Autoline Industries Ltd Auditor Reports

To the members of AUTOLINE INDUSTRIES LIMITED Report on the audit of the Standalone Financial Statements

OPINION

We have audited the accompanying Standalone Financial Statements of AUTOLINE INDUSTRIES LIMITED (hereinafter referred as "the Company"), which comprise the Balance sheet as at March 31, 2024, the Statement of Profit and

Loss (including Other Comprehensive Income), the Cash Flow Statement and the Statement of Changes in Equity for the year then ended and Notes to the Standalone Financial Statements, including a summary of Material accounting policies and other explanatory information (hereinafter collectively referred as the "Standalone Financial Statements").

In our opinion and to the best of our information and according to the explanations given to us, the aforesaid Standalone Financial Statements give the information required by the Companies Act, 2013 (hereinafter referred as "the Act") in the manner so required and give a true and fair view in conformity with the Indian Accounting Standards prescribed under section 133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015 as amended (hereinafter referred as "Ind AS") and other accounting principles generally accepted in India, of the state of affairs (financial position) of the Company as at March 31, 2024, its profit, other comprehensive income, its cash flows and the changes in equity for the year ended on that date.

BASIS FOR OPINION

We conducted our audit in accordance with the Standards on Auditing (hereinafter referred as "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 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 (hereinafter referred as "ICAI") together with the ethical requirements that are relevant to our audit of the Standalone Financial Statements under the provisions of the Act and the

Rules there under, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the ICAIs Code of Ethics. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

KEY AUDIT MATTERS

Key audit matters are those matters that, in our professional judgment, were of the most significance in our audit of the standalone financial statements of the current period.

These matters were addressed in the context of our audit of the standalone financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. We have determined the matters described below to be the key audit matters to be communicated in our report.

	Key Audit Matter (KAM) Auditors Response
1 Revenue Recognition:	Our audit procedures included the following:
1)The Companys revenue is derived from the sale of sheet metal stampings, welded assemblies, and moulds for the automotive industry. The Company recognizes revenue when the control is transferred to the customer.	1)• assessed the design and operating effectiveness of the Companys controls around revenue recognition and measurement
The terms set out in the Companys sales contracts relating to goods acceptance by customers are varied. Accordingly, the terms and conditions of sales contracts may affect the timing of recognition of sales to customers as each sales contract could have different terms relating to customer acceptance of the goods sold.	• assessed the appropriateness of the Companys identification of performance obligations in its contracts with customers, its determination of transaction price, including allocation thereof to performance obligations and accounting policies for revenue recognition in accordance with the accounting principles laid down in Ind AS 115
We identified the recognition of revenue as a key audit matter because revenue is one of the key performance indicators of the Company and is, therefore, subject to an inherent risk of misstatement to meet targets or expectations and because errors in the recognition of revenue could have a material impact on the Company.	• scrutinized sales ledgers to verify the accuracy and completeness of sales transactions
	• on a sample basis, tested the revenue recognised including testing of cut off assertion as at the year end
	• assessed the revenue recognised with substantive analytical procedures including review of price, quantity and product mix variances and analysis of discounts at the customer level circularized balance confirmations to a sample of customers and evaluated the responses
	• Assessed the disclosures made by the Company.
2. Going Concern:	Our audit procedures included the following:
2)The Company had incurred losses in previous years, since the however, it has returned to profitability financial year 2021-22. As of March 31, 2024, the Companys total liabilities did not exceed its total assets. Note 3.5 to the financial statements explains how the directors of the Company have formed a judgement that the going concern basis is appropriate in preparing the financial statements.	2)• Obtained an understanding & walking through the business planning process and assessing the design, implementation, and operating effectiveness of managements key internal controls over the assessment of going concern, including the preparation of cash flow forecasts & liquidity assessment.
The directors of the Company made their assessment of going concern by preparing a cash flow forecast in which some key assumptions were applied.	• We assessed the accuracy of managements cash flow forecasts by analyzing the key assumptions used, such as future revenue, gross profit, operating expenses, and capital expenditure with reference to historical production data, current performance, internal investment and production plans, as well as external market information.
These key assumptions included forecasts of sales volumes, average selling prices, raw material costs and the availability of banking and other financing facilities • as well as financial support from the Promoters.	Considering the accuracy and reliability of cash flow forecasts made by management in prior years by comparing them with the current years results.
We identified going concern as a key audit matter due to the significant judgement required in assessing and forecasting the companys future cash flows, which are inherently uncertain. Furthermore, management judgement and on the uncertainties could have a significant preparation of financial statements and may be subject to management bias.	We evaluated the availability of banking and financing facilities by examining relevant documentation, including banking facility agreements signed before and after the reporting period. Additionally, We assessed the impact of any covenants and restrictive terms contained within these agreements. We also verified whether any waivers were obtained from the financial institutions from which borrowings were made.
	• Assessed the disclosures made by the Company in this regard. Based on our procedures we noted that the key assumptions used in the forecasts were within a reasonable range of our expectations.
3)Contingent Liabilities: Evaluation of uncertain tax positions (Refer to Note 40 to the standalone financial statements)	Our audit procedures included the following:
	3) We gained an understanding of how to identify claims, litigations, and contingent liabilities. We identified key controls in the process and performed tests on selected controls.
3)The company is currently involved in assessment proceedings and related litigations with direct and indirect tax authorities, as well as certain other parties. Estimating the probable outflow of economic resources and determining the appropriate level of provisioning and/or disclosures required involves a high level of management judgement. The managements judgement is supported by advice from independent tax and legal consultants, as deemed necessary.	• We obtained a summary of the companys legal and tax cases and assessed managements position by discussing the probability of success in significant cases and the potential magnitude of any loss with the Legal Counsel, Head of Tax, and operational management.
Any unexpected adverse outcomes could have a profit significant and financial position. We identified this area as a key audit matter due to the uncertainty of the final result and the significant management judgment in assessment.	• The current status of direct and indirect tax assessments/litigations was reviewed.
	• Recent orders and communication received from tax authorities and certain other parties were read, along with management responses to such communication.
	• When relevant, we read the most recent independent tax/legal advice obtained by management and evaluated the grounds presented therein.
	• The adequacy of disclosure in the standalone financial statements was assessed. Based on the above procedures, we did not identify any material exceptions relating to managements assessment of provisions and contingent liabilities.

INFORMATION OTHER THAN THE STANDALONE

FINANCIAL STATEMENTS AND AUDITORS REPORT

THEREON (HEREINAFTER REFERRED AS "OTHER

INFORMATION")

The Companys Management and Board of Directors are

responsible for the preparation of the other information.

The other information comprises the Boards report and

management discussion and analysis included in the

annual report but does not include the Standalone Financial

Statements and our report thereon.

Our opinion on the Standalone Financial Statements does

not cover the other information and we do not express any

form of assurance and/or conclusions thereon.

In connection with our audit of the Standalone 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 Financial

Statements, or our knowledge obtained in the audit or

otherwise appears to be materially misstated. If, based

on the work we have performed, we conclude that there

is a material misstatement of this other information, we

are required to report that fact. We have nothing to report

in this regard.

BOARD OF DIRECTORS RESPONSIBILITIES FOR THE STANDALONE FINANCIAL STATEMENTS

The Companys Management and Board of Directors are responsible for the matters stated in Section 134(5) of the Act with respect to the preparation of these Standalone Financial Statements that give a true and fair view of the financial position, financial performance, cash flows and changes in equity of the Company in accordance with the accounting principles generally accepted in India, including the Ind AS. 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 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 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 Financial Statements, the Companys Management and Board of Directors are 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.

The Board of Directors is responsible for overseeing the

Companys financial reporting process.

AUDITORS RESPONSIBILITIES FOR THE AUDIT OF THE STANDALONE FINANCIAL STATEMENTS

Our objectives are to obtain reasonable assurance about whether the Standalone 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 Financial Statements.

As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional scepticism throughout the audit. We are also: a) Identify and assess the risks of material misstatement of the Standalone Financial Statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit findings,audit evidence that is sufficientandappropriatetoprovideabasis deficiencies in internal control that 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. b) Obtain an understanding of internal control 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 has an adequate internal financial controls system in place and the operating effectiveness of such controls. c) Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management and the Board of directors. d) 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 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. e) Evaluate the overall presentation, structure, and content of the Standalone Financial Statements, including the disclosures, and whether the Standalone Financial Statements represent the underlying transactions and events in a manner that achieves fair presentation.

Materiality is the magnitude of misstatements in the Standalone Financial Statements that, individually or in the aggregate, makes it probable that the economic decisions of a reasonably knowledgeable user of the Standalone 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) evaluating the effect of any identified misstatements in the Standalone Financial Statements.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant weany significant identify during our audit.

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.

From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the Standalone 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.

REPORT ON OTHER LEGAL AND REGULATORY

REQUIREMENTS

1. As required by the Companies (Auditors Report)

Order, 2020 ("the Order"), issued by the Central

Government in terms of Section 143 (11) of the Act,

we give in "Annexure A", a statement on the matters

specified in paragraphs 3 and 4 of the Order, to the

extent applicable.

2. As required by Section 143 (3) of the Act and based on

our audit we report that:

a) We have sought and obtained all the information

and explanations which to the best of our

knowledge 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 the Company

so far as it appears from our examination

of those books.

c) The Balance Sheet, the Statement of Profit

Loss (including Other Comprehensive Income),

the Statement of Changes in Equity and the

Statement of Cash Flows statement dealt with by

this report agree with the books of account.

d) In our opinion, the aforesaid Standalone Financial

Statements comply with the Ind AS specified

under Section 133 of the Act.

e) On the basis of the written representations

received from the directors as on March 31, 2024,

taken on record by the Board of Directors, none

of the directors is disqualified as on March 31,

2024, 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 the financial reporting of

the Company and the operating effectiveness

of such controls, refer to our separate report in

"Annexure B". Our report expresses an unmodified

opinion on the adequacy and operating

effectiveness of the Companys internal financial or

controls over financial reporting; and

g) 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,

in our opinion and 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 of March 31, 2024,

on its financial position in its Standalone

Financial Statements - Refer to note 40 to

the Standalone Financial Statements.

ii. The Company did not have any long-term

contracts including derivatives contracts for

which there were foreseeable losses;

iii. There were no amounts that were required

to be transferred to the Investor Education

and Protection Fund by the Company.

iv. (a) The Management has represented that,

to the best of its knowledge and belief,

no funds (which are material either

individually or in the aggregate) have

been advanced or loaned or invested

(either from borrowed funds or share

premium or any other sources or kind

of funds) by the Company to or in

any other person or entity, including

foreign entity ("Intermediaries"), with

the understanding, whether recorded

in writing or otherwise, that the

Intermediary shall, whether, directly

and

or indirectly lend or invest in other

persons or entities identified in any

manner whatsoever by or on behalf of

the Company ("Ultimate Beneficiaries")

or provide any guarantee, security

or the like on behalf of the

Ultimate Beneficiaries;

(b) The Management has represented,

that, to the best of its knowledge and

belief, no funds (which are material

either individually or in the aggregate)

have been received by the Company

from any person or entity, including

foreign entity ("Funding Parties"), with

the understanding, whether recorded in

writing or otherwise, that the Company

shall, whether, directly or indirectly, lend

or invest in other persons or entities

identified in any manner whatsoever

by or on behalf of the Funding Party

("Ultimate Beneficiaries")

any guarantee, security or the like on

behalf of the Ultimate Beneficiaries;

(c) Based on the audit procedures that

have been considered reasonable

and appropriate in the circumstances,

nothing has come to our notice that

has caused us to believe that the

representations under sub-clause (i)

and (ii) of Rule 11(e), as provided under

(a) and (b) above, contain any material

misstatement; and

v. During the year Company has not declared/ paid any dividend hence reporting under rule 11 (f) is not applicable to that extent.

vi. Based on our examination which included test checks, the company has used accounting software for maintaining its books of account which has a feature of recording audit trail (edit log) facility. The same has not been operated throughout the year at application level & database level, for all relevant transactions recorded in the software. Consequently, we are unable to comment on whether the audit trail feature has been tampered with at any point during the year.

As proviso to Rule 3(1) of the Companies (Accounts) Rules, 2014 is applicable from April 1, 2023, reporting under Rule 11 (g) of the Companies (Audit and Auditors) Rules, 2014 on the preservation of audit trail as per the statutory requirements for record retention is not applicable for the financial year ended March 31, 2024 h) 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, we report that in our opinion and to the best of our information and according to the explanations given to us, the remuneration paid by the Company to its directors during the year is in accordance with the provisions of section 197 of the Act. The remuneration paid to directors is not in excess of the limit laid down under Section 197 of the Act. The Ministry of Corporate Affairs has not prescribed other details under Section 197(16) which are required to be commented upon by us.

	SHARP & TANNAN ASSOCIATES
	Chartered Accountants
	Firms Registration No: 0109983W
	by the hand of
	CA ARNOB CHOUDHURI
	Partner
	Membership No: (F) 156378
Pune, May 25, 2024.	UDIN:24156378BKHHFP8468

ANNEXURE A TO THE INDEPENDENT AUDITORS REPORT ON THE STANDALONE FINANCIAL STATEMENTS OF AUTOLINE INDUSTRIES LIMITED FOR THE YEAR ENDED 31ST MARCH 2024.

(Referred to in paragraph 1 under the heading "Report on

Other Legal and Regulatory Requirements" Section of our

report on even date)

(i) (a) According to the information and explanation

given to us and records examined by us.

(A) The Company has maintained proper

records showing full particulars, including

quantitative details and the situation of

the Property, Plant and Equipment (PPE)

of the Company.

(B) The Company has maintained proper of inventory records

showing full particulars of the Intangible

assets of the Company.

(b) The Company has a program of verification by Management is appropriate

of PPE to cover all the items in a phased

manner over a period of three years which, in

our opinion, is reasonable having regard to

the size of the Company and the nature of its

assets. Pursuant to the program, certain of PPE

were physically verified by the Management

during the year. According to the information

and explanations given to us, no material

. discrepancieswerenoticedinsuchverification

(c) We report that the title deeds, comprising all the

immovable properties of land and buildings, (other

than properties where the company is the lessee

and the lease agreements are duly executed in

favour of the lessee), are held in the name of the

Company as at the balance sheet date.

(d) We report that the company has not made any

revaluation of PPE (including Right of use assets)

or intangible assets or both during the year.

Accordingly, reporting on paragraphs 3 Clause (i)

(d) of the Order is not applicable to the Company.

(e) We report that there are no proceedings have been

initiated or are pending against the company for

holding any benami property under the Benami

Transactions (Prohibition) Act, 1988 (45 of 1988)

and rules made thereunder. Accordingly, reporting

on paragraphs 3 Clause (i) (e) of the Order is not

applicable to the Company.

(ii) In our opinion and according to the information

and explanations given to us;

(a) The physical verification

been conducted at reasonable intervals by

the management during the year and, in our

opinion, the coverage and procedure of such

. verification

Inventory lying with the third parties

has been substantially confirmed by the

Company. There is no discrepancies noticed

on the physical verification

as compared to book records were 10%

or more in the aggregate for each class of

inventories, except ‘work in progress, and

the same have been appropriately dealt with

in the books of accounts.

(b) during the year the Company has renewed/

sanctioned its working capital facility in

excess of five crores rupees, in the aggregate,

from banks on the basis of security of

current assets; based on our verification

quarterly statements filed by the company

with such banks or financial institutions, are

in agreement with the books of account of

the Company, except as mentioned below;

Particulars of Securities Provided	Amount as per books of account	Amount as reported in the quarterly return/ statement	Amount of difference
As on 30-06-2023
Inventories	5,017.01	4,936.54	-80.47
Book Debts	3,098.87	1,815.00	-1,283.87
Creditors	7,089.63	4,386.00	-2,703.63
As on 30-09-2023
Inventories	5,140.94	5033.21	-107.73
Book Debts	2,065.35	1,992.00	-73.35
Creditors	7,225.33	4,589.00	-2,636.33
As on 31-12-2023
Inventories	6,917.99	5,358.19	-1,559.80
Book Debts	1,447.34	1,454.00	6.66
Creditors	7,223.45	4,517.00	-2,706.45
As on 31-03-2024
Inventories	5,160.74	4,890.80	-269.94
Book Debts	7,155.31	5,950.00	-1,205.31
Creditors	7,861.66	5,215.00	-2,646.66

(iii) In our opinion and according to the information and explanations given to us; (a) During the year the Company has given a loan (ICD) to four subsidiaries. The company has not given advance in the nature of the loan, provided security & a guarantee to the subsidiary, Associates & Joint ventures and other parties other than subsidiaries, associates & Joint ventures. The aggregate amount during the year and the balance outstanding at the Balance Sheet date with respect to such investment made in the subsidiary & loans given to the subsidiaries are as per the table given below;

in Lakhs

Particulars of Securities Provided The aggregate amount of investment made & loan granted/provided during the year	Amount of difference
- Subsidiaries Company	1,343.92
- Other Parties (Employees)	10.92
Balance outstanding as at balance
sheet date in respect of above cases
- Subsidiaries Company	2,029.16
- Other Parties (Employees)	11.13

(b) In respect of the aforesaid loans (ICD) given, the terms and conditions under which such loans were granted were made are not prejudicial to the Companys interest.

(c) According to the information and explanation given to us and based on the audit procedures performed by us, in respect of the Loan (ICD) granted during the year by the Company to the subsidiaries as referred in clause (iii) (a) are repayable on demand and no repayment schedule is stipulated and the Company has not called back the said loan (ICD); accordingly, we are not able to comment on the regularity of the payment.

(d) According to the information and explanation given to us and based on the audit procedures performed by us, with respect to loans (ICD) granted during the year to subsidiaries are receivable on demand, the repayment schedule is not stipulated and the Company has not called back the said loan (ICD), accordingly, we are not able to comment on the total amount overdue for more than ninety days and whether the company has taken reasonable steps for recovery of that amount.

(e) There were no loans/advances in the nature of the loan which fell due during the year and were renewed/extended. Further, no fresh loans were granted to the same parties to settle the existing overdue loans/advances in the nature of the loan. Accordingly, reporting on paragraphs 3 Clause (iii) (e) of the Order is not applicable to the Company.

(f) Following loans (ICD) were granted during the year, including to related parties under Section 2(76), which are repayable on demand or where no schedule for repayment of principal and payment of interest has been stipulated by the company.

in Lakhs

Particular	All Parties	Related Parties
The aggregate amount
of loans (ICD)
- Repayable on demand (A)	1,343.92	1,343.92
- Agreement does not	-	-
specify any terms or period
of repayment (B)
Total (A+B)	1,343.92	1,343.92
Percentage of loans (ICD) to	65.30%	65.30%
the total loans

(iv) According to the information and explanation provided to us, in respect of loans, investments, guarantees and security, the Company has complied with provisions of Section 185 and Section 186 of the Act.

(v) According to the information and explanations given to us, there is no public deposit as such in the company during the year and no order has been passed by the Company Law Board or the National Company Law Tribunal or the Reserve Bank of India or any Court or any other Tribunal. Accordingly, reporting on paragraphs 3 Clause (v) of the Order is not applicable to the Company.

(vi) We have broadly reviewed the books of accounts maintained by the Company pursuant to the rules prescribed by the Central Government for maintenance of cost records under Section 148(1) of the Act in respect of its manufactured goods and are of the opinion that prima facie, the prescribed accounts and records have been made and maintained. However, we have not carried out a detailed examination of the records with a view to determine whether these are accurate or complete.

(vii) According to the information and explanations given to us, in respect of statutory dues: (a) There were delays by the Company in depositing undisputed statutory dues, including Provident

Fund, Employees State Insurance, Income-tax,

Sales Tax, Goods and Service Tax, Service Tax, Customs Duty, Excise Duty, Value Added Tax, Cess, and other material statutory dues have not regularly deposited with the appropriate authorities by the company and there have been serious delays in a large number of cases.

According to the books and records as produced before us and examined by us, the following undisputed statutory dues were in arrears as at 31 March 2024 for a period of more than six months from the date they became payable.

Name of the Statute	Nature of the Dues	Amount (Rs)	Period to which the amount relates	Due Date	Date of Payment
Goods and	Goods and	44.72	April 21 to
Service Tax Act	Service Tax (UKD)
Goods and	GST interest payable	68.48	March 22	20th of next month	-
Service Tax Act		112.89	April 2019 to March 2022	20th of next month	-
Property Tax	Gram Panchayat Tax	24.74	March 2020
			to September 2022
Provident Fund	Provident fund	1.51	April 2023 to March 2024	31st May/ 31st Dec	-
			April 2023 to March 2024	15th of next month.	-

(b) There are no statutory dues referred to in sub-clause (a) of clause (vii) as at March 31, 2024, which have not been deposited on account of a dispute, except as mentioned below:

( In Lakhs)

Name of the Statute	Nature of disputed dues	Amount Involved	Amount Unpaid	Period to which it relates	Forum where the dispute is pending
The MVAT Act, 2002	VAT	147.23	147.23	F.Y. 2013-14	Maharashtra State Tribunal
		264.98	264.98	F.Y. 2007-08
The	UKD-CST	46.60	46.60	F.Y. 2013-14	The Jt. Comm. of States Tax
Uttarakhand VAT Act 2005	UKD-VAT	145.64	124.12	F.Y. 2017-18
Provident Fund	Provident fund	60.77	34.06	Apr-2016 to Nov-2016	Regional PF Comm. Pune-II
Goods and	CGST	3.58	3.54	Apr-2017 to Nov-2019	The Superintendent, Hosur
service tax (Hosur)					Range, Division-I, Hosur
Goods and	CGST	372.80	372.80	Apr-2017 to Nov-2020	Assi. Com. CGST, Circle-II,
service tax (Pune)					Audit-I Comm, Akurdi, Pune
	CGST	50.46	48.99	Apr-2017 to Nov-2020	The Sup. (Range-I), CGST,
					Division-IV(Chakan), Akurdi, Pune-44
	SGST	318.09	316.82	Apr-2017 to Nov-2019	Assi.
					Comm. State tax, Mum-Inv-D045,
					INV-C, Mumbai-10
Income Tax Act 1961	TDS	609.51	609.51	Apr-2018 to Nov-2024	Chief IT Comm., Sadhu
					Vasvani chowk, Pune- 411001

(viii) According to the information & explanations given to us and the records examined by us, there are no such transactions that are not recorded in the books of account, which have been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (43 of 1961). Accordingly, reporting on paragraph 3 clause (viii) of the Order is not applicable to the Company.

(ix) According to the information and explanations given to us and the records examined by us;

(a) the Company has not defaulted in repayment of loans or other borrowings or in the payment of interest thereon to any lender. Except there is default in repayment of loan and interest thereon relating to a financial institution.

The summary of the period and the amount of default is as follows.

( In Lakhs)

Nature of Borrowing	Name of Lender	Total amount not paid on the due date	Principal Total no of days delayed during the year for various EMIs *	Total amount not paid on the due date	Interest Total no of days delayed during the year for various EMIs *
Rupee Term Loan	Tata Motors	127.98	22#	71.26	22#
	Finance
	Solutions Limited
Grand Total		127.98		71.26

*Represent the cumulative days of delay of repayment of EMI in the current year. ^# Maximum no. delay of repayment of the loan is 8 days.

(b) the company has not been declared a wilful defaulter by banks or financial institutions or other lenders Accordingly, reporting on paragraph 3 clause (ix) (b) of the Order is not applicable to the Company.

(c) In our opinion and according to the information and explanations given to us, the term loans have been applied for the purpose for which they were obtained.

(d) According to the information and explanations given to us, the procedures performed by us, and on an overall examination of the financial statements of the company, we report that no funds raised on a short-term basis have been used for long-term purposes by the company.

(e) According to the information and explanations given to us and on an overall examination of the financial statements of the company, we report that the company has not taken any funds from any entity or person on account of or to meet the obligations of its subsidiaries, associates, or joint ventures.

(f) According to the information and explanations given to us and procedures performed by us, we report that the company has not raised loans during the year on the pledge of securities held in its subsidiaries, joint ventures, or associate companies. Accordingly, reporting on paragraph 3 clause (ix) (f) of the Order is not applicable to the Company.

(x) According to the information and explanations given to us and the records examined by us, (a) In our opinion and according to the information and explanations given to us, the Company has not raised money by way of initial public offer or further public offer (including debt instruments). Accordingly reporting on paragraph 3 clause (x) (a) of the order is not applicable to the company.

(b) During the year the company has made Preferential allotment of compulsory convertible debentures and private placement of share warrants as per the provision of the act and regulation made by the Securities Exchange Board of India and the requirements of section 42 and section 62 of the Companies Act, 2013 have been complied with and the fund raised has been used for the purposes for which they were raised, except for the following:

Nature of Securities	Purpose for which funds were raised	Total Amount Raised/ opening unutilized balance	Amount utilized for the other purpose	Un-utilized balance as at balance sheet date	Remark
CCD	Capex/Working	4,317.54	-	684.00	FD of Rs. 500.00 Lakhs
	Capital /				has been Created for
	General purpose				an unutilized amount at
					year-end and a balance
					of 184.00 Lakhs
					has been parked in
					the common account

During the year company has not made a preferential allotment of shares and Private placement of convertible debentures (Fully, partially, or optionally convertible).

(xi) According to the information and explanations given to us and the records examined by us,

(a) Based upon the audit procedures performed by us, we have neither come across any instance of material fraud by the Company or on the Company, noticed or reported during the year, nor have been informed of any such case by the management.

(b) Based on the audit procedures performed by us, a report under Section 143(12) of the Act, in Form

ADT-4, as prescribed under rule 13 of Companies

(Audit and Auditors) Rules, 2014 was not required to be filed with the Central Government.

Accordingly, the reporting under clause 3(xi)(b) of the Order is not applicable to the company.

(c) As represented to us by the management, there are no whistle-blower complaints received by the company during the year.

(xii) The Company is not a Nidhi Company and hence reporting under paragraph 3 clause (xii) (a), (b) and (c) of the Order is not applicable to the Company.

(xiii) In our opinion and according to the information and explanations given to us the Company is in compliance with Sections 177 and 188 of the Companies Act, 2013, where applicable, for all transactions with the related parties and the details of related party transactions have been disclosed in the financial statements as required by the applicable Ind AS.

(xiv) According to the information and explanations given to us and the records examined by us,

(a) The company has an internal audit system commensurate with the size and nature of its business.

(b) We have considered the internal audit reports of the company issued till the balance sheet date, for the period under audit.

(xv) According to the information and explanations given to us, in our opinion during the year the company has not entered into any non-cash transactions with its directors or persons connected with its directors and hence reporting on compliance with the provisions of section 192 of the Companies Act, 2013 under paragraph 3 clause (xv) of the order is not applicable to the company.

(xvi) According to the information and explanations given to us and the records examined by us, the Company is not required to be registered under Section 45-IA of the

Reserve Bank of India Act, 1934. Accordingly, reporting on paragraph 3 Clause (xvi) (a), (b), (c) and (d) of the order is not applicable to the company.

(xvii) In our opinion and according to the information and explanations given to us, the company has not incurred cash losses in the current year as well as for the immediately preceding financial year.

(xviii) There has been no resignation of the statutory auditors during the year and accordingly, reporting on paragraph 3 Clause (xviii) of the order is not applicable to the company.

(xix) According to the information and explanations given to us and on the basis of the financial ratios, aging and expected dates of realization of financial assets and payment of financial liabilities, and other information accompanying the financial statements, our knowledge of the Board of Directors and management plans and based on our examination of the evidence supporting the assumptions, nothing has come to our attention, which causes us to believe that any material uncertainty exists as on the date of the audit report that company is not capable of meeting its liabilities existing at the date of the balance sheet as and when they fall due within a period of one year from the balance sheet date. We, however, state that this is not an assurance as to the future viability of the company. We further state that our reporting is based on the facts up to the date of the audit report and we neither give any guarantee nor any assurance that all liabilities falling due within a period of one year from the balance sheet date, will get discharged by the company as and when they fall due.

(xx) According to the information and explanation given to us and on the basis of the accounts and records examined by us, we report that the Company has suffered losses over the past few years hence Section 135(5) and 135 (6) of the Act does not apply to the Company. Accordingly, paragraph 3 clause (xx) (a) and (b) of the order is not applicable to the company.

(xxi) The reporting under paragraph 3 clause (xxi) of the Order is not applicable in respect of the audit of the Standalone Financial Statements of the Company. Accordingly, no comment has been included in respect of said clause under this report.

	SHARP & TANNAN ASSOCIATES
	Chartered Accountants
	Firms Registration No: 0109983W
	by the hand of
	CA ARNOB CHOUDHURI
	Partner
	Membership No: (F) 156378
Pune, May 25, 2024.	UDIN:24156378BKHHFP8468

ANNEXURE B TO THE INDEPENDENT AUDITORS REPORT ON THE STANDALONE FINANCIAL STATEMENTS OF AUTOLINE INDUSTRIES LIMITED FOR THE YEAR ENDED 31ST MARCH 2024

(Referred to in paragraph 2 (f) under the heading, "Report on other legal and regulatory requirements" of our report on even date)

Report on the Internal Financial Controls Over Financial Reporting under Clause (i) Section 143 (3) of the Companies Act, 2013 ("the Act")

OPINION

We have audited the internal financial controls over financial reporting of AUTOLINE INDUSTRIES LIMITED (hereinafter referred to as "the Company") as of March 31, 2024, in conjunction with our audit of the Standalone Financial Statements of the Company for the year ended on that date.

In our opinion and to the best of our information and according to the explanations given to us, the Company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at March 31, 2024, based on the internal financial 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 (hereinafter referred as "the guidance note") issued by the Institute of Chartered Accountants of India (hereinafter referred as "ICAI").

BOARD OF DIRECTORS RESPONSIBILITY FOR INTERNAL FINANCIAL CONTROLS

The Companys Management and Board of Directors are 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. 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 its 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

Our responsibility is to express an opinion on the Companys internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the guidance note and the Standards on Auditing issued by ICAI and deemed to be prescribed Under Section 143(10) of the Act, to the extent applicable to an audit of internal financial controls. 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 were established and maintained and if such controls operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system 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 judgment, including the assessment of the risks of material misstatement of the Standalone Financial Statements, whether due to fraud or error.

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 system over financial reporting.

MEANING OF INTERNAL FINANCIAL CONTROLS OVER FINANCIAL REPORTING

A Companys internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of Standalone Financial Statements for external purposes in accordance with generally accepted accounting principles. A companys internal financial control over financial reporting includes 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; and

(2) provide reasonable assurance that transactions are recorded as necessary to permit the preparation of Standalone Financial Statements in accordance with generally accepted accounting principles and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and

(3) provide reasonable assurance regarding the prevention or timely detection of unauthorized acquisition, use, or disposition of the companys assets that could have a material effect on the Standalone Financial Statements.

INHERENT LIMITATIONS OF INTERNAL FINANCIAL CONTROLS OVER FINANCIAL REPORTING

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 control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

	SHARP & TANNAN ASSOCIATES
	Chartered Accountants
	Firms Registration No: 0109983W
	by the hand of
	CA ARNOB CHOUDHURI
	Partner
	Membership No: (F) 156378
Pune, May 25, 2024.	UDIN:24156378BKHHFP8468