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Omax Autos Ltd.

BSE: 520021 Sector: Auto
NSE: OMAXAUTO ISIN Code: INE090B01011
BSE LIVE 19:40 | 19 Oct 70.35 0.80
(1.15%)
OPEN

69.30

HIGH

71.35

LOW

69.30

NSE 19:31 | 19 Oct 69.70 0.30
(0.43%)
OPEN

71.90

HIGH

71.90

LOW

68.55

OPEN 69.30
PREVIOUS CLOSE 69.55
VOLUME 3980
52-Week high 103.40
52-Week low 62.10
P/E
Mkt Cap.(Rs cr) 150
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 69.30
CLOSE 69.55
VOLUME 3980
52-Week high 103.40
52-Week low 62.10
P/E
Mkt Cap.(Rs cr) 150
Buy Price 0.00
Buy Qty 0.00
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 2016 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 ofthe financial statements whether due to fraud or error. In making those risksassessments the auditor considers internal financial control relevant to theCompany’s preparation of the financial statements that give a true and fair view inorder to design audit procedures that are appropriate in the circumstances but not forthe purpose of expressing an opinion on whether the company has in place an adequateinternal financial controls system over financial reporting and the operatingeffectiveness of such controls. An audit also includes evaluating the appropriateness ofthe accounting policies used and the reasonableness of the accounting estimates made bythe Company’s Directors as well as evaluating the overall presentation of thefinancial 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 2016 and it’s profit and it’s cash flows for the year ended onthat date.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditors’ Report) Order 2016 ("theOrder") issued by the Central Government of India in terms of sub-section (11) ofsection 143 of the Act we give in the Annexure a statement on the matters specified inparagraphs 3 and 4 of the Order to the extent applicable.

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 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) 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 the directors as on 31stMarch 2016 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2016 from being appointed as a director in terms of Section164(2) of the Act.

f) The Company has adequate internal financial controls system in place and the same isoperating satisfactorily. Whenever any weakness is observed by management or reported byinternal auditors effective steps are taken by the management to ratify the weakness.

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 it’s financialposition in it’s financial statements-Refer Note 25 2(a) to the financialstatements.

ii the Company did not have any long term contracts including derivative contracts forwhich there were any material foreseeable losses.

iii. there has been no delay in transferring amounts required to be transferred tothe Investor Education and Protection Fund by the Company.

For A. KUMAR GUPTA & CO.
Chartered Accountants
Firm Reg. No. 000182N
Place: Gurgaon A.K. Gupta
Date: 6th May 2016 Partner
M. No. 012765

Annexure to the Independent Auditor’s Report

The Annexure referred to in our Independent Auditor’s Report to the members ofOmax Autos Limited on the financial statements for the year ended 31st March2016 we report that:

1. a) The Company is maintaining proper records showing full particulars includingquantitative details & situation of fixed assets.

b) As explained to us the Company has a system of physical verification which isdesigned to cover all assets over a period of three years and in accordance herewithphysical verification of certain fixed assets of the Company was carried out during theyear and no material discrepancies were noticed on such verification. In our opinion thisfrequency of physical verification is reasonable having regard to the size of the Companyand nature of its fixed assets.

c) The title deeds/lease deeds of immovable properties are held in the name of theCompany except as under:

The Company has constructed building at Plot No. T1 & T2 at Tata Motors VendorPark Chinhat Industrial Area Deva Road District Lucknow Uttar Pradesh for its LucknowPlant on the land measuring 47500 sq. meters held under tripartite agreement between theU.P. State Industrial Development Corporation Limited M/s Omax Autos Limited and TataMotors Limited on sub lease basis dated 18th October 2007 for 15 years. Howeverin case the lease is not renewed the building of the Company shall be purchased by TataMotors Limited at WDV as per The Income Tax Act as per Agreement executed on 24thAugust 2007 between Tata Motors Ltd and Omax Autos Limited.

The gross block and net block of Building as per Companies Act 2013 as on 31.03.2016 isas under: Gross Block as on 31.03.2016- Rs. 2677.82 Lacs Net block as on 31.03.2016- Rs.2096.64 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 insuranceincome tax sales tax service tax duty of customs duty of excise value added tax cessand other statutory dues with appropriate authorities. There was no undisputed amountoutstanding as at 31st March 2016 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. 791.34 Lac. Those have not been deposited on account of matterspending before the appropriate authorities are as under:

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 Credit Disallowance of Cenvat CESTAT 2004-05 onwards 424.08
2. Central Excise Act 1944 Disallowance of Cenvat Credit Commissioner/ Dy.
Commissioner / Asst. Commissioner (Appeal) 2004-05 onwards 250.44
3 VAT Rejection of Sale Return Joint Commissioner (Appeal) 2007-08 onwards 2.81
4 Under VAT Sale Tax Deferment Joint Commissioner (Appeal) 2008-09 93.13
5 Under VAT CST Joint Commissioner /
Commissioner/ Dy. Commissioner (Appeal) 2010-11 onwards 13.09
6 Under VAT Input Tax Credit (Sales Tax) Tribunal 2009-10 onwards 7.79

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. TheCompany has paid or provided managerial remuneration in accordance with the requisiteapprovals mandated by provision of section 197 read with Schedule V of the Companies Act2013.

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 with Section 177 and 188 of the Companies Act 2013 where applicableand details have been disclosed in the financial statements as required by the applicableaccounting 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 tothe information and explanation given to us the Company has not entered into any non-cashtransactions with the Directors or persons connected with him.

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

For A. KUMAR GUPTA & CO.
Chartered Accountants
Firm Reg. No. 000182N
Place: Gurgaon A.K. Gupta
Date: 6th May 2016 Partner
M. No. 012765