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Automotive Stampings & Assemblies Ltd.

BSE: 520119 Sector: Auto
NSE: ASAL ISIN Code: INE900C01027
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OPEN 247.80
PREVIOUS CLOSE 236.00
VOLUME 3803
52-Week high 247.80
52-Week low 24.15
P/E
Mkt Cap.(Rs cr) 393
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 247.80
CLOSE 236.00
VOLUME 3803
52-Week high 247.80
52-Week low 24.15
P/E
Mkt Cap.(Rs cr) 393
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Automotive Stampings & Assemblies Ltd. (ASAL) - Auditors Report

Company auditors report

TO THE MEMBERS OF AUTOMOTIVE STAMPINGS AND ASSEMBLIES LIMITED Report on the Audit ofthe Financial Statements

Opinion

We have audited the financial statements of Automotive Stampings and Assemblies Limited("the Company") which comprise the balance sheet as at 31 March 2021 and thestatement of profit and loss (including other comprehensive income) statement of changesin equity and statement of cash flows for the year then ended and notes to the financialstatements including a summary of the significant accounting policies and otherexplanatory information.

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid financial statements give the information required by theCompanies Act 2013 ("Act") in the manner so required and give a true and fairview in conformity with the accounting principles generally accepted in India of thestate of affairs of the Company as at 31 March 2021 and loss and other comprehensiveincome changes in equity and its cash flows for the year ended on that date.

Basis for Opinion

We conducted our audit in accordance with the Standards on Auditing (SAs) specifiedunder section 143(10) of the Act. Our responsibilities under those SAs are furtherdescribed in the Auditor's Responsibilities for the Audit of the Financial Statementssection of our report. We are independent of the Company in accordance with the Code ofEthics issued by the Institute of Chartered Accountants of India 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 opinion on the financial statements.

Material uncertainty Related to Going Concern

We draw your attention to note 4.4 in the financial statements which states that theCompany has incurred a net loss of INR 2988.74 lakhs during the year ended 31 March 2021.Further as of the date the Company's liabilities exceed its total assets by INR 8872.07lakhs i.e. the net worth of the company as at 31 March 2021 is negative. These financialstatements have also been negatively impacted due to the outbreak of COVID-19. Thereforethese events or conditions indicate that a material uncertainty exists that may castsignificant doubt on the Company's ability to continue as a going concern. However theManagement has prepared the financial statements on a going concern basis since they havea reasonable expectation that the company would be able to meet its liabilities on thebasis of letter of financial support provided by the Holding Company access toalternative sources of funding by the Group entities and implementation of variousmeasures to improve operational efficiency and optimize margins.

Key Audit Matters

Key audit matters are those matters that in our professional judgment were of mostsignificance in our audit of the financial statements of the current period. These matterswere addressed in the context of our audit of the financial statements as a whole and informing our opinion thereon and we do not provide a separate opinion on this matter. Inaddition to the matter described in the Material Uncertainty related to Going Concernsection we have determined the matter described below to be the key audit matter to becommunicated in our report.

The Key Audit Matter How the matter was addressed in our audit
Impairment evaluation of Property Plant and Equipment ("PPE") (refer note 2.4 and 5 to the financial statements) Based on the guidance provided by Ind AS 36 'Impairment of assets' the following indicators that PPE may be impaired have been identified: Our audit procedures included:
- As of 31 March 2021 the Company's total liabilities exceeded its total assets by INR 8872.07 Lakhs - Obtaining an understanding of the Company's process and key controls over the impairment evaluation.
- The Company has been consistently reporting losses for the past 9 years. For the year ended 31 March 2021 the Company has reported a net loss before exceptional items and tax amounting to INR 2969.89 Lakhs. - Assessing and testing the design and operating effectiveness of such controls.
- The automobile sector is expected to face severe business and operational challenges in the near future due to the COVID-19 pandemic. This is likely to have an adverse impact on the economic performance and hence recoverable amount of the PPE. - Evaluating the Company's process with respect to impairment assessment and fair valuation. Assessed the competence experience and objectivity of the expert engaged by the management.
Therefore as required by Ind AS 36 the Company has estimated the recoverable amount of its PPE with the assistance of an external expert. - Involving our valuation specialists to assess and challenge the appropriateness of the valuation model and the underlying assumptions. - Assessing and testing the sensitivity analysis performed by the Company and evaluating whether any possible changes in assumptions could lead to a significant change the recoverable value.
The fallout of the COVID-19 pandemic is likely to have severe repercussions on the Indian economy. Any valuation / forecasting assessments performed in this environment are exposed to a higher-than-usual degree of estimation uncertainty and judgement. Accordingly this is a key audit matter.

Other information

The Company's management and Board of Directors are responsible for the otherinformation. The other infor- mation comprises the information included in the Company'sannual report but does not include the financial statements and our auditors' reportthereon.

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

In connection with our audit of the financial statements our responsibility is to readthe other information and in doing so consider whether the other information ismaterially inconsistent with the financial statements or our knowledge obtained in theaudit or otherwise appears to be materially misstated. If based on the work we haveperformed we conclude that there is a material misstatement of this other information weare required to report that fact. We have nothing to report in this regard.

Management's and Board of Directors' Responsibility for the Financial Statements

The Company's Management and Board of Directors are responsible for the matters statedin section 134(5) of the Act with respect to the preparation of these financial statementsthat give a true and fair view of the state of affairs profit/loss and othercomprehensive income changes in equity and cash flows of the Company in accordance withthe accounting principles generally accepted in India including the Indian AccountingStandards (Ind AS) specified under section 133 of the Act. This responsibility alsoincludes maintenance of adequate accounting records in accordance with the provisions ofthe Act for safeguarding of 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 were operatingeffectively for ensuring accuracy and completeness of the accounting records relevant tothe preparation and presentation of the financial statements that give a true and fairview and are free from material misstatement whether due to fraud or error.

In preparing the financial statements the Management and Board of Directors areresponsible 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 the Board of Directors either intends to liquidate the Companyor to cease operations or has no realistic alternative but to do so.

The Board of Directors is also responsible for overseeing the Company's financialreporting process.

Auditor's Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financialstatements as a whole are free from material misstatement whether due to fraud or errorand to issue an auditor's report that includes our opinion. Reasonable assurance is a highlevel of assurance but is not a guarantee that an audit conducted in accordance with SAswill always detect a material misstatement when it exists. Misstatements can arise fromfraud or error and are considered material if individually or in the aggregate theycould reasonably be expected to influence the economic decisions of users taken on thebasis of these financial statements.

As part of an audit in accordance with SAs we exercise professional judgment andmaintain professional skepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of the financialstatements whether due to fraud or error design and perform audit procedures responsiveto those risks and obtain audit evidence that is sufficient and appropriate to provide abasis for our opinion. The risk of not detecting a material misstatement resulting fromfraud is higher than for one resulting from error as fraud may involve collusionforgery intentional omissions misrepresentations or the override of internal control.

• 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)(i)of the Act we are also responsible for expressing our opinion on whether the company hasadequate internal financial controls with reference to financial statements in place andthe operating effectiveness of such controls.

• Evaluate the appropriateness of accounting policies used and the reasonablenessof accounting estimates and related disclosures in the financial statements made by theManagement and Board of Directors.

• Conclude on the appropriateness of the Management and Board of Directors use ofthe going concern basis of accounting and based on the audit evidence obtained whether amaterial uncertainty exists related to events or conditions that may cast significantdoubt on the Company's ability to continue as a going concern. If we conclude that amaterial uncertainty exists we are required to draw attention in our auditor's report tothe related disclosures in the financial statements or if such disclosures areinadequate to modify our opinion. Our conclusions are based on the audit evidenceobtained up to the date of our auditor's report. However future events or conditions maycause the Company to cease to continue as a going concern.

• Evaluate the overall presentation structure and content of the financialstatements including the disclo- sures and whether the financial statements representthe underlying transactions and events in a manner that achieves fair presentation.

We communicate with those charged with governance regarding among other matters theplanned scope and timing of the audit and significant audit findings including anysignificant deficiencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have compliedwith relevant ethical requirements regarding independence and to communicate with themall relationships and other matters that may reasonably be thought to bear on ourindependence and where applicable related safeguards.

From the matters communicated with those charged with governance we determine thosematters that were of most significance in the audit of the financial statements of thecurrent period and are therefore the key audit matters. We describe these matters in ourauditors' report unless law or regulation precludes public disclosure about the matter orwhen in extremely rare circumstances we determine that a matter should not be communi-cated in our report because the adverse consequences of doing so would reasonably beexpected to outweigh the public interest benefits of such communication.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditors' Report) Order 2016 ("the Order")issued by the Central Govern- ment in terms of section 143 (11) of the Act we give in the"Annexure A" a statement on the matters spec- ified in paragraphs 3 and 4 of theOrder to the extent applicable.

2. (A) As required by Section 143(3) of the Act we report that:

a) We have sought and obtained all the information and explanations which to the bestof our know ledge and belief were necessary for the purposes of our audit.

b) In our opinion proper books of account as required by law have been kept by theCompany so far as it appears from our examination of those books

c) The balance sheet the statement of profit and loss (including other comprehensiveincome) the statement of changes in equity and the statement of cash flows dealt with bythis Report are in agreement with the books of account.

d) In our opinion the aforesaid financial statements comply with the Ind AS specifiedunder section 133 of the Act.

e) On the basis of the written representations received from the directors as on 31March 2021 taken on record by the Board of Directors none of the directors isdisqualified as on 31 March 2021 from being appointed as a director in terms of Section164(2) of the Act.

f) With respect to the adequacy of the internal financial controls with reference tofinancial statements of the Company and the operating effectiveness of such controlsrefer to our separate Report in "Annexure B".

(B) With respect to the other matters to be included in the Auditors' Report inaccordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 in our opinionand to the best of our information and according to the explanations given to us:

i. The Company has disclosed the impact of pending litigations as at 31 March 2021 onits financial position in its financial statements - Refer Note 36 to the financialstatements

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

iii. There were no amounts which were required to be transferred to the InvestorEducation and Protection Fund by the Company; and

iv. The disclosures in the financial statements regarding holdings as well as dealingsin specified bank notes during the period from 8 November 2016 to 30 December 2016 havenot been made in these financial statements since they do not pertain to the financialyear ended 31 March 2021.

(C) We draw attention to Note 45 to the financial statements for the year ended 31March 2021 according to which the managerial remuneration paid to Chief Executive Officeof the Company (amounting to '. 65 Lakhs) exceed the prescribed limits under Section 197read with Schedule V to the Companies

Act 2013 by INR 5 Lakhs. As per the provisions of the Act the excess remuneration issubject to approval of the shareholders which the company proposes to obtain in theforthcoming Annual general Meeting. The Ministry of Corporate Affairs has not prescribedother details under Section 197(16) which are required to be commented upon by us.

For B S R & Co LLP

Chartered Accountants Firm

Registration No: 101248W/W-100022

Abhishek
Partner
Place: Pune Membership No. No: 062343
Date: 26 April 2021 UDIN: 21062343AAAABD5137

With reference to Annexure A referred to in paragraph 1 in Report on Other Legal andRegulatory Requirements of the Independent Auditors' Report of even date to the members ofthe Company on the financial statements for the year ended 31 March 2021 we report that:

i. (a) The Company has maintained proper records showing full particulars includingquantitative details and situation of property plant and equipment.

(b) The Company has regular program of physical verification of its property plant andequipment by which all the property plant and equipment are verified once every year. Inaccordance with this program all property plant and equipment were verified during theyear and no material discrepancies were noticed on such verification. In our opinion thisperiodicity of physical verification is reasonable having regard to size of the Companyand the nature of its assets.

(c) In our opinion and according to the information and explanations given to us and onthe basis of our examination of the records of the Company the title deeds of immovableproperties are held in the name of the Company.

ii. In our opinion and according to information and explanation given to us and on thebasis of our examination of records of the Company the inventory except forgoods-in-transit and inventory lying with third parties has been physically verified bymanagement during the year. The discrepancies noticed on verification between the physicalstocks and book records were not material and have been properly dealt with in the booksof account. In respect of stock lying with third parties at the year end writtenconfirmation from major parties have been obtained and in respect of goods-in-transitsubsequent goods receipt has been verified by the management. In our opinion thefrequency of such verification is reasonable and adequate in relation to the size of theCompany and the nature of its business.

iii. According to the information and explanations given to us the Company has notgranted any loans secured or unsecured to companies firms limited liabilitypartnerships or other parties covered in the register maintained under section 189 of theCompanies Act 2013 ("Act"). Accordingly paragraph 3(iii) (a) (b) and (c) ofthe Order are not applicable.

iv. According to the information and explanations given to us the Company has notgranted any loans made investments or provided any guarantees or securities to whichprovisions of section 185 and 186 of the Act apply. Accordingly paragraph 3(iv) of theOrder is not applicable.

v. The Company has not accepted any deposits from the public in terms of directivesissued by the Reserve Bank of India and the provisions of Sections 73 to 76 of the Act andthe rules made there under.

vi. The Company has not accepted any deposits from the public in terms of directivesissued by the Reserve Bank of India and the provisions of Sections 73 to 76 of the Act andthe rules made there under. Accordingly paragraph 3(V) of the Order is not applicable.

vii. (a) According to the information and explanations given to us and on the basis ofour examination of the records of the Company amounts deducted/accrued in the books ofaccounts in respect of undisputed statutory dues including Provident Fund Employees'State Insurance Income-tax Duty of Customs Goods and Services Tax Cess and othermaterial statutory dues have generally been regularly deposited during the year by theCompany with the appropriate authorities except for certain dues in relation to providentfund related matters referred to in note 36(b) to the financial statements. As explainedto us the Company did not have any dues on account of Sales Tax Service Tax Value addedtax and Duty of Excise.

According to the information and explanations given to us no undisputed amountspayable in respect of Provident fund Employees' state insurance Income-tax Duty ofcustoms Goods and Services Tax and other material statutory dues were in arrears as at 31March 2021 for a period of more than six months from the date they became payable exceptfor certain dues in relation to provident fund related matters referred to in note 36(b)to the financial statements.

(b) According to the information and explanations given to us there are no dues ofIncome-tax Sales Tax Service Tax Duty of Customs Duty of Excise Goods and ServicesTax and Value Added Tax which have not been deposited on account of any dispute except forthe following:

Name of the statute Nature of the dues Amount (Rs in Lakhs)(Gross Demand) Amount (Rs in Lakhs) (Paid under Protest) Period to which the amount relates Forum where the dispute is pending
Central Excise Act 1944 Duty 31.70 2007-2008 Custom Excise and Service Tax Appellate Tribunal
Duty 123.96 -
2008-2009 Custom Excise and Service Tax Appellate Tribunal
Penalty 83.82 69.83 2006-2011 Bombay High Court
Duty 357.37 2002-2005 Custom Excise and Service Tax Appellate Tribunal
Bombay Sales Tax Act 1959 Sale Tax 2.92 - 2002-03 Joint Commissioner (Appeals)
Maharashtra Value Added Tax Act 2002 Sale Tax 186.45 17.34 2013-14 Joint Commissioner (Appeals)
Maharashtra Value Added Tax Act 2002 Sale Tax 182.57 60.19 2014-15 Joint Commissioner (Appeals)
Maharashtra Value Added Tax Act 2002 Sale Tax 322.12

-

2015-16 Joint Commissioner (Appeals)*
Maharashtra Value Added Tax Act 2002 Sale Tax 187.1 2016-17 Deputy Commissioner*
Income Tax Act 1961 Income Tax 30.08

-

2002-03 Commissioner of Income Tax (Appeals)
Income Tax 17.78 2005-06 Commissioner of Income Tax (Appeals)

* The company is in the process of filing appeal with the respective authority.

viii. In our opinion and according to the information and explanations given to us theCompany has not defaulted in the repayment of loans or borrowings to any financialinstitution or banks. The Company did not have any dues to Government or any outstandingdebentures during the year.

ix. In our opinion and according to the information and explanations given to us theterm loan taken by the Company have been applied for the purpose for which they wereraised. The Company has not raised any money by way of initial public offer or furtherpublic offer (including debt instruments) during the year.

x. According to the information and explanations given to us no fraud by the Companyor on the Company by its officers or employees has been noticed or reported during theyear.

xi. In our opinion and according to the information and explanation given to usmanagerial remuneration paid / accrued to the Chief Executive Officer of the Company(amounting to INR 65 Lakhs) exceeds the prescribed limits under section 197 read withSchedule V of the Companies Act 2013 by INR 5 Lakhs. As per the provisions of the Actthe excess remuneration is subject to approval of the shareholders which the Companyproposes to obtain in the forthcoming Annual General Meeting. (Refer note 45 to thefinancial statements).

xii. According to the information and explanations given to us the Company is not aNidhi Company as per the Act. Accordingly paragraph 3(xii) of the Order is not applicableto the Company.

xiii. In our opinion and according to the information and explanations given to us alltransactions with related parties are in compliance with section 177 and 188 of the Actand the details as required by the applicable accounting standards have been disclosed inthe financial statements.

xiv. According to the information and explanations given to us the Company has notmade any preferential allotment or private placement of shares or fully or partiallyconvertible debentures during the year. Accordingly paragraph 3(xiv) of the Order is notapplicable to the Company.

xv. According to the information and explanations given to us the Company has notentered into any non-cash transactions with directors or persons connected with themduring the year. Accordingly paragraph 3(xv) of the Order is not applicable to theCompany.

xvi. In our opinion and according to the information and explanations given to us theCompany is not required to register under section 45-IA of the Reserve Bank of India1934. Accordingly paragraph 3(xvi) of the Order is not applicable to the Company.

For B S R & Co. LLP

Chartered Accountants

Firm Registration No: 101248W/W-100022

Abhishek
Partner
Place: Pune Membership No.: 062343
Date: 26 April 2021 UDIN: 21062343AAAABD5137

Report on the internal financial controls with reference to the aforesaid financialstatements under Clause (i) of Sub-section 3 of Section 143 of the Companies Act 2013

(Referred to in paragraph 2(A)(f) under 'Report on Other Legal and RegulatoryRequirements' section of our report of even date)

Opinion

We have audited the internal financial controls with reference to financial statementsof Automotive Stampings and Assemblies Limited ("the Company") as of 31 March2021 in conjunction with our audit of the financial statements of the Company for the yearended on that date.

In our opinion the Company has in all material respects adequate internal financialcontrols with reference to financial statements and such internal financial controls wereoperating effectively as at 31 March 2021 based on the internal financial controls withreference to financial statements criteria established by the Company considering theessential components of internal control stated in the Guidance Note on Audit of InternalFinancial Controls Over Financial Reporting issued by the Institute of CharteredAccountants of India (the "Guidance Note").

Management's Responsibility for Internal Financial Controls

The Company's management and the Board of Directors are responsible for establishingand maintaining internal financial controls based on the internal financial controls withreference to financial statements criteria established by the Company considering theessential components of internal control stated in the Guidance Note. Theseresponsibilities include the design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the orderly and efficientconduct of its business including adherence to company's policies the safeguarding ofits assets the prevention and detection of frauds and errors the accuracy andcompleteness of the accounting records and the timely preparation of reliable financialinformation as required under the Companies Act 2013 (hereinafter referred to as"the Act").

Auditors' Responsibility

Our responsibility is to express an opinion on the Company's internal financialcontrols with reference to financial statements based on our audit. We conducted our auditin accordance with the Guidance Note and the Standards on Auditing prescribed undersection 143(10) of the Act to the extent applicable to an audit of internal financialcontrols with reference to financial statements. Those Standards and the Guidance Noterequire that we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether adequate internal financial controls with reference tofinancial statements were established and maintained and whether such controls operatedeffectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls with reference to financial statements and their operatingeffectiveness. Our audit of internal financial controls with reference to financialstatements included obtaining an understanding of such internal financial controlsassessing the risk that a material weakness exists and testing and evaluating the designand operating effectiveness of internal control based on the assessed risk. The proceduresselected depend on the auditor's judgement including the assessment of the risks ofmaterial misstatement of the financial statements whether due 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 withreference to financial statements.

Meaning of Internal Financial controls with Reference to Financial Statements

A company's internal financial controls with reference to financial statements 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 controlswith reference to financial statements include those policies and procedures that (1)pertain to the maintenance of records that in reasonable detail accurately and fairlyreflect the transactions and dispositions of the assets of the company; (2) providereasonable assurance that transactions are recorded as necessary to permit preparation offinancial statements in accordance with generally accepted accounting principles and thatreceipts and expenditures of the company are being made only in accordance withauthorisations of management and directors of the company; and (3) provide reasonableassurance regarding prevention or timely detection of unauthorised acquisition use ordisposition of the company's assets that could have a material effect on the financialstatements.

Inherent Limitations of Internal Financial controls with Reference to FinancialStatements

Because of the inherent limitations of internal financial controls with reference tofinancial statements 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 withreference to financial statements to future periods are subject to the risk that theinternal financial controls with reference to financial statements may become inadequatebecause of changes in conditions or that the degree of compliance with the policies orprocedures may deteriorate.

For B S R & Co. LLP

Chartered Accountants

Firm's Registration No. 101248W/W-100022

Abhishek Signature
Partner
Membership No. 062343
Place: Pune UDIN: 21062343AAAABD5137
Date: 26 April 2021

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