TO THE MEMBERS OF
M/s AUTO PINS INDIA LIMITED
REPORT ON THE FINANCIAL STATEMENTS
We have audited the accompanying financial statement of M/s AUTO PINS INDIALIMITED("the Company")which comprise the Balance Sheet as at 31st March 2017the Statement of Profit & Loss and Cash Flow Statement for the period ended and asummary of 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 include maintenance adequate accounting records in accordance with theprovisions of the Act for safeguarding the assets of the Company and for preventing anddetecting frauds and others irregularities; selection and application of appropriateaccounting policies; making judgment 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 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 anddisclosures 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 risksassessments the auditor considers internal financial control relevant to theCompanys preparation of the financial statement that give a true and fair view inorder to design audit procedures that are appropriate in the circumstances. An audit alsoincludes evaluating the appropriateness of accounting policies used and the reasonablenessof the accounting estimates made by the Companys directors as well as evaluatingthe 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.
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 its Profit and Cash Flow Statement for the Period ended on that date.
Emphasis of Matter
Without qualifying our opinion we draw attention to Note No. 2.26 of the financialstatements relating to non provisions of gratuity and leave liability. The Company hasconsidered non provision of same as the same shall be accounted for on cash basis.
REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS
1. As required by the Companies (Auditors Report) Order 2016 (the order)issued by Central Government of India in terms of sub-section 11 of section 143 of theAct we give in the Annexure A statement on the matters specified in theparagraph 3 and 4 of the order to the extent applicable.
2. As required by Subsection 3 of Section 143 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 cash flow statement dealtwith 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 theCompanies(Accounts) Rules 2014;
e) On the basis of the written representations received from the directors as on 31stMarch 2017 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2017 from being appointed as a director in terms ofsub-section2 of Section 164 of the Act.
f) In our opinion the company has adequate internal financial control system andoperating effectively as per the nature and size of the business.
g) With respect to the other matters to be included in the Auditors 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 its financialposition in its financial Statement.
ii) The company has made provision as required under the applicable law or accountingstandard for material foreseeable losses if any on long term contracts includingderivative contracts.
iii) There had been delay in transferring old outstanding amounts required to betransferred to the investor Education and Protection Fund by the Company. However thereis no delay in current year
iv) The Company has provided requisite disclosures in its financial statements dealingsin Specified Bank Notes during the period from 8th November 2016 to 30th December 2016and these are in accordance with the books of accounts maintained by the Company. ReferNote 1.2(o) to the financial statements.
For Sanjay Rawal & Co.
(Firm Reg. No. 012820N)
Membership No.: 088156
Place: New Delhi
ANNEXURE TO THE INDEPENDENT AUDITORS REPORT
i) (a) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.
(b) Assets have been physically verified by the Management during the period .Nomaterial discrepancies were noticed on such Verification.
(c ) According to the information provided to us title deeds of all immovable propertyare in the name of the company except land at Kanpur (Gross Value Rs. 3500)
ii) The inventory has been physically verified by the management at reasonableintervals during the period In our opinion the frequency of such verification isreasonable. The discrepancies noticed on verification between the physical stocks and thebook records were not material.
iii) In our opinion and according to the information and explanations given to us thecompany has not granted any loans secured or unsecured to Companies Firms LimitedLiability Partnership and other parties covered in the register maintained under section189 of the Companies Act 2013. Accordingly paragraph 3(iii) of the Order is notapplicable to the Company.
iv) According to information and explanation provided to us the company has notgranted any loans investments guarantees and security to the parties covered undersection 185 and 186 of the Companies Act 2013.
v) The company has not accepted any deposits from the public in accordance with theprovisions of sections 73 to 76 of the Act and the rules framed there under.
(vi) We have broadly reviewed the Books of Accounts maintained by the Companypursuant to the rules made by 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 and records have been made and maintained. We have not however madea detailed examination of the records.
(vii) (a) According to the information and explanations given to us and the records ofthe company examined by us in our opinion the Company is regular in depositing theundisputed statutory dues including Provident Fund Employees State InsuranceIncome Tax Sales Tax Service Tax Duty of Customs Excise duty Value Added Tax CessProfessional Tax and other material statutory dues as applicable with the appropriateauthorities.
Accordingly to the information and explanations given to us no undisputed amountspayable in respect of provident fund employees state insurance income tax sales taxservice tax duty of customs duty of excise value added tax cess professional tax andother material statutory dues were in arrears as at 31st march 2017 for a period of morethan six months from the date they become payable.
(b) According to the information and explanations given to us there are no materialdues of Income Tax Sales Tax. Value Added Tax Service Tax Duty of Customs Duty ofExcise which have not been deposited with the appropriate authorities on account of anydispute as at 31st March 2017.
(viii) In our opinion and according to the information and explanations given to usthe company has not default in payment of any loans or borrowings from any financialinstitution Bank Government or debenture holders.
ix) According to the information & explanation given to us the company has notraised money by way of initial public offer or further public offer (including debtinstruments) or term loan. Accordingly the provision of clause 3(ix) of the order is notapplicable to the company.
x) Based upon the audit procedures performed and information and explanations given bythe management we report that no fraud by the company or no fraud on the company by itsofficers or employees has been noticed or reported during the period.
xi) According to the information & explanation given to us the company has paidmanagerial remuneration as defined by the provisions of the section 197 read with scheduleV of the Companies Act 2013.
xii) In our opinion and according to the information & explanation given to us thecompany is not a Nidhi company. Hence the provision of clause 3(xii) of the order is notapplicable to the company.
xiii) According to the information and explanation given to us and based on ourexaminations of the records of the Company during the period the company has entered intotransactions with related parties in compliance with the provisions of the sections 177& 188 of the Companies Act 2013. The details of such transactions have been properlydisclosed in the notes to the Financial Statements as required under Accounting standard18 Related Party Disclosures specified under Section 133 of the Act read with Rule 7 ofthe Companies (Accounts) Rules 2014..
XIV) According to the information & explanation given to us the company has notmade any preferential allotment or private placement of shares or fully or partlyconvertible debentures during the period under review.
XV) According to the information & explanation given to us the company has notentered into any non-cash transaction with directors or any person connected with him.Accordingly the provision of clause 3(xv) of the order is not applicable to the company.
xvi) In our opinion and according to the information & explanation given to us thecompany is not required to be registered under section 45-IA of the Reserves Bank of IndiaAct 1934. Accordingly the provision of clause 3(xvi) of the order is not applicable tothe company.
For Sanjay Rawal & Co.
(Firm Reg. No. 012820N)
Place: New Delhi