Omax Autos Ltd Auditor Reports

To tho Members of Omax Autos Limited

Report on the Audit of the Financial Statements

Opinion

Wc have audited the accompanying financial statements of Omax Autos Limited ("the Company"), which comprise the Balance Sheet as.it March 31,2023. the Statement of Profit and Loss including Other Comprehensive Income, the Statement of Changes in Equity, and the Statement of Cash E lows for the year then ended and notes to the financial statements including a summary of significant accounting policies and other explanatory information. (Hereinafter referred to as the "financial statements")

In our opinion and to the I test of our information and according to the explanations given to us, the aforesaid financial statements give the information required by the Companies Act. 2013 ("the Act") in the manner so required and give a true and fair view in conformity with the Indian Accounting Standards prescribed under Section I 33 of the Act read with the Companies i Indian Accounting Standards) Rules. 2015. as amended ("Ind AS") and other accounting principles generally accepted in India, of the state of affairs of the Company as at March 31, 2023. its loss, total comprehensive loss, changes in equity and its cash flows for the year ended on that date.

Basis for Opinion

We conducted our audit in accordance with Standards on Auditing (SAs) specified under section 143(10) of the Act. Our responsibilities under those Standards are further described in the Auditors Responsibilities for the Audit of the 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 ("ICAf) together with the ethical requirements that are relevant to our audit of the financial statements under the provisions of the Act and Rules thereunder and we have fulfilled our other ethical responsibilities in accordance with these requirements and the ICAIs Code of Ethics. Wc believe that the audit evidence wc have obtained is sufficient and appropriate to provide a hasts for otir audit opinion on tlx- Financial Statements

Key Audit Matters

Key audit matters arc those nutters that, in our professional judgment, were of roost significance in our audit of the financial statements of live current period. These matters were addressed in the context of our audit of the financial statements us 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 he the key audit matters to lie communicated in our report.

Key Audit Matter	Audit Response
1 (dilation of nude receivables	Principal Audit Procedures
The nature of Companys operations requires periodic revision in rates charged from customers as well as various claims in the normal course of business. Such price revisions and claims are affected both prospectively and retrospectively.	Our audit procedure included, among others:
	We assessed the validity of material outstanding receivables by obtaining third-party confirmations and reconciliations of amounts to assure the completeness and recording of all claims filed with the customers.
Such claims arc also recorded on a provisional basis, subject to confirmation by customers. Considering overall low operating margins in the industry, such revisions ami claims have a significant impact on the companys, profitability Due to these reasons, valuation of trade receivables has been considered a key audit matter.
	We also considered payments received subsequent to year-end. past payment history and unusual patterns to identify potentially unacknowledged unconfirmed balances
	We assessed live appropriateness of the allowance of doubtful receivables considering various audit procedures across the plants including: -Consideration and concurrence of the agreed payment terms: -Verification of receipts from trade receivables subsequent to year end; Where there were indicators that trade receivables were unlikely to he collected, wc assessed the adequacy of the allowance for impairment of trade receivables. Wc assessed the ageing of trade receivables, disputes with customers and the past payment history of the customer

 

Inventory	Our audit procedure included, among others:
The Company lias large quantities ot inventory at different plants. 1 he entity is in a customer specific industry, and it may have slow moving damaged inventory due to model discontinuation or excess production accumulated at different locations. Different products have various valiants due to which there is a possibility of gap in actual and recorded consumption of raw materials resulting in shortage excess of quantities of raw material inventory. For these reasons, inventory has been considered as a key audit mutter.	We obtained copies ol physical verification reports of inventory conducted:
	Selected a sample of inventory items and compared the quantities
	us per physical verification to the quantities recorded.
	Made enquiries regarding obsolete inventory items and inspected the condition of items counted and piopcr provision has been made wherever necessary.
	Our audit procedures included testing of the inventory provisions made by the Company and the basis of management assumptions with understanding and challenging the key assumptions
	Evaluate the future usage of inventory in ca.se of discontinued models bused on paM experience of movement of material and products used in other plants.

Information Other than the Hnancial Statements and Auditors Report I hereon

The Companys Board of Directors is responsible for the other information. The other infonnatwn comprises the information included in Annual Report 2022-23 but docs not include the financial statements and our auditors report thereon.

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

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so. consider whether the other information is materially inconsistent with the 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 arc required to report that fact. Wc have nothing to report in this regard.

Managements and Board of Directors Responsibility for the financial Statements

The Companys Board of Directors is responsible for the matters staled in section 134(5) of the Act with respect to the preparation of these financial statement ihui give a tree and fair view of the financial position, financial performance including other comprehensive income, changes in equity, and cash Hows of the Company in accordance with tlie hid AS and other accounting principles generally accepted in India. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of 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 forensurmg the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the financial statements that give a true and fair view and arc tree from material misstatement, whether due to fraud or error.

In preparing the financial statements, the Management and the Board of Directors ate 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 arc also responsible for overseeing the Companys financial reporting process.

Auditors Responsibilities for the Audit of the Financial Statements

Our objectives arc to obtain reasonable assurance about whether the financial statements as a whole ate 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 aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of this financial statement.

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

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

Obtain an undemanding of internal control relevant to the audit in Older to design audit procedures that are appropriate in die circumstances. Under section I43(3xi) of die Act. we ate also responsible for expressing our opinion on whether die company lias adequate internal financial controls with reference to financial statements in place and the operating effectiveness of such controls.

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

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

Evaluate the overall presentation, structure und 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.

Materiality is the magnitude of misstatements in the financial statements that, indiv idually or in aggregate, makes it probable that the economic decisions of a reasonably knowledgeable user of die financial statements may be influenced. Wc consider quantitative materiality and qualitative factors in ti) planning the scope of our audit work and in evaluating the results of our work; and (ii to evaluate the effect of any identified misstatements in the 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 vve identify during our audit. Wc also provide those charged with governance with a statement that wc 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 mailers communicated with those charged with governance, vve determine those matters that were of most significance in the audit of die financial statements of the current period and are therefore the key audit matters. Wc 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 out report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

Report on Other I.egal and Regulatory Requirements

(1) As required by the Companies (Auditors Report) Order. 2020 ("Ac Order") issued by the Central Government of India

in terms of section 143( 11) of the Act. we give in "Anncxure I", 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. 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 kepi 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. Statement of Changes in Equity, and the Statement of Cash Flows dealt with by this report ate in agreement with the books of account;

d. In our opinion, the aforesaid financial statements comply with the Indian Accounting Standards specified under section 133 of the Act;

c\ Oi? llc basis of the written representations received from the directors a-, on March 31, 2023, anil taken on record by the Board of Directors, none of the directors is disqualified as on Mai elt 31, 2023 front being appointed as a dilector in terms of section I MU) of the Act;

f. With respect to the adequacy of the internal financial controls with reference to financial statements of the Company and the operating effectiveness of such controls, we give our separate report in "Annexurc 2".

g With respec t to the other matters to be included in the Auditors Report in accordance w ith the requirements of section 197( 16) of the Act, at amended:

In our opinion and to the best of our information and according to the explanations given to us. the remuneration paid < provided for by the Company to its directors during the year is in accordance with the provisions of section I ‘7 of the Act

It 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 cor opinion and to the best of our information and according to the explanations given to us:

(i) The Company has disclosed the impact of [tending litigations on its financial position in its financial statements - Refer Note 41 on Contingent Liabilities to the financial statements:

(ii) The Company did not have any long-term contracts including derivative contracts. Hence, the question of any material foreseeable losses docs not arise;

(iii) There were no amounts which were required to be transferred to the Investor Education and Protection Fund by the Company.

(i

the Company has disclosed the impact of [Tending litigations on its financial position in its financial statements - Refer Note 41 on Contingent Liabilities to the financial statements:

(ii) The Company did not have any long-term contracts including derivative contracts. Hence, the question of any material foreseeable losses docs not arise;

(iii) flic re were no amounts which were required to be transferred to the Investor Education and Protection Fund by the Company.

(iv) (a) The Management his represented that, to the best of its knowledge and belief, no funds 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 entities ("Intermediaries"), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall, directly or indirectly lend or invent in oilier 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 have been received by tin: Company from any person or entity, including foreign entities ("Funding Parties"), with the understanding, w hether recorded in writing <x otherwise, that the Company shall, directly or indirectly, lend or invest in other persons or entities identified in any manner w hatsoever 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 has 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) contain any material misstatement.

(v) The Company has not declared or paid any dividend during the year and until the date uf this

report

vi)

As proviso to rule 3(1) of the Companies (Accounts) Rules. 2014 is mandatory only w.c.f. April I. 2023. for the Company, reporting under this clause is not applicable.

hor BOJC & Associates l.l.P

Chartered Accountants

1C AI I inn Registration No. O033O4N N 500056

Pranav .lain

Partner

Membership No.09830S UDIN

Date: May OS. 2023 Place: Gurugram