amtek auto ltd share price Auditors report

FOR YEAR ENDED MARCH 31, 2019

To,

THE MEMBERS OF AMTEK AUTO LIMITED

I. Report on the Audit of the Standalone IND AS Financial Statements

Qualified Opinion

1. We have audited the accompanying IND AS Standalone Financial Statements of Amtek Auto Limited (‘the Company), which comprise the Balance Sheet as at March 31, 2019, and the Statement of Profit and Loss (including Other Comprehensive Income), the Statement of Changes in Equity and the Statement of Cash flows for the year then ended, and notes to the financial statements, including a summary of the significant accounting policies and other explanatory information (hereinafter referred to as "the Standalone IND AS Financial Statements").

2. In our opinion and to the best of our information and according to the explanations given to us, except for the effects (to the extent ascertained and/or not) of the matters described below in paragraph 3 ‘Basis for Qualified Opinion paragraph, the aforesaid Standalone IND AS Financial Statements give the information required by the Companies Act 2013 ("the Act") in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India including IND AS specified under Section 133 of the Act, read with the Companies (Indian Accounting Standards) Rules, 2015,as amended,("IND AS") and other accounting principles generally accepted in India, of the state of affairs of the Company as at March 31, 2019, and its loss (including other comprehensive income), changes in equity and its cash flows for the for the year ended on that date.

II. Basis of Qualified Opinion

3. Attention is invited to:

a. Note No. 3.48 of the accompanying Standalone IND AS Financial Statements, stating therein that the provision for impairment has currently been worked out on the basis of value of assets referred to in the valuation reports [of approved valuers, who valued Companys entire assets pursuant to the requirements of Corporate Insolvency Resolution Process ("CIRP")]; without any reference to determination of ‘value-in-use. This is contrary to the requirements of IND AS 36 ‘Impairment of Assets. The monetary impact of the same has not been ascertained.

b. Note No. 3.51 of the accompanying Standalone IND AS Financial Statements relating to excess managerial remuneration under Companies Act, 2013 aggregating to Rs. 3.31 Lakhs of the Vice Chairman and Managing Director for the period April 1, 2017 to June 23, 2017. The Vice Chairman and Managing Director of the Company had resigned during the previous financial year and the Company will seek approval for non recovery of excess remuneration paid / charged to statement of profit and loss from the Ministry of Corporate Affairs with consequential penalty, if any and compounding fees as per provisions of Companies Act, 2013. Pending the same, no adjustments have been made for the amount of Rs. 3.31 Lakhs and the consequential penalty, if any, and the compounding fees. Pending application to be made by the Company to the Ministry of Corporate Affairs in this respect and approval thereon, we are unable to ascertain the consequential impact on loss and on retained earnings on this account for the year ended March 31, 2019.

c. Note No.3.49 of the accompanying Standalone IND AS Financial Statements, stating therein that the Company has reassessed the fair value of investment made by the Company in ‘Amtek Global Technologies Pte. Ltd. at Rs. 64707.59 Lakhs (as against its book value of Rs. 0.07 Lakhs as at March 31, 2019) on the basis of (i) valuation reports of two approved valuers and (ii) the resolution plan approved in NCLT Order dated July 25, 2018 (as pass-through to the existing financial creditors of the Company, with no guarantee). In the absence of latest financial statements and other financial information of the subject entity being available with the Company, we are unable to comment upon the correctness or otherwise of the value ascribed to such investment and also to its realizability.

4. We conducted our audit of the Standalone IND AS Financial Statements in accordance with the Standards on Auditing (SAs) specified under section 143(10) of the Act. Our responsibilities under those Standards are further described in the Auditors Responsibilities for the Audit of the Standalone IND AS Financial Statements section of our report. We are independent of the Company in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India (ICAI) together with the ethical requirements that are relevant to our audit of the Standalone IND AS Financial Statements under the provisions of the Act and the Rules made thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the Code of Ethics. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Standalone IND AS Financial Statements.

III. Material uncertainty related to Going Concern

5. We draw attention to Note No. 1 of the accompanying Standalone IND AS Financial Statements, stating therein that the resolution plan, which was voted upon between April 4, 2018 and April 5, 2018, and duly approved by the Committee of Creditors and was further approved by NCLT vide their order dated July 25, 2018.

As stated in the said note, the resolution plan has not been implemented within the timelines as prescribed in the approved resolution plan and the said note further describes the uncertainties related to the legal outcome in the stated matter. Presently, the stated matter is pending with Honble National Company Law Appellate Tribunal (‘NCLAT), which instructed the ‘Resolution Professional to ensure that the company remains a going concern.

These events or conditions, alongwith other matters as set forth in the said note, indicate that a material uncertainty exists that may cast a significant doubt on the Companys ability to continue as a going concern. Our opinion is not modified in respect of this matter.

IV. Key Audit Matters

6. Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the Standalone IND AS Financial Statements of the current period. These matters were addressed in the context of the audit of the Standalone IND AS Financial Statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. In addition to the matter described in preceding paragraph for ‘Material uncertainty related to going concern, we have determined the matters described below to be the key audit matters to be communicated in our report.

Key Audit Matter	Auditors Response
(i) Revenue recognition	Principal Audit Procedures
Revenue is significant to the Standalone IND AS Financial Statements and is considered as one of the key performance indicators of the Company.	We applied the following audit procedures (as applicable in each case) in this area, amongst others to obtain sufficient and appropriate audit evidence:
There may be risks of material misstatements related to revenue recognition due to which the completeness, existence and accuracy of revenue recognition is identified as a key audit matter	– Assessing the appropriateness of the revenue recognition accounting policy in compliance with accounting standards
	– Obtained an understanding and assessing the design, implementation and operating effectiveness of managements key internal controls in relation to revenue recognition;
Refer Note No. 3.24 to the Standalone IND AS Financial Statements.	– Selected a sample from sales entries and traced with their contracts, invoices, delivery challans and goods outward register;
	– Selected a sample from trade receivables at the year end and assessed their recoverability with reference to remittances received after year end;
	– Selected samples from the transactions recorded during the year for assessing whether revenue has been recognised in the correct period with reference to supporting invoices, terms and conditions with purchase order of the customers.

 

	Additional reference have also been made to supporting documentation, on a sample basis, for sales transactions recorded near to balance sheet date as well as credit notes issued subsequent to the balance sheet date.
	– Tested, on a sample basis, manual journal entries relating to revenues to identify and enquire on unusual items, if any.
(ii) Existence and Valuation of Inventories	Principal Audit Procedures
Inventories of Rs. 15,995.02 Lakhs [General- Rs 9,442.40 lakhs & Transit-Rs 6,552.62 lakhs as detailed in Note 3.6 of Standalone Ind AS Financial Statements] which represent 14.08% of total sales of the Company as at the Balance sheet date.	We applied the following audit procedures (as applicable in each case) in this area, amongst others to obtain sufficient and appropriate audit evidence:
	• Our audit procedures to verify the existence of inventories consisted of testing the relevant internal controls, including in specific the testing of the inventory physical verification process that are performed by the management at various point in time at their factories
Inventory is held across 17 factories as at the year end. Considering the number of locations and the level of inventory held across its factories, as well as the physical verification of inventory at these locations on different dates, the potential risk of existence of such inventory and the identification of non-moving, obsolete / damaged inventory is a significant area of audit importance.	• As required under SA 501 "Audit Evidence - Additional Considerations for Specific Items", we have observed the physical verification of Inventory, conducted by management, in certain factories selected by us based on our professional judgment. Our procedures in this regard included:
	– observing compliance of stock count instructions by management personnel;
Inventories are valued at cost and or net realizable value whichever is lower. The inventory valuation also requires management estimates towards write- down of inventory items to its net realizable value (wherever applicable) and allowance for slow moving or non-moving inventory Refer Note No. 3.6 to the Standalone IND AS Financial Statements.	– observing steps taken by management to ascertain the existence of inventory on the date of the count (including identification of non-moving, obsolete / damaged inventory),
	– performing independent inventory counts on sample basis and reconciling the same to the management counts and reviewing the reconciliation of the differences in inventory quantity between the physical count and the books of accounts, and
	– performing roll back and roll forward procedures on sample basis from date of count to the reporting date as the physical verification of inventory was undertaken by management on different dates across various factories during the year.
	• We tested sample of inventory purchases throughout the audit period with purchase invoice and other supporting documents to ensure if the inventory is valued as per the Companys accounting policy.
	• We have evaluated whether the adjustments to bring down the cost of inventory items to their net realizable value and allowance for slow moving or non-moving inventory at the reporting date is appropriate by assessing the reasonability of the methodology and assumptions adopted by management in this regard including verification of the completeness of the related adjustments by testing a sample of inventory items as at the reporting date.
	• We performed cut off testing for purchase and sales transactions made near the reporting date to assess whether transactions are recorded in the correct period by testing relevant records, sales / purchase invoices, etc., for sample transactions.

V. Information Other than the Standalone IND AS Financial Statements and Auditors Report Thereon

7. The Companys Board of Directors / Management are responsible for the preparation of the other information. The other information comprises the information included in the Companys Annual Report, but does not include the Standalone IND AS Financial Statements and our auditors report thereon.

Our opinion on the Standalone IND AS Financial Statements does not cover the other information and we do not express any form of assurance conclusion thereon.

In connection with our audit of the Standalone IND AS Financial Statements, our responsibility is to read the other information identified above when it becomes available and, in doing so, consider whether the other information is materially inconsistent with the Standalone IND AS Financial Statements or our knowledge obtained in the audit or otherwise appears to be materially misstated.

When we read the Annual Report, if we conclude that there is a material misstatement therein, we are required to communicate the matter to those charged with governance.

VI. Responsibilities of Management and Those Charged with Governance for the Standalone IND AS Financial Statements

8. The Companys Board of Directors / Management is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 ("the Act") with respect to the preparation of these Standalone IND AS Financial Statements that give a true and fair view of the financial position, financial performance, total comprehensive income, changes in equity and cash flows of the Company in accordance with the Indian Accounting Standards (IND AS) and other accounting principles generally accepted in India, including the Indian Accounting Standards (IND AS) specified under section 133 of the Act read with in the Companies (Indian Accounting Standards) Rules, 2015 (as amended) and relevant rules issued thereunder. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and the design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the Standalone IND AS Financial Statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

In preparing the Standalone IND AS Financial Statements, management is responsible for assessing the Companys ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.

Those charged with governance are also responsible for overseeing the Companys financial reporting process.

VII. Auditors Responsibilities for the Audit of the Standalone IND AS Financial Statements

9. Our objectives are to obtain reasonable assurance about whether the Standalone IND AS Financial Statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with SAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these Standalone IND AS Financial Statements.

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

• Identify and assess the risks of material misstatement of the Standalone IND AS Financial Statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

• Obtain an understanding of internal financial controls relevant to the audit in order to design 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 and its subsidiary companies which are companies incorporated in India, has adequate internal financial controls system in place and the operating effectiveness of such controls.

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

• Conclude on the appropriateness of managements use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Companys ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditors report to the related disclosures in the Standalone IND AS Financial Statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditors report. However, future events or conditions may cause the Company to cease to continue as a going concern.

• Evaluate the overall presentation, structure and content of the Standalone IND AS Financial Statements, including the disclosures, and whether the Standalone IND AS Financial Statements represent the underlying transactions and events in a manner that achieves fair presentation.

11. Materiality is the magnitude of misstatements in the Standalone Ind AS Financial Statements that, individually or in aggregate, makes it probable that the economic decisions of a reasonably knowledgeable user of the Standalone Ind AS Financial Statements may be influenced. We consider quantitative materiality and qualitative factors in (i) planning the scope of our audit work and in evaluating the results of our work; and (ii) to evaluate the effect of any identified misstatements in the Standalone Ind AS Financial Statements.

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

13. We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.

14. From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the standalone Standalone IND AS Financial Statements of the current period and are therefore the key audit matters. We describe these matters in our auditors report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

VIII. Report on Other Legal and Regulatory Requirements

15. As required by the Companies (Auditors Report) Order, 2016 (‘the Order) issued by the Central Government of India in terms of Section 143 (11) of the Act, we give in the "Annexure-A", a statement on the matters specified in paragraphs 3 and 4 of the Order.

16. As required by Section 143(3) of the Act, based on our audit, we report, that:

(a) We have sought and except for the matter described in the Basis for Qualified Opinion paragraph, obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purpose of our audit;

(b) Except for the effects of the matter described in the Basis for Qualified Opinion paragraph, in our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books; (c) The Balance Sheet, Statement of Profit and Loss including Other Comprehensive Income, the Statement of Changes in Equity and the Cash Flow Statement dealt with by this Report are in agreement with the books of account;

(d) Except for the effects of the matter described in the Basis for Qualified Opinion paragraph, in our opinion, the accompanying Standalone IND AS Financial Statements comply with Accounting Standards prescribed under section 133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015 as amended;

(e) The matter described in the ‘Basis for Qualified Opinion paragraph above, in our opinion, may have an adverse effect on the functioning of the Company;

(f) The information with regard to written representations received from the directors, as on March 31, 2019 and taken on record by the Board of Directors has not been made available to us. Therefore, we are unable to comment on whether or not any of the Directors is disqualified as on March 31, 2019 from being appointed as a director in terms of Section 164(2) of the Act;

(g) The qualification relating to the maintenance of accounts and other matters connected therewith are as stated in the Basis for Qualified Opinion paragraph above;

(h) We have also audited the internal financial controls over financial reporting of the Company as on March 31, 2019 in conjunction with our audit of the Standalone IND AS Financial Statements of the Company for the year ended on that date and our separate Report in "Annexure-B", to this report expressed a qualified opinion;

(i) With respect to the other matters to be included in the Auditors 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 to the explanations given to us:

i. the Company, as detailed in Note No. 3.33 of the accompanying Standalone IND AS Financial Statements, has disclosed the impact of pending litigations on its financial position;

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

iii. there has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company.

17. With respect to the other matters to be included in the Auditors Report in accordance with the requirements of section 197(16) of the Act, as amended: In our opinion and to the best of our information and according to the explanations given to us, no remuneration has been paid by the Company to its directors during the year and accordingly the provisions of section 197 of the Act are not applicable.

	For SCV & Co. LLP
	(formerly known as S.C. Vasudeva & Co.)
	Chartered Accountants
	Firm Regn No.000235N/N500089
	(Abhinav Khosla)
Place : New Delhi	Partner
Date : May 30, 2019	Membership No. 087010

Annexure-A to Independent Auditors Report

Referred to in Paragraph 15 of the Independent Auditors Report of even date to the members of Amtek Auto Limited on the Standalone IND AS Financial Statements for the year ended March 31, 2019

1. (a) According to the information and explanations given to us and on the basis of the books and records examined by us in the normal course of audit and to the best of our knowledge and belief, we state that the Company has maintained proper records showing full particulars including quantitative details and situation of fixed assets; in respect of fixed assets verified pursuant to our comment in paragraph (b) below and purchased after CIRP.

(b) As required under CIRP,during the financial year 2017-18, the Company got all its fixed assets verified from external agency(ies). All discrepancies noticed upon such physical verification were properly dealt with in the books of account of financial year 2017-18. For the year under audit, the fixed assets of the Company have been physically verified by the management at reasonable intervals including as on March 31, 2019.

No material discrepancies were noticed on such verification as compared to the book records.

(c) According to information and explanations given to us and on the basis of our examination of the records of the Company the title deeds of immovable properties are duly registered/held in the name of the Company. It may be noted that the original deeds being pledged with Financial Creditors were not made available and we have verified information from the Form C issued by financial creditors of the Company filed pursuant to the requirements of Insolvency and Bankruptcy Code, 2016 [IBC], and/or copies available with the Company.

2. According to information and explanations given to us and on the basis of our examination of the records of the Company, the physical verification in respect of inventory has been carried out by the Management at reasonable intervals including as on March 31, 2019. The discrepancies observed on physical verification of inventory were not material and the same has been properly dealt with in the books of account.

3. According to the information and explanations given to us and based on such tests which we considered necessary, we report that the Company (during the year) has not granted any loans, secured or unsecured to companies, firms, limited liability partnerships or other parties covered in the register maintained under section 189 of the Companies Act, 2013. Therefore the provisions of paragraph (iii) (a) of the order are not applicable to the Company. Further, out of the loans granted in the earlier years to the parties covered in the register maintained under section 189 of the Companies Act 2013, there is no stipulation with regard to the repayment of principal/ interest on loan, therefore we are unable to express our opinion with regard to paragraph (iii) (b) and (iii) (c) of the said order.

4. In our opinion and according to the information and explanations given to us, the Company has complied with the provisions of section 185 and 186 of the Companies Act, 2013, with respect to the loans, investments, guarantees and security, as applicable.

5. In our opinion and according to the information and explanations given to us, the Company has not accepted any deposits from the public during the year under audit. Therefore, directives issued by Reserve Bank of India and the provisions of Sections 73 to 76 or any other relevant provisions of the Companies Act, 2013 and the rules framed there under are not applicable to the Company.

6. The maintenance of cost records has been specified by the Central Government under section 148(1) of the Companies Act, 2013, for certain products manufactured by the Company. We have broadly reviewed the cost records maintained by the Company pursuant to the Companies (Cost Records and Audit) Rules, 2014, as amended prescribed by the Central Government under sub-section (1) of Section 148 of the Act, and are of the opinion that, prima facie, the prescribed cost records have been made and maintained. However, we have not carried out any detailed examination of such accounts and records.

7. (a) On the basis of records of the Company examined by us, in our opinion, undisputed statutory dues including provident fund, employees state insurance, income-tax, sales-tax, service tax, duty of custom, duty of excise, value added tax, goods and service tax, cess have not been regularly deposited with the appropriate authorities and there have been delays in a large number of cases. Undisputed amounts payable in respect thereof, which were outstanding at the year-end for a period of more than six months from the date they became payable are as follows:

Statement of Arrears of Statutory Dues Outstanding for More than Six Months.

Name of Statute	Nature of dues	Amount (in lakhs)	Period to which it relates	Due Date	Date of Payment	Remarks, if any
Finance Act, 1994	Service Tax	82.58	Until March17	31-03-2017	–	Not paid till audit report date
Finance Act, 1994	Service Tax	75.06	April- June17	5th of the following month	–	Not paid till audit report date
Central Excise Act, 1944	Excise	316.64	April- June2017	5th of the following month	–	Not paid till audit report date
Haryana VAT Act, 2003	Demand of Sales Tax	5.59	A.Y 2013-14	Within 15 days of service of notice (Order Dated 31.03.2017)	30-04-2019	–
ESI Act, 1948	ESI	0.47	April-May 18	15th of the following month	–	Not paid till audit report date
Income Tax Act, 1961	Demand for A.Y. 14-15	12.61	2013-14	Within 30 days of service of notice (order dated 28/03/18)	–	Not paid till audit report date
Professional tax act	Professional Tax	0.50	July-Sept. 2018	10th of the following Month	–	Not paid till audit report date

(b) The dues outstanding in respect of income-tax, sales-tax, service-tax, duty of customs, duty of excise and value added tax on account of any dispute, are as follows:

Statement of disputed dues

Name of the Statute	Nature of Dues	Disputed Amount (Rs. in Lakhs)	Period to which it relates	Forum where Dispute is pending
Central Excise Act	Excise Duty	237.97	Oct2010- Mar2014	Punjab & Haryana High Court
Central Excise Act	Excise Duty	202.65	Apr2015- Mar2016	Punjab & Haryana High Court
Finance Act, 1994	Service Tax	71.64	2009-2013	Excise & Service Tax Appellate Tribunal, Chandigarh
Finance Act, 1994	Service Tax	1.97	2016-17	Assistant Commissioner, Central Tax, Division VII, Pune-1 Commissionerate
Sales Tax Act	Sales Tax	1162.30	2015-16	Punjab and Haryana High Court, Chandigarh.
Sales Tax Act	Sales Tax	22.64	2008-09	Deputy Commissioner, Sales Tax, Pune (Maharashtra)
Sales Tax Act	Sales Tax	10.13	2009-10	Deputy Commissioner, Sales Tax, Pune (Maharashtra)
Sales Tax Act	Sales Tax	252.87	2012-13	Deputy Commissioner, Sales Tax, Pune (Maharashtra)
Sales Tax Act	Sales Tax	293.44	2012-13	Deputy Commissioner, Sales Tax, Pune (Maharashtra)
Sales Tax Act	HVAT	479.19	2014-15	Excise & Taxation officer cum Assessing Authority, Gurgaon
Sales Tax Act	CST	538.72	2014-15	Excise & Taxation officer cum Assessing Authority, Gurgaon
Sales Tax Act	HVAT	1251.78	2015-16	Punjab & Haryana High Court, Chandigarh
Sales Tax Act	CST	8.67	2015-16	Punjab & Haryana High Court, Chandigarh
Income Tax Act, 1961	Income Tax	467.30	2006-07	Income Tax Appellate Tribunal
Income Tax Act, 1961	Income Tax	358.62	2007-08	Income Tax Appellate Tribunal
Income Tax Act, 1961	Income Tax	892.91	2014-15	Commissioner of Income Tax (Appeals)
Income Tax Act, 1961	Income Tax	498.62	2011-12	Asst. Commissioner of Income Tax

8. The Company had defaulted in repayment of loans and borrowings to the banks and financial institutions and towards debenture holders. Pursuant to the continuing defaults of the Company, a CIRP was initiated against the Company vide an order of the Principal Bench of the National Company Law Tribunal (‘NCLT) dated July 24, 2017. Accordingly, no payments could be made thereafter to the banks, financial institutions and debenture holders, until the resolution process is concluded. The details of outstanding amounts as on July 24, 2017 is as follows:

S.No	Name of the Lender	Amount out- standing as on 24-07-2017	Amount outstanding as on 31-03-2019	Period of Default
		(Rs. in Crores)	(Rs. in Crores)
1	10% Non-Convertible Debentures (NCDs)	250.88	250.88
2	10.25% Non-Convertible Debentures (NCDs)	809.16	809.16
3	10.50% Non-Convertible Debentures (NCDs)	603.28	603.28
4	11.25% Non-Convertible Debentures (NCDs)	263.53	263.53
5	11.50% Non-Convertible Debentures (NCDs)	105.90	105.90
6	Asset Care & Reconstruction Enterprise Ltd	368.45	368.45
7	Alchemist ARC	27.01	27.01
8	Allahabad Bank	213.97	213.97
9	Andhra Bank	674.35	674.35
10	Axis Bank	34.70	34.53
11	Bank of Baroda	483.42	482.37
12	Bank of India	142.63	141.71
13	Bank of Maharashtra	304.85	304.85
14	Canara Bank	577.70	576.82
15	Central Bank of India	108.06	108.06
16	Citi Bank	75.91	75.91
17	Corporation Bank	882.91	882.91
18	CTBC Bank	33.79	33.79
19	Dena Bank	70.20	70.20	April 2015 to March 2019
20	Deutsche Bank	383.54	383.54
21	Edelweiss ARC	172.46	172.46
22	Federal Bank	6.96	6.96
23	IDBI Bank	1715.72	1709.25
24	IFCI Ltd	477.00	477.00
25	Indian Bank	71.32	70.97
26	Indian Overseas Bank	453.50	453.50
27	Karnataka Bank	54.44	54.44
28	Kotak Mahindra Bank	38.62	38.62
29	LIC of India	412.60	412.60
30	Oriental Bank of Commerce	107.32	107.32
31	Punjab National Bank Intl Ltd	71.32	70.97
32	State Bank of Bikaner & Jaipur	185.50	185.50
33	Standard Chartered Bank	526.81	525.87
34	State Bank of India	436.67	436.37
35	State Bank of Mysore	233.25	233.35
36	State Bank of Patiala	211.79	211.79
37	Syndicate Bank	96.19	96.19
38	UCO Bank	57.82	57.82
39	Union Bank of India	185.83	184.96
40	Union Bank of India	97.72	97.72
41	Edelweiss Asset Reconstruction Limited	0.00	60.00	November 2018 to March 2019
42	Corporation Bank	0.00	5.05	December 2018 to March 2019

The Company has not taken any loan from Government.

9. In our opinion and according to the information and explanations given to us, the Company has not raised moneys by way of initial public offer or further public offer (including debt instruments) during the year. However the moneys raised by way of term loans during the year have been applied for the purpose for which those were raised.

10. According to the information and explanations given to us, no fraud by the Company and no fraud on the Company by its officers or employees has been noticed or reported during the year.

11. In our opinion and according to the information and explanations given to us, the Company has not paid or provided any managerial remuneration for the year under audit. In respect of excess managerial remuneration paid or provided during preceding year(s), we draw reference to our comments in Paragraph 3(ii) of the main report "Basis of Qualified Opinion" regarding ‘excess remuneration of Vice Chairman and Managing Director of the Company amounting to as Rs.3.31 Lakhs during the period from 01^st April, 2017 to 23^rd June, 2017.

12. According to the information and explanation given to us, the Company is not a Nidhi Company. Therefore the provisions of paragraph 3(xii) of the Order are not applicable to the Company.

13. According to the information and explanations given to us, and based on our examination of the records of the Company, transactions with the related parties are in compliance with section 177 and 188 of the Companies Act, 2013.The details of such transactions have been disclosed in the Standalone IND AS Financial Statements as required by the applicable IND AS.

14. According to the information and explanations given to us, the Company has not made preferential allotment or private placement of shares or fully or partly convertible debentures during the year under audit. Therefore, the provisions of paragraph 3(xiv) of the Order are not applicable to the Company.

15. According to information and explanations given to us, and based on our examination of the records of the Company, the Company has not entered into any non-cash transactions with directors or person connected with him. Accordingly, provisions of paragraph 3 (xv) of the Order are not applicable to the Company.

16. According to the information and explanations given to us, the Company is not required to be registered under section 45-IA of the Reserve Bank of India Act, 1934.

	For SCV & Co. LLP
	(formerly known as S.C. Vasudeva & Co.)
	Chartered Accountants
	Firm Regn No.000235N/N500089
	(Abhinav Khosla)
Place : New Delhi	Partner
Date : May 30, 2019	Membership No. 087010

Annexure-B to Independent Auditors Report

Referred to in Paragraph 16(h) of the Independent Auditors Report of even date to the members of Amtek Auto Limited on the Standalone IND AS Financial Statements for the year ended March 31, 2019

Independent Auditors Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 (‘the Act)

1. In conjunction with our audit of the Standalone IND AS Financial Statements of Amtek Auto Limited (‘the Company) as at and for the year ended March 31, 2019, we have audited the internal financial controls over financial reporting of the Company as at that date.

Managements Responsibility for Internal Financial Controls

2. The Companys Board of Directors / Management is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued by the Institute of Chartered Accountants of India (‘ICAI). These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of the Companys business, including adherence to the Companys policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Act.

Auditors Responsibility

3. Our responsibility is to express an opinion on the Companys internal control over financial reporting based on our audit. We conducted our audit in accordance with the Standards on Auditing issued by the Institute of Chartered Accountants of India (‘ICAI) and deemed to be prescribed under Section 143(10) of the Act, to the extent applicable to an audit of internal financial controls over financial reporting, and the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (‘the Guidance Note) issued by the ICAI. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects.

4. Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal control over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditors judgement, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.

5. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Companys internal financial controls over financial reporting.

Meaning of Internal Financial Controls over Financial Reporting

6. A Companys internal financial controls over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A Companys internal control over financial reporting include those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the Company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the Company are being made only in accordance with authorisations of management and directors of the Company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorised acquisition, use, or disposition of the Companys assets that could have a material effect on the financial statements.

Inherent Limitations of Internal Financial Controls over Financial Reporting

7. Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial controls over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

Qualified Opinion

8. According to the information and explanations given to us and based on our audit, the following material weakness has been identified as at March 31, 2019:

• The Company has established its internal financial control over financial reporting on criteria based on or considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued by the Institute of Chartered Accountants of India in respect of ‘procure-to-pay, ‘fixed asset, ‘Sales & Realization ‘finance & accounts and ‘treasury; however, the controls have not been updated in light of the company currently being under CIRP.

• The Company did not have an appropriate and proper internal control system to determine the recoverable amount of ‘value-in-use to assess the impairment provision of assets on timely basis, which may potentially result in impairment of assets not being recognized at correct amount or on timely basis and deficient inventory records to assess the product-wise cost.

A ‘material weakness is a deficiency, or a combination of deficiencies, in internal financial control over financial reporting, such that there is a reasonable possibility that a material misstatement of the Companys annual or interim financial statements will not be prevented or detected on a timely basis.

In our opinion, except for the possible effects of the material weaknesses described above on the achievement of the objectives of the control criteria, the Company has, in all material respects, maintained adequate internal financial controls over financial reporting as of March 31, 2019, based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India, and the Companys internal financial controls over financial reporting were operating effectively as of March 31, 2019.

We have considered the material weakness identified and reported above in determining the nature, timing, and extent of audit tests applied in our audit of the Standalone IND AS Financial Statements of the Company as at and for the year ended March 31, 2019, and the material weakness has affected our opinion on the Standalone IND AS Financial Statements of the Company and we have expressed a qualified opinion on the Standalone IND AS Financial Statements.

	For SCV & Co. LLP
	(formerly known as S.C. Vasudeva & Co.)
	Chartered Accountants
	Firm Regn No.000235N/N500089
	(Abhinav Khosla)
Place : New Delhi	Partner
Date : May 30, 2019	Membership No. 087010