TO THE MEMBERS OF INDIA MOTOR PARTS AND ACCESSORIES LIMITED
Report on the Standalone Financial Statements
We have audited the accompanying standalone financial statements of India Motor Partsand Accessories Limited ("the Company") which comprise the Balance Sheet as at31st March 2017 the statement of Profit and Loss the Cash flow statement for the yearthen ended and a summary of the significant accounting policies and other explanatoryinformation.
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 preparation ofthese standalone financial statements that give a true and fair view of the financialposition financial performance and cash flows of the Company in accordance with theaccounting principles generally accepted in India including the Accounting Standardsspecified under Section 133 of the Act read with Rule 7 of the Companies (Accounts)Rules 2014. This responsibility also includes maintenance of adequate accounting recordsin accordance with the provisions of the Act for safeguarding of the assets of the Companyand for preventing and detecting frauds and other irregularities; selection andapplication of appropriate accounting policies; making judgments and estimates that arereasonable and prudent; and design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the accuracy andcompleteness of the accounting records relevant to the preparation and presentation ofthe standalone financial statements that give a true and fair view and are free frommaterial misstatement whether due to fraud or error.
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 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 standalone financial misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the standalone financial statements. The procedures the assessment ofthe risks of material misstatement of the standalone financial statements whether due tofraud or error. In making those risk assessments the auditor considers internal financialcontrol relevant to the company's preparation of the standalone financial statements thatgive a true and fair view in order to design audit procedures that are appropriate in thecircumstances. An audit also includes evaluating the appropriateness of the accountingpolicies used and the reasonableness of the accounting estimates made by the Company'sDirectors as well as evaluating the overall presentation of the standalone financialstatements. We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our audit opinion on the standalone financialstatements.
Independent Auditor's Report on the Internal Financial Controls under Clause (i) ofSub-section 3 of Section 143 of the Companies Act 2013 ("the Act") is enclosedin Annexure A.
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 31st March 2017 its profit and cash flows for the year ended on that date.
Report on Other Legal and Regulatory Requirements
As required by Section 143 (3) of the Act we report that: a. We have sought andobtained all the information and explanations which to the best of our knowledge andbelief were necessary for the purposes of our audit. b. In our opinion proper books ofaccount as required by law have been kept by the Company so far as it appears from ourexamination of those books. c. The standalone Balance Sheet the Statement of Profit &Loss and the Cash Flow Statement dealt with by this Report are in agreement with thebooks of account. d. In our opinion the aforesaid standalone financial statements complywith the Accounting Standards specified under Section 133 of the Act read with Rule 7 ofthe Companies (Accounts) Rules 2014. e. On the basis of written representations receivedfrom the Directors as on 31st March 2017 taken on record by the Board of Directors noneof the Directors is disqualified as on 31st March 2017 from being appointed as aDirector in terms of Section 164 (2) of the Act. f. With respect to the other matters tobe included in the Auditor's Report in accordance with Rule 11 of the Companies (Audit andAuditors) Rules 2014 in our opinion and to the best of our information and according tothe explanations given to us: (a) The company does not have any pending litigations whichwould impact its financial position. (b) The company does not have any long term contractsincluding derivative contracts for which there were any material foreseeable losses.
(c) There has been no delay in transferring amounts required to be transferred to theinvestor education and protection fund by the company. (d) The Company has providedrequisite disclosures in the financial statements as to holdings as well as dealings inSpecified Bank Notes during the period 8th November 2016 to 30th December 2016. Based onaudit procedures and relying on the management representation we report that thedisclosures are in accordance with the books of account maintained by the Company and asproduced to us by the management. g. As required by the Companies (Auditor's Report)Order 2016 issued by the Central Government of India in terms of sub section (11) ofsection 143 of the Act we give in the Annexure B a statement on the matters specified inparagraphs 3 & 4 of the Order.
ANNEXURE TO THE INDEPENDENT AUDITOR'S REPORT OF EVEN DATE ON THE STANDALONE FINANCIALSTATEMENTS OF INDIA MOTOR PARTS AND ACCESSORIES LIMITED
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 Limited ("theCompany") as of March 31 2017 in conjunction with our audit of the standalonefinancial statements of the Company for the year 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. These responsibilities includethe design implementation and maintenance of adequate internal financial controls thatwere operating effectively for ensuring the orderly and efficient conduct of its businessincluding adherence to company's policies the safeguarding of its assets the preventionand detection of frauds and errors the accuracy and completeness of the accountingrecords and the timely preparation of reliable financial information as required underthe Companies Act 2013.
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 extent to anaudit of applicabletoanauditofinternalfinancial Internal Financial Controls and bothissued by the Institute of Chartered Accountants of India. Those Standards and theGuidance Note require that we comply with ethical requirements and plan and perform theaudit to obtain reasonable assurance about whether adequate internal financial controlsover financial reporting was established and maintained and if such controls operatedeffectively 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 included obtaining anunderstanding of internal financial controls over financial reporting assessing the riskthat a material weakness exists and testing and evaluating the design and operatingeffectiveness of internal control based on the assessed risk. The procedures selecteddepend on the auditor's judgement including the assessment of the risks of materialmisstatement 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 financialstatementsfor reporting and the external purposes in accordance with generally accepted accountingprinciples. A company's internal financial control over financial reporting includes thosepolicies and procedures that (1) pertain to the maintenance ofrecordsthatinreasonabledetailaccuratelyandfairlyreflectthe transactions and dispositionsof the assets of the company; (2) provide reasonable assurance that transactions arerecorded as necessary to permit preparation of financial statements in accordance withgenerally accepted accounting principles and that receipts and expenditures of thecompany are being made only in accordance with authorisations of management and directorsof the company; and (3) provide reasonable assurance regarding prevention or timelydetection of unauthorised acquisition use or disposition of the company's assets thatcould 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.
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 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.
ANNEXURE TO THE AUDITOR'S REPORT ON STANDALONE FINANCIAL STATEMENTS OF EVEN DATE TO THEMEMBERS OF INDIA MOTOR PARTS AND ACCESSORIES LIMITED
(i) a. The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.
b. According to the information given to us and explanations there is a regularprogramme of verification of fixed assets. No material discrepancies between the bookrecords and the physical inventory have been noticed in respect of the fixed assetsphysically verified.
c. The title deeds of the immovable properties are held in the name of the company.
(ii) Physical verification of inventory has been conducted at reasonable intervals bythe management. The discrepancies between the physical stock and the book records were notmaterial.
(iii) According to the information and explanations given to us during the year theCompany has not granted any loans secured or unsecured to companies firms partiescovered in the register maintained under Section 189 of the Companies Act 2013.
(iv) The company has not given any loans guarantees and security and in respect ofinvestments provisions of Section 186 of the Companies Act 2013 have been complied with.
(v) The Company has not accepted any deposits from the public during the year.
(vi) The company being a trading company maintenance of cost records specified by theCentral Government under sub-section (1) of section 148 of Companies Act 2013 is notapplicable.
(vii) a. According to the information and explanations given to us the Company isgenerally regular in depositing with appropriate authorities undisputed statutory dues inrespect of Provident Fund Employees' State Insurance Income-Tax Sales-Tax Service TaxVAT Cess and other statutory dues applicable to it.
b. As at 31st March 2017 according to the records of the Company there are no pendingdisputes.
(viii) The Company has not availed any loans or borrowings and has not issued anydebentures.
(ix) Based on our audit and on the information and explanations given by themanagement the company has not raised moneys either by way of initial public offer orfurther public offer (including debt instruments) and term loans were not availed.
(x) Based upon audit procedures performed and information and explanations given to uswe report that no fraud by the company or any fraud on the company by its officers oremployees has been noticed or reported during the course of our audit.
(xi) Managerial remuneration has been provided in accordance with the requisiteapprovals mandated by section 197 read with schedule V to the Companies Act.
(xii) The company is not a Nidhi company.
(xiii) All transactions with the related parties are in compliance with sections 177and 188 of Companies Act 2013 and the details have been disclosed in the financialstatements as required by the applicable accounting standards.
(xiv) The company has not made any preferential allotment or private placement ofshares or fully or partly convertible debentures during the year.
(xv) The company has not entered into any non cash transactions with directors orpersons connected with them.
(xvi) The company is not required to be registered under section 45-IA of the ReserveBank of India Act 1934.
| ||For Sundaram & Srinivasan |
| ||Chartered Accountants |
| ||Regn. No.004207S |
| ||M.Padhmanabhan |
|Place : Chennai. ||Partner |
|Date: 26th May 2017 ||Membership Number : F13291 |