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Autoriders International Ltd.

BSE: 512277 Sector: Others
NSE: N.A. ISIN Code: INE340U01010
BSE 05:30 | 01 Jan Autoriders International Ltd
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Autoriders International Ltd. (AUTORIDERSINTL) - Auditors Report

Company auditors report

The Members of

AUTORIDERS INTERNATIONAL LIMITED

Report on the audit of Standalone Financial Statements

I have audited the accompanying standalone financial statements of AUTORIDERSINTERNATIONAL LIMITED ("the Company") which comprises Balance Sheet as at 31stMarch 2019 the Statement of Profit and Loss Account and Cash Flow statement for the yearended 31st March 2019 and a summary of significant accounting policies and otherexplanatory information (herein after referred to as financial statements)

Qualified Opinion

In my opinion and to the best of my information and according to the explanations givento me except for the effects of the matters described in the Basis of Qualified OpinionPragraph the financial statements give the information required by the Companies Act2013(‘Act") in the manner so required and give a true and fair view in conformitywith the accounting principles generally accepted in India :

(a) In the case of the Balance Sheet of the state of affairs of the Company as at 31stMarch 2019

(b) In the case of the Profit and Loss Account of the Profit for the year ended onthat date.

(c) In the case of Cash Flow Statement of its Cash flow for the year ended on thatdate.

Basis for Qualified Opinion

As referred to Note No. 26(g) of Additional Information to the financial statementsthe company has provided liability in respect of leave encashment benefits payable toemployees on retirement on actual calculation basis as not on actuarial basis as requiredin accordance with provisions as per Indian Accounting Standard no 19 on Accounting forRetirement Benefits issued by ICAI.

I have conducted my audit in accordance with the Standards on Auditing (SAs) specifiedunder section 143(10) of the Act. My responsibilities under those SAs are furtherdescribed in the ‘Auditor's Responsibilities for the Audit of the FinancialStatements' Section of my Report. I am independent of the Company in accordance with theCode of Ethics issued by the Institute of Chartered Accountants of India(‘ICAI") together with the ethical requirements that are relevant to my audit ofthe financial statements under the provisions of the Act and the Rules there under and Ihave fulfilled my other ethical responsibilities in accordance with these requirements andthe Code of Ethics. I believe that the audit evidence I have obtained is sufficient andappropriate to provide a basis for my opinion.

Key Audit matters

Key audit matters are those matters that in my professional judgement were of mostsignificance in my audit of the standalone financial statements of the current period.These matters were addressed in the context of the financial statements as a whole and informing my opinion thereon and I do not provide a separate opinion on these matters.

Sr.No. Key Audit Matter Auditor's Response
1 Accounting of Gratuity liability on Defined benefit basis as per provisions of Ind AS 19 Principal Audit procedures
Refer Note No 26(g) of Notes to Accounts The company was accounting Gratuity liability payable to employees based on premium paid to LIC for Group Gratuity Policy i.e. Defined Contribution plan however during the year the accounting was reviewed and it is observed that as ultimate liability of gratuity vests with the company irrespective of it's coverage by policy and the said contribution of premium to be reckoned as Contribution to Defined Benefit plan and is accounted accordingly with relevant disclosures to Notes on Accounts of the company.
2 Recoverability of Direct Tax Receivables Principal Audit procedures
As at March 312019 Non current assets in respect of Income Tax and Tax Deduction At source claims amounting to Rs. 223.58 (Net of provisions) prior to March 312018 I have relied upon past trends of recovery of such amounts records and data filed at the time of IT Returns and Income Tax case pending assessments to review the nature of amounts as recoverable the sustainability and the likelihood of recoverability of the same.

Information other than the financial statements and Auditors report thereon(‘Other information')

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

My Opinion on the financial statements does not cover the information and I do notexpress any form of assurance or conclusions thereon.

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

Responsibilities of Management and Those charged with Governance for the StandaloneFinancial Statements

The Company's Board of Directors is responsible for the matters stated in Section134(5) of the Act with respect to the preparation of these standalone financial statementsthat give a true and fair view of the state of affairs (financial position) profit orloss (financial performance) changes in equity and cash flows of the company in accordancewith the accounting principles generally accepted in India including the Ind As specifiedunder section 133 of the Act read with Rule 7 of the Companies (Accounts) Rules 2014.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 ofappropriate accounting policies ; making judgments and estimates that are reasonable andprudent ; and design implementation and maintenance of adequate internal financialcontrols that were operating effectively for ensuring the accuracy and completeness ofaccounting records relevant to the preparation and presentation of the financialstatements that give a true and fair view and are free from material misstatement whetherdue to fraud or error.

In preparing the financial statements management and the Board of Directors areresponsible for assessing the Company's ability to continue as going concern disclosingas applicable matters related to going concern and using the going concern basis ofaccounting unless management either intends to liquidate the Company or to ceaseoperations or has no realistic alternative but to do so.

Auditor's Responsibility for the audit of the financial statements

My objective is to obtain reasonable assurance about whether the financial statementsas a whole are free from material misstatements whether due to fraud or error and toissue an auditors report that include my opinion. Reasonable assurance is a high level ofassurance but it is not a guarantee that an audit conducted in accordance with SAs willalways detect a material misstatement when it exists. Misstatement can arise from fraud orerror and are considered material if individually or in the aggregate they couldreasonably be expected to influence the economic decision of users taken on the basis ofthe financial statements.

As part of an audit in accordance with SAs I exercise professional judgment andmaintain professional skepticism throughout the audit. I 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 my 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.

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

• Conclude on the appropriateness of management's use of the going concern basisof accounting and based on the audit evidence obtained whether a material uncertaintyexists related to events or conditions that may cast significant doubt on the Company'sability to continue as a going concern. If I conclude that a material uncertainty existsI am required to draw attention in my auditors report to the related disclosuresconclusions are based on the audit evidence obtained up to the date of my auditor'sreport. However future events or conditions may cause the Company to cease to continue asa going concern.

• Evaluate the overall presentation structure and content of the financialstatements including the disclosures and whether the financial statements represent theunderlying transactions and events in a manner that achieves fair presentation.

I 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 I identify during an audit.

I also provide those charged with governance with a statement that I have complied withrelevant ethical requirements regarding independence and to communicate with them allrelationships and other matters that may reasonably be thought to bear on my independenceand where applicable related safeguards.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor's Report) Order2016 issued by the CentralGovernment in terms of the Section 143(11) of the Act I give in the "AnnexureA" a statement on the matters specified in paragraphs 3 and 4 of the Order to theextent applicable.

2 As required by Section 143(3) of the Act I report that :

a. I have sought and obtained all the information and explanations which to the best myknowledge and belief were necessary for the purpose of my audit .

b. In my opinion proper books of accounts as required by law have been kept by theCompany so far as appears from my examination of those books .

c. The standalone financial statements dealt with by this Report are in agreement withthe books of accounts.

d. In my opinion the aforesaid financial statements comply with the Indian accountingstandards referred to in the Section 133 of the Companies Act2013 and read with Rule No 7of the Companies Accounting Rules 2014.

e. On the basis of representations received from the directors as on Mar 31 2019 andtaken on record by the Board of Directors none of the directors is disqualified as on Mar312019 from being appointed as a director in terms of Section 164(2) of the Act.

f. With respect to the adequacy of the Internal financial controls over financialreporting of the Company and the operating effectiveness of such controls refer to myseparate report in "Annexure B".

g. With respect to other matters to be included in the Auditor's Report in accordancewith Rule 11 of the Companies (Audit and Auditors) Rules2014 in my opinion and to thebest of my information and according to the explanations given to me:

i. As per the information and explanations given to me there are no pending litigationsother than those disclosed in the financial statements.

ii. As per the information and explanations given to me the company has not enteredinto any long term derivative contracts during the year and hence there exists no suchlosses from such contracts which requires provision in the accounts.

iii. There are no amounts to be transferred to Investor Education & Protection Fundduring the year.

h. With respect to the matter to be included in the Auditor's Report under Section197(16) I have to state that the company has not paid any remuneration to the Directorsduring the year and hence no details are required to be reported.

For KPD & CO.

Chartered Accountants

(Firm Regn No. 136856W)

Khushboo P. Doctor

Proprietor

Membership No. 135634

Mumbai.

Date : 30th May 2019

ANNEXURE A TO THE AUDITORS' REPORT

(REFERRED TO IN THE REPORT OF EVEN DATE OF THE AUDITORS TO THE MEMBERS OF AUTORIDERSINTERNATIONAL LIMITED ON THE ACCOUNTS FOR THE PERIOD ENDED 31st March 2019)

I. a) The company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.

b) As explained to me major portion of the fixed assets have been physically verifiedby the management at the year end which in my opinion is reasonable having regard to thesize of the company and nature of its assets. No material discrepancies were noticed onsuch physical verification.

c) The company is not having any immoveable property and accordingly Paragraph 1(iii)of the Order is not applicable to the company.

II. As the company is engaged in services it does not have any inventories andaccordingly Paragraph 2 (i) and (ii) is not applicable to the company.

III. According to the information and explanations given to me 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 (‘the Act"). Accordingly paragraphs 3(iii)(a) and (b) ofthe Order are not applicable to the Company.

IV. In our opinion and according to the information and explanations given to me theCompany has not granted any loans or made any investments or provided any guarantees orsecurity to the parties covered under Section 185 of the Act. Accordingly the paragraph3(iv) of the Order is not applicable to the Company.

V. In our opinion and according to the information and explanations given to me theCompany has not accepted any deposits from the public within the meaning of provisions ofsections 73 to 76 and the rules framed there under .Accordingly paragraph 3(v) of theOrder is not applicable to the Company.

VI. The maintenance of cost records is not applicable to the Company as per theprovisions of section 148 of the Companies Act 2013 and rules framed there under.Accordingly paragraph 3(vi) of the Order is not applicable to the Company.

VII. a) According to the information and explanations given to me and on the basis ofexamination of the records of the company the amounts deducted/accrued in the books ofaccount in respect of undisputed statutory dues including Provident Fund InvestorEducation and Protection Fund Employee's State Insurance income tax sales tax servicetax value added tax Custom Duty Excise Duty Cess and other statutory dues asapplicable have been generally regularly deposited during the year by the Company withthe appropriate authorities. except for amounts of Goods and Service tax where delayshas been observed in depositing the same with government authorities. According to theinformation and explanations given to me there were no undisputed amounts payable inrespect of above dues at the year-end for the period of more than six months from the datethey become payable.

b) On the basis of my examination of the documents and records there are no disputedstatutory due which remains to be deposited with the appropriate authorities.

VIII. According to the information and explanations given to me and on the basis ofexamination of the records the Company it has not defaulted during the year in repaymentof loans and borrowings from banks and financial institutions. The Company does not haveany dues to debenture holders during the year.

IX. According to the information and explanations given to me and on the basis ofexamination of the records the Company the Company has not raised any moneys by way ofinitial public offers (including debt instruments) and has not obtained any term loansduring the year. Accordingly Paragraph 3(ix) of the Order is not applicable to theCompany.

X. During the course of our examination of the books and records of the Companycarried out in the accordance with the generally accepted audit practices in India andaccording to the information and explanations given to me I have neither come across anyinstance of material fraud by the Company or on the Company by its officers or employeesnoticed or reported during the year nor have we been informed of any such case by themanagement.

XI. In my opinion and according to the information and explanations given to me themanagerial Remuneration has been paid or provided in accordance with the requisiteapprovals mandated by the provisions of section 197 read with schedule V to the Act.

XII. In my opinion and according to the information and explanations given to me TheCompany is not a Nidhi Company and the in Nidhi Rules 2014 are not applicable to it.Accordingly Paragraph 3(xii) of the Order is not applicable to the Company.

XIII. In my opinion and according to the information and explanations given to me theCompany has entered into transactions with related parties in compliance with theprovisions of Sections 177 and 188 of the Act where applicable and the details of suchrelated party transactions have been disclosed in the financial statements as required byAccounting Standard (AS) 18 Related Party Disclosures specified under Section 133 of theAct read with Rule 7 of the Companies (Accounts) Rules 2014.

XIV. According to the information and explanations given to me and on the based onexamination of the records of the Company the company has not made any preferentialallotment or private placement of shares or fully or partly convertible debentures duringthe year. Accordingly Paragraph 3(xiv) of the Order is not applicable to the Company.

XV. According to the information and explanations given to me and on the based onexamination of the records of the Company the company has not entered into non cashtransactions with directors or persons connected with them. Accordingly Paragraph 3(xv) ofthe Order is not applicable to the Company.

XVI. In our opinion and according to the explanations given to me the Company is notrequired to be registered under section 45-IA of the Reserve Bank of India Act1934.Accordingly Paragraph 3(xvi) of the Order is not applicable to the Company.

For M/S K P D & CO

Chartered Accountants

(Firm Regn No. 136856W)

Khushboo P Doctor

Proprietor

Membership No. 135634

Mumbai.

Date : 30th May 2019

ANNEXURE B

TO THE INDEPENDENT AUDITOR'S REPORT OF EVEN DATE ON THE FINANCIAL STATEMENTSOFAUTORIDERS INTERNATIONAL LIMITED

Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143 of the Companies Act 2013 ("the Act")

I have audited the internal financial controls with reference to financial statementsof AUTORIDERS INTERNATIONAL LIMITED ("the Company") as of March 31 2019 inconjunction with my audit of the standalone financial statements of the Company for theyear ended on that date.

Opinion

According to the information and explanations given to me and based on my audit thefollowing material weakness have been identified as at March 312019:

(1) Proper books closure systems to be introduced so as to restrict back dated entriesafter the book closure.

(2) Proper authorization systems to be introduced over passing of major journalvouchers so as to ensure proper provisioning and other finalization entries.

(3) Periodical reconciliations to be carried out for major vendor/customer balances.

In my opinion considering nature of business size of operation and organizationalstructure of the entity except for the effects/possible effects of the materialweaknesses described above on the achievements of the control criteria the company hasmaintained in all material respects an adequate internal financial controls system withreference to financial statements as at March 312019 based on the internal control withreference to financial statements considering the essential components of internal controlstated in the Guidance Note on audit of Internal Financial Controls with reference tofinancial statements issued by the Institute of Chartered Accountants of India.

I have considered the material weaknesses identified and reported above in determiningthe nature timing and the extent of the audit tests applied in my audit of the financialstatements of the company for year ended March 312019 and the material weaknesses doesnot affect my opinion on the financial statements of the company.

Management's Responsibility for Internal Financial Controls

The Company's management is responsible for establishing and maintaining internalfinancial controls with reference to financial statements considering the essentialcomponents of internal control stated in the Guidance Note issued by the Institute ofChartered Accountants of India. These responsibilities include the design implementationand maintenance of adequate internal financial controls that were operating effectivelyfor ensuring the orderly and efficient conduct of its business including adherence tocompany's policies the safeguarding of its assets the prevention and detection of fraudsand errors the accuracy and completeness of the accounting records and the timelypreparation of reliable financial information as required under the Companies Act 2013.

Auditors' Responsibility

My responsibility is to express an opinion on the Company's internal financial controlswith reference to financial statement based on my audit conducted in accordance with theGuidance Note and Standards on Auditing prescribed under Section 143(10) of the CompaniesAct 2013 to the extent applicable to an audit of internal financial controls withreference to financial statements. Those Standards and the Guidance Note require that Icomply with ethical requirements and plan and perform the audit to obtain reasonableassurance about whether adequate internal financial controls with reference to financialstatement was established and maintained and whether such controls operated effectively inall material respects.

My audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls with reference to financial statements and theireffectiveness. My audit of internal financial controls assessing the risk that a materialweakness exists and testing and evaluating the design and operating effectiveness ofinternal control based on the auditor's judgment including the assessment of the risks ofmaterial misstatement of the financial statements whether due to fraud or error.

I believe that the audit evidence I have obtained is sufficient and appropriate toprovide a basis for my audit opinion on the company's internal financial controls systemwith reference to financial statements.

Meaning of Internal Financial Controls with reference to financial statements

A company's internal financial control 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 control withreference to financial statements includes those policies and procedures that

(1) pertain to the maintenance of records that in reasonable detail accurately andfairly reflect the transactions and dispositions of the assets of the company;

(2) provide reasonable assurance that transactions are recorded as necessary to permitpreparation of financial statements in accordance with generally accepted accountingprinciples and that receipts and expenditures of the company are being made only inaccordance with authorizations of management and directors of the company; and

(3) provide reasonable assurance regarding prevention or timely detection ofunauthorized acquisition use or disposition of the company's assets that could have amaterial effect on the financial statements.

Inherent Limitations of Internal Financial Controls Over Financial Reporting

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 control 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 M/S K P D & CO

Chartered Accountants

(Firm Regn No. 136856W)

Khushboo P Doctor

Proprietor

Membership No. 135634

Mumbai.

Date : 30th May 2019.

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