THE MEMBERS OF
AUTOLITE (INDIA) LIMITED
Report on the Financial Statements
We have audited the accompanying financial statements of AUTOLITE (INDIA) LIMITED("the Company") which comprise the Balance Sheet as at 31st March 2015 theStatement of Profit and Loss the Cash Flow Statement for the year then ended and asummary of the significant accounting policies and other explanatory information.
Managements Responsibility for the Financial Statements
The Companys 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.
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 accountingand auditing standards and matters which are required to be included in the audit reportunder the provisions of the Act and the Rules made there under.
We conducted our audit in accordance with the Standards onAuditing 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 theauditors 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 Companyspreparation 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 the accounting policies used and the reasonableness ofthe accounting estimates made by the Companys 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 qualified audit opinion on the financial statements.
Basis for Qualified Opinion
(i) As detailed in Note No. 45 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. 46 of Financial Statements regarding claim for ExportIncentive on estimated basis for Rs 308.68 Lacs
(iii) As detailed in Note No. 47 of Financial Statements regarding Rs 610.99 Lacs beingadvance against supplies to a company which is registered as Sick Unit with Board forIndustrial and Financial Reconstruction against which no provision has been made in books
(iv) As detailed in Note No. 48 of Financial Statements regarding claim receivable onestimated basis for Rs 90.00 Lacs
(v) As detailed in Note No. 2 (viii) and Note No. 49 of Financial Statements regardingDeferred Revenue Expenditure for Rs. 199.40 Lacs not written off during the year
Accordingly Net Profit and Shareholders fund would have been reduced by Rs1209.07 Lacs. Other Non-Current Assets and Long Term Loans & Advances would have beenreduced by Rs. 598.08 Lacs and 610.99 Lacs respectively.
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 (v) in the basis for qualified opinion paragraph the financial statements give theinformation required by the Act in the manner so required and give a true and fair view inconformity with the accounting principles generally accepted in India of the state ofaffairs of the company as at March 31 2015 and its profit and its cash flows for yearended on that date. Emphasis of Matter
We draw attention toAnnexure to the Auditors Report Para No. vii(a) that thecompany is not regular in depositing its statutory dues with appropriate authorities. Ouropinion is not qualified in respect of this matter.
Report on Other Legal and Regulatory Requirements
As required by the Companies (Auditors Report) Order 2015 ("theOrder") issued by the Central Government of India in terms of sub-section (11) ofSection 143 of the Companies Act 2013 we give in the Annexure a statement on the mattersspecified in paragraphs 3 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 ContingentAssets) as detailed in Note No. 46 47 and 48 of Balance Sheet AS-22 (Accounting forTaxes on Income) as detailed in Note No. 45 of Balance Sheet AS-26 (Intangible Assets) asdetailed in Note No. 2(viii) and Note No.49 of Balance Sheet;
(e) on the basis of written representation received from Directors as on 31stMarch 2015 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) of the Act ;and
(f) With respect to the other matters to be included in the Auditors Report inaccordance with Rule11 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 on its financialposition in its financial statements - refer Note No. 21(i) to the financial statements;
(ii) The Company did not have any long-term contracts including derivative contractsfor which there were any material foreseeable losses; and
(iii) There has been no delay in transferring amounts required to be transferred tothe Investor Education and Protection Fund by the Company.
For H.C. GARG & COMPANY
FRN - 000152C
M. No. 070162
PLACE : JAIPUR
DATED : 30-05-2015
ANNEXURE TO THEAUDITORS REPORT For the Year Ended on 31st March 2015
Referred to in Para Report on Other Legal and Regulatory Requirements inour Report of even date:
(i) (a) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.
(b) These fixed assets have been physically verified by the management during the yearat reasonable intervals. No material discrepancies were noticed on such verification.
(ii) (a) The inventory excluding stocks with third parties has been physically verifiedby the Management during the year. In respect of inventory lying with third parties thesehave substantially been confirmed by them. In our opinion the frequency of verificationis reasonable.
(b) In our opinion the procedures of physical verification of Inventory followed bythe Management are reasonable and adequate in relation to the size of the Company andnature of its business.
(c) On the basis of our examination of the inventory records in our opinion theCompany has maintained proper records of inventory. The discrepancies noticed between thephysical stocks and the books record were not material
(iii) The Company has granted loans secured or unsecured to companies firms or otherparties covered in the register maintained under section 189 of the Companies Act 2013 and;
(a) The Company is not regular in recovery of principal and interest in respect ofloans given;
(b) Reasonable steps have not been taken by the Company for recovery of the principaland interest.
(iv) In our opinion and according to information and explanations given to us there isan adequate internal control system commensurate with the size of the Company and thenature of the business for the purchase of inventory and fixed assets and for the sale ofgoods. Further there is no continuing failure to correct major weaknesses in internalcontrol system.
(v) As informed to us the company has not accepted any deposits under the provisions ofSection 73 to 76 or any other relevant provisions of the Act and the Rules framedthereunder.
(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 carried out a detailedexamination of the same 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 the generally accepted Auditing practices in India and also based onmanagement representations the Company is not regular in depositing undisputed statutorydues. However there is no undisputed statutory dues as at 31.3.2015 outstanding for aperiod of more than six months from the date they become payable except bonus for Rs.10.90 Lacs.
(b) According to information and explanations given to us and records of the Companyexamined by us there have been no disputed dues which have not been deposited with therespective authorities in respect of Wealth Tax Service Tax Sales Tax Custom DutyValue Added Tax and Cess. The particulars of dues of Income Tax and duty of Excise as at31st March 2015 which have not been deposited on account of dispute are asfollows: -
|Name of Statute ||Nature of Dues ||Amount (Rs. in Lacs) ||Forum where dispute is pending |
|1. Central Excise Act ||Excise Duty ||3.53 ||High Court Jaipur |
| || ||242.78 ||Commissioner Central Excise Jaipur |
| || ||10.73 ||Central Excise & Service Tax Appellate Tribunal New Delhi |
| || ||70.28 ||Commissioner (Appeals) Central Excise Jaipur. |
|2. Income Tax Act ||Income Tax ||138.29 ||Commissioner of Income Tax (Appeals) |
(c) The amount required to be transferred to Investor EducationAnd Protection Fund inaccordance with the relevant provisions of the Companies Act1956 (1 of 1956) and Rulesmade there under has been transferred to such fund within time.
(viii) The accumulated losses of the Company as per Balance Sheet as at 31.3.2015 areless than fifty per cent of its net worth. The Company has neither incurred cash losses infinancial year ended on 31.3.2015 nor it has incurred cash losses in immediately precedingfinancial year.
(ix) According to the information and explanations given to us the Company has notdefaulted in repayment of dues to financial institutions banks or debenture holders.
(x) In our opinion and according to the information and explanation given to us theCompany has not given any guarantee for loans taken by others from banks or financialinstitutions during the year. Accordingly the provisions of Clause 3(x) of the Order arenot applicable to the Company.
(xi) In our opinion and according to the information and explanation given to us theTerm Loans have been applied for the purpose for which they were obtained.
(xii) During the course of our examination of the books and records of the Companycarried out in accordance with the generally accepted auditing practice in India andaccording to the information and explanations given to us we have neither come across anyinstance of material fraud on or by the Company noticed or reported during the year norhave we been informed of any such case by the Management.
For H.C. GARG & COMPANY
FRN - 000152C
M. No. 070162
PLACE : JAIPUR
DATED : 30-05-2015