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AUTORIDERS INTERNATIONAL LIMITED
Report on the audit of Standalone Financial Statements
I have audited the accompanying standalone financial statements of AUTORIDERS INTERNATIONAL LIMITED ("the Company"), which comprises Balance Sheet as at 31st March, 2019, the Statement of Profit and Loss Account and Cash Flow statement for the year ended 31st March 2019, and a summary of significant accounting policies and other explanatory information (herein after referred to as financial statements)
In my opinion and to the best of my information and according to the explanations given to me, except for the effects of the matters described in the Basis of Qualified Opinion Pragraph, the financial statements give the information required by the Companies Act,2013 (Act") in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India :
(a) In the case of the Balance Sheet, of the state of affairs of the Company as at 31st March 2019
(b) In the case of the Profit and Loss Account, of the Profit for the year ended on that date.
(c) In the case of Cash Flow Statement, of its Cash flow for the year ended on that date.
Basis for Qualified Opinion
As referred to Note No. 26(g) of Additional Information to the financial statements, the company has provided liability in respect of leave encashment benefits payable to employees on retirement on actual calculation basis as not on actuarial basis as required in accordance with provisions as per Indian Accounting Standard no 19 on Accounting for Retirement Benefits issued by ICAI.
I have conducted my audit in accordance with the Standards on Auditing (SAs) specified under section 143(10) of the Act. My responsibilities under those SAs are further described in the Auditors Responsibilities for the Audit of the Financial Statements Section of my Report. I am independent of the Company in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India (ICAI") together with the ethical requirements that are relevant to my audit of the financial statements under the provisions of the Act and the Rules there under, and I have fulfilled my other ethical responsibilities in accordance with these requirements and the Code of Ethics. I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my opinion.
Key Audit matters
Key audit matters are those matters that, in my professional judgement, were of most significance in my audit of the standalone financial statements of the current period. These matters were addressed in the context of the financial statements as a whole, and in forming my opinion thereon, and I do not provide a separate opinion on these matters.
|Sr.No.||Key Audit Matter||Auditors Response|
|1||Accounting of Gratuity liability on Defined benefit basis as per provisions of Ind AS 19||Principal Audit procedures|
|Refer Note No 26(g) of Notes to Accounts||The company was accounting Gratuity liability payable to employees based on premium paid to LIC for Group Gratuity Policy i.e. Defined Contribution plan, however during the year the accounting was reviewed and it is observed that as ultimate liability of gratuity vests with the company irrespective of its coverage by policy and the said contribution of premium to be reckoned as Contribution to Defined Benefit plan and is accounted accordingly with relevant disclosures to Notes on Accounts of the company.|
|2||Recoverability of Direct Tax Receivables||Principal Audit procedures|
|As at March 31,2019 Non current assets in respect of Income Tax and Tax Deduction At source claims amounting to Rs. 223.58 (Net of provisions) prior to March 31,2018||I have relied upon past trends of recovery of such amounts , records and data filed at the time of IT Returns and Income Tax case pending assessments to review the nature of amounts as recoverable, the sustainability and the likelihood of recoverability of the same.|
Information other than the financial statements and Auditors report thereon (Other information)
The Companys management and Board of Directors are responsible for the other information. The other information comprises the information included in the Companys annual report, but does not include the financial statements and auditors report thereon.
My Opinion on the financial statements does not cover the information and I do not express any form of assurance or conclusions thereon.
In connection with my audit of the financial statements, my responsibility is to read the other information and in doing so, consider whether the other information is materially inconsistent with the financial statements or my knowledge obtained in the audit or other wise appears to be materially misstated. If, based on the work I have performed, I conclude that there is a material misstatement of the other information, I am required to report that fact. I have nothing to report in this regard.
Responsibilities of Management and Those charged with Governance for the Standalone Financial Statements
The Companys Board of Directors is 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 state of affairs (financial position), profit or loss (financial performance) changes in equity and cash flows of the company in accordance with the accounting principles generally accepted in India, including the Ind As specified under section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules 2014. This responsibility also includes maintenance of adequate accounting records in 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 accounting records, relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, management and the Board of Directors are responsible for assessing the Companys ability to continue as 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.
Auditors Responsibility for the audit of the financial statements
My objective is to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatements, whether due to fraud or error, and to issue an auditors report that include my opinion. Reasonable assurance is a high level of assurance, but it is not a guarantee that an audit conducted in accordance with SAs will always detect a material misstatement when it exists. Misstatement 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 decision of users taken on the basis of the financial statements.
As part of an audit in accordance with SAs, I exercise professional judgment and maintain professional skepticism throughout the audit. I also:
Identify and assess the risks of material misstatement of the 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 my opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
Conclude on the appropriateness of managements use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Companys ability to continue as a going concern. If I conclude that a material uncertainty exists, I am required to draw attention in my auditors report to the related disclosures conclusions are based on the audit evidence obtained up to the date of my auditors report. However, future events or conditions may cause the Company to cease to continue as a going concern.
Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
I 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 I identify during an audit.
I also provide those charged with governance with a statement that I 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 my independence, and where applicable, related safeguards.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditors Report) Order,2016 issued by the Central Government in terms of the Section 143(11) of the Act, I give in the "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, I report that :
a. I have sought and obtained all the information and explanations which to the best my knowledge and belief were necessary for the purpose of my audit .
b. In my opinion proper books of accounts as required by law have been kept by the Company so far as appears from my examination of those books .
c. The standalone financial statements dealt with by this Report are in agreement with the books of accounts.
d. In my opinion, the aforesaid financial statements comply with the Indian accounting standards referred to in the Section 133 of the Companies Act,2013 and read with Rule No 7 of the Companies Accounting Rules 2014.
e. On the basis of representations received from the directors as on Mar 31, 2019 and taken on record by the Board of Directors, none of the directors is disqualified as on Mar 31,2019 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 financial reporting of the Company and the operating effectiveness of such controls, refer to my separate report in "Annexure B".
g. With respect to other matters to be included in the Auditors Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules,2014, in my opinion and to the best of my information and according to the explanations given to me:
i. As per the information and explanations given to me there are no pending litigations other than those disclosed in the financial statements.
ii. As per the information and explanations given to me the company has not entered into any long term derivative contracts during the year and hence there exists no such losses from such contracts which requires provision in the accounts.
iii. There are no amounts to be transferred to Investor Education & Protection Fund during the year.
h. With respect to the matter to be included in the Auditors Report under Section 197(16), I have to state that the company has not paid any remuneration to the Directors during the year and hence no details are required to be reported.
For KPD & CO.
(Firm Regn No. 136856W)
Khushboo P. Doctor
Membership No. 135634
Date : 30th May, 2019
ANNEXURE A TO THE AUDITORS REPORT
(REFERRED TO IN THE REPORT OF EVEN DATE OF THE AUDITORS TO THE MEMBERS OF AUTORIDERS INTERNATIONAL LIMITED ON THE ACCOUNTS FOR THE PERIOD ENDED 31st March 2019)
I. a) The company has maintained proper records showing full particulars including quantitative details and situation of fixed assets.
b) As explained to me major portion of the fixed assets have been physically verified by the management at the year end, which in my opinion is reasonable having regard to the size of the company and nature of its assets. No material discrepancies were noticed on such physical verification.
c) The company is not having any immoveable property and accordingly Paragraph 1(iii) of the Order is not applicable to the company.
II. As the company is engaged in services it does not have any inventories and accordingly Paragraph 2 (i) and (ii) is not applicable to the company.
III. According to the information and explanations given to me, the Company has not granted any loans, secured or unsecured, to Companies, firms, limited liability partnerships or other parties covered in the Register maintained under Section 189 of the Companies Act, 2013 (the Act"). Accordingly, paragraphs 3(iii)(a) and (b) of the Order are not applicable to the Company.
IV. In our opinion and according to the information and explanations given to me, the Company has not granted any loans, or made any investments or provided any guarantees or security to the parties covered under Section 185 of the Act. Accordingly, the paragraph 3(iv) of the Order is not applicable to the Company.
V. In our opinion and according to the information and explanations given to me the Company has not accepted any deposits from the public within the meaning of provisions of sections 73 to 76 and the rules framed there under .Accordingly , paragraph 3(v) of the Order is not applicable to the Company.
VI. The maintenance of cost records is not applicable to the Company as per the provisions of section 148 of the Companies Act 2013 and rules framed there under. Accordingly, paragraph 3(vi) of the Order is not applicable to the Company.
VII. a) According to the information and explanations given to me and on the basis of examination of the records of the company, the amounts deducted/accrued in the books of account in respect of undisputed statutory dues including Provident Fund, Investor Education and Protection Fund, Employees State Insurance, income tax, sales tax, service tax, value added tax, , Custom Duty, Excise Duty, Cess and other statutory dues, as applicable, have been generally regularly deposited during the year by the Company with the appropriate authorities. , except for amounts of Goods and Service tax where delays has been observed in depositing the same with government authorities. According to the information and explanations given to me, there were no undisputed amounts payable in respect of above dues at the year-end for the period of more than six months from the date they become payable.
b) On the basis of my examination of the documents and records there are no disputed statutory due which remains to be deposited with the appropriate authorities.
VIII. According to the information and explanations given to me and on the basis of examination of the records, the Company, it has not defaulted during the year in repayment of loans and borrowings from banks and financial institutions. The Company does not have any dues to debenture holders during the year.
IX. According to the information and explanations given to me and on the basis of examination of the records, the Company, the Company has not raised any moneys by way of initial public offers (including debt instruments) and has not obtained any term loans during the year. Accordingly Paragraph 3(ix) of the Order is not applicable to the Company.
X. During the course of our examination of the books and records of the Company, carried out in the accordance with the generally accepted audit practices in India, and according to the information and explanations given to me, I have neither come across any instance of material fraud by the Company or on the Company by its officers or employees, noticed or reported during the year, nor have we been informed of any such case by the management.
XI. In my opinion and according to the information and explanations given to me, the managerial Remuneration has been paid or provided in accordance with the requisite approvals mandated by the provisions of section 197 read with schedule V to the Act.
XII. In my opinion and according to the information and explanations given to me, The Company is not a Nidhi Company and the in Nidhi Rules 2014 are not applicable to it. Accordingly Paragraph 3(xii) of the Order is not applicable to the Company.
XIII. In my opinion and according to the information and explanations given to me, the Company has entered into transactions with related parties in compliance with the provisions of Sections 177 and 188 of the Act where applicable and the details of such related party transactions have been disclosed in the financial statements as required by Accounting Standard (AS) 18, Related Party Disclosures specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules 2014.
XIV. According to the information and explanations given to me and on the based on examination of the records of the Company, the company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year. Accordingly Paragraph 3(xiv) of the Order is not applicable to the Company.
XV. According to the information and explanations given to me and on the based on examination of the records of the Company, the company has not entered into non cash transactions with directors or persons connected with them. Accordingly Paragraph 3(xv) of the Order is not applicable to the Company.
XVI. In our opinion and according to the explanations given to me, the Company is not required to be registered under section 45-IA of the Reserve Bank of India Act 1934.Accordingly Paragraph 3(xvi) of the Order is not applicable to the Company.
For M/S K P D & CO
(Firm Regn No. 136856W)
Khushboo P Doctor
Membership No. 135634
Date : 30th May 2019
TO THE INDEPENDENT AUDITORS REPORT OF EVEN DATE ON THE FINANCIAL STATEMENTS OFAUTORIDERS INTERNATIONAL LIMITED
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 ("the Act")
I have audited the internal financial controls with reference to financial statements of AUTORIDERS INTERNATIONAL LIMITED ("the Company") as of March 31, 2019 in conjunction with my audit of the standalone financial statements of the Company for the year ended on that date.
According to the information and explanations given to me and based on my audit the following material weakness have been identified as at March 31,2019:
(1) Proper books closure systems to be introduced so as to restrict back dated entries after the book closure.
(2) Proper authorization systems to be introduced over passing of major journal vouchers so as to ensure proper provisioning and other finalization entries.
(3) Periodical reconciliations to be carried out for major vendor/customer balances.
In my opinion considering nature of business, size of operation and organizational structure of the entity, except for the effects/possible effects of the material weaknesses described above on the achievements of the control criteria, the company has maintained in all material respects, an adequate internal financial controls system with reference to financial statements as at March 31,2019 based on the internal control with reference to financial statements considering the essential components of internal control stated in the Guidance Note on audit of Internal Financial Controls with reference to financial statements issued by the Institute of Chartered Accountants of India.
I have considered the material weaknesses identified and reported above in determining the nature, timing and the extent of the audit tests applied in my audit of the financial statements of the company for year ended March 31,2019, and the material weaknesses does not affect my opinion on the financial statements of the company.
Managements Responsibility for Internal Financial Controls
The Companys management is responsible for establishing and maintaining internal financial controls with reference to financial statements considering the essential components of internal control stated in the Guidance Note issued by the Institute of Chartered Accountants of India. 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 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 Companies Act, 2013.
My responsibility is to express an opinion on the Companys internal financial controls with reference to financial statement based on my audit conducted in accordance with the Guidance Note and Standards on Auditing prescribed under Section 143(10) of the Companies Act 2013 , to the extent applicable to an audit of internal financial controls with reference to financial statements. Those Standards and the Guidance Note require that I comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls with reference to financial statement was established and maintained and whether such controls operated effectively in all material respects.
My audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls with reference to financial statements and their effectiveness. My audit of internal financial controls assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the auditors judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.
I believe that the audit evidence I have obtained, is sufficient and appropriate to provide a basis for my audit opinion on the companys internal financial controls system with reference to financial statements.
Meaning of Internal Financial Controls with reference to financial statements
A companys internal financial control with reference to financial statements is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A companys internal 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 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 financial statements.
Inherent Limitations of Internal Financial Controls Over Financial Reporting
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 financial statements to future periods are subject to the risk that the internal financial control with reference to financial statements may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
For M/S K P D & CO
(Firm Regn No. 136856W)
Khushboo P Doctor
Membership No. 135634
Date : 30th May 2019.