To the Members of Autoline Industries Limited
Report on the Audit of the Standalone Ind AS financial Statements
We have audited the standalone Ind AS financial Statements of AutolineIndustries Limited which comprise the Balance Sheet as at March 31 2019 the Statement ofPro t & Loss including Statement of Other Comprehensive Income Cash Flow Statementand Statement of Changes in Equity for the year then ended and notes to thestandalone Ind AS financial statements including a summary of significant accountingpolicies and other explanatory information.
In our opinion and to the best of our information and according to theexplanations given to us
the aforesaid standalone Ind AS financial statements give theinformation required by the
Companies Act 2013 ("Act") in the manner so required andgive a true and fair view in conformity with the accounting principles generally acceptedin India of the state of affairs of
the Company as at March 31 2019 and its loss other comprehensiveincome changes in equity and its cash ows for the year ended on that date.
Basis for Opinion
We conducted our audit of the standalone Ind AS financial statements inaccordance with the Standards on Auditing (SAs) specified under section 143(10) of theCompanies Act 2013. Our responsibilities under those Standards are further described inthe Auditor's Responsibilities for the Audit of the financial Statements section ofour report. We are independent of the Company in accordance with the Code of Ethics issuedby the Institute of Chartered Accountants of India together with the ethical requirementsthat are relevant to our audit of the financial statements under the provisions of theCompanies Act 2013 and the Rules thereunder and we have ful lled 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 Ind AS financial statements.
Key Audit Matters
Key audit matters are those matters that in our professional judgmentwere of most signi cance in our audit of the financial statements of the current period.These matters were addressed in the context of our audit of the financial statements as awhole and in forming our opinion thereon and we do not provide a separate opinion onthese matters.
Description of Key Audit Matter
|The key audit matter ||How the matter was addressed in our audit |
|Going Concern ||Our audit procedures included: |
|As of 31 March 2019 the Company's total liabilities did not exceed its total assets however company is continuously incurring losses Note No. 3.4 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 ow forecast in which some key assumptions were applied. These key assumptions included forecasts of sales volumes average selling prices raw material costs sale of land available with subsidiary company 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 signi cant degree of management judgement is involved in making this assessment and in forecasting the future cash ows 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. |
|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 modes 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 that they were recorded in the correct period; and tested journal entries posted to revenue accounts focusing on unusual or irregular items if any. |
|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 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. Refer Note 40 to the standalone financial statements. ||Obtained understanding of key uncertain tax positions; and |
| ||We - |
| ||O Read and analyzed select key correspondences external legal opinions / consultations by management for key uncertain tax positions. |
| ||O Discussed with appropriate senior management and evaluated management's underlying key assumptions in estimating the tax provisions; and |
| ||O Assessed management's estimate of the possible outcome of the disputed cases. |
The Company's Board of Directors is responsible for the otherinformation. The other
information comprises the Board's report including annexure toBoard's report but does not include the Standalone Ind AS financial Statements andour auditor's report
Our opinion on the Standalone Ind AS financial statements does notcover the other
information and we do not express any form of assurance conclusionthereon.
In connection with our audit of the Standalone Ind AS financialStatements our responsibility is to read the other information and in doing so considerwhether the other information is materially inconsistent with the Standalone Ind ASfinancial statements or our knowledge obtained in the audit or otherwise appears to bematerially 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 Ind AS financialStatements
The Company's Board of Directors is responsible for the mattersstated in Section 134(5) of the Act with respect to the preparation of these StandaloneInd AS financial statements that give a true and fair view of the financial positionfinancial performance including other comprehensive income cash ows and changes inequity of the Company in accordance with the accounting principles generally accepted inIndia including the Indian Accounting Standards (Ind AS) specified under section 133 ofthe Act read with the Companies (Indian Accounting Standards) Rules 2015 as amended.This responsibility also includes maintenance of adequate accounting records in accordancewith the provisions of the Act for safeguarding the assets of the Company and forpreventing and detecting frauds and other irregularities; selection and
application of appropriate accounting policies; making judgments andestimates that are reasonable and prudent; and design implementation and maintenance ofadequate internal financial controls that were operating effectively for ensuring theaccuracy and completeness of the accounting records relevant to the preparation andpresentation of the standalone Ind AS financial statements that give a true and fair viewand are free from material misstatement whether due to fraud or error.
In preparing the standalone Ind AS 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 or to cease accounting unless management either intends to liquidate the Companyoperations or has no realistic alternative but to do so.
The Board of Directors are also responsible for overseeing theCompany's financial reporting process.
Auditor's Responsibilities for the Au dit of the Standalone Ind ASfinancial Statements
Our objectives are to obtain reasonable assurance about whether theStandalone Ind AS financial statements as a whole are free from material misstatementwhether due to fraud or error and to issue an auditor's report that includes ouropinion. Reasonable assurance is a high level of assurance but is not a guarantee that anaudit conducted 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 Ind AS financialstatements.
As part of an audit in accordance with SAs we exercise professionaljudgement and maintain professional skepticism throughout the audit. We also:
Identify and assess the risks of material misstatement of thestandalone Ind AS financial statements whether due to fraud or error design and performaudit procedures responsive to those risks and obtain audit evidence that is sufficientand appropriate 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 the audit inorder to design audit procedures that are appropriate in the circumstances. Under section143(3)(i) of the Act we are also responsible for expressing our opinion on whether theCompany has adequate internal financial controls system in place and the operatingeffectiveness 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 materialuncertainty exists we are required to draw attention in our auditor's report to therelated disclosures in the 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 theCompany to cease to continue as a going concern.
Evaluate the overall presentation structure and content of thestandalone Ind AS financial statements including the disclosures and whether thestandalone Ind AS financial statements represent the underlying transactions and events ina manner that achieves fair presentation.
We communicate with those charged with governance regarding amongother matters the planned scope and timing of the audit and significant audit ndingsincluding any significant de ciencies 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 2016("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' astatement on the matters specified in paragraphs 3 and 4 of the Order to the extentapplicable.
As required by section 143 (3) of the Act based on our audit we reportthat:
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 Pro t & Loss including theStatement of Other Comprehensive Income the Cash Flow Statement and Statement of Changesin Equity dealt with by this report are in agreement with the books of account
d) In our opinion and to the best of our information and according tothe explanation given to us the aforesaid standalone Ind AS financial statements complywith the Accounting Standards specified under Section 133 of the Act read with Companies(Indian Accounting Standards) Rules 2015 as amended
e) On the basis of the written representations received from thedirectors as on 31st March 2019 taken on record by the Board of Directors none of thedirectors is disquali ed as on 31st March 2019 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 Ind AS financialstatements and the operating effectiveness of such controls
refer to our separate Report in "Annexure B" to this report;
g) With respect to the other matters to be included in theAuditor's Report in accordance with Rule 11 of the Companies (Audit and Auditors)Rules 2014 as amended in our opinion and to the best of our information and according tothe explanations given to us:
i. The Company has disclosed the impact of pending litigations on itsfinancial position in its standalone Ind AS financial statements Refer Note 40 to thestandalone Ind AS financial statements;
ii. The Company did not have any long-term contracts includingderivative contracts for which there were any material foreseeable losses
iii. Dividend pertaining to financial Year 2011-12 was transferred toInvestor Education and Protection Fund with a delay of 2 months and 22 days and to thatextent the Company has not complied with the provisions of Section 124 (6) of theCompanies Act 2013 read with the Rules made there under.
3. In our opinion the managerial remuneration for the year ended 31March 2019 has been paid / provided by the Company to its directors in accordance with theprovisions of section 197 read with Schedule V to the Act; The Ministry of CorporateAffairs has not prescribed other details under section 197 (16) which are required to becommented by us
|FOR A R SULAKHE & CO. |
|CHARTERED ACCOUNTANTS |
|Firm Reg. No. 110540W |
|Anand Sulakhe |
|M.No.: 33451 |
|Place: Pune |
|Date: May 30 2019 |
Annexure A referred to in paragraph 1 under the heading "Report onOther Legal and Regulatory Requirements" of our report of even date on the standaloneInd AS financial statements for the year ended March 31 2019 we report that:
i. a) The company has maintained proper records showing fullparticulars including quantitative details and situations of its xed assets.
b) According to the information and explanation given to us thecompany has a regular programme of physical veri cation of its xed assets by which xedassets are veri ed in phased manner over a period of three years in accordance with thisprogramme certain xed assets were veri ed during the year. In our opinion thisperiodicity of physical veri cation is reasonable having regards to the size of theCompany and the nature of its business and no material discrepancies have been noticed onsuch physical veri cation.
c) According to the information and explanation given to us and on thebasis of our examination of the records of the company except for the following twocases the title deeds were held in the name of the company
| || || || ||(Rs. In lakhs) |
|Sr. Particulars No. ||Whether Leasehold or Freehold ||Gross Block as On Balance Sheet Date ||Net Block as On Balance sheet Date ||Remarks |
|1. Khasra no. 423 SIDCUL Plot no.5 Uttarakhand ||Leasehold ||22.86 ||22.86 ||Lease Deed is held in the name of M/s Nirmiti Auto components Pvt. Ltd. which was amalgamated with the company. |
|2. Mhalunge 392/1/B & 613 ||Freehold ||230.98 ||230.98 ||As per local authority records of 7/12 extracts name of M/s Autoline Industrial Parks Ltd. was appearing |
ii. a) The inventories have been physically veri ed 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 substantially conrmed by them and with respect to goods in transit subsequent goods receipts have beenveri ed by management. In our opinion frequency of reasonable in physical veri cation ofinventory followed by the management was relation to the size of the company and thenature of its The business. discrepancies noticed on physical veri cation of theinventories have been
properly dealt with in the books of account;
iii. The company had granted loan to covered in the register twocompanies maintained under section 189 of the companies Act 2013 amounting to Rs.
17300000/-a) In our opinion the rate of interest and other termsand conditions on which the loans had been granted to the party listed in the registermaintained under section 189 of the Act were not prima facie prejudicial to the interestof the company.
b) Since loan is repayable on demand clause (b) and (c) are notcommented by us.
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 with respect to the loans investment and guarantee made.
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. Accordingly the provisions of clause 3(vi)of the Order are not applicable.
vii. a) According to the records the Company is regular in depositingundisputed statutory dues in respect of duty of customs income-tax however undisputedstatutory dues including employees' state insurance provident fund duty of excisesales-tax service tax value added tax Goods & service tax cess local body tax andother statutory dues have not been regularly deposited with the appropriate authoritiesand there have been delays in depositing the same.
According to the information and explanations given to us and accordingto the books and records as produced before us and examined by us following undisputedstatutory dues were in arrears as at 31 March 2019 for a period of more than six monthsfrom the date they became payable .
|Sr. Name of statutory No dues . ||Nature of dues ||Amount (in Rs.) ||Period to which it relates ||Whether paid before balance sheet signing |
|1 Central Excise Act 1944 ||Excise Duty ||1902837/- ||April 2017 and May 2017 ||No |
|2 Goods and Service Tax ||Goods and Service Tax ||17551361/- ||July 2018 and August 2018 ||No |
b) the basis of our According to the information and explanation givento us and on examination of books of accounts there are no cases of dues of income taxgoods & service tax sales tax duty of customs duty of excise value added tax andcess as at 31st March 2019 which have not been deposited on account of disputes except forthe following: -
|Name of the Statute ||Nature of Dues ||Forum where Dispute is pending ||Period to which the amount relates ||Tax Amount involved (Rs.) |
|The Maharashtra Value Added Tax Act 2002 / Central Sales Tax Act 1956 ||VAT/CST ||Maharashtra ||F.Y. 2006-07 ||4824518/-* |
| || ||Sales Tax ||F.Y. 2007-08 ||4557739/-* |
| || ||Tribunal ||F.Y.2009-10 ||939269/-* |
|The Maharashtra || ||The Joint ||F.Y. 2000-01 ||2444440/- |
|Value Added Tax Act 2002 / Central Sales Tax Act 1956 ||VAT/CST ||Commissioner of Sales Tax (Appeals) ||F.Y. 2001-02 ||442721/- |
|The Maharashtra || ||Dy. ||F.Y. 2012-13 ||80606161/- |
|Value Added Tax Act 2002 / Central Sales Tax Act 1956 ||VAT/CST ||Commissioner of Sales Tax ||F.Y. 2012-13 ||6071136/- |
|The Maharashtra Value Added Tax Act 2002 ||VAT ||The Jt. ||F.Y. 2013-14 ||33444323/- * |
| || ||Commissioner of Commercial Taxes || || |
|Central Sales Tax Act 1956 ||CST ||The Jt. ||F.Y. 2007-08 ||4191200/- |
| || ||Commissioner of Commercial Taxes || || |
|Central Sales Tax ||CST ||The Jt. ||F.Y. 2013-14 ||22543450/-* |
|Act 1956 || ||Commissioner of Commercial Taxes || || |
|The Maharashtra Value Added Tax Act 2002 ||WCT ||The Jt. Commissioner of Commercial Taxes ||F.Y. 2013-14 ||8733143/- * |
|The Uttarakhand Value Added Tax Act 2005 ||VAT / CST ||The Jt. Commissioner of Commercial Taxes ||F.Y. 2013 14 ||4659711/- * |
* Amounts paid under protest have been reduced from the amount ofdemand in arriving at the aforesaid disclosure.
viii. According to the information and explanations given to us andbased on documents and records veri ed by us in our opinion the company has defaulted inrepayments of loans to Banks and financial Institutions. The details of default as onMarch 31 2019 are as follows: -
| || || ||Rs. in Lakhs |
|Sr. Particulars No. ||Amount of 31.03.2019 ||Default as on ||Period of default |
|A Banks ||Principal ||Interest || |
|1 Axis Bank Ltd ||- ||10.31 ||Less than 3 months |
|2 The Catholic Syrian Bank Ltd ||10.00 ||5.51 ||Less than 3 months |
|3 Bank of Baroda ||- ||33.29 ||Less than 3 months |
|B financial || || || |
|Institutions || || || |
|1 J M financial A R C Pvt. Ltd. ||105.63 ||99.01 ||Less than 3 months |
|J M financial A R C Pvt. Ltd. ||940.83 ||514.19 ||More than 3 months |
|2 Tata Motors Finance Solution Ltd * ||- ||15.80 ||Less than 3 months |
|3 Tata Capital financial Services Ltd * ||- ||0.59 ||Less than 3 months |
* Amount of Interest payable is Net of tax deducted at source
ix. During the year the company did not raise money by way of initialpublic offer or further public offer (including debt instrument). However company raisedmoney by way of term loans during the year which were applied for the purpose for whichthey were raised.
x. Based upon the audit procedures performed for the purpose ofreporting the true and fair view of the financial statements and according to theinformation and explanations given by the management we report that no fraud by theCompany or no material fraud on the Company by the of cers and employees of the Companyhas been noticed or reported during the year.
xi. According to information and explanation given to us and based onour examination of the records the Company has paid/provided for managerial remunerationin accordance with the requisite approvals mandated by the provisions of Section 197 readwith Schedule V to the Act for the year under consideration.
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 Ind AS financial statements asrequired by the applicable Indian accounting standards.
xiv. According to the information and explanations given to us andbased on our examinations of the records of the company the company had made preferentialallotment of shares during the year under review and the requirements of section 42 of theCompanies Act 2013 have been complied with and the amount raised has been used for thepurposes for which the funds were raised.
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.
Accordingly paragraph 3(xv) of the order is not applicable.
xvi. The Company is not required to be registered under section 45-IAof the Reserve Bank of India Act 1934.
|FOR A R SULAKHE & CO. |
|CHARTERED ACCOUNTANTS |
|Firm Reg. No. 110540W |
|Anand Sulakhe |
|M.No.: 33451 |
|Place: Pune |
|Date: May 30 2019 |
Annexure B referred to in p aragraph 2 (f) under the heading"Report on Other Legal and Regulatory Requirements" of our report of even dateon the standalone Ind AS financial statements
Report on the Internal financial Controls under Clause (i) of Sub-section 3 of
Section 143 of the Companies Act 2013 ("the Act")
We have audited the internal financial controls over financialreporting of AUTOLINE INDUSTRIES LIMITED("the Company") as of March 312019 in conjunction with our audit of the standalone Ind AS financial statements of thecompany for the 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 prevention and detection of fraudsand errors accuracy and completeness of the accounting records and timely preparation ofreliable financial information as required under the Companies Act 2013.
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 toprovide a basis for our audit opinion on the Company's internalfinancial controls system over financial reporting.
Meaning of Internal financial Controls over financial Repor ting
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 financialReporting
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.
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 2019however company is required to strengthen its financial controls for obtaining balancecon rmations 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 || |
|Anand Sulakhe || |
|PARTNER ||Place: Pune |
|M.No.: 33451 ||Date: May 30 2019 |