AUTOLINE INDUSTRIES LIMITED
ANNUAL REPORT 2011-2012
AUDITORS` REPORT
TO,
The Members,
AUTOLINE INDUSTRIES LIMITED.
We have audited the attached BALANCE SHEET of AUTOLINE INDUSTRIES LIMITED
as at 31st March 2012, the Statement of Profit & Loss Account and the Cash
Flow Statement for the year ended on that date annexed thereto. These
financial statements are the responsibility of the Company`s Management.
Our responsibility is to express an opinion on these financial statements
based on our audit.
1. We conducted our audit in accordance with auditing standards generally
accepted in India. Those standards require that we plan and perform the
audit to obtain reasonable assurance about whether the financial statements
are free of material misstatements. An audit includes examining, on a test
basis, evidence supporting the amounts and disclosures in the financial
statements. An audit also includes assessing the accounting principles used
and significant estimates made by Management, as well as evaluating the
overall presentation of the financial statements presentation. We believe
that our audit provides a reasonable basis for our opinion.
2. As required by the Companies (Auditor`s Report) Order, 2003, as amended
by the Companies (Auditor`s Report) Amendment order, 2004 (together the
"Order"), issued by the Central Government of India in terms of section 227
(4A) of Companies Act, 1956 and on the basis of such checks of the books
and records of the company as we considered appropriate and according to
information and explanation given to us, we enclose in the annexure hereto
a statement on the matters specified in paragraph 4 & 5 of the said order
to the extent applicable to company.
3. Further to our comments in the Annexure referred to in paragraph 2 above
we Report that:
a) We have obtained all the information and explanation which to the best
of our knowledge and belief were necessary for the purpose of our audit.
b) In our opinion , proper books of accounts as required by law have been
kept by the Company, so far as appears from our examination of the books of
accounts of the company.
c) The Balance Sheet, Statement of Profit & Loss Account and the Cash Flow
Statement dealt with by this report are in agreement with the Books of
Accounts.
d) Without qualifying our opinion, we draw attention to:-
(i) Sub-note to note no.9 regarding non provision for diminishing in value
of investment in subsidiary Koderat Investments Ltd. (Cyprus). The note is
self explanatory. In the given circumstances we are unable to give our
opinion.
e) In our opinion and subject to Note to Accounts, the Balance Sheet,
Statement of Profit & Loss Account and Cash Flow Statement dealt with by
this report comply with the requirement of the Accounting Standard referred
to in sub section (3C) of section 211 of Companies Act, 1956, to the extent
applicable.
f) On the basis of the written representation received from the Directors
as on 31st March 2012 and taken on record by the Board of Directors, we
report that none of the Directors is disqualified as on 31st March 2012 for
being appointed as a Director of the Company in terms of clause (g) of sub-
section (1) of section 274 of the Companies Act 1956.
bg) In our opinion and to the best of our information and according to the
explanations given to us the said accounts read together with Significant
Accounting Policies, and Notes to Accounts and subject to our observations
in 3(d) above give the information required by the Companies Act 1956 in
the manner so required and give a true and fair view in conformity with the
accounting principles generally accepted in India:
i) In case of the Balance Sheet, of the state of affairs of the Company as
on 31st March, 2012.
ii) In the case of the Statement of Profit & Loss Account of the Profit for
the year ended on that date.
iii) In case of Cash Flow Statement, of the Cash Flows for the year ended
on that date.
FOR GUJAR RAWAT SHETH & ASSOCIATES.
CHARTERED ACCOUNTANTS.
FIRM REGISTRATION NO: 121347W
PLACE: PUNE. VIJAY B SHETH
DATE : 28TH APRIL, 2012 PARTNER.
MEM. NO. 037634
ANNEXURE TO AUDITOR`S REPORT
[Annexure Referred to in paragraph 2 of the Auditors` Report of even date
to the members of AUTOLINE INDUSTRIES LIMITED on the Accounts for the Year
Ended on 31st March, 2012]
1) In respect of Fixed Assets
a) The Company has generally maintained proper records showing particulars
including quantitative details and situation of Fixed Assets on the basis
of information available.
b) According to the information and explanation given to us, the fixed
assets are physically verified by the management according to the phased
programme which in our opinion is reasonable having regard to the size of
the company and the nature of its assets. On physical verification by the
management no major discrepancies between the book record and physical
inventory have been noticed.
c) In our opinion, the company has not disposed off a substantial part of
its Fixed Assets and the going concern status is not affected.
2) In respect of its Inventories: (Excluding material in transit).
a) The inventory of the Company has been physically verified by the
Management during the year at regular interval. In our opinion the
frequency of verification is reasonable.
b) In our opinion, and according to the information and explanations given
to us, the procedures as explained to us and which are followed by the
Management for physical verification of inventory are reasonable and
adequate in relation to the size of the Company and the nature of its
business.
c) According to the information and explanations given to us no material
discrepancies were noticed on physical verification of stocks as compared
to book records, discrepancies noticed were properly dealt with, in the
books of accounts, which were not material considering the size of the
Company`s operation.
3) a) As per the information and explanation given to us, the company has
granted unsecured loan to companies, firms or other parties covered in the
Register maintained under Section 301 of the Companies Act, 1956. The year
end balance is Rs.11,06,00,780/- and has been given to two parties.
b) In our opinion, and according to the information and explanations given
to us, rate of interest in case of one subsidiary company and interest free
loan to wholly own foreign subsidiary company and other terms and
conditions of loan given by the company, secured or unsecured, to the
parties listed in the register maintained under Section 301 of the
Companies Act, 1956 are not prima facie, prejudicial to the interest of the
Company.
c) There is no prescribed stipulation of repayment of principal & interest.
d) In respect of loan granted by company, the same are repayable on demand
and therefore question of overdue amount does not arise.
e) As per the information and explanation given to us, the company has
taken unsecured loan, from wholly owned subsidiary covered in the Register
maintained under Section 301 of the Companies Act 1956. The year end
balance is Rs.80,18,055/- and is from one party.
f) The advance accepted by the company is from wholly owned subsidiary
company and as such the terms and conditions of this advance are not
prejudicial to the interest of the company.
g) There is no prescribed stipulation of repayment of principal & interest.
4) In our opinion and according to the information and explanations given
to us, having regard to the explanation that certain items purchased/
services availed are of special nature for which suitable alternative
sources do not exist for obtaining comparative quotations, there are
adequate internal control system commensurate with the size of the Company
and the nature of its business with regard to purchases of inventory, fixed
assets and with regard to the sale of goods. During the course of our
audit, no major weakness has been noticed in the internal controls system.
5) In respect of transaction covered under section 301 of the Companies Act
1956:
a) Based on the audit procedures applied by us and according to the
information and explanations provided by the Management, we are of the
opinion that the particulars of contracts or arrangements referred to in
section 301 of the Act have been entered in the register required to be
maintained under that section.
b) In our opinion and according to the information and explanations given
to us, the transaction made in pursuance of such contracts or arrangements
during the year have been made at prices which are reasonable having regard
to the prevailing market prices at the relevant time.
6) The company has not accepted any deposits under the provisions of
sections 58A and 58AA or any other relevant provisions of the Act and the
Companies (Acceptance of Deposit) Rules, 1975 framed thereunder.
7) The Company has an internal audit system comprising of its own internal
management audit team, and also a firm of chartered accountants appointed
as internal auditor by the management and in our opinion, company`s present
internal audit system is commensurate with the size of the company and the
nature of its business.
8) We have broadly reviewed the books of account maintained by the company
in respect of products where, pursuant to the Rules made by the Central
Government of India, the maintenance of cost records has been prescribed
under clause (d) of subsection (1) of section 209 of the Act, and are of
the opinion that prima facie, the prescribed accounts and records have been
made and maintained. The same are verified by external cost auditor
appointed by company for carrying cost audit and has expressed their
satisfaction for the cost record. We have not, however, made a detailed
examination of the records with a view to determine whether they are
accurate or complete.
9)a) According to the information and explanations given to us and
according to the books and records as produced and examined by us,
undisputed statutory dues including Provident Fund, Investor Education and
Protection Fund, E.S.I., Income Tax, Sales Tax (VAT), Wealth Tax, Service
Tax, Excise Duty, Customs Duty, Cess and any other material statutory dues,
to the extent applicable, have been generally regularly deposited with the
appropriate authorities. According to the information and explanations
given, except for Income Tax, VAT and TDS liability which is paid before
the signing of report, no undisputed amounts payable in respect of
aforesaid dues were outstanding as at 31st March, 2012, for a period of
more than six months from the date they became payable.
b) As at 31st March 2012, according to the records of the Company and on
the basis of information and explanations given to us, except for Income
Tax & Sales Tax (VAT), there are no disputed dues in respect of Custom
Duty, Wealth Tax, Excise Duty, Service Tax and Cess.
The disputed amount is in respect of liability under Income Tax Act, 1961
for Asst. Year 2008-09 relevant to Financial Year 2007-08 is aggregating to
Rs. 2,92,96,660/- , which has not been deposited as at 31st March. 2012.
The appeal in respect of same is pending with The Commissioner of Income
Tax (Appeals) Pune.
The disputed amount is in respect of liability under The Maharashtra Value
Added Tax Act, 2002/ The Central Sales Tax Act, 1956 for Financial Year
2000-01 is aggregating to Rs.1,10,00,000/- and for Financial Year 200102
is aggregating to Rs.1,25,00,000/- , which has not been deposited as at
31st March, 2012. The appeal in respect of same is pending with The Joint
Commissioner of Sales Tax (Appeals) Pune.
10) The company has no accumulated losses as at March 31, 2012, and has not
incurred any cash losses during the financial year ended on that date and
in the immediately preceding financial year.
11) Based on our audit procedures and on the information and explanations
given by the Management, in our opinion, the Company has not defaulted in
repayment of its dues to any financial institution or bank or Debenture
holder as at the balance sheet date.
12) The Company has not granted any loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
13) In our opinion, considering the nature of activities carried on by the
Company during the year, the provisions of any special statute and
provisions applicable to chit fund/nidhi/mutual benefit fund/ societies are
not applicable to the Company.
14) In our opinion and according to the information and explanations given
to us, the Company is not a dealer or trader in securities.
15) In our opinion, and according to the information and explanations given
to us, the Company has given corporate guarantee for the loans taken by a
subsidiary company from banks or financial institutions. In our opinion the
terms and conditions thereof are not prejudicial to the interest of the
company.
16) According to the information and explanation given to us, company has
raised term loan during the year. On the basis of the information and
explanation given to us and on an overall examination of the financial
statements of the company, we are of the opinion that, prima facie the term
loan is applied for the purposes for which they were obtained.
17) According to the information and explanations given to us, and on an
overall examination of the Balance Sheet of the Company, we report that the
funds raised on short term basis have been used for long term purposes.
18) According to the information and explanations given to us, the Company
has not made any preferential allotment of shares to parties and companies
covered in the register maintained under Section 301 of the Companies Act,
1956.
19) No debentures have been issued during the year.
20) During the year the Company has not raised money by public issue.
21) During the course of our examination of the books of account carried
out in accordance with the generally accepted auditing practices in India,
and according to the information and explanations given to us, we have
neither come across any instance of fraud on or by the Company, noticed or
reported during the year, nor have we been informed of such case by the
Management.
FOR GUJAR RAWAT SHETH & ASSOCIATES.
CHARTERED ACCOUNTANTS.
FIRM REGISTRATION NO: 121347W
PLACE: PUNE. VIJAY B SHETH
DATE : 28TH APRIL, 2012 PARTNER.
MEM. NO. 037634 |