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Omax Autos Ltd.

BSE: 520021 Sector: Auto
NSE: OMAXAUTO ISIN Code: INE090B01011
BSE LIVE 15:46 | 11 Dec 77.80 7.90
(11.30%)
OPEN

76.40

HIGH

82.90

LOW

73.20

NSE 15:45 | 11 Dec 77.70 7.75
(11.08%)
OPEN

74.25

HIGH

81.55

LOW

73.25

OPEN 76.40
PREVIOUS CLOSE 69.90
VOLUME 203162
52-Week high 96.40
52-Week low 62.10
P/E
Mkt Cap.(Rs cr) 166
Buy Price 77.80
Buy Qty 188.00
Sell Price 0.00
Sell Qty 0.00
OPEN 76.40
CLOSE 69.90
VOLUME 203162
52-Week high 96.40
52-Week low 62.10
P/E
Mkt Cap.(Rs cr) 166
Buy Price 77.80
Buy Qty 188.00
Sell Price 0.00
Sell Qty 0.00

Omax Autos Ltd. (OMAXAUTO) - Auditors Report

Company auditors report

To

The Members of OMAX AUTOS LIMITED

Report on the Financial Statements

We have audited the accompanying financial statements of Omax Autos Limited ("theCompany") which comprise the Balance sheet as at 31st March 2017 the statement ofProfit and Loss and the Cash Flow Statement for the year then ended and a summary of thesignificant 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 the assets of the Company and for preventingand detecting frauds and other irregularities selection and application of appropriateaccounting policies making judgements 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 statement that givea 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 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 from material misstatements.

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 risks assessmentsthe auditor considers internal financial control relevant to the Company's preparation ofthe financial statements that give a true and fair view in order to design auditprocedures that are appropriate in the circumstances but not for the purpose ofexpressing an opinion on whether the company has in place an adequate internal financialcontrols system over financial reporting and the operating effectiveness of such controls.An audit also includes evaluating the appropriateness of the accounting policies used andthe reasonableness of the accounting estimates made by the Company's Directors as well asevaluating the overall 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 financial statements.

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid financial statements give the information required by the Actin the manner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India of the state of affairs of the Company as at 31stMarch 2017 and it's profit and it's cash flows for the year ended on that date.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditors' Report) Order 2016 ("the Order")issued by the Central Government of India in terms of sub-section (11) of section 143 ofthe Act we give in the Annexure a statement on the matters specified in paragraphs 3 and4 of the Order to the extent applicable.

2. 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 Balance Sheet the Statement of Profit and Loss andthe Cash Flow Statement dealt with by this report are in agreement with the books ofaccount. d) In our opinion the aforesaid financial statements comply with the AccountingStandards specified under section 133 of the Act read with Rule 7 of the Companies(Accounts) Rules 2014. e) On the basis of the written representations received from thedirectors as on 31st March 2017 taken on record by the Board of Directors none of thedirectors is disqualified as on 31st March 2017 from being appointed as a director interms of Section 164(2) of the Act. f) With respect to the adequacy of the internalfinancial controls over financial reporting of the Company and the operating effectivenessof such controls refer to our separate report in "Annexure-B" g) With respectto the other matters to be included in the Auditor's Report in accordance with Rule 11 ofthe Companies (Audit and Auditors ) Rules 2014. In our opinion and to the best of ourinformation and according to the explanations given to us: i i the Company did not haveany long term contracts including derivative contracts for which there were any materialforeseeable losses. iii. there has been no delay in transferring amounts required to betransferred to the Investor Education and Protection Fund by the Company. iv. the Companyhas provided requisite disclosures in it's financial statements as to holding as well asdealings in Specified Bank Notes as defined in Notification S.O. 3407(E) dated theNovember 8 2016 of the Ministry of Finance during the period from November 8 2016 toDecember 30 2016. Based on audit procedures performed and the representations provided tous by the management we report that the disclosures are in accordance with the books ofaccount maintained by the Company and as produced to us by the management.

For A. KUMAR GUPTA & CO.
Chartered Accountants
Firm Reg. No. 000182N
Place: Gurugram A.K. Gupta
Date: 18th April 2017 Partner
M. No. 012765

Annexure-A to the Independent Auditor's Report on the Financial Statements of OmaxAutos Limited

The Annexure referred to in our Independent Auditor's Report to the members of OmaxAutos Limited on the financial statements for the year ended March 31 2017 we reportthat: 1. a) The Company is maintaining proper records showing full particulars includingquantitative details & situation of fixed assets. b) As explained to us the Companyhas a system of physical verification which is designed to cover all assets over a periodof three years and in accordance herewith physical verification of certain fixed assetsof the Company was carried out during the year and no material discrepancies were noticedon such verification. In our opinion this frequency of physical verification isreasonable having regard to the size of the Company and nature of its fixed assets. c) Thetitle deeds/lease deeds of immovable properties are held in the name of the Company exceptas under: The Company has constructed building at Plot No.

T1 & T2 at Tata Motors Vendor Park Chinhat Industrial Area Deva Road DistrictLucknow Uttar Pradesh for its Lucknow Plant on the land measuring 47500 sq. meters heldunder tripartite agreement between the U.P. State Industrial Development CorporationLimited M/s Omax Autos Limited and Tata Motors Limited on sub lease basis dated 18thOctober 2007 for 15 years. However in case the lease is not renewed the building ofthe Company shall be purchased by Tata Motors Limited at WDV as per The Income Tax Act asper Agreement executed on 24th August 2007 between Tata Motors Ltd and OmaxAutos Limited.

The gross block and net block of Building as per Companies Act 2013 as on 31.03.2017 isas under Gross Block as on 31.03.2017- Rs. 2677.82 Lacs

Net block as on 31.03.2017- Rs. 2013.89 Lacs

2. According to the information and explanations given to us the inventories has havebeen physically verified by the management during the year. The frequency of suchverification is reasonable. The discrepancies noticed on verification between the physicalinventory and the book records were not material in relation to the operations of theCompany and the same have been properly dealt within the books of accounts.

3 According to information and explanations given to us the Company has not grantedany loan during the year covered in the register maintained under section 189 of theCompanies Act 2013. However there is one unsecured loan outstanding to one Companycovered in the register maintained under previous Companies Act. a) In our opinion termsand conditions of grant of such loan are not prejudicial to the interest of the Company.b) In our opinion and according to the information & explanations given to us theborrowers have been regular in the payment of the interest as stipulated.

The terms of arrangements do not stipulate any repayment schedule and the loan isrepayable on demand. c) There are no overdue amounts for more than ninety days.

4. The Company has not granted any loans made investments given guarantees andprovided security during the year under review. However loan given in earlier years iscovered under provision of Companies Act 1956.

5 The Company has not accepted any deposit from the public.

6 We have broadly reviewed the books of Account maintained by the Company pursuant tothe rules made by the Central Government for the maintenance of cost records undersub-section (1) of Section 148 of the Act and are of the opinion that prima facie theprescribed accounts & records have been kept by the Company so far as appears from ourexamination of the books of account of the Company.

7. a) According to the information and explanation given to us and on the basis of ourexamination of the books of accounts the Company has been regular in depositing theundisputed statutory dues including provident fund employee's state insurance incometax sales tax service tax duty of customs duty of excise value added tax cess andother statutory dues with appropriate authorities. There was no undisputed amountoutstanding as at 31st March 2017 for a period more than six months from thedate they become payable.

b) According to the information and explanations given to us the disputed Statutorydues aggregating to Rs. 805.59 Lac. Those have not been deposited on account of matterspending before the appropriate authorities are as under:

Sr. No. Nature of the Statute Nature of Dues Forum where Dispute is pending Period to which the amount relates Amount (Rs.in Lac)
1 Central Excise Act 1944 Disallowance of Cenvat Credit CESTAT 2004-05 onwards 475.61
2. Central Excise Act 1944 Disallowance of Cenvat Credit Commissioner/ Dy. Commissioner / Asst.
Commissioner (Appeal) 2004-05 onwards 190.90
3 VAT Rejection of Sale Return Joint Commissioner (Appeal)
2007-08 onwards 3.74
4 Under VAT Sale Tax Deferment Joint Commissioner (Appeal) 2008-09 106.22
5 Under VAT CST Joint Commissioner / Commissioner/Dy.
Commissioner (Appeal) 2010-11 onwards 20.91
6 Under VAT Input Tax Credit (Sales Tax) Tribunal 2009-10 onwards 11.95

8. Based on our audit procedures and on the information and explanations given to us bythe management we are of the opinion that the company has not defaulted in repayment ofdues to any financial institutions banks Government or dues to debenture holders duringthe year.

9 The Company has not raised money by way of initial public offer or further publicoffer (including debt instrument) during the year. Based on our audit procedures andaccording to the information & explanation given to us the term loans were appliedfor the purpose of which the loans were obtained.

10 According to the information and explanations given to us no fraud by the Companyor on the Company by its offices or employees has been noticed or reported.

11 The Company has paid or provided managerial remuneration in accordance with therequisite approvals mandated by provision of section 197 read with Schedule V of theCompanies Act 2013.

12 In our opinion the Company is not a Nidhi Company; therefore this clause is notapplicable to the Company.

13 In our opinion all transactions with the related parties are in compliance withSection 177 and 188 of the Companies Act 2013 where applicable and details have beendisclosed in the financial statements as required by the applicable accounting standards.

14 The Company has not made any preferential allotment or private placement of sharesor fully or partly convertible debentures during the year under review.

15 According to the information and explanation given to us the Company has not enteredinto any non-cash transactions with the Directors or persons connected with him.

16 The Company is not required to be registered under section 45-IA of the Reserve Bankof India Act 1934.

For A. KUMAR GUPTA & CO.
Chartered Accountants
Firm Reg. No. 000182N
Place: Gurugram A.K. Gupta
Date: 18th April 2017 Partner
M. No. 012765

Annexure - B to the Independent Auditors' Report on the Financial statements of OmaxAutos 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 reporting of Omax AutosLimited ("the Company") as of 31 March 2017 in conjunction with our audit of thefinancial 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 (‘ICAI'). Theseresponsibilities include the design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the orderly and efficientconduct of its business including adherence to company's policies the safeguarding ofits assets the prevention and detection of frauds and errors the accuracy andcompleteness of the accounting records and the timely preparation of reliable financialinformation as required under the 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 Controls 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 was 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 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 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 reporting and thepreparation of financial statements for external purposes in accordance with generallyaccepted accounting principles. A company's internal financial control over financialreporting includes those policies and procedures that (1) pertain to the maintenance ofrecords that in reasonable detail accurately and fairly reflect the transactions anddispositions of the assets of the company; (2) provide reasonable assurance thattransactions are recorded as necessary to permit preparation of financial statements inaccordance with generally accepted accounting principles and that receipts andexpenditures 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 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 to the best of our information and according to the explanations givento us the Company has in all material respects an adequate internal financial controlssystem over financial reporting and such internal financial controls over financialreporting were operating effectively as at 31 March 2017 based on the internal controlover financial reporting criteria established by the Company considering the essentialcomponents of internal control stated in the Guidance Note on Audit of Internal FinancialControls Over Financial Reporting issued by the Institute of Chartered Accountants ofIndia.

For A.KUMAR GUPTA & CO.
Chartered Accountants
Firm Reg No. 000182N
Partner
Place: Gurugram A.K.Gupta
Date: 18th April 2017 N. No. 012765