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Autoline Industries Ltd.

BSE: 532797 Sector: Auto
NSE: AUTOIND ISIN Code: INE718H01014
BSE LIVE 12:17 | 24 Oct 81.80 -0.85
(-1.03%)
OPEN

81.00

HIGH

82.45

LOW

80.00

NSE 11:36 | 24 Oct 80.50 -2.25
(-2.72%)
OPEN

79.40

HIGH

83.45

LOW

79.40

OPEN 81.00
PREVIOUS CLOSE 82.65
VOLUME 3570
52-Week high 91.50
52-Week low 44.00
P/E
Mkt Cap.(Rs cr) 131
Buy Price 80.05
Buy Qty 50.00
Sell Price 81.80
Sell Qty 240.00
OPEN 81.00
CLOSE 82.65
VOLUME 3570
52-Week high 91.50
52-Week low 44.00
P/E
Mkt Cap.(Rs cr) 131
Buy Price 80.05
Buy Qty 50.00
Sell Price 81.80
Sell Qty 240.00

Autoline Industries Ltd. (AUTOIND) - Auditors Report

Company auditors report

To The Members of Autoline Industries Limited

Report on the Standalone Financial Statements

We have audited the accompanying standalone financial statements of AUTOLINEINDUSTRIES LIMITED ("the Company") which comprise the Balance Sheet as atMarch 312016; the Statement of Profit and Loss the Cash Flow Statement for the year thenended 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 Section134(5) of the Companies Act 2013 ("the Act") with respect to the preparationand presentation of these standalone financial statements that give a true and fair viewofthe financial position financial performance and cash flows ofthe Company in accordancewith the accounting principles generally accepted in India including the AccountingStandards specified under Section 133 of the Act read with Rule 7 of the Companies(Accounts) Rules 2014. This responsibility also includes maintenance of adequateaccounting records in accordance with the provisions of the Act for safeguarding theassets of the Company and for preventing and detecting frauds and other irregularities;selection and application of appropriate accounting policies; making judgments andestimates that are reasonable and prudent; and design implementation and maintenance ofadequate internal financial controls that were operating effectively for ensuring theaccuracy and completeness of the accounting records relevant to the preparation andpresentation ofthe financial statements that give a true and fair view and are free frommaterial misstatements 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 of material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts anddisclosures 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 accounting policies used and the reasonableness of theaccounting 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 ofthe state of affairs ofthe company asat 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 nonprovision of diminution in the value of investment amounting to Rs. 32.84 crores insubsidiary Koderat Investments Limited (Cyprus) the note is self-explanatory and thematter is subjudice with Italian courts and therefore no effect has been given in theseStandalone financial statements. In the given circumstances we are unable to express ouropinion on the matter.

Report on Other Legal and Regulatory Requirements

1) As required by the Companies (Auditor’s Report) Order 2016 issued by theCentral Government of India in terms of sub-section (11) of section 143 of the Act(hereinafter referred to as the "the Order") and on such checks of the booksand records of the company as we considered appropriate and according to the informationand explanation given to us we give 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 purposes of our audit.

b) in our opinion proper Books of Account as required by law have been kept by theCompany so far as appears from ourexamination ofthose 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 ofthe Act read with Rule 7 oftheCompanies (Accounts) Rules 2014.

e) on the basis of written representations received from the directors as on March312016 and taken on record by the Board of Directors none ofthe Directors isdisqualified as on March 312016 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’; and

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.

ii. The company has long-term contracts as at March 31 2016 for which there were nomaterial foreseeable losses. The Company did not have any derivative contracts as at March312016.

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

FOR A. R. SULAKHE & CO

CHARTERED ACCOUNTANTS FRN: - 110540W

ANAND SULAKHE

PARTNER

M. NO.33451

May 28 2016 Pune

Annexure A to the Independent Auditors’ Report:

The Annexure referred to in our Independent Auditors’ Report to the members of theCompany on the standalone financial statements for the yearended March 31 2016 we reportthat:

i) a) The company has maintained proper records showing full particulars includingquantitative details and situations of its Fixed Assets.

b) According to the information and explanation given to us the company has a regularprogramme of physical verification of its fixed assets by which fixed assets are verifiedin phased manner over a period of three years. In accordance with this programme certainfixed assets were verified during the year. In our opinion this periodicity of physicalverification is reasonable having regards to the size of the Company and the nature of itsbusiness 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 ourexamination of the records of the company except for the following three casesthe 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.2425 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 themanagement.

b) In our opinion and according to the information and explanations given to us theprocedures of physical verification of inventory followed by the management werereasonable and adequate in relation to the size of the company and the nature of itsbusiness.

iii) The company has granted loan to one party covered in the register maintained undersection 189 of the Companies Act 2013.

a) In our opinion the rate of interest and other terms and conditions on which theloan had been granted to the party listed in the register maintained under section 189 ofthe 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 thecompany has complied with the provisions ofSection 185 and 186 ofthe Act with respect tothe 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 notprescribed maintenance of cost records as required undersub section (1) ofSection 148ofthe Companies Act 2013.

vii) a) According to the records the Company is regular in depositing undisputedstatutory dues in respect of duty of customs. However undisputed statutory duesincluding provident fund employees’ state insurance income-tax sales-tax servicetax duty of excise value added tax cess and other statutory dues have not beenregularly deposited with the appropriate authorities and there have been delays indepositing the same.

According to the information and explanations given to us and according to the booksand records as produced and examined by us following undisputed statutory dues were inarrears as at March 31 2016 for a period of more than six months from the date theybecame payable.

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

31866416

F.Y. 2013-14

No

2 Maharashtra Value Added Tax-2005 MVAT

27273326

F.Y. 2014-15

No

3 Maharashtra Value Added Tax-2005 MVAT

1500001

August 2015

No

4 Maharashtra Municipal Corporation Act-1949 LBT

28984384

October 2013 to September 2015

No

b) According to the information and explanations given to us following amounts arepayable in respect of income tax sales tax service tax duty of customs duty of excisevalue added tax and cess as at March 312016 on account ofdisputes:-

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 3658482/-
Income Tax Act 1961 Income Tax The Commissioner of Income Tax (Appeals) Pune F.Y. 2009-10 826620/-**
Income Tax Act 1961 Income Tax DRP-3 WZ Mumbai F.Y.2011-12 432090/-
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 13444440/-*
F.Y. 2001-02 12942721/-*
F.Y. 2002-03 95983/-
F.Y. 2003-04 611670/-*
F.Y. 2004-05 557742/-*
F.Y. 2005-06 14711024/-*
F.Y. 2006-07 27801682/-*
F.Y. 2007-08 47328640/-*
F.Y. 2008-09 118905585/-*
F.Y.2009-10 33450514/-*
F.Y. 2010-11 105594435/-*
F.Y.2011-12 407123/-

* net of amounts paid under protest.

** Amount is deposited under protest

viii) According to the information and explanations given to us in our opinion therewere defaults in repayment of principal amount of '1 Crores to a bank for a period of 84days and for interest amounting to '0.88 Crores of which delay was ranging from 0to 88 days and the default amount was paid during the year. There was nodefault of principal and interest outstanding as on the balance sheet date.

ix) The company did not raise money by way of initial public offer or further publicoffer (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 orby 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 ourexamination of the records company is in the process of obtaining approval of CentralGovernment for amount paid/provided towards managerial remuneration as required by theprovisions of section 197 read with schedule V to the Act amount involved was Rs. 5512465/-.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 thecompany is not a nidhi company. Accordingly paragraph 3(xii) of the order is notapplicable.

xiii) According to the information and explanations given to us and based on ourexaminations of the records of the company transactions with the related parties are incompliance with sections 177 and 188 of the Act where applicable and details of suchtransactions have been disclosed in the financial statements as required by the applicableaccounting standards.

xiv) The company had made preferential allotment of shares during the year under reviewand the requirements of section 42 ofthe Companies Act 2013 have been complied with andthe amount raised has been used forthe purposes forwhich the funds were raised.

xv) According to the information and explanation given to us and based on ourexamination ofthe records ofthe Company the Company has not entered into non-cashtransactions with directors or persons connected with him. Accordingly paragraph 3(xv) ofthe order is not applicable.

xvi) In our opinion and according to the information and explanation given to us theCompany is not required to be registered under section 45-IA of the Reserve Bank of IndiaAct 1934.

FOR A. R. SULAKHE & CO

CHARTERED ACCOUNTANTS

FRN: - 110540W

ANAND SULAKHE

PARTNER

M. NO.33451

May 28 2016 Pune

‘ANNEXURE B’ TO THE INDEPENDENT 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 overfinancial reporting of AUTOLINEINDUSTRIES LIMITED ("the Company") as of March 31 2016 in conjunction with ouraudit 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 issued by the "Institute of Chartered Accountants of India" (ICAI).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 of reliablefinancial information as required underthe 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 Control 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 whether 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 controlssystem overfinancial reporting.

Meaning of Internal Financial Controls over Financial Reporting

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 March 31 2016 however companyis required to strengthen its financial control for obtaining balance confirmations fromtrade receivables & payables based on "the internal control over financialreporting criteria established by the Company considering the essential components ofinternal control stated in the Guidance Note on Audit of Internal Financial Controls OverFinancial Reporting issued by the Institute of Chartered Accountants of India"(ICAI).

FOR A. R. SULAKHE & CO

CHARTERED ACCOUNTANTS

FRN: - 110540W

ANAND SULAKHE

PARTNER

M. NO.33451

May 28 2016 Pune