Autoline Industries Ltd Auditor Reports

To the members of AUTOLINE INDUSTRIES LIMITED Report on the audit of the Standalone Financial Statements QUALIFIED 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, 2025, the Statement of Profit and Loss (including Other Comprehensive Income), the Cash Flow Statement and the Statement of Changes in Equity for the year ended March 31,2025 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, except for the effects of the matter specified under "Basis for qualified opinion" section of our report, 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 31,2025, its profit, total comprehensive income, its cash flows and the changes in equity for the year ended on that date.

BASIS FOR QUALIFIED OPINION

The company had recognised credit for Minimum Alternate Tax (MAT) for the Assessment Years 2011-12 and 2012-13 corresponding to financial years 2010-11 and 2011-12 under section 115 JAA of the provisions of the Income Tax Act, 1961, totalling to Rs. 1,193.61 Lakhs. As per the provisions of the Income Tax Act, 1961, these MAT Credits are available for utilization for a period of 15 years from the year in which

it is recognized. The Company expects to utilise the MAT credit within the remaining period.

However, in our opinion, based on the financial projections made available to us as well as the existence of accumulated carry forward losses as per tax laws, it is unlikely that such MAT Credit of Rs. 1,193.61 Lakhs can be utilized within the designated period. Accordingly, the MAT Credit Asset, total comprehensive income & retained earnings in the financial statement are overstated to that extent.

We conducted our audit in accordance with the Standards on Auditing (hereinafter referred to as "SAs") specified Under Section 143(10) of the Act. Our responsibilities under those Standards are further described in 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 qualified 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.

Sr. No. Key Audit Matter (KAM)	Auditors Response
1 Revenue Recognition:	• assessed the design and operating effectiveness of the Companys controls around revenue recognition and measurement
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.
	• assessed the appropriateness of the Companys identification of performance obligations in its contracts with customers, its determination of transaction price,
Sr. No. Key Audit Matter (KAM)	Auditors Response
	including allocation thereof to performance obligations and accounting policies for revenue recognition in accordance with the accounting principles laid down in Ind AS 115
	• 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:
The Company had incurred losses in previous years; however, it has returned to profitability since the financial year 2021-22. As of March 31, 2025, the Companys current liabilities continued to exceed its current assets, however, total liabilities do not exceed total assets. The directors of the Company made their assessment of going concern by preparing a cash flow forecast in which some key assumptions were applied and note 3.5 to the Standalone Financial Statements explains how the directors of the Company have formed a judgement that the going concern is appropriate in preparing the financial statements.	• Obtained an understanding & walking through the business planning process and assessing the design, implementation, and operating effectiveness of managements key internal controls over the management assessment, including the preparation of cash flow forecasts & liquidity assessment.
	• We assessed the 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 data, current performance, internal investment and production plans, as well as applicable 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 reliability of cash flow forecasts made by management in prior years by comparing them with the current years results.
	• 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 identified Going Concern as a key audit matter due to the significant degree of management judgement required in assessing and forecasting the companys future cash flow, which are inherently uncertain. Furthermore, management judgement and uncertainties could have a significant impact on the preparation of financial statements and may be subject to management bias.
	• 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.
Sr. No. Key Audit Matter (KAM)	Auditors Response
3 Contingent Liabilities: Evaluation of uncertain tax positions	Our audit procedures included the following:
	• 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.
(Refer to Note 40 to the standalone financial statements)
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. Any unexpected adverse outcomes could have a significant impact on the companys reported profit and financial position.	• 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 or consultant and operational management.
	• 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.
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 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 Board of Directors is responsible for the other information. The other information comprises the Boards report, management discussion and analysis included in the annual report but does not include the financial statements and our auditors report thereon. The Annual Report is expected to be made available to us after the date of this auditors report.

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

In connection with our audit of the standalone financial statements, our responsibility is to read the other information identified above and, in doing so, consider whether the other information is materially inconsistent with the standalone financial statements, or our knowledge obtained during the course of our audit or otherwise appears to be materially misstated.

If, based on 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 the going concerned 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 are 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 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 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.

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.

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 audit findings, including any significant deficiencies in internal control that we 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 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 purposes of our audit;

b) Except for the matter described in the Basis for Qualified Opinion paragraph and for the matters stated in paragraph 2(i)(vi) below on reporting in relation to audit trail as required under Rule 11(g) of the Companies (Audit and Auditors) Rules, 2014 (as amended), 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 and 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) Except for the matter described in the Basis for Qualified Opinion paragraph, 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 31,2025, taken on record by the Board of Directors, none of the directors is disqualified as on March 31,2025,

from being appointed as a director in terms of Section 164 (2) of the Act;

f) the modification relating to the maintenance of accounts and other matters connected therewith as the matter described in the Basis for Qualified Opinion paragraph above, and the paragraph 2(b) above on reporting under Section 143(3)(b) of the Act and paragraph 2 (i)(vi) below on reporting under Rule 11(g) of the Companies (Audit and Auditors) Rules, 2014.

g) With respect to the adequacy of the internal financial controls with reference to standalone financial statements of the Company and the operating effectiveness of such controls, refer to our separate report in "Annexure B". Our report expresses a modified opinion on the adequacy and operating effectiveness of the Companys internal financial controls with reference to financial statements; and

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.

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, 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, 2025, 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 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") or provide 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 the 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, except for the instance mentioned below, the company has used accounting software for maintaining its books of account which has a feature of recording audit trail (edit log) facility and the same has operated throughout the year for all relevant transactions recorded in the software. Further, during the course of our audit we did not come across any instance of audit trail feature being tampered with.

Additionally, the audit trail has been preserved by the company as per the statutory requirements for record retention, other than the consequential impact of exceptions given below:

- Spine payroll - except that no audit trail enabled at the database level to log any direct data changes made.

- The organization has used accounting software SAP B1, which does not have the feature of recording an audit trail.

SHARP & TANNAN ASSOCIATES

Chartered Accountants Firms Registration No: 0109983W by the hand of

	CA Arnob Choudhuri
	Partner
	Membership No: (F) 156378
Pune, May 24, 2025.	UDIN: 25156378BMMJYM2564

ANNEXURE A TO THE INDEPENDENT AUDITORS REPORT ON THE STANDALONE FINANCIAL STATEMENTS OF AUTOLINE INDUSTRIES LIMITED FOR THE YEAR ENDED 31ST MARCH 2025.

(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 records showing full particulars of the Intangible assets of the Company.

(b) The Company has a program of verification 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 PPE were physically verified by the Management during the year. According to the information and explanations given to us, no material discrepancies were noticed in such verification.

(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) I n our opinion and according to the information and

explanations given to us;

(a) The physical verification of inventory has been conducted at reasonable intervals by the management during the year and, in our opinion, the coverage and procedure of such verification by Management is appropriate. Inventory lying with the third parties has been substantially confirmed by the Company. There are no discrepancies noticed on the physical verification of inventory as compared to book records were 10% or more in the aggregate for each class of inventory, except Raw Material and 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 of 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;

(Rs. In Lakhs)

Particulars of Securities Provided	Amount as per books of account	Amount as reported in the quarterly return/ statement	Amount of difference
As on 30-06-2024
Inventories	6,165.01	5,254.68	(910.33)
Book Debts	5,491.86	4,769.98	(721.88)
Creditors	7,666.19	4,611.00	(3,055.19)
As on 30-09-2024
Inventories	6,935.70	5,451.38	(1,484.32)
Book Debts	6,843.40	5,802.32	(1,041.08)
Creditors	9,202.33	6,084.00	(3,118.33)

 

Particulars of Securities Provided	Amount as per books of account	Amount as reported in the quarterly return/ statement	Amount of difference
As on 31-12-2024
Inventories	7,494.56	6,863.26	(631.30)
Book Debts	4,950.58	3,889.99	(1,060.59)
Creditors	7,597.74	5,314.00	(2,283.74)
As on 31-03-2025
Inventories	6,681.86	6,514.93	(166.93)
Book Debts	7,659.14	6,665.79	(993.35)
Creditors	8,821.02	5,045.00	(3,776.02)

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.

(iii) I n 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 and other parties other than subsidiaries & associates. The Company does not have the joint venture entities. 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;

Particulars	Loans (ICD) (Rs. In Lakhs)
The aggregate amount of investment made & loan granted/ provided during the year
- Subsidiaries Company	575.11
- Other Parties (Employees)	64.65
Balance outstanding as at balance sheet date in respect of above cases
- Subsidiaries Company	2,599.10
- Other Parties (Employees)	22.22

(b) In respect of the aforesaid investment made and loans (ICD) given, the terms and conditions under which such loans were granted during the year, prima facie, 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

(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.

Particular	All Parties	Related Parties
The aggregate amount of loans (ICD)
- Repayable on demand (A)	575.11	575.11
- Agreement does not specify any terms or period of repayment (B)
Total (A+B)	575.11	575.11
Percentage of loans (ICD) to the total loans	21.94%	21.94%

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

(v) The Company has neither accepted any deposits from the public nor accepted any amounts which are deemed to be deposits, within the meaning of section 73 to 76 of the Companies Act, 2013 and Rules framed thereunder, to the extent applicable. 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 significant delays in a various 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 March 31, 2025 for a period of more than six months from the date they became payable.

(Rs. In Lakhs)

Name of the Statute	Nature of the Dues	Amount (Rs)	Period to which the amount relates	Due Date	Date of Payment
Goods and Service Tax Act	Goods and Service Tax (UKD)	44.72	Apr 21 to Mar 22	20th of next month	-
Goods and Service	GST interest payable	45.21	Apr 2019 to Mar 2022	20th of next month	-
Tax Act		92.87	Mar 2020 to Sept 2022
Property Tax	Gram Panchayat Tax	7.61	April 2023 to March 2024	31st May/31st Dec	-
Provident Fund	Provident fund	4.49	April 2023 to Sept, 2025	15th of next month.	-
Employee State Insurance Corporation	ESIC Interest and late fee Payable	0.42	April 2024 to Sept, 25	15th of next month	-
Professional Tax	PT Interest and late fee Pay	0.13	April 2024 to Sept, 2025	31st/30th of Next month	-

(b) There are no statutory dues referred to in sub-clause (a) of clause (vii) as at March 31, 2025, which have not been deposited on account of a dispute, except as mentioned below:

(Rs. In Lakhs)

Name of the Statute	Nature of disputed dues	Amount Involved	Amount Period to Unpaid which it relates	Forum where the dispute is pending
The Uttarakhand VAT Act 2005	UKD-VAT	145.64	124.12 F.Y. 2017-18	The Jt. Comm. of States Tax
Provident Fund	Provident fund	60.77	34.06 Apr-2016 to Nov-2016	Regional PF Comm. Pune-II
Goods and service tax	CGST	745.59	745.59 2017-20	Ass. Com. CGST, Circle-II, Audit-I, Akurdi, Pune
		50.46	48.99 2017-2020	The Super. (Range-I), CGST, Division-IV(Chakan), Akurdi, Pune-44

(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 repayment of loan and interest thereon relating to a financial institution. The summary of the period and the amount of default is as follows.

(Rs. In Lakhs)

		Principal			Interest
Nature of Borrowing	Name of Lender	Total amount not paid on the due date	Total no of days delayed during the year for various EMIs *	Total amount not paid on the due date	Total no of days delayed during the year for various EMIs *
Rupee Term Loan	Tata Motors Finance Solutions Limited	871.45	273#	999.32	273#
Rupee Term Loan	HDFC Bank	13.64	11#	-	-
Grand Total		885.09		999.32

*Represent the cumulative days of delay of repayment of EMI in the current year. # Maximum no. delay of repayment of the loan is 15 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.

us, and on an overall examination of the financial statements of the company, we report that the company has used funds raised on short term basis aggregating to Rs. 1,430.13 Lakhs for long-term purposes.

(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, and the procedures performed by

(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.

Name of the Statute	Nature of	Amount	Amount	Period to	Forum where the dispute is pending
	disputed dues	Involved	Unpaid which it relates
Goods and	CGST	55.78	50.71	2018-2019	Asst. Comm. of Central tax,
service tax		72.99	72.99	2020-2021	Division-IV(Chakan), Pune-I, GST Bhavan, Akurdi, Pune-44
		318.09	316.82	2017-2019	Ass. Comm. State tax, Mum-Inv-D045,
	SGST	33.98	32.80	2019-2020	INV-C, Mumbai-10
		2.60	2.60	2020-2021
		1.43	1.43	2021-2022
		380.13	340.13	2022-2023	Asst. Comm. of State tax, Pune-INV-D-005, Investigation Branch, Yerwada Pune.

(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 a 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 not made preferential allotment or private placement of shares or convertible debentures (fully, partially or optionally convertible), Accordingly, reporting on paragraph 3 clause (x) (b) of the Order is not applicable to the Company.

(xi) According to the information and explanations given to us and during the course of our examination of the books and records of the company,

(a) 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) No report under Section 143(12) of the Act, in Form ADT-4, as prescribed under rule 13 of the Companies (Audit and Auditors) Rules, 2014 was required to be filed with the Central Government. Accordingly, the reporting on paragraph 3 clause (xi)(b) of the Order is not applicable to the company.

(c) No whistle-blower complaints have been received during the year by the Company. Accordingly, the reporting on paragraphs 3 Clause (xi)(c) of the Order is not applicable to the company.

(xii) The Company is not a Nidhi Company and hence reporting on 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 on 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) I n 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 explanations given to us, the Company does not have any unspent amounts towards Corporate Social Responsibility in respect of any ongoing or other than ongoing project as at the end of the financial year. Accordingly, reporting on paragraph 3 Clause (xx) (a) & (b) of the order is not applicable to the company.

(xxi) The reporting on 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 to 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 24, 2025.	UDIN: 25156378BMMJYM2564

ANNEXURE B TO THE INDEPENDENT AUDITORS REPORT ON THE STANDALONE FINANCIAL STATEMENTS OF AUTOLINE INDUSTRIES LIMITED FOR THE YEAR ENDED MARCH 31, 2025

(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 with reference to the Standalone Financial Statements under Clause (i) of sub-section 3 of Section 143 of the Companies Act, 2013 ("the Act")

QUALIFIED OPINION

We have audited the internal financial controls with reference to standalone financial statements of AUTOLINE INDUSTRIES LIMITED (hereinafter referred to as "the Company") as of March 31, 2025, in conjunction with our audit of the Standalone Financial Statements of the Company for the year ended on that date.

According to the information and explanations given to us and based on our audit, the following material weaknesses have been identified as at March 31,2025;

The Companys internal control system pertaining to control activities for the financial statement closure process function was not operating effectively with respect to the assessment of utilisation of MAT credit, wherein the Company has not performed an assessment in accordance with the Income Tax Act, 1961. This deficiency has resulted material misstatement in the recognition of MAT Credit Asset, total comprehensive income, and retained earnings in the financial statements.

A material weakness is a deficiency, or a combination of deficiencies, in internal financial control with reference to standalone financial statements, such that there is a reasonable possibility that a material misstatement of the companys annual 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, an adequate internal financial controls with reference to standalone financial statements and such internal financial controls with reference to standalone financial statements were operating effectively as at March 31, 2025, based on the internal financial control with reference to standalone financial statements 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").

MANAGEMENTS AND BOARD OF DIRECTORS RESPONSIBILITIES FOR INTERNAL FINANCIAL CONTROLS WITH REFERENCE TO THE STANDALONE FINANCIAL STATEMENTS

The Companys Management is responsible for establishing and maintaining internal financial controls based on the internal controls with reference to standalone financial statements 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 ("Guidance Note") issued by the Institute of Chartered Accountants of India ("ICAI"). These responsibilities include the design, implementation and maintenance of adequate internal financial controls with reference to standalone financial statements 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 FOR INTERNAL FINANCIAL CONTROLS WITH RESPECT TO THE STANDALONE FINANCIAL STATEMENTS

Our responsibility is to express an opinion on the Companys internal financial controls with reference to standalone financial statements based on our audit. We conducted our audit in accordance with the Guidance Note and the Standards on Auditing issued by ICAI prescribed Under Section 143(10) of the Act, to the extent applicable to an audit of internal financial controls with reference to Standalone Financial Statements. 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 with reference to standalone financial statements 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 with reference to standalone financial statements

and their operating effectiveness. Our audit of internal financial controls with reference to standalone financial statements included obtaining an understanding of internal financial controls with reference to standalone financial statements, 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 with reference to financial statements.

MEANING OF INTERNAL FINANCIAL CONTROLS WITH REFERENCE TO STANDALONE FINANCIAL STATEMENTS

A Companys internal financial control with reference to standalone financial statements 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 with reference to financial statements 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;

(2) Provide reasonable assurance that transactions are recorded as necessary to permit 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 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 WITH REFERENCE TO STANDALONE FINANCIAL STATEMENTS

Because of the inherent limitations of internal financial controls with reference to financial statements, 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 with reference to standalone financial statements to future periods are subject to the risk that the internal financial control with reference to standalone financial statements 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 24, 2025.	UDIN: 25156378BMMJYM2564