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Austin Engineering Company Ltd.

BSE: 522005 Sector: Engineering
NSE: N.A. ISIN Code: INE759F01012
BSE LIVE 15:02 | 18 Oct 64.00 1.90
(3.06%)
OPEN

61.00

HIGH

64.35

LOW

61.00

NSE 05:30 | 01 Jan Stock Is Not Traded.
OPEN 61.00
PREVIOUS CLOSE 62.10
VOLUME 4353
52-Week high 75.50
52-Week low 45.10
P/E
Mkt Cap.(Rs cr) 22
Buy Price 62.60
Buy Qty 50.00
Sell Price 65.00
Sell Qty 101.00
OPEN 61.00
CLOSE 62.10
VOLUME 4353
52-Week high 75.50
52-Week low 45.10
P/E
Mkt Cap.(Rs cr) 22
Buy Price 62.60
Buy Qty 50.00
Sell Price 65.00
Sell Qty 101.00

Austin Engineering Company Ltd. (AUSTINENGGCO) - Auditors Report

Company auditors report

To

The Members of

AUSTIN ENGINEERING CO. LTD.

Report on the Financial Statements

We have audited the accompanying standalone Financial Statements of Austin EngineeringCompany Limited ("the company") which comprise of the Balance Sheet as at 31stMarch2016 the Statement of Profit and Loss and Cash Flow Statement for the year thenended and a summary of significant accounting policies and other explanatory information.

Management's Responsibilities for the 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 preparation of thesestandalone financial statements that give a true and fair view of the financial positionfinancial performance and cash flows of the Company in accordance with the accountingprinciples generally accepted in India including Accounting Standards specified underSection 133 of the Companies Act 2013 ("the Act") read with the Rule 7 of theCompanies (Accounts) Rule 2014. This responsibility also includes the maintenance ofadequate accounting records in accordance with the provision of the Act for safeguardingof the assets of the Company and for preventing and detecting the fraud and otherirregularities; selection and application of appropriate accounting policies; makingjudgments and estimates that are reasonable and prudent; and design implementation andmaintenance of adequate internal financial control that were operating effectively forensuring the accuracy and completeness of the accounting records relevant to thepreparation and presentation of the financial statements that give a true and fair viewand are free from material misstatement whether due to fraud or error.

Auditors' Responsibility

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

While conducting the audit we have taken into account the provision of the Act theaccounting and auditing standards and matters which are required to be included in theaudit report under the provision of the Act and the Rules made there under.

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 anddisclosures in the standalone financial statements. The procedure selected depends on theauditor's judgment including the assessment of the risks of material misstatement of thestandalone financial statements whether due to fraud or error. In making those riskassessments the auditor considers internal financial control relevant to the company'spreparation of the standalone financial statements that give true and fair view in orderto design audit procedure that are appropriate in the circumstances. An audit also includeevaluating the appropriateness of accounting policies used and the reasonableness of theaccounting estimates made by Company's Directors as well as evaluating the overallpresentation 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 :

(a) in the case of the Balance sheet of the state of affairs of the Company as at 31stMarch 2016 ;

(b) in the case of the Statement of Profit and Loss of the Loss for the year ended onthat date; and

(c) in the case of the Cash Flow Statement of the Cash Flows for the year ended onthat date.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor's Report) Order 2016 ("the Order")issued by the Central Government of India in terms of sub section (11) of section 143 ofthe Act we give in the ‘Annexure - A' a statement on the matters specified inparagraphs 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 bestof 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 theCompany so far as it appears from our examination of those books;

c. the Balance Sheet the Statement of Profit and Loss and Cash Flow Statement dealtwith 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 u/s 133 of the Act read with the Rule 7 of the Companies(Accounts) Rules 2014;

e. on the basis of written representations received from the directors as on March 312016 taken on record by the Board of Directors none of the directors is disqualified ason March 31 2016 from being appointed as a director in terms of section 164(2) of theAct;

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'; and

g. with respect to other matters to be included in the Auditors' Report in accordancewith Rule 11 of the Companies (Audit and Auditors) Rules 2014 in our opinion and to thebest 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 28.1 (ii) & (iii) to thefinancial statements;

ii) the company did not have any long term contracts including derivative contracts;for which there were any material foreseeable losses;

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

FOR DHIRUBHAI DAND & CO.
Firm Registration No. 118190W
Chartered Accountants
DHIRUBHAI H. DAND
PLACE :JUNAGADH PROPRIETOR
DATE : May 30 2016 M. NO. 017117

ANNEXURE - A TO THE AUDITORS' REPORT

The Annexure referred to in Independent Auditors' Report to the members of the Companyon the standalone financial statements for the year ended 31st March 2016 wereport that:

1. In respect of its Fixed Assets:

(a) The company has maintained proper records showing full particulars includingquantitative details and situations of its fixed assets. (other than in respect of toolsdies furniture & fixture).

(b) The fixed assets have been physically verified by the management at reasonableintervals; no material discrepancies were noticed on such 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 the immovable properties areheld in the name of the company.

2. In respect of its Inventories:

(a) As explained to us physical verification of inventory has been conducted atreasonable intervals by the management.

(b) No material discrepancies were noticed on physical verification of stocks by themanagement as compared to the books records.

3. The company has not granted any loans secured or unsecured to companies firmsLimited Liability Partnerships or other parties covered in the register maintained undersection 189 of the Companies Act 2013.(a)As stated above no such loan has been grantedby the company hence clause (a) related to terms and condition of loans is notapplicable.(b)As stated above no such loan has been granted by the company hence clause(b) related to repayment of loan and interest are also not applicable.(c)As stated aboveno such loan has been granted by the company hence clause (c) related to overdue amountmore than 90 days is also not applicable.

4. 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 and investments made.

5. The company has not accepted any deposits from the public.

6. We have broadly reviewed the books of accounts relating to materials labour andother items of cost maintained by the Company pursuant to the Rules made by the CentralGovernment for the maintenance of cost records under section 148(1) of the Act and we areof the opinion that prima facie the prescribed accounts and records have been madeand maintained.

7 (a) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company the Company is regular in depositing undisputedstatutory dues including provident fund income-tax sales-tax service tax duty ofcustoms duty of excise value added tax cess and other material statutory dues to theappropriate authorities. As explained to us the company did not have any dues on accountof employees' state insurance. According to the information and explanations given to usand based on the records of the Company examined by us no undisputed amount of Statutorydues were outstanding as at March 31 2016 for a period of more than six months from thedate they became payable.

(b) According to the information and explanations given to us and based on the recordsof the Company examined by us there are no material dues of Income Tax Sales-Tax ValueAdded Tax Service-Tax Custom Duty and cess which have not been deposited with theappropriate authorities on account of any dispute. However according to information andexplanations given to us the following dues of Central Excise as at March 31 2016 havenot been deposited by the Company on account of disputes:

Name of the Statute Nature of dues Amount (Rs.)* Period to which the amount relates Forum where the dispute is pending
Central Excise Act 1944 Excise Duty and Penalty 347447 Financial year 2012-13 & 2013-14 CCESTAT WZB -Ahmedabad
Central Excise Act 1944 Excise Duty 7271011 Financial year 2009-10 2010-11 & 2012-13 CCESTAT WZB -Ahmedabad

*Net of amounts paid under protest.

8. The company has not made any default in repayment of loans or borrowing to bank. TheCompany does not have any loans or borrowing from a financial institution Government orany debentures holder during the year.

9. The Company did not raise any money by way of initial public offer or further publicoffer (including debt instruments) during the year. According to the information andexplanations given to us and based on our examination of the records of the Company thecompany has obtained term loans and applied for the purpose for which the said loan wasraised.

10. According to the information and explanations given to us no material fraud by theCompany or on the Company by its officers or employees has been noticed or reported duringthe course of audit.

11. 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 of the Act.

12. In our opinion and according to the information and explanations given to us theCompany is not a Nidhi Company. Accordingly paragraph 3(xii) of the Order is notapplicable.

13. According to the information and explanations given to us and based on ourexamination of the records of the Company transactions with the related parties are incompliance with sections 177 and 188 of Act where applicable and details of suchtransactions have been disclosed in the Financial Statements as required by the applicableaccounting standards.

14. According to the information and explanations given to us and based on ourexamination of the records of the Company the company has not made any preferentialallotment or private placement of shares or fully or partly convertible debentures duringthe year.

15. According to the information and explanations given to us and on the bases on ourexamination of the records of the Company the Company has not entered into any non-cashtransactions with directors or persons connected with him. Accordingly paragraph 3(xv) ofthe Order is not applicable.

16. The company is not required to be registered under section 45-IA of the ReserveBank of India Act 1934.

FOR DHIRUBHAI DAND & CO.
Firm Registration No. 118190W
Chartered Accountants
DHIRUBHAI H. DAND
PLACE :JUNAGADH PROPRIETOR
DATE : May 30 2016 M. NO. 017117

ANNEXURE - B TO THE AUDITORS' REPORT

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 AUSTINENGINEERING CO. LTD.. ("the Company") as of 31st March 2016 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 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 (‘ICAI'). Theseresponsibilities include the design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the orderly and efficientconduct of its business including adherence to company's policies the safeguarding ofits assets the prevention and detection of frauds and errors the accuracy andcompleteness of the accounting records and the timely preparation of reliable financialinformation 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 were 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 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 controls systemover 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 of themanagement 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 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 2016based on 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 DHIRUBHAI DAND & CO.
Firm Registration No. 118190W
Chartered Accountants
DHIRUBHAI H. DAND
PLACE :JUNAGADH PROPRIETOR
DATE : May 30 2016 M. NO. 017117