Service Tax Service Tax including 2.08 2005-06 to 2007-08 CESTAT
interest and penalty 3.38 2006-07 Asst. Commissioner
as applicable 6.23 2007-08 to 2009-10 Joint Commissioner
99.60 2007-08 to 2010-11 CESTAT
0.85 2009-10 Deputy Commissioner
38.59 2010-11 to 2015-16 Joint Commissioner
80.03 2010-11 to 2015-16 Commissioner(Appeals)
151.04 2010-11 to 2015-16 CESTAT
Sales tax Sales tax including 19.76 2001-02 Sales Tax- Tribunal
interest and penalty
as applicable
VAT VAT including 9.16 2013-14 Tribunal
interest and penalty
as applicable
Income Tax Act Income Tax 64.45 2005-06 ITAT
1961 including interest 9.38 2007-08 CIT(Appeals)
and penalty as 1402.40 2010-11 CIT(Appeals)
applicable
Total 3241.22

(viii) Based on our audit procedures and on the basis of information and explanationsgiven to us by the management we are of the opinion that the Company has not defaulted inrepayment of dues to the Financial Institutions Banks Government or Debenture holders.

(ix) The Company has not raised any money by way of initial public offer or furtherpublic offer (including debt instruments) during the year under audit. According to theinformation and explanations given to us the term loans were applied for the purpose forwhich they were obtained.

(x) Based on the audit procedures performed and representation obtained frommanagement we report that no case of material fraud by the Company or on the Company byits officer or employee has been noticed or reported for the year under audit.

(xi) Based on our audit procedures and on the basis of information and explanationsgiven to us by the management managerial remuneration has been paid or provided inaccordance with the requisite approvals mandated by the provisions of Section 197 readwith Schedule V to the Companies Act.

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

(xiii) Based on our audit procedures and on the basis of information and explanationsgiven to us by the management all transactions with the related parties are in compliancewith Sections 177 and 188 of the Companies Act 2013 wherever applicable and the detailshave been disclosed in the Financial Statements etc. as required by the applicableaccounting standards;

(xiv) Based on our audit procedures and on the basis of information and explanationsgiven to us by the management the Company has not made any preferential allotment orprivate placement of shares or fully or partly convertible debentures during the yearunder review. Therefore the provisions of Clause (xiv) of paragraph 3 of the Order arenot applicable to the Company.

(xv) Based on our audit procedures and on the basis of information and explanationsgiven to us by the management the Company has not entered into any non-cash transactionswith Directors or persons connected with him .

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

For TALATI & TALATI
Chartered Accountants
(Firm Regn No: 110758W)
ANAND ShARMA
PLACE : AHMEDABAD (Partner)
DATE : 25th May 2016 Mem No : 129033

ANNEXURE B

TO INDEPENDENT AUDITOR’S REPORT

(Referred to in paragraph 2(f) under the heading of "Report on Other Legal andRegulatory Requirements" of our report of even date.)

REPORT ON THE INTERNAL FINANCIAL CONTROLS UNDER CLAUSE (I) OF SUB-SECTION 3 OF SECTION143 OF THE COMPANIES ACT 2013 ("THE ACT")

We have audited the Internal Financial Controls over financial reporting of AIAEngineering Limited ("the Company") as of 31st March 2016 in conjunction withour audit of the standalone financial statements of the Company for the year ended on thatdate.

MANAGEMENT’S RESPONSIBILITY FOR INTERNAL FINANCIAL CONTROLS

The Company’s management is responsible for establishing and maintaining internalfinancial controls based on the internal control over financial reporting criteriaestablished by the Company considering the essential components of internal controlstated in the Guidance Note on audit of internal financial controls over financialreporting (the "Guidance Note") issued by the Institute of Chartered Accountantsof India. These responsibilities include the design implementation and maintenance ofadequate internal financial controls that were operating effectively for ensuring theorderly and efficient conduct of its business including adherence to company’spolicies the safeguarding of its assets the prevention and detection of frauds anderrors the accuracy and completeness of the accounting records and the timely preparationof reliable financial information as required under the Companies Act 2013.

AUDITORS’ RESPONSIBILITY

Our responsibility is to express an opinion on the Company’s internal financialcontrols over financial reporting based on our audit. We conducted our audit in accordancewith the Guidance Note on audit of internal financial controls over financial reportingand the Standards on auditing both issued by ICAI and deemed to be prescribed underSection 143(10) of the Companies Act 2013 to the extent applicable to an audit ofinternal financial controls. Those Standards and the Guidance Note require that we complywith ethical requirements and plan and perform the audit to obtain reasonable assuranceabout whether adequate internal financial controls over financial reporting wasestablished and maintained and if such controls operated effectively in all materialrespects.

Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls system over financial reporting and their operatingeffectiveness. Our audit of internal financial controls over financial reporting includedobtaining an understanding of internal financial controls over financial reportingassessing the risk that a material weakness exists and testing and evaluating the designand operating effectiveness of internal control based on the assessed risk. The proceduresselected depend on the auditor’s judgment including the assessment of the risks ofmaterial misstatement of the financial statements whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Company’s internal financial controlssystem over financial reporting.

MEANING OF INTERNAL FINANCIAL CONTROLS OVER FINANCIAL REPORTING

A company’s internal financial control over financial reporting is a processdesigned to provide reasonable assurance regarding the reliability of financial reportingand the preparation of financial statements for external purposes in accordance withgenerally accepted accounting principles. A Company’s internal financial control overfinancial 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 FINANCIAL REPORTING

Because of the inherent limitations of internal financial controls over financialreporting including the possibility of collusion or improper management override ofcontrols material misstatements due to error or fraud may occur and not be detected.Also projections of any evaluation of the internal financial controls over financialreporting to future periods are subject to the risk that the internal financial controlover financial reporting may become inadequate because of changes in conditions or thatthe degree of compliance with the policies or procedures may deteriorate.

OPINION

In our opinion the Company has in all material respects an adequate internalfinancial controls system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at 31st March 2016 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note on audit ofinternal financial controls over financial reporting issued by the Institute of CharteredAccountants of India.

For TALATI & TALATI
Chartered Accountants
(Firm Regn No: 110758W)
ANAND ShARMA
PLACE : AHMEDABAD (Partner)
DATE : 25th May 2016 Mem No : 129033

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