THE MEMBERS OF
AUTO PINS (INDIA) LIMITED (THE 'COMPANY*)
Report on the Audit of the standalone lnd As Financial Statements
1. We have audited the accompanying lnd AS standalone financial statements of AUTOPINS (INDIA) LIMITED (THE 'COMPANY') (the Company*) which comprise the BalanceSheet as at 31 March 2020 the Statement of Profit and Loss (including OtherComprehensive Income) the Cash Flow Statement and the Statement of Changes in Equity forthe year then ended and notes to the standalone lnd AS financial statements including asummary of the significant accounting policies and other explanatory information.
2. In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid standalone lnd AS financial statements give the informationrequired by the Companies Act 2013 as amendended (the 'Act*) in the manner so requiredand give a true and fair view in conformity with the accounting principles generallyaccepted in India including Indian Accounting Standards (lnd AS*) specified underSection 133 of the Act of the state of affairs (financial position) of the Company as at31 March 2020 and its Profits (financial performance including other comprehensiveincome) its cash flows and the changes in equity for the year ended on that date.
Basis for Opinion
3. We conducted our audit of the standalone lnd AS Financial statements in accordancewith the Standards on Auditing specified under Section 143(10) of the Act Ourresponsibilities under those standards are further described in the Auditor'sResponsibilities for the Audit of standalone lnd AS Financial Statements section of ourreport We are independent of the Company in accordance with the Code of Ethics issued bythe Institute of Chartered Accountants of India ('ICAi') together with the ethicalrequirements that are relevant to our audit of the financial statements under theprovisions of the Act and the rules thereunder and we have fulfilled our other ethicalresponsibilities in accordance with these requirements and the Code of Ethics. We believethat the audit evidence we have obtained is sufficient and appropriate to provide a basisfor our audit opinion on the standalone lnd AS financial statements.
Emphasis of Matter
Without qualifying our opinion we draw attention to Note No. 40(a) of the standalonelnd AS financial statements relating to non provisions of gratuity and leave liability.The Company has considered non provision of same as the same shall be accounted for oncash basis and Note No. 40(b) Assessment of impact of Corona Virus Disease (C0VID-19)onits financial statemgpfoi liquidity or ability to service its debt or other obligations.
Key Audit Matters
4. Except for the matter described in the Emphasis Matter Paragraph we have determinedthat there are no [other) key audit matters to communicate in our report
InformatiQii other than the Financial Statements and Auditor's Report thereon
5. The Company's Board of Directors is responsible for the other information. The otherinformation comprises the information included in the Annual Report but does not includethe standalone Ind AS financial statements and our auditor's report thereon.
Our opinion on the standalone Ind AS financial statements does not cover die otherinformation and we do not express any form of assurance conclusion thereon.
In connection with our audit of the standalone Ind AS financial statements ourresponsibility is to read the other information and in doing so consider whether theother information is materially inconsistent with the standalone Ind AS financialstatements or our knowledge obtained in the audit or otherwise appears to be materiallymisstated. If based on the work we have performed we conclude that there is a materialmisstatement of this other information we are required to report that fact We havenothing to report in this regard.
Responsibilities of Management and Those Charged with Governance for the standalone IndAS Financial Statements
6. The Company's Board of Directors is responsible for the matters stated in Section134(5) of the Act with respect to the preparation of these standalone Ind AS financialstatements that give a true and fair view of the state of affairs (financial position)profit or loss (financial performance including other comprehensive income) changes inequity and cash flows of the Company in accordance with the accounting principlesgenerally accepted in India including the Ind AS specified under Section 133 of the Actread with companies (Indian Accounting Standards) rules 2015 as amended. 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 standalone Ind AS financialstatements that give a true and fair view and are free from material misstatement whetherdue to fraud or error.
7. In preparing the standalone Ind AS financial statements management is responsiblefor assessing the Company's ability to continue as a going concern disclosing asapplicable matters related to going concern and using the going concern basis ofaccounting unless management either intends to liquidate the Company or to ceaseoperations or has no realistic alternative but to do so.
8. Those Board of Directors are also responsible for overseeing the Company's financialreporting process.
Auditor's Responsibilities for the Audit of the standalone Ind AS Financial Statements
9. Our objectives are to obtain reasonable assurance about whether the standalone IndAS financial Statements as a whole are free from material misstatement whether due tofraud or error and to issue an auditor's report that includes our opinion. Reasonableassurance is a high level of assurance but is not a guarantee that an audit conducted inaccordance with Standards on Auditing will always detect a material misstatement when itexists. Misstatements can arise from fraud or error and are considered material ifindividually or in the aggregate they could reasonably be expected to influence theeconomic decisions of users taken on the basis of these the standalone Ind AS financialstatements.
10. As part of an audit in accordance with Standards on Auditing we exerciseprofessional judgment and maintain professional skepticism throughout the audit We also:
Identify and assess the risks of material misstatement of the standalone Ind ASfinancial statements whether due to fraud or error design and perform audit proceduresresponsive to those risks and obtain audit evidence that is sufficient and appropriate toprovide a basis for our opinion. The risk of not detecting a material misstatementresulting from fraud is higher than for one resulting from error as fraud may involvecollusion forgery intentional omissions misrepresentations or the override of internalcontrol.
Obtain an understanding of internal control relevant to the audit in order todesign audit procedures that are appropriate in the circumstances. Under Section 143(3) (Qof the Act we are also responsible for explaining our opinion on whether the Company hasadequate internal financial controls system in place and the operating effectiveness ofsuch controls.
Evaluate the appropriateness of accounting policies used and the reasonablenessof accounting estimates and related disclosures made by management.
Conclude on the appropriateness of management's use of the going concern basisof accounting and based on the audit evidence obtained whether a material uncertaintyexists related to events or conditions that may cast significant doubt on the Company'sability to continue as a going concern. If we conclude that a material uncertainty existswe are required to draw attention in ouf auditor's report to the related disclosures inthe standalone Ind AS financial statements or if such disclosures are inadequate tomodify our opinion. Our conclusions are based on the audit evidence obtained up to thedate of our auditor's report However future events or conditions may cause the Company tocease to continue as a going concern.
Evaluate the overall presentation structure and content of the standalone IndAS financial statements including the disclosures and whether the standalone Ind ASfinancial statements represent the underlying transactions and events in a manner thatachieves fair presentation.
11. We communicate with those charged with governance regarding among other mattersthe planned scope and timing of the audit and significant audit findings including anysignificant deficiencies in internal control that we identify during our audit
12. We also provide those charged with governance with a statement that we havecomplied with relevant ethical requirements regarding independence and to communicatewith them all relationships and other matters that may reasonably be thought to bear onour independence and where applicable related safeguards.
13. From the matters communicated with those charged with governance we determinethose matters that were of most significance in the audit of the standalone Ind ASfinancial statements of the financial year ended march 312020 and are therefore the keyaudit matters. We describe these matters in our auditor's report unless law or regulationprecludes public disclosure about the matter or when in extremely rare circumstances wedetermine that a matter should not be communicated in our report because the adverseconsequences of doing so would reasonably be expected to outweigh the public interestbenefits of such communication.
Report on other Legal and Regulatory Requirements
14. As required by the Companies (Auditor's Report) Order 2016 (the 'Order1)issued by the Central Government of India in terms of Section 143(11) of the Act we givein the Annexure A a statement on the matters specified in paragraphs 3 and 4 of theOrder.
15. Further to our comments in Annexure A as required by Section 143(3) of the Act wereport 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 standalone ind AS financial statements dealt with by this report are inagreement with the books of account;
d) In our opinion the aforesaid standalone Ind AS financial statements comply with IndAS specified under Section 133 of the Act read with Companies (Indian AccountingStandars) Rules 2015 as amended.
e) On the basis of the written representations received from the directors and taken onrecord by the Board of Directors none of the directors is disqualified as on 31 March2020 from being appointed as a director in terms of Section 164(2) of the Act;
f) With respect to adequacy of the internal financial controls over financial reportingof the company with reference to these standalone Ind AS financial statements andoperating effectiveness of such control refer to our separate report in" AnnexureB" to this report
g) In our opinion the managerial remuneration for the year ended 31 march 202Q hasbeen paid/provided by the company to its directors in accordance with the provisions ofsection 197 read with schedule V to the Act
h) 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 (as amended) inour opinion and to die best of our information and according to the explanations given tous:
i. The Company has disclosed the impact of pending litigations on its Anancial positionin the standalone Ind AS financial statements;
ii. The Company has made provision as required under the applicable law or Ind AS formaterial foreseeable losses if any on long-term contracts including derivativecontracts;
iii. There has been no delay in transferring amounts required to be transferred tothe Investor Education and Protection Fund by the Company. However there is delay intransferring old outstanding amount required to be transferred to the investor education& protection fund by the company.
For Dharam Taneja Associates
(Firm Reg. No. 03563N)
(DHARAM VIR TANEJA)
Membership No.; 007718
Place: New Delhi
ANNEXURE A TO THE INDEPENDENT AUDITOR'S REPORT OF EVEN DATE TO THE MEMBERS OF AUTO PINS(INDIA) LIMITED (THE COMPANY*) ON THE STANDALONE IND AS FINANCIAL STATEMENTS FOR THE YEARENDED 31 MARCH 2020
A Eased on the audit procedures performed for the purpose of reporting a true and fairview on the Ind As standalone financial statements of the Company and taking intoconsideration the information and explanations given to us and the books of account andother records examined by us in the normal course of audit and to the best of ourknowledge and belief we report that:
i. (a) The Company has maintained proper records showing foil particulars includingquantitative details and situation of fixed assets.
(b) Fixed Assets have been physically verified by the Management during the period. Nomaterial discrepancies were noticed on such Verification.
(c) According to foe 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. (a) The inventory has been physically verified by the management at reasonableintervals during the period In our opinion foe frequency of such verification isreasonable.
(b) The discrepancies noticed on verification between the physical stocks and the bookrecords were not material.
iii. In our opinion and according to foe 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 foe register maintained under section189 of the Companies Act 2013. Accordingly paragraph 3(iii) of the Order is notapplicable to the Company and hence not commented upon.
iv. According to information and explanation provided to us the company has notgranted any loans investments guarantees and security to foe parties covered undersection 185 and 186 of foe Companies Act 2013 and hence not commented upon.
v. The company has not accepted any deposits from the public in accordance with foeprovisions of sections 73 to 76 of foe Act and the rules framed there under. Accordinglyfoe provisions of 3 (V) of foe Order are not applicable.
vi. As informed to us foe maintenance of Cost Records has not been specified by theCentral Government under sub-section (1) of Section 148 of foe Act in respect of theactivities carried on by foe company.
vii. (a) According to the information and explanations given to us and foe records offoe company examined by us in our opinion the Company is regular in depositing theundisputed statutory dues including Provident Fund Employees' State Insurance IncomeTax Sales Tax Service Tax Duty of Customs Excise duty Value Added Tax Goods andService Tax Cess Professional Tax and other material statutory dues as applicable withthe appropriate authorities.
(b) Accordingly to foe information and explanations given to us no undisputed amountspayable in respect of provident fond employees state insurance income tax sales taxservice tax duty of customs duty of excise value added tax Goods and Service Taxcess professional tax and other material statutory dues were in arrears as at 31st march2020 for a period of more than six months from the date they become payable.
(c) According to the information and explanations given to us there are no materialdues except for the dues mentioned bellow of Income Tax Sales Tax Value Added TaxService Tax Goods and Service Tax Duty of Customs Duty of Excise which have not beendeposited with the appropriate authorities on account of any dispute as at 31st March2020.
The dues outstanding in respect of Value added Tax is as follows:
Statement of Disputed Dues
|Name of the Statue ||Nature of Dues ||Amount (Rs. In Lakhs) ||Amount Pald/Adfusted ||Period to which the amount relates ||Forum where dispute 1$ pending |
|Value Added Tax ||HVAT ||4.96 || ||2014-15 ||HVAT Department |
viii. In our opinion and according to the information and explanations given to us thecompany has not default in payment of any loans or borrowings from any financialinstitution Bank Government or dues to 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 and hence not commented upon.
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 companyby its officers 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 and hence not commented upon.
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 standalone Ind AS Financial Statements as required by theapplicable Accounting standards.
xiv. According to the information & explanation given to us the company has notmade any preferential allotment or private placement of shares or folly or partlyconvertible debentures during the year under review and hence the provision of clause3(xiv) of the order is not applicable to the company and hence not commented upon.
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 asreferred to in section 192 of the companies act 2013. Accordingly the provision of clause3(xv) of the order is not applicable to the company.
xvi. In our opinion and according to die information & explanation given to us thecompany is not required to be registered under section 45-1A of the Reserves Bank of IndiaAct 1934. Accordingly the provision of clause 3 (xvi) of the order is not applicable tothe company.
For Dharam Taneja Associates
(Firm Reg. No. 03563N)
(DHARAM VIR TANEJA)
Membership No.: 007718
Place: New Delhi
ANNEXURE B TO THE INDEPENDENT AUDITOR'S REPORT OF EVEN DATE TO THE MEMBERS OF AUTO PINS(INDIA) LIMITED (THE 'COMPANY') ON THE IND AS STANDALONE FINANCIAL STATEMENTS FOR THEYEAR ENDED 31 MARCH 2020
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 AUTQPINS (INDIA) LIMITED (THE 'COMPANY') ("the Company") as of March 312020 inconjunction with our audit of the standalone Ind AS financial statements of the Companyfor 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 die 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 with reference to these standalone Ind AS financialstatements based on our audit We conducted our audit in accordance with die Guidance noteon Audit of Internal Financial Controls Over Financial Reporting (the "GuidanceNote") and the Standards on Auditing as specified under section 143(10) of theCompanies Act2013 to the extent applicable to an audit of internal financial control andboth issued 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 with reference to these standalone Ind AS financial statementswas established and maintained and if such controls operated effectively in all materialrespects.
Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls system over financial reporting with reference to thesestandalone Ind AS financial statements and their operating effectiveness. Our audit ofinternal financial controls over financial reporting included obtaining an understandingof internal financial controls over financial reporting with reference to these standaloneInd AS financial statements assessing the risk that a material weakness exists andtesting and evaluating the design and operating effectiveness of internal control based onthe assessed risk. The procedures selected depend on the auditor's judgement; includingthe assessment of the risks of material misstatement of the financial statements whetherdue 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 with reference to these standalone Ind AS financial statements.
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 C3) provide reasonable assurance regardingprevention or timely detection of unauthorised acquisition use or disposition of thecompany's assets that cpuld 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 with reference to these standalone IndAS financial statements and such internal financial controls over financial reporting withreference to these standalone Ind AS financial statements were operating effectively as atMarch 31 2020 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.
For Dharam Taneja Associates
(Firm Reg. No. 03563N)
(DHARAM VIR TANEJA)
Membership No.; 007718
Place: New Delhi