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Autoline Industries Ltd.

BSE: 532797 Sector: Auto
NSE: AUTOIND ISIN Code: INE718H01014
BSE 00:00 | 09 Dec 83.25 -2.65
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NSE 00:00 | 09 Dec 83.20 -3.00
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OPEN 87.55
PREVIOUS CLOSE 85.90
VOLUME 1852
52-Week high 125.50
52-Week low 48.15
P/E 38.90
Mkt Cap.(Rs cr) 324
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 87.55
CLOSE 85.90
VOLUME 1852
52-Week high 125.50
52-Week low 48.15
P/E 38.90
Mkt Cap.(Rs cr) 324
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Autoline Industries Ltd. (AUTOIND) - Auditors Report

Company auditors report

To the Members of Autoline Industries Ltd

Report on the Audit of the Standalone Financial Statements

OPINION

We have audited the Standalone Financial Statements of AutolineIndustries Ltd. ("the Company") which comprise the Balance Sheet as at March31 2022 the Statement of Profit & Loss (including Other Comprehensive Income) CashFlow Statement and Statement of Changes in Equity for the year then ended and notes to thestandalone financial statements including a summary of significant accounting policiesand other explanatory information.

In our opinion and to the best of our information and according to theexplanations given to us the aforesaid standalone financial statements give theinformation required by the Companies Act 2013 ("Act") in the manner sorequired and give a true and fair view in conformity with the accounting principlesgenerally accepted in India of the state of affairs of the Company as at March 31 2022and its profit other comprehensive income changes in equity and its cash flows for theyear ended on that date.

BASIS FOR OPINION

We conducted our audit of the standalone financial statements inaccordance with the Standards on Auditing (SAs) specified under section 143(10) of theAct. Our responsibilities under those Standards are further described in the Auditor'sResponsibilities for the Audit of the Financial Statements section of our report. We areindependent of the Company in accordance with the Code of Ethics issued by the Instituteof Chartered Accountants of India (ICAI) together with the ethical requirements that arerelevant to our audit of the standalone financial statements under the provisions of theAct and the Rules thereunder and we have fulfilled our other ethical responsibilities inaccordance with these requirements and the ICAI's Code of Ethics. We believe that theaudit evidence we have obtained is sufficient and appropriate to provide a basis for ouraudit opinion on the standalone financial statements.

EMPHASIS OF MATTERS

We draw attention to Note 50 to the standalone financial statementswhich describe the economic and social consequences/disruption the Company is facing as aresult of COVID-19 which is impacting supply chains / demand / financial markets /commodity prices / personnel available for work. Our opinion is not modified in respect ofthis matter

Description of Key Audit Matter

The key audit matter How the matter was addressed in our audit
(a) Going Concern Our audit procedures included:
As of 31 March 2022 the Company's total liabilities did not exceed its total assets however company is continuously incurring losses over the past year for the year ending March 31 2022 it has earned profits. Note 3.5 to the financial statements explain how the directors of the Company have formed a judgement that the going concern basis is appropriate in preparing the financial statements. • Walking through the business planning process and assessing the design implementation and operating effectiveness of management's key internal controls over the assessment of going concern including the preparation of cash flow forecasts.
The directors of the Company made their assessment of going concern by preparing a cash flow forecast in which some key assumptions were applied. These key assumptions included forecasts of sales volumes average selling prices raw material costs and the availability of banking and other financing facilities as well as financial support from the Promoters. • Evaluating the key assumptions in the cash flow forecasts (including future revenue gross profit operating expenses and capital expenditure) with reference to historical production information current performance internal investment and production plans and market and other external available information;
We identified going concern as a key audit matter because a significant degree of management judgement is involved in making this assessment and in forecasting the future cash flows of the Company which are inherently uncertain and because the management judgement and inherent uncertainties could have significant impact on the basis of preparation of the financial statements and could be subject to management bias. • Considering the accuracy and reliability of cash flow forecasts made by management in prior years by comparing them with the current year's results;
• Assessing the availability of banking and other financing facilities and arrangements by inspecting underlying documentation which included banking facility agreements signed before and after the reporting period end and assessing the impact of any covenants and other restrictive terms therein
• We also checked if any waivers were obtained from the financial institutions from which borrowings are made.
Based on our procedures we noted that the key assumptions used in the forecasts were within a reasonable range of our expectations.
(b) Revenue Recognition Our audit procedures to assess the recognition of revenue included the following:
The Company's revenue is derived from the sale of sheet metal stampings welded assemblies and moulds for the automotive industry. The Company recognizes revenue when the control is transferred to the customer. • Evaluating the design implementation and operating effectiveness of key internal controls over the existence accuracy and timing of revenue recognition;
The terms set out in the Company's sales contracts relating to goods acceptance by customers are varied. Accordingly the terms and conditions of sales contracts may affect the timing of recognition of sales to customers as each sales contract could have different terms relating to customer acceptance of the goods sold. • Performed substantive test of details over revenue recognized throughout the period by selecting a sample of transactions to ensure that the samples selected meet the revenue recognition criteria and are appropriately recorded;
We identified the recognition of revenue as a key audit matter because revenue is one of the key performance indicators of the Company and is therefore subject to an inherent risk of misstatement to meet targets or expectations and because errors in the recognition of revenue could have a material impact on the Company. • Tested sample transactions around the period end to ensure they were recorded in the correct period; and tested journal entries posted to revenue accounts focusing on unusual or irregular items if any.
(c) Contingent Liabilities (Note No.40) Evaluation of uncertain tax positions Our audit procedures include the following substantive procedures:
The Company operates in multiple jurisdictions and is subject to periodic challenges by local tax authorities on a range of tax matters during the normal course of business including transfer pricing and indirect tax matters. These involve significant management judgment to determine the possible outcome of the uncertain tax positions consequently having an impact on related accounting and disclosures in the standalone financial statements. • Obtained understanding of key uncertain tax positions; and
Refer Note 40 to the standalone financial statements. • We-
- Read and analyzed select key correspondences consultations by management for key uncertain tax positions;
- Discussed with appropriate senior management and evaluated management's underlying key assumptions in estimating the tax provisions; and
- Assessed management's estimate of the possible outcome of the disputed cases.

OTHER INFORMATION

The Company's Board of Directors is responsible for the otherinformation. The other information comprises the information included in the Company'sannual report but does not include the standalone financial statements and our auditor'sreport thereon.

Our opinion on the Standalone financial statements does not cover theother information and we do not express any form of assurance conclusion thereon.

In connection with our audit of the Standalone Financial Statementsour responsibility is to read the other information and in doing so consider whether theother information is materially inconsistent with the Standalone financial statements orour knowledge obtained in the audit or otherwise appears to be materially misstated.

If based on the work we have performed we conclude that there is amaterial misstatement of this other information; we are required to report that fact. Wehave nothing to report in this regard.

MANAGEMENT'S RESPONSIBILITY FOR THE STANDALONE FINANCIAL STATEMENTS

The Company's Board of Directors is responsible for the matters statedin Section 134(5) of the Act with respect to the preparation of these Standalone financialstatements that give a true and fair view of the financial position financialperformance including other comprehensive income cash flows and changes in equity of theCompany in accordance with the accounting principles generally accepted in India includingthe Indian Accounting Standards (Ind AS) specified under section 133 of the Act read withthe Companies (Indian Accounting Standards) Rules 2015 as amended. This responsibilityalso includes maintenance of adequate accounting records in accordance with the provisionsof the Act for safeguarding the assets of the Company and for preventing and detectingfrauds and other irregularities; selection and application of appropriate accountingpolicies; making judgments and estimates that are reasonable and prudent; and designimplementation 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 financialstatements that give a true and fair view and are free from material misstatement whetherdue to fraud or error.

In preparing the standalone financial statements management isresponsible for assessing the Company's ability to continue as a going concerndisclosing as applicable matters related to going concern and using the going concernbasis of accounting unless management either intends to liquidate the Company or to ceaseoperations or has no realistic alternative but to do so.

The Board of Directors are responsible for overseeing the Company'sfinancial reporting process.

AUDITOR'S RESPONSIBILITIES FOR THE AUDIT OF THE STANDALONE FINANCIALSTATEMENTS

Our objectives are to obtain reasonable assurance about whether theStandalone financial statements as a whole are free from material misstatement whetherdue to fraud or error and to issue an auditor's report that includes our opinion.Reasonable assurance is a high level of assurance but is not a guarantee that an auditconducted in accordance with SAs 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 Standalone financial statements.

As part of an audit in accordance with SAs we exercise professionaljudgment and maintain professional skepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of thestandalone financial statements whether due to fraud or error design and perform auditprocedures responsive to those risks and obtain audit evidence that is sufficient andappropriate to provide a basis for our opinion. The risk of not detecting a materialmisstatement resulting from fraud is higher than for one resulting from error as fraudmay involve collusion forgery intentional omissions misrepresentations or the overrideof internal control.

• Obtain an understanding of internal control relevant to theaudit in order to design audit procedures that are appropriate in the circumstances. Undersection 143(3) (i) of the Act we are also responsible for expressing our opinion onwhether the Company has adequate internal financial controls system in place and theoperating effectiveness of such controls.

• Evaluate the appropriateness of accounting policies used and thereasonableness of accounting estimates and related disclosures made by management.

• Conclude on the appropriateness of management's use of the goingconcern basis of accounting and based on the audit evidence obtained whether a materialuncertainty exists related to events or conditions that may cast significant doubt on theCompany's ability to continue as a going concern. If we conclude that

a material uncertainty exists we are required to draw attention in ourauditor's report to the related disclosures in the financial statements or if suchdisclosures are inadequate to modify our opinion. Our conclusions are based on the auditevidence obtained up to the date of our auditor's report. However future events orconditions may cause the Company to cease to continue as a going concern.

• Evaluate the overall presentation structure and content of thestandalone financial statements including the disclosures and whether the standalonefinancial statements represent the underlying transactions and events in a manner thatachieves fair presentation.

Materiality is the magnitude of misstatements in the standalonefinancial statements that individually or in aggregate makes it probable that theeconomic decisions of a reasonably knowledgeable user of the standalone financialstatements may be influenced. We consider quantitative materiality and qualitative factorsin (i) planning the scope of our audit work and in evaluating the results of our work; and(ii) to evaluate the effect of any identified misstatements in the standalone financialstatements.

We communicate with those charged with governance regarding amongother matters the planned scope and timing of the audit and significant audit findingsincluding any significant deficiencies in internal control that we identify during ouraudit.

We also provide those charged with governance with a statement that wehave complied with relevant ethical requirements regarding independence and tocommunicate with them all relationships and other matters that may reasonably be thoughtto bear on our independence and where applicable related safeguards.

REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS

1) As required by the Companies (Auditor's Report) Order 2020("the Order") issued by the Central Government of India in terms of section143 (11) of the Companies Act 2013 we give in the 'Annexure - A' a statement onthe matters specified in paragraphs 3 and 4 of the Order to the extent applicable.

2) As required by section 143 (3) of the Act based on our audit wereport that:

a) We have sought and obtained all the information and explanationswhich to the best of our knowledge and belief were necessary for the purposes of ouraudit.

b) In our opinion proper books of accounts as required by law havebeen kept by the Company so far as it appears from our examination of those books

c) The Balance Sheet the Statement of Profit & Loss (includingOther Comprehensive Income) the Cash Flow Statement and Statement of Changes in Equitydealt with by this report are in agreement with the books of account

d) In our opinion the aforesaid standalone financial statements complywith the Ind AS specified under Section 133 of the Act

e) On the basis of the written representations received from thedirectors as on 31st March 2022 taken on record by the Board of Directors none of thedirectors is disqualified as on 31st March 2022 from being appointed as a director interms of Section 164(2) of the Act.

f) With respect to the adequacy of the internal financial controls overfinancial reporting of the Company with reference to these standalone financial statementsand the operating effectiveness of such controls refer to our separate Report in "AnnexureB" to this report;

g) With respect to the other matters to be included in the Auditor'sReport in accordance with the requirements of section 197(16) of the Act as amended:

In our opinion and according to the information and explanations givento us the remuneration paid by the company to its directors during the period from 01April 2021 to 30 September 2021 is in accordance with the provisions of Section 197 of theCompanies Act 2013

For the remuneration paid to its directors for the period from 01October 2021 to 31 March 2022 upto the date of audit report the company has obtainedapproval from its defaulted lenders and sought approval from its shareholders throughpostal ballot.

The remuneration paid to any director is not in excess of limit laiddown under Section 197 of the Companies Act 2013.

The Ministry of Corporate Affairs has not prescribed other detailsunder section 197 (16) of the Companies Act 2013 which are required to be commented by us.

h) With respect to the other matters to be included in the Auditor'sReport in accordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 asamended in our opinion and to the best of our information and according to theexplanations given to us:

i. The Company has disclosed the impact of pending litigations on itsfinancial position in its standalone financial statements - Refer Note 40 to thestandalone financial statements;

ii. The Company did not have any long-term contracts includingderivative contracts for which there were any material foreseeable losses.

iii. There was no amount which was required to be transferred to theInvestor Education and Protection Fund by the Company.

iv. (a) The Management has represented that to the best of itsknowledge and belief no funds (which are material either individually or in theaggregate) have been advanced or loaned or invested (either from borrowed funds or sharepremium or any other sources or kind of funds) by the Company to or in any other person orentity including foreign entity ("Intermediaries") with the understandingwhether recorded in writing or otherwise that the Intermediary shall whether directlyor indirectly lend or invest in other persons or entities identified in any mannerwhatsoever by or on behalf of the Company ("Ultimate Beneficiaries") or provideany guarantee security or the like on behalf of the Ultimate Beneficiaries.

(b) The Management has represented that to the best of its knowledgeand belief no funds (which are material either individually or in the aggregate) havebeen received by the Company from any person or entity including foreign entity("Funding Parties") with the understanding whether recorded in writing orotherwise that the Company shall whether directly or indirectly lend or invest inother persons or entities identified in any manner whatsoever by or on behalf of theFunding Party ("Ultimate Beneficiaries") or provide any guarantee security orthe like on behalf of the Ultimate Beneficiaries.

(c) Based on the audit procedures that have been considered reasonableand appropriate in the circumstances nothing has come to our notice that has caused us tobelieve that the representations under sub-clause (i) and (ii) of Rule 11(e) as providedunder (a) and (b) above contain any material misstatement.

v. The Company has neither declared nor paid any dividend for the yearand for the previous year.

ANNEXURE A

Referred to in paragraph 1 under the heading "Report on OtherLegal and Regulatory Requirements" of our report of even date on the standalonefinancial statements for the year ended March 31 2022 we report that:

i. a) (A) The Company has maintained proper records showing fullparticulars including quantitative details and Situation of Property Plant and Equipment

(B) The Company has maintained proper records showing full particularsof its intangible assets

b) According to the information and explanations given to us and onthe basis of examination of the records of the company the Company has a regularprogramme of physical verification of its Property Plant and Equipment by which propertyplant and equipments are verified in phased manner over a period of three years inaccordance with this programme certain property plant and equipments were verifiedduring the year. In our opinion this periodicity of physical verification is reasonablehaving regards to the size of the company and the nature of its business and no materialdiscrepancies have been noticed on such physical verification.

c) Based on our examination of the property tax receipts and leaseagreement for land on which building is constructed registered sale deed / transfer deedwere provided to us we report that the title in respect of self constructed buildingsand title deeds of all other immovable properties disclosed in the financial statementsincluded under Property Plant and Equipment are held in the name of the Company as at thebalance sheet date apart from the land mentioned in the below table:-

Sr. Description of No. Property Gross carrying value (Rs in Lakhs) Held in Name of Whether immovable property is held in the name of promoter director or their relative or employee Period held - Indicate range where appropriate Reason for not being held in name of company (also indicate if in dispute)
1 Land & Building at Khasra no. 423 SIDCUL Plot no. 5 Uttarakhand 22.86 M/s Nirmiti Auto components Pvt. Ltd. No Since March 2011 Lease Deed is held in the name of M/s Nirmiti Auto Components Pvt. Ltd. which was amalgamated with the company.

d) According to information and explanations given to us and on thebasis of examination of the records of the company the Company has not revalued itsProperty Plant and Equipment (including Right to Use assets) or intangible assets or bothduring the year

e) According to information and explanations given to us and on thebasis of examination of the records of the company there are no proceedings initiated orpending against Company for holding any benami property under the Benami Transactions(Prohibition) Act 1988 (45 of 1988) and rules made thereunder.

ii. (a) The inventories have been physically verified by the managementduring the year except inventories lying with the third parties and goods in transit. Inrespect of inventories lying with the third parties these have been substantiallyconfirmed

by them and with respect to goods in transit subsequent goods receiptshave been verified by the management. In our opinion the frequency coverage andprocedure of such verification is reasonable. Discrepancies were noticed on verificationbetween the physical stocks and the book records were not more than 10% in the aggregateof each class of inventory.

(b) According to the information and explanations given to us and onthe basis of our examination of the records of the Company the Company has beensanctioned working capital limits in excess of five crore rupees in aggregate by thebank on the basis of security of current assets. In our opinion the quarterly returns orstatements filed by the Company with such bank are not in agreement with the books ofaccount of the company. The details are as under: -

Sr. No.Particulars Amount as per books Amount as reported in stock statement Difference
1 June 2021
Inventories 3858.65 4149.36 -290.71
Book Debts 1975.03 1658.62 316.41
Creditors 5052.66 2986.00 2066.66
2 September 2021
Inventories 3985.81 3981.27 4.54
Creditors 6007.52 3508.00 2499.52
3 December 2021
Inventories 4341.58 4212.74 128.84
Book Debts 3610.68 2614.18 996.50
Creditors 6075.95 3089.00 2986.95
4 March 2022
Inventories 4949.01 4326.82 622.19
Creditors 6114.12 3162.00 2952.12

iii. (a) On the basis of examination of records of the Company theCompany has granted loans to various parties during the year. The detail of aggregateamount of loans granted during the year and balance outstanding as at the balance sheetdate of such loans is as under.

(Rs in lakhs)

Particulars Amount
Aggregate amount provided during the year
• Subsidiaries 792.15
• Associates -
• Other Parties (Employees) 28.63
Balance outstanding as on 31st March 2022
• Subsidiaries 519.70
• Associates -
• Other Parties (Employees) 8.60

Based on the examination of records of the Company and according to theinformation and explanation given to us the Company has not provided guarantee orprovided security or granted any advances in the nature of loans secured or unsecured toany Company Limited Liability Partnerships Firms or any other party. during the yearunder consideration

b) In our opinion and according to the information and explanationgiven to us and based on audit procedures conducted by us in our opinion the investmentsmade and terms and conditions of loans granted during the year are prime facie notprejudicial to the interest of the Company. The Company has not provided any guarantee orsecurity or granted any advances in the nature of loans during the year

c) Based on the records examined by us and information and explanationgiven to us in respect of Loans granted to subsidiaries are on demand and no repaymentschedule is stipulated. The schedule of repayment of principal and interest has beenstipulated in respect of loans granted to employees and their payment/ receipts have beenregular except for one employee.

d) According to the information and explanations given to us and on thebasis of our examination of the records of the Company there is no overdue amount formore than ninety days in respect of loans given to employees except for one employeewhere overdue amount is Rs 1.30 Lakhs. Further loan granted to subsidiaries arereceivable on demand and repayment schedule is not stipulated for the same and accordinglythere is no overdue amount for more than 90 days in respect of loans granted tosubsidiaries.

e) In our opinion and according to information and explanation givenand records examined by us there were no loans granted which have been fallen due duringthe year and those have been renewed to settle the over dues of existing loans given tothe same parties.

f) Based on verification of records of the Company and information andexplanation given to us the Company has granted loans either repayable on demand orwithout specifying any terms or period of repayment. Details are as follows:

Particulars All Parties Promoters Related Parties
Aggregate amount of loans/ advances in nature of loans:
• Repayable on demand 519.70 - 519.70
• Agreement doesn't specify any terms or period of repayment
Total 519.70 - 519.70
Percentage of loans / advances in nature of loans to total loans 98.37% 98.37%

iv. In our opinion and according to the information and explanationsgiven to us the company has complied with the provisions of section 185 and 186 of theAct in respect of the making investments and providing guarantees and securities asapplicable.

v. The Company has not accepted any deposits within the meaning ofSections 73 to 76 of the Act and the Companies (Acceptance of Deposits) Rules 2014 (asamended). Accordingly the provisions of clause 3(v) of the Order are not applicable.

vi. As per information and explanation given to us the CentralGovernment has not prescribed maintenance of cost records as required under sub section(1) of Section 148 of the Companies Act 2013.

vii. According to the records undisputed statutory dues includingincome tax employees' state insurance provident fund duty of excise sales-tax servicetax value added tax Goods & service tax cess and other statutory dues have not beenregularly deposited with the appropriate authorities by the Company and there have beenserious delays in large number of cases.

a) According to the information and explanations given to us andaccording to the books and records as produced before us and examined by us followingundisputed statutory dues were in arrears as at 31 March 2022 for a period of more thansix months from the date they became payable.

Sr. Name of statute No. Nature of dues Amount in Period to which Rs in Lakhs it relates Whether paid before balance sheet signing date
1 Income Tax Act 1961 Tax deducted at source 37.69 July 2021 and August 2021 No
2 Goods and Service Tax Act Goods and Service Tax 21.00 July 2021 and August 2021 Yes
3 Goods and Service Tax Act Interest on delayed payment of goods and service tax 618.20 April 2018 to March 2021 No
4 Property Tax Grampanchayat Tax 25.50 FY 2017-18 to FY 2020-21 No

b) According to the information and explanations given to us there areno dues of Income-tax Sales- tax Service tax Duty of customs Duty of excise Valueadded tax and Goods and service tax which have not been deposited on account of anydispute except for the following: -

Name of statute Nature of dues Amount in Rs in Lakhs# Period to which it relates Forum where dispute is pending
The Maharashtra Value Added Tax Act 2002 VAT 264.21 * F.Y. 2013-14 Maharashtra State Tribunal
The Maharashtra Value Added Tax Act 2002 WCT 87.33 * F.Y. 2013-14 Maharashtra State Tribunal
The Maharashtra Value Added Tax Act 2002 VAT 111.32 F.Y. 2014-15 The Jt. Commissioner of States Taxes(Appeal)
The Maharashtra Value Added Tax Act 2002 VAT 487.45 F.Y. 2015-16 Application for Rectification filed with Dy. Commissioner of state tax
Central Sales Tax Act 1956 CST 34.66 F.Y. 2015-16 Application for Rectification filed with Dy. Commissioner of States Tax
The Uttarakhand Value Added Tax Act 2005 VAT / CST 46.60 * F.Y. 2013 - 14 The Jt. Commissioner of States Tax
Central Sales Tax Act 1956 CST 2.61 F.Y. 2016-17 Application for Rectification filed with Dy. Commissioner of state tax
The Maharashtra Value Added Tax Act 2002 VAT 96.50 F.Y. 2016-17 Application for Rectification filed with Dy. Commissioner of state tax
Central Sales Tax Act 1956 CST 15.99 F.Y. 2017-18 Company is in process of filing rectification application with the concerned authority
The Maharashtra Value Added Tax Act 2002 VAT 49.20 F.Y. 2017-18 Company is in process of filing rectification application with the concerned authority

*amount disclosed are net of amount paid under protest

# Amounts disclosed above are including interest and penalty asmentioned in Order appealed against

viii. According to the information and explanations given to us and onthe basis of our examination of the records of the Company the Company has notsurrendered or disclosed any transactions previously unrecorded as income in the books ofaccount in the tax assessments under the Income Tax Act 1961 as income during the year.

ix. (a) According to the information and explanations given to us andon the basis of our examination of the records of the

Company the Company has defaulted in repayment of loans and borrowingand in the payment of interest thereon to banks and financial institutions. The summery ofperiod and amount of default is as follows: -

(in Lakhs)

Nature of Borrowings Name of Lender Principal Interest
Amount not paid on due date Period (maximum days) Amount not paid on due date Period (maximum days)
Rupee Term Loan Bank of Baroda 242.03 19 16.93 20
Rupee Term Loan Catholic Syrian Bank 228.25 54 16.39 54
Rupee Term Loan Tata Motors Finance Solution Ltd 1078.54 17 437.74 17
Rupee Term Loan JM Financial ARC Ltd 782.54 169 295.09 169
Optionally Convertible Debentures JM Financial ARC Ltd - - 139.64 165
Total 2331.36 936.08

(b) According to the information and explanations given to us and onthe basis of our examination of the records of the Company The Company has not beendeclared a willful defaulter by any bank or financial institution or government orgovernment authority.

(c) The Company has not taken any term loan during the year andaccordingly reporting under clause 3(ix)(c) of the Order is not applicable.

(d) On an overall examination of the financial statements of theCompany and according to the information and explanations given to us funds raised onshort-term basis have prima facie not been used during the year for long-term purposesby the Company

(e) According to the information and explanations given to us and onthe basis of our examination of the records company has not taken any funds from anyentity or person on account of or to meet the obligations of its subsidiaries orassociates

(f) According to the information and explanations given to us andprocedures performed by us we report that the company has not raised loans during theyear on the pledge of securities held in its subsidiaries or associate companies (asdefined under the Act).

x. (a) The company did not raise money by way of initial public offeror further public offer (including debt instrument) during the year. Accordinglyparagraph 3 (x) (a) of the order is not applicable.

(b) In our opinion and according to the information and explanationgiven to us during the year the Company has made preferential allotment of equity sharesin accordance with the provisions and requirements of Section 42 of the Act and the Rulesframed thereunder and the fund raised has been used for the purpose for which the it wasraised. The Company has not made private placement of equity shares or fully or partlyconvertible debentures during the year

xi. (a) According to the information and explanations given by themanagement and based upon the audit procedures performed for the purpose of reporting thetrue and fair view of the financial statements and according to the information andexplanations given by the management no fraud by the Company or no material fraud on theCompany by its officers or employees of the Company has been noticed or reported to usduring the year.

(b) According to the information and explanations given to us noreport under sub-section (12) of Section 143 of the Act has been filed by the auditors inForm ADT-4 as prescribed under rule 13 of Companies (Audit and Auditors) Rules 2014 withthe Central Government.

(c) According to the information and explanations given to us thereare no whistle blower complaints received by the company during the year.

xii. In our opinion and according to the information and explanationsgiven to us the company is not a Nidhi company. Accordingly paragraph 3(xii) of theorder is not applicable.

xiii. According to the information and explanations given to us andbased on our examinations of the records of the company transactions with the relatedparties are in compliance with sections 177 and 188 of the Act where applicable anddetails of such transactions have been disclosed in the standalone financial statements asrequired by the applicable Indian Accounting Standards.

xiv. (a) Based on information and explanations provided to us and ouraudit procedures in our opinion the Company has an internal audit system commensuratewith the size and nature of its business

(b) We have considered the internal audit reports of the company issuedtill date for the period under audit in determining the nature timing and extent of ouraudit procedures.

xv. According to the information and explanations given to us and basedon our examination of the records of the Company the Company has not entered intonon-cash transactions with directors or persons connected with them. Accordinglyparagraph 3(xv) of the order and Section 192 of the Companies Act 2013 are notapplicable.

xvi. The Company is not required to be registered under section 45-IAof the Reserve Bank of India Act 1934. Hence reporting under clause 3(xvi)(a) (b) (c)and (d) of the Order is not applicable

xvii. Based on examination of records the company has not incurred anycash losses in the financial year 2021-22 however it has incurred cash losses of Rs 2254.37lakhs in immediately preceding financial year.

xviii. There has been no resignation of statutory auditors of thecompany during the year.

xix. On the basis of the financial ratios ageing and expected dates ofrealization of financial assets and payment of financial liabilities other informationaccompanying the financial statements and our knowledge of the Board of Directors andManagement plans and based on our examination of the evidence supporting the assumptionsand according to Going Concern mentioned in Key Audit Matters nothing has come to ourattention which causes us to believe that any material uncertainty exists as on the dateof the audit report indicating that Company is not capable of meeting its liabilitiesexisting at the date of balance sheet as and when they fall due within a period of oneyear from the balance sheet date. We however state

that this is not an assurance as to the future viability of theCompany. We further state that our reporting is based on the facts up to the date of theaudit report and we neither give any guarantee nor any assurance that all liabilitiesfalling due within a period of one year from the balance sheet date will get dischargedby the Company as and when they fall due.

xx. Based on the examination of records of the Company and informationand explanations given to us the conditions and requirements of section 135 of the actare not applicable to the company hence paragraphs 3(xx) (a) and (xx) (b) of the Orderare not applicable.

ANNEXURE B

Referred to in paragraph 2 (f) under the heading "Report on OtherLegal and Regulatory Requirements" of our report of even date to the members of theCompany on financial statements for the year ended March 31 2022.

Report on the Internal Financial Controls under Clause (i) ofSub-section 3 of Section 143 of the Companies Act 2013 ("the Act")

We have audited the internal financial controls over financialreporting of AUTOLINE INDUSTRIES LTD ("the Company") as of March 31 2022in conjunction with our audit of the standalone financial statements of the company forthe year ended on that date.

MANAGEMENT'S RESPONSIBILITY FOR INTERNAL FINANCIAL CONTROLS

The company's management is responsible for establishing andmaintaining internal financial controls based on "the internal control over financialreporting criteria established by the Company considering the essential components ofinternal control stated in the Guidance Note on Audit of Internal Financial Controls overFinancial Reporting issued by the "Institute of Chartered Accountants ofIndia"(ICAI). These responsibilities include the design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the orderly and efficient conduct of its business including adherence tocompany's policies safeguarding of its assets the prevention and detection of frauds anderrors the accuracy and completeness of the accounting records and the timelypreparation of reliable financial information as required under the Companies Act 2013.

AUDITORS' RESPONSIBILITY

Our responsibility is to express an opinion on the internal financialcontrols over financial reporting of the Company based on our audit. We conducted ouraudit in accordance with the Guidance Note on Audit of Internal Financial Controls OverFinancial Reporting (the "Guidance Note") issued by the Institute of CharteredAccountants of India and the Standards on Auditing prescribed under section 143(10) ofthe Companies Act 2013 to the extent applicable to an audit of internal financialcontrols. 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 were established andmaintained and whether such controls operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence aboutthe adequacy of the internal financial controls system over financial reporting and theiroperating effectiveness. Our audit of internal financial controls over financial reportingincluded obtaining an understanding of internal financial controls over financialreporting assessing the risk that a material weakness exists and testing and evaluatingthe design and operating effectiveness of internal control based on the assessed risk. Theprocedures selected depend on the auditor's judgment including the assessment of therisks of material misstatement of the financial statements whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our audit opinion on the Company's internal financialcontrols system over financial reporting.

MEANING OF INTERNAL FINANCIAL CONTROLS OVER FINANCIAL REPORTING

Company's Internal financial control over financial reporting is aprocess designed to provide reasonable assurance regarding the reliability of financialreporting and the preparation of financial statements for external purposes in accordancewith generally accepted accounting principles. A company's internal financial control overfinancial reporting includes those policies and procedures that (1) pertain to themaintenance of records that in reasonable detail accurately and fairly reflect thetransactions and dispositions of the assets of the company; (2) provide reasonableassurance that transactions are recorded as necessary to permit preparation of financialstatements in accordance with generally accepted accounting principles and that receiptsand expenditures of the company are being made only in accordance with authorizations 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 overfinancial reporting including the possibility of collusion or improper managementoverride of controls material misstatements due to error or fraud may occur and not bedetected. Also projections of any evaluation of the internal financial controls overfinancial reporting to future periods are subject to the risk that the internal financialcontrol over financial reporting may become inadequate because of changes in conditionsor that the degree of compliance with the policies or procedures may deteriorate.

OPINION

In our opinion the Company has in all material respects an adequateinternal financial controls system over financial reporting and such internal financialcontrols over financial reporting were operating effectively as at March 31 2022however company is required to strengthen its financial controls for obtaining balanceconfirmations from trade receivables and payables based on "the internal control overfinancial 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"(ICAI).

FOR A R SULAKHE & CO.
CHARTERED ACCOUNTANTS
Firm Reg. No. 110540W
Kaustubh Deo
PARTNER
Place : Pune Membership number: 134892
Date : May 28 2022 UDIN: 22134892ALSQPO9807

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