You are here » Home » Companies » Company Overview » Autoline Industries Ltd

Autoline Industries Ltd.

BSE: 532797 Sector: Auto
NSE: AUTOIND ISIN Code: INE718H01014
BSE LIVE 15:40 | 18 Dec 107.05 1.65
(1.57%)
OPEN

106.00

HIGH

109.00

LOW

101.00

NSE 15:28 | 18 Dec 105.30 -1.00
(-0.94%)
OPEN

107.00

HIGH

109.85

LOW

101.60

OPEN 106.00
PREVIOUS CLOSE 105.40
VOLUME 10006
52-Week high 123.00
52-Week low 46.50
P/E
Mkt Cap.(Rs cr) 172
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 106.00
CLOSE 105.40
VOLUME 10006
52-Week high 123.00
52-Week low 46.50
P/E
Mkt Cap.(Rs cr) 172
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

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 31 2017; the Statement of Profit and Loss the Cash Flow Statement for the yearthen ended 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 viewand cash flows of the Company in accordance with the accounting principles of thefinancial generally accepted in India including the Accounting Standards specified underSection 133 of the Act read with Rule 7 of the Companies (Accounts) Rules 2014. Thisresponsibility also includes maintenance of adequate accounting records in accordance withthe provisions of the Act for safeguarding the assets of the Company and for preventingand detecting frauds and other irregularities; selection and application of appropriateaccounting policies; making judgments and estimates that are reasonable and prudent; anddesign implementation and maintenance of adequate internal financial controls that wereoperating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the financialstatements that givea true and fair view and are free from material misstatements whether due to fraud orerror.

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 underStandards require that we comply with ethical requirements and plan and perform the auditto obtain reasonable assurance about whether the financial statements are free of materialmisstatement.

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 of the state of affairs of the companyas at March 31 2017 and its loss and cash flows for the . year ended onthat date

EMPHASIS OF THE MATTER

Without qualification - we draw your attention to the following:

Sub Note to Note No. 9 of the standalone financial statements states that no provisionof diminution in value of investment amounting to Rs. 32.89 Crores in subsidiary Koder atInvestments Limited (Cyprus) has been made in accounts the note is self-explanatory andsince the matter is sub judice with Italian courts the management has not taken anyeffect in these standalone financial statements. In the given circumstances we are unableto express our opinion 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 books andrecords of the company as we considered appropriate and according to the information andexplanations given to us we give in 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 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 written representations received from the directors as on March 312017 and taken on record by the Board of Directors none of the Directors is disqualifiedas on March 31 2017 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 overfinancialreporting of the Company and the operating effectiveness of such controls referto our separate 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 financialpositionin its financial statements. (Refer Note No. 32 to the financial statements).

ii. The company has long-term contracts as at March 31 2017 for which there were nomaterial foreseeable losses. The Company did not have any derivative contracts as at March31 2017.

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

iv. The Company has provided requisite disclosures in the financial statements as toholdings as well as dealings in Specified Bank Notes during the period from November 82016 to December 30 2016. Based on audit procedures and relying on the managementrepresentation we report that the disclosures are in accordance with books of accountmaintained by the Company and as produced to us by the Management. (Refer Note No.33 tothe financial statements).

FOR A R SULAKHE & CO.

CHARTERED ACCOUNTANTS

FIRM REGISTRATION NO 110540W

ANAND SULAKHE

PARTNER

MEMBERSHIP NO. 33451

MAY 27 2017

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 year ended March 31 2017 wereport that:

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 accordance with this programme certain fixed assets wereverified during the year. In our opinion this periodicity of physical verification isreasonable having regards to the size of the Company and the nature of its business and nomaterial 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 five cases thetitle 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

68.05

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

20.06

Lease Deed is held in the name of M/s Nirmiti Auto components Pvt. Ltd. which was amalgamated with the company
3. Khasra no. 423 SIDCUL Plot no. 8 Uttarakhand Leasehold

134.48

118.03

4. E 12 17(8) Bhosari Pune Maharashtra Leasehold

83.04

46.29

5. E 12 (7) Bhosari Pune Maharashtra Leasehold

232.05

130.42

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 theprocedure of physical verification of inventory followed by the management were reasonableand adequate in relation to the size of the company and the nature of business anddiscrepancies observed were properly dealt with in the books of accounts.

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) Inour opinion and according to the information and explanations given to us the company hascomplied with the provisions of section 185 and 186 of the Act with respect to the loansand 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 under sub section (1) of Section 148 ofthe 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 2017 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 singing
1 Maharashtra Value Added Tax Act 2005 MVAT 1250250/- F.Y. 2013- 2014 No
2 Maharashtra Value Added Tax Act 2005 MVAT 2463432/- F.Y.2014-15 No
3 Maharashtra Value Added Tax Act 2005 MVAT 2497918/- F.Y.2015-16 No
4 Maharashtra Value Added Tax Act 2005 MVAT 41421/- April 2016 to August 2016 No
5 Maharashtra Value Added Tax Act 2005 TDS WCT 253410/- May 2016 to August 2016 Yes
6 Maharashtra Municipal Corporation Act- 1949 LBT 38169045/- October 2013 to August 2015 No
7 Income Tax Act 1961 Tax Deducted at Source 8106972/- May 2016 to August 2016 Yes
8 Income Tax Act 1961 TCS on Scrap 905368/- May 2016 to August 2016 Yes
9 Finance Act 1994 - Service Tax Service Tax 4554806/- April 2016 to August 2016 No

b) According to the information and explanation given to us and on the basis of ourexamination of books of accounts there are no cases of dues of income tax sales taxduty of customs duty of excise value added tax and cess as at March 31 2017 which havenot been deposited on account of disputes except for the following: -

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 237770/-
Income Tax Act 1961 Income Tax Income Tax Appellate Tribunal F.Y. 2009-10 826620/-**
Income Tax Act 1961 Income Tax Income Tax Appellate Tribunal F.Y.2011-12 218780/-
The Maharashtra Value Added Tax Act 2002 / Central Sales Tax Act 1956 VAT / CST The Joint Commissioner of Sales Tax (Appeals) F.Y. 2000-01 2444440/-
F.Y. 2001-02 442721/-
F.Y. 2006-07 50202066/-
F.Y. 2008-09 37858311/-
F.Y.2009-10 4982954/-*
F.Y.2010-11 11246257/-
The Uttarakhand Value Added Tax Act 2005 VAT / CST The Jt. Commissioner of Commercial Taxes F.Y. 2012 -13 2636779/-
The Uttarakhand Value Added Tax Act 2005 VAT / CST The Jt. Commissioner of Commercial Taxes F.Y. 2013 14 5391339/-
The Maharashtra Value Added VAT/CST Dy. Commissioner of Sales Tax F.Y. 2007-08 125478819/-
Tax Act 2002 / Central Sales Tax Act 1956 F.Y.2012-13 32029880/-
F.Y.2012-13 133078630/-

* Amounts paid under protest have been reduced from the amount of demand in arriving atthe aforesaid disclosure.

** Amount is deposited under protest.

viii) According to the information and explanations given to us and based on documentsand records verified by us in our opinion company has defaulted in repayments of loans toBanks and Financial Institutions.

The details are as follows: -

Rs. In Lakhs

Sr. No. Particulars Amount of Default as on March 31 2017 Period of default
A Banks Principle Interest
1 Bank of Baroda 77.63 58.87 Less than 3 months
2 Axis Bank Ltd 158.32 12.76 Less than 3 months
3 The Catholic Syrian Bank Ltd 10.00 3.95 Less than 3 months
B Financial Institutions
1 J M Financial A R C Pvt. Ltd. 158.45 121.30 Less than 3 months

ix) The company did not raise money by way of initial public offer or further publicoffer (including debt instrument) Accordingly paragraph 3 (ix) of the order is notapplicable further term loans taken during the year were applied for the purpose forwhich they were raised.

x) According to information and explanation given to us no material fraud on or by thecompany has been noticed or reported to us during the year by the management.

xi) According to the information and explanations given to us and based on ourexamination of the records company has filed application for 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. 10200000/-(Previous Year Rs. 5512465/)-. Company has obtained personal guarantee letteras a security of the said amount.

xii) 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.

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 of the Companies Act 2013 have been complied with andthe amount raised has been used for the purposes for which the funds were raised.

xv) According to the information and explanation given to us and based on ourexamination of the records of the Company the Company has not entered into non-cashtransaction with directors or persons connected with it. 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

FIRM REGISTRATION NO 110540W

ANAND SULAKHE

PARTNER

MEMBERSHIP NO. 33451

MAY 27 2017

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 over financial reporting of AutolineIndustries Limited ("the Company") as of March 31 2017 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 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 under the Companies Act 2013.

Auditors’ Responsibility

Our responsibility is to express an opinion on the Company’s internal financialaudit. We conducted our audit in accordance with the Guidance Note on Audit of InternalFinancial Controls Over Financial Reporting (the "Guidance Note") and theStandards on Auditing issued by ICAI and deemed to be prescribed under section 143 (10)of the Companies Act 2013 to the extent applicable to an audit of internal financialaudit of Internal Financial Control and both issued by the Institute of CharteredAccountants of India. Those Standards and the Guidance Note require that we comply withethical requirements and plan and perform the audit to obtain reasonable assurance aboutwhether adequate 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 operatingfinancialcontrols over financial effectiveness. Our audit of internal 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 judgement 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

Company’s Internal financial control over financial reporting is a processdesigned to regarding the reliability of financial reporting and the preparation offinancial statements for external with generally accepted accounting principles. Acompany’s internal financial control over financial reporting includes those policiesand procedures that (1) pertain to the maintenance of records that in reasonable detailaccurately and fairly reflect the transactions and dispositions of the assets of thecompany; (2) provide reasonable assurance that transactions are recorded as necessary topermit preparation of financial statements in principles and that receipts andexpenditures 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 financial riskthat the internal financial control over financial reporting may become inadequate becauseof changes in conditions or that the degree of compliance with the policies or proceduresmay 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 2017 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

FIRM REGISTRATION NO 110540W

ANAND SULAKHE

PARTNER

MEMBERSHIP NO. 33451

MAY 27 2017 PUNE