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Autolite (India) Ltd.

BSE: 500029 Sector: Auto
NSE: AUTOLITIND ISIN Code: INE448A01013
BSE 15:54 | 20 Feb 71.35 -2.20
(-2.99%)
OPEN

73.50

HIGH

73.50

LOW

70.65

NSE 15:55 | 20 Feb 70.65 -1.80
(-2.48%)
OPEN

74.45

HIGH

74.45

LOW

70.40

OPEN 73.50
PREVIOUS CLOSE 73.55
VOLUME 7406
52-Week high 110.60
52-Week low 48.45
P/E
Mkt Cap.(Rs cr) 80
Buy Price 0.00
Buy Qty 0.00
Sell Price 71.35
Sell Qty 990.00
OPEN 73.50
CLOSE 73.55
VOLUME 7406
52-Week high 110.60
52-Week low 48.45
P/E
Mkt Cap.(Rs cr) 80
Buy Price 0.00
Buy Qty 0.00
Sell Price 71.35
Sell Qty 990.00

Autolite (India) Ltd. (AUTOLITIND) - Auditors Report

Company auditors report

TO THE MEMBERS OF AUTOLITE (INDIA) LIMITED

Report on the Standalone Financial Statements

We have audited the accompanying Standalone financial statements of AUTOLITE (INDIA)LIMITED ("the Company") which comprise the Balance Sheet as at 31st March2017 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 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 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 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 of 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 financial statements thatgive a true and fair view and are free from material misstatement whether due to fraud orerror.

Auditor's Responsibility

Our responsibility is to express an opinion on these financial statements based on ouraudit. 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 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 andthe disclosures in the financial statements. The procedures selected depend on theauditor's judgment including the assessment of the risks of material misstatement of thefinancial statements whether due to fraud or error. In making those risk assessments theauditor considers internal financial control relevant to the Company's preparation of thefinancial statements that give a true and fair view in order to design audit proceduresthat are appropriate in the circumstances. An audit also includes evaluating theappropriateness of the accounting policies used and the reasonableness of the accountingestimates made by the Company's Directors as well as evaluating the overall presentationof the financial 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 financial statements.

Basis for Qualified Opinion

(i) As detailed in Note No. 46 of Financial Statements In the absence of informationno impact has been taken in books for Deferred Tax Assets/Liabilities

(ii) As detailed in Note No. 47 of Financial Statements regarding claim for ExportIncentive on estimated basis for Rs 308.68 Lakhs

(iii) As detailed in Note No. 48 of Financial Statements regarding Rs 656.13 Lakhsbeing advance against job work to a company which is registered as Sick Unit with Boardfor Industrial and Financial Reconstruction against which no provision has been made inbooks

(iv) As detailed in Note No. 49 of Financial Statements regarding claim receivable onestimated basis for Rs 90.00 Lakhs

(v) As detailed in Note No. 2 (vii) and Note No. 50 of Financial Statements regardingDeferred Revenue Expenditure for Rs. 199.40 Lakhs not written off during the year

(vi) As detailed in Note No. 51 of Financial Statements regarding Non-Recoverable/Unadjusted Advances for Rs. 119.89 Lakhs.

Accordingly Net Profit and Shareholder's fund would have been reduced by Rs 1374.10Lakhs. Other Non-Current Assets and Long Term Loans & Advances would have been reducedby Rs. 598.08 Lakhs and 776.02 Lakhs respectively.

Qualified Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us except for the effects and possible effects of the matter described above

(i) to (vi) in the basis for qualified opinion paragraph the standalone financialstatements give the information required by the Act in the manner so required and give atrue and fair view in conformity with the accounting principles generally accepted inIndia of the state of affairs of the company as at March 312017 and its profit and itscash flows for year ended on that date.

Emphasis of Matter

We draw attention to Annexure to the Auditor's Report Para No. vii(a) that the companyis not regular in depositing its statutory dues with appropriate authorities. Our opinionis not qualified in respect of this matter.

Report on Other Legal and Regulatory Requirements

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 Companies Act 2013 and on the basis of such checks of the books and records of theCompany as we considered appropriate and according to the information and explanationgiven to us we give in the Annexure 'B' statement on the matters specified in paragraphs3 and 4 of the Order to the extent applicable.

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 the Cash Flow Statementdealt with by this Report are in agreement with the books of account;

(d) Except for the effects and possible effects of the matter described in the basisfor qualified opinion paragraph in our opinion the aforesaid financial statements complywith the Accounting Standards specified under Section 133 of Act read with Rule 7 of theCompanies (Accounts) Rules 2014 except for AS-9 (Revenue Recognition) and AS-29(Provisions Contingent Liabilities and Contingent Assets) as detailed in Note No. 47 4849 and 51 of Balance Sheet As-22 (Accounting for Taxes on Income) as detailed in Note No.46 of Balance Sheet AS-2 6 (Intangible Assets) as detailed in Note No. 2 (vii) and NoteNo.50 of Balance Sheet;

(e) on the basis of written representation received from Directors as on 31stMarch 2017 taken on record by the Board of Directors none of the directors isdisqualified from being appointed as a director in terms of Section 164(2) oftheAct; and

(f) With respect to the adequacy of the internal financial control over financialreporting of the company and the operating effectiveness of such controls refer to ourseparate report in Annexure'A'

(g) With respect to the other matters to be included in the Auditor's Report inaccordance with Rulell 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 litigation as on 31.03.2017 onits financial position in its financial statements - refer Note No. 21(i) to the financialstatements;

(ii) . The Company did not have any long-term contracts including derivative contractsfor which there were any material foreseeable losses; and

(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 financialstatements as to holdings as well dealings in Specified Bank Notes during the period from8 November 2016 to 30 December 2016 and these are in accordance with the books ofaccounts maintained by the Company. Refer to Note No. 42 to the standalone financialstatements.

FOR Madhukar Garg & Co.
Chartered Accountants
FRN 000866C
DATE: 30-5-2017
PLACE: JAIPUR Sd/-
(Sunil Shukla)
Partner
M No. 071179

Annexure A to Independent Auditor's Report

Referred to in para (f) of Report on Other Legal and Regulatory Requirements of theIndependent Auditor's Report of even date to the members of Autolite (India) Limited onthe standalone financial statements for the year ended March 312017.

Report on the Internal Financial Controls under

Clause (i) of Sub-section 3 of Section 143 oftheAct

1. We have audited the internal financial controls over financial reporting of Autolite(India) Limited ("the company") as of March 312017 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

2. 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]. These responsibilitiesinclude the design implementation and maintenance of adequate internal financial controlsthat were operating effectively for ensuring the orderly and efficient conduct of itsbusiness including adherence to company's policies the safeguarding of its assets theprevention and detection of frauds and errors the accuracy and completeness of theaccounting records and the timely preparation of reliable financial information asrequired under the Act.

Auditor's Responsibility

3. 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 deemed to be prescribedunder Section 143(10) of the Act to the extent applicable to an audit of internalfinancial controls both applicable to an audit of internal financial controls and bothissued by the ICAI. 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 was established andmaintained and if such controls operated effectively in all material respects.

4. Our audit involves performing procedures to obtain audit evidence about the adequacyof 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 financial control based on the assessed risk. Theprocedures selected depend on the auditor's judgement including the assessment of therisk of material misstatement of the financial statements whether due to fraud or error.

5. 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

6. 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 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

7. 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 polices or procedures may deteriorate.

Opinion

8. In our opinion the company has in all material respects an adequate internalfinancial controls systems over financial reporting and such internal financial controlsover financial reporting were operating effectively as at March 312017 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 Madhukar Garg & Co.
Chartered Accountants
FRN 000866C
DATE: 30-5-2017
PLACE: JAIPUR Sd/-
(Sunil Shukla)
Partner
M No. 071179

ANNEXURE 'B' TO THE AUDITORS' REPORT For the Year Ended on 31st March 2017

Referred to Para 'Report on Other Legal and Regulatory Requirements' in our Report ofeven date:

[0 (a] The Company is maintaining proper records showing full particulars includingquantitative details and situation of fixed assets.

(b] Fixed Assets have been physically verified by the management during the year atreasonable intervals. No material discrepancies were noticed on such verification.

(c] The title deeds of immovable properties as disclosed in Note 11 to the financialstatements on fixed assets are held in the name of the Company.

(ii) The physical verification of inventory excluding stocks with third parties havebeen conducted at reasonable intervals by the Management during the year. In respect ofinventory lying with third parties these have substantially been confirmed by them. Thediscrepancies noticed on physical verification of inventory as compared to book recordswere not material and have been appropriately dealt with in the books of accounts.

(iii) The Company has granted loans secured or unsecured to companies firms LimitedLiability Partnerships or other parties covered in the register maintained under Section189 of the Companies Act 2013 and;

(a] The terms and conditions of the grant of such loans are prejudicial to the interestof the Company;

(b] The schedule of repayment of principal and payment of interest has not beenstipulated and the repayment or receipts are not regular;

(c] Reasonable steps have not been taken by the company for recovery of the principaland interest and total amount overdue for more than ninety days is Rs.247.66 Lakhs

(iv] In our opinion and according to the information and explanations given to us thecompany has complied with the provision of Section 186 of the Companies Act 2013 inrespect of the loans and investments made and guarantees and security provided by it. TheCompany has not provided any guarantees or security to the parties covered under Section185 of the Companies Act 2013. However the Company has granted loans and madeinvestments to the parties covered under Section 185 of the Companies Act 2013 as givenbelow: -

PARTIES IN WHICH DIRECTORS ARE INTERESTED RELETIONSHIP NATURE OF TRANSCTION MAXIMUM AMOUNT CLOSING BALANCE
1 AUTOTPAL MPG MKTG PVT LTD DIRECTOR IS MEMBER BOOKDEBT 10S883S53 105883553
AUTOLITE MANUFACTURING A LTD COMMON DIRECTOR LOAN/BOOK DEBT 130050264 65641038
3 PALSOFT INFOSYSTEMS LTD COMMON DIRECTOR LOAN 10728373.7 4 9766411

(v) As informed to us the Company has not accepted any deposits under the provisionsof Section 73 to 76 or any other relevant provisions of the Act and the rules framed thereunder.

(vi) The Central Government has prescribed maintenance of cost records undersub-section (1) of Section 148 of the Companies Act 2013 in respect of manufacturingactivity of the Company. We have broadly reviewed the accounts and records of the Companyin this connection and are of the opinion that prima facie the prescribed accounts andrecords have been made and maintained. We have not however made a detailed examinationof the records with a view to determine whether they are accurate or complete.

(vii) (a] According to the books and records as produced and examined by us inaccordance with generally accepted auditing practices in India and also based onManagement representations undisputed statutory dues including Provident Fund Employees'state Insurance Dues Income Tax Sales Tax Service Tax Custom Duty Excise Duty Valueadded tax Cess and Other material Statutory dues have not been regularly deposited by theCompany during the year with the appropriate authorities in India. According to theinformation and explanation given to us no undisputed amounts payable in respect of theaforesaid dues were outstanding as at March 31st 2017 for a period of more than sixmonths from the date of becoming payable.

According to the information and explanations given to us and the records of theCompany examined by us the particulars of dues of Income Tax Service Tax Sales TaxDuty of Custom Duty of Excise and Value Added Tax as at March 312017 which have notbeen deposited on account of a dispute are as follows:

Name of Statute Nature of Dues Amount (Rs. in Lakhs) Forum where dispute is pending
1. Central Excise Act Excise Duty 3.53 High Court Jaipur
204.39 Central Excise & Service
Tax Appellate Tribunal
New Delhi
67.08 Commissioner (Appeals)
Central Excise Jaipur.
2. Income Tax Act Income Tax 27.65 Commissioner of Income Tax Appeals

(viii) According to the records of the Company examined by us and the information andexplanation given to us the Company has not issued any debenture during the year. TheCompany has not defaulted in repayment of loans or borrowing to any financial institutionor bank or Government except some delays in repayment which have made good as at theBalance Sheet date.

(ix) The Company has not raised any moneys by way of initial public offer or furtherpublic offer (including debt instruments). The Company has taken term loans from bank forRs. 35.18 Lakhs during the year and the same was applied for the purpose for which it wasobtained.

(x) During the course of our examination of the books and records of the Companycarried out in accordance with the generally accepted auditing practices in India andaccording to the information and explanations given to us we have neither come across anyinstance of material fraud by the Company or on the Company by its officers or employeesnoticed or reported during the year nor have we been informed of any such case by theManagement.

(xi) According to the records of the Company examined by us and the information andexplanation given to us the Company has paid/ provided for managerial remuneration inaccordance with the requisite approvals mandated by the provisions of Section 197 readwith Schedule V to the Act.

(xii) As the Company is not a Nidhi Company and the Nidhi Rules 2014 are notapplicable to it the provisions of Clause 3 (xii) of the Order are not applicable to theCompany.

(xiii) According to the records of the Company examined by us and the information andexplanation given to us the Company has entered into transactions with related parties incompliance with the provisions of Sections 177 and 188 of the Act. The details of suchrelated party transactions have been disclosed in the financial statements as requiredunder Accounting Standard (AS) 18 Related Party Disclosures specified under Section 133ofthe Act read with Rule 7 ofthe Companies (Accounts) Rules 2014.

(xiv) The Company has made preferential allotment of shares during the year underreview and requirement of section 42 ofthe companies Act 2013 have been complied with andthe amount raised have been used for the purpose for which the funds were raised.

(xv) The Company has not entered into any non-cash transactions with its directors orpersons connected with him. Accordingly the provisions of Clause 3 (xv) of the Order arenot applicable to the Company.

(xvi) The Company is not required to be registered under Section 45-IA of the ReserveBank of India Act 1934. Accordingly the provisions of Clause 3 (xvi) of the Order arenot applicable to the Company.

FOR Madhukar Garg & Co.
Chartered Accountants
FRN 000866C
DATE: 30-5-2017
PLACE: JAIPUR Sd/-
(Sunil Shukla)
Partner
M No. 071179