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Amtek Auto Ltd.

BSE: 520077 Sector: Auto
NSE: AMTEKAUTO ISIN Code: INE130C01021
BSE 16:01 | 23 May 10.64 0.50
(4.93%)
OPEN

10.64

HIGH

10.64

LOW

10.64

NSE 15:54 | 23 May 10.80 0.50
(4.85%)
OPEN

10.80

HIGH

10.80

LOW

10.80

OPEN 10.64
PREVIOUS CLOSE 10.14
VOLUME 22952
52-Week high 37.35
52-Week low 8.74
P/E
Mkt Cap.(Rs cr) 264
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 10.64
CLOSE 10.14
VOLUME 22952
52-Week high 37.35
52-Week low 8.74
P/E
Mkt Cap.(Rs cr) 264
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Amtek Auto Ltd. (AMTEKAUTO) - Auditors Report

Company auditors report

To the Members of Amtek Auto Limited New Delhi Report on the Standalone Ind ASFinancial Statements

We have audited the accompanying standalone Ind AS financial statements of AmtekAuto Limited (‘the Company') which comprise the balance sheet as at 31stMarch 2017 the statement of profit and loss [including other comprehensive income] thestatement of cash flows and the statement of changes in equity for the year then endedand a summary of the significant accounting policies and other explanatory information.

Management's Responsibility for the standalone Ind AS Financial Statements

The company's board of directors is responsible for the matters specified in section134(5) of the Companies Act 2013 ("the Act") with respect to the preparation ofthese standalone Ind AS financial statements that give a true and fair view of thefinancial position financial performance [including other comprehensive income] cashflows and changes in equity of the company in accordance with the accounting principlesgenerally accepted in India including the Indian accounting standards [Ind AS] prescribedunder section 133 of the Act read with relevant rules issued thereunder.

This responsibility also includes the maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding of the assets of the companyand for preventing and detecting the 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 control 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 AS financialstatements based on our audit. In conducting our audit we have taken into account theprovisions of the Act the accounting and auditing standards and matters which arerequired to be included in the audit report under the provisions of the Act and the Rulesmade thereunder.

We conducted our audit of the standalone Ind AS financial statements in accordance withthe Standards on Auditing specified under Section 143(10) of the Act. Those Standardsrequire that we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether the standalone Ins AS financial statements are freefrom material misstatements.

An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the standalone Ind AS financial statements. The procedures selecteddepend on the auditor's judgment including the assessment of the risks of materialmisstatement of the standalone Ind AS financial statements whether due to fraud or error.In making those risk assessments the auditor considers internal financial controlrelevant to the company's preparation of the standalone Ind AS financial statements thatgive a true and fair view in order to design audit procedures that are appropriate in thecircumstances. An audit also includes evaluating the appropriateness of the accountingpolicies used and the reasonableness of the accounting estimates made by the company'sdirectors as well as evaluating the overall presentation of the standalone Ind ASfinancial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our qualified audit opinion on the standalone Ind AS financialstatements.

Basis for qualified opinion

As explained in note no. 3.12 to the standalone Ind AS financial statements regardinginventories not moved for last over one year amounting to Rs. 284.26 crore. Since thecompany has not obtained any technical / market / commercial evaluation for the same weare unable to comment on the realizable value of the same which may be lower than theamount at which it has been reflected in the balance sheet.

Qualified Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us except for the matters stated in the Basis for qualified opinion as givenherein above the effect of which is not ascertainable the aforesaid standalone Ind ASfinancial statements give the information required by the Act in the manner so requiredand give a true and fair view in conformity with the accounting principles generallyaccepted in India including the Ind AS of the state of affairs of the company as at March31 2017 and its loss for the year ended March 31 2017 total comprehensive income itscash flows and the 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 ("the Order")issued by the Central Government of India in exercise of powers conferred by sub section(11) of section 143 of the act we give in annexure A a statement on the mattersspecified in paragraph 3 & 4 of the Order to the extent applicable.

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

(a) Except for the matters described in the Basis of qualified opinion above we havesought and obtained all the information and explanations which to the best of ourknowledge and belief were necessary for the purposes of our audit;

(b) In our opinion except for the matters described in Basis for qualified opinionabove proper books of account as required by law have been kept by the company so far asit appears from our examination of those books;

(c) The balance sheet the statement of profit and loss [including other comprehensiveincome] the cash flow statement and the statement of changes in equity dealt with by thisreport are in agreement with the relevant books of account;

(d) In our opinion except for the matters described in the Basis of qualified opinionabove the aforesaid standalone Ind AS financial statements comply with the IndianAccounting Standards specified under section 133 of the Act read with the relevant rulesthereunder;

(e) In our opinion the matters described in the Basis for qualified opinion above mayhave adverse effect on the functioning of the company.

(f) On the basis of the written representations received from the directors as on 31stMarch 2017 and taken on record by the board of directors none of the directors isdisqualified as on March 31 2017 from being appointed as a director in terms of Section164 (2) of the Act; and

(g) 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". Our report expresses an unmodified opinion onthe adequacy and the operating effectiveness of the company's internal financial controlsover financial reporting; and

(h) 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 as amended inour opinion and to the best of our information and according to the explanations given tous:

i. The company has disclosed the impact of pending litigations on its financialposition in its standalone Ind AS financial statements [Refer Note no. 3.27.5].

ii. the company did not have any long-term contracts including derivative contracts forwhich there were any material foreseeable losses.

iii. there were no amounts which were required to be transferred to the InvestorEducation and Protection Fund by the company.

iv. the company has provided requisite disclosures in its standalone Ind AS financialstatements as to holdings as well as dealings in specified bank notes during the periodfrom 8th November 2016 to 30th December 2016. Based on the auditprocedures performed and the representations provided to us by the management we reportthat the disclosures are in accordance with the books of accounts maintained by thecompany and as produced to us by the management [Refer Note no. 3.33].

For Manoj Mohan & Associates

Chartered Accountants

Firm's registration number: 009195C

Manoj Kumar Agarwal

[Partner]

Membership Number: 076980

Place : New Delhi

Dated : June 10 2017

Annexure - A to the Independent Auditors' Report

The Annexure referred to in Independent Auditors' Report to the members of the Companyon the standalone Ind AS financial statements for the year ended 31st March 2017.

(i) (a) The company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.

(b) As explained to us fixed assets according to the practice of the company havebeen physically verified by the management at reasonable intervals. In our opinion thefrequency of physical verification of fixed assets is reasonable having regard to the sizeof the Company and nature of its assets. According to the information and explanationsgiven to us no material discrepancies were noticed on such physical verification.

(c) According to the information and explanations given to us and on the basis of ourexamination of the records of the company the title deeds of immovable properties areheld in the name of the company.

(ii) We have been informed that the inventories are physically verified during theperiod by the management at reasonable intervals. The frequency of physical verificationin our opinion is reasonable having regard to the size of the company and nature of itsbusiness. The discrepancies noticed on verification between the physical inventories andthe book records were not material in relation to the operation of the company and thesame have been properly dealt with in the books of account.

(iii) The company during the year has not granted any loans secured or unsecured tocompanies firms Limited Liability Partnerships or other parties covered in the registermaintained under section 189 of the Companies Act 2013 (‘the Act'). Accordinglyparagraph 3(iii) of the Order is not applicable to the company.

(iv) In our opinion and according to the information and explanations given to us thecompany has complied with the provisions of section 185 and 186 of the Act with respectto the loans investments guarantees and security.

(v) Since the company has not accepted any deposit from public the directives issuedby the Reserve Bank of India and the provisions of section 73 to 76 or any other relevantprovisions of the Companies Act 2013 and the rules framed there under with regard to thedeposits accepted from the public are not applicable.

(vi) The Central Government has prescribed the maintenance of cost records undersection (1) of section 148 of the Companies Act and on the basis of records producedbefore us for our verification; we are of the opinion that prima facie the prescribedaccounts and cost records have been maintained. However we are neither required to carryout nor have carried out any detailed examination of such accounts & records.

(vii) (a) According to the information and explanations given to us and on the basis ofour examination of the records of the company there had been delays in depositingundisputed statutory dues including provident fund employees state insurance income-taxsales tax service tax duty of customs duty of excise value added tax cess and otherstatutory dues with appropriate authorities during the year ended 31st March2017. The outstanding amount as on 31st March 2017 on account of statutory duesbeing Rs. 1898.81 Lakhs.

According to the information and explanations given to us arrears of undisputedstatutory dues outstanding for a period of more than six months as on the date of balancesheet i.e. March 31 2017 was Rs. 11.34 Lakhs.

(b) According to the information and explanations given to us and as per ourverification of records of the company the company has not paid / deposited followingstatutory dues on account of disputes:

S. No. Name of Statute Period to which it pertains Forum where dispute is pending Amount (Rs. In Lakh)
1 Income Tax Act 1961 2007 to 2014 CIT (A) / ITAT 1958.00
2 Sales Tax 2012-13 Excise & Taxation Officer (H. P.) 1137.97
3 Excise Duty 2010 to 2016 Hon'ble High Court of Punjab & Haryana 440.62
Total 3536.59

(viii) According to the information and explanations given to us and as per ourverification of the records of the company there had been delays in payment ofinstalments and Interest of term loans non-convertible debentures and foreign currencyloans to the banks / financial institutions during the period. In view of the persistingdefaults entire term loans amounting to Rs. 970105.46 Lakhs [including interest duethereon] is under default.

(ix) According to the information and explanations given to us and as per ourverification of the records of the company the company during the year has not raisedmoneys by way of initial public offer or further public offer (Including debtinstruments). The term loans availed by the company have been applied for the purpose forwhich the loans were obtained.

(x) According to the information and explanations given to us no fraud by the companyor on the company by its officers or employees has been noticed or reported during theYear ended 31st March 2017.

(xi) According to the information and explanations given to us and based on ourexamination of the records of the company the company has paid/provided for managerialremuneration in accordance with the requisite approvals mandated by the provisions ofsection 197 read with Schedule V to the Act.

(xii) In our opinion and according to the information and explanations given to usthe company is not a Nidhi company.

Therefore the provisions of Clause 3 (xii) of the Order are not applicable to thecompany.

(xiii) According to the information and explanations given to us and as per ourverification of the records of the company all transactions with the related parties arein compliance with the Sections 177 and 188 of the Companies Act 2013 where applicableand the details have been disclosed in the Ind AS financial statements as required by theapplicable accounting standards.

(xiv) According to the information and explanations given to us and as per ourverification of the records of the company the company has made preferential allotment of23500000 equity shares of Rs. 2/- each at a premium of Rs.48/- per share to promotersand the proceeds of the same have been utilized for the purpose for which it has beenraised.

(xv) According to the information and explanations given to us and as per ourverification of the records of the company the company has not entered into any non-cashtransactions with directors or persons connected with them.

Accordingly the provisions of Clause 3 (xv) of the order are not applicable to thecompany.

(xvi) In our opinion the company is not required to be registered under section 45-IAof the Reserve Bank of India Act 1934. Accordingly the provisions of Clause 3 (xvi) ofthe order are not applicable to the company.

For Manoj Mohan & Associates

Chartered Accountants

Firm's registration number: 009195C

Manoj Kumar Agarwal

[Partner]

Membership Number: 076980

Place : New Delhi

Dated : June 10 2017

Annexure - B to the Independent Auditors' Report

Report on the Internal Financial Controls over financial reporting under Clause (i) ofSub-section 3 of Section 143 of the Companies Act 2013 ("the Act") of AmtekAuto Limited

We have audited the internal financial controls over financial reporting of Amtek AutoLimited ("the Company") as of 31st March 2017 in conjunction with our audit ofthe standalone Ind AS financial statements of the company for the year ended on that date.

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 control statedin the Guidance Note on Audit of Internal Financial Controls over Financial Reportingissued by the Institute of Chartered Accountants of India ("the Guidance Note").These responsibilities include the design implementation and maintenance of adequateinternal financial controls that were operating effectively for ensuring the orderly andefficient conduct of its business including adherence to company's policies thesafeguarding of its assets the prevention and detection of frauds and errors theaccuracy and completeness of the accounting records and the timely preparation ofreliable 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 Reporting(the "Guidance Note") and the Standards on Auditing issued by ICAI and deemedto be prescribed under section 143(10) of the Companies Act 2013 to the extentapplicable to an audit of internal financial controls both applicable to an audit ofInternal Financial Controls and both issued by the Institute of Chartered Accountants ofIndia. Those Standards and the Guidance Note require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetheradequate internal financial controls over financial reporting was established andmaintained and if such controls operated effectively in all material respects.

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 standalone Ind AS financial statements whether due to fraudor 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 internal financialcontrols system over financial reporting.

Meaning of Internal Financial Controls over Financial Reporting

A company's internal financial control over financial reporting is a process designedto provide reasonable assurance regarding the reliability of financial reporting and thepreparation of financial statements for external purposes in accordance with generallyaccepted accounting principles. A company's internal financial control over financialreporting includes those policies and procedures that (1) pertain to the maintenance ofrecords that in reasonable detail accurately and fairly reflect the transactions anddispositions of the assets of the company; (2) provide reasonable assurance thattransactions are recorded as necessary to permit preparation of financial statements inaccordance with generally accepted accounting principles and that receipts andexpenditures of the company are being made only in accordance with authorisations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorised 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 and to the best of our information and according to the explanationsgiven to us the company has in all material respects an adequate internal financialcontrols system over financial reporting and such internal financial controls overfinancial reporting were operating effectively as at 31st March 2017 based onthe 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 Manoj Mohan & Associates

Chartered Accountants

Firm's registration number: 009195C

Manoj Kumar Agarwal

[Partner]

Membership Number: 076980

Place : New Delhi

Dated : June 10 2017