We have audited the accompanying Standalone FinancialStatements of AUTOLINE INDUSTRIES LIMITED (hereinafterreferred as "the Company"), which comprise the Balancesheet as at March 31, 2025, the Statement of Profit andLoss (including Other Comprehensive Income), the CashFlow Statement and the Statement of Changes in Equity forthe year ended March 31,2025 and Notes to the StandaloneFinancial Statements, including a summary of materialaccounting policies and other explanatory information(hereinafter collectively referred as the "StandaloneFinancial Statements").
In our opinion and to the best of our information andaccording to the explanations given to us, except for theeffects of the matter specified under "Basis for qualifiedopinion" section of our report, the aforesaid StandaloneFinancial Statements give the information required by theCompanies Act, 2013 (hereinafter referred as "the Act")in the manner so required and give a true and fair view inconformity with the Indian Accounting Standards prescribedunder section 133 of the Act read with the Companies(Indian Accounting Standards) Rules, 2015 as amended(hereinafter referred as "Ind AS") and other accountingprinciples generally accepted in India, of the state of affairs(financial position) of the Company as at March 31,2025, itsprofit, total comprehensive income, its cash flows and thechanges in equity for the year ended on that date.
The company had recognised credit for Minimum AlternateTax (MAT) for the Assessment Years 2011-12 and 2012-13corresponding to financial years 2010-11 and 2011-12 undersection 115 JAA of the provisions of the Income Tax Act,1961, totalling to Rs. 1,193.61 Lakhs. As per the provisionsof the Income Tax Act, 1961, these MAT Credits are availablefor utilization for a period of 15 years from the year in which
it is recognized. The Company expects to utilise the MATcredit within the remaining period.
However, in our opinion, based on the financial projectionsmade available to us as well as the existence of accumulatedcarry forward losses as per tax laws, it is unlikely that suchMAT Credit of Rs. 1,193.61 Lakhs can be utilized within thedesignated period. Accordingly, the MAT Credit Asset, totalcomprehensive income & retained earnings in the financialstatement are overstated to that extent.
We conducted our audit in accordance with the Standardson Auditing (hereinafter referred to as "SAs") specifiedUnder Section 143(10) of the Act. Our responsibilitiesunder those Standards are further described in Auditor'sresponsibilities for the audit of the Standalone FinancialStatements section of our report. We are independent of theCompany in accordance with the Code of Ethics issued bythe Institute of Chartered Accountants of India (hereinafterreferred as "ICAI") together with the ethical requirementsthat are relevant to our audit of the Standalone FinancialStatements under the provisions of the Act and theRules there under, and we have fulfilled our other ethicalresponsibilities in accordance with these requirements andthe ICAI's Code of Ethics.
We believe that the audit evidence we have obtainedis sufficient and appropriate to provide a basis for ourqualified opinion.
Key audit matters are those matters that, in our professionaljudgment, were of the most significance in our audit ofthe standalone financial statements of the current period.These matters were addressed in the context of our auditof the standalone financial statements as a whole, andin forming our opinion thereon, and we do not provide aseparate opinion on these matters. We have determined thematters described below to be the key audit matters to becommunicated in our report.
Sr. No. Key Audit Matter (KAM)
Auditor's Response
1 Revenue Recognition:
The Company's revenue is derived from the sale ofsheet metal stampings, welded assemblies, andmoulds for the automotive industry. The Companyrecognizes revenue when the control is transferredto the customer.
• assessed the design and operating effectiveness ofthe Company's controls around revenue recognitionand measurement
• assessed the appropriateness of the Company'sidentification of performance obligations in its contractswith customers, its determination of transaction price,
including allocation thereof to performance obligationsand accounting policies for revenue recognitionin accordance with the accounting principles laiddown in Ind AS 115
• scrutinized sales ledgers to verify the accuracy andcompleteness of sales transactions
• on a sample basis, tested the revenue recognisedincluding testing of cut-off assertion as at the year end
• assessed the revenue recognised with substantiveanalytical procedures including review of price, quantityand product mix variances and analysis of discounts atthe customer level
• circularized balance confirmations to a sample ofcustomers 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
• Obtained an understanding & walking through
years; however, it has returned to profitability since
the business planning process and assessing the
the financial year 2021-22. As of March 31, 2025,
design, implementation, and operating effectiveness
the Company's current liabilities continued to
of management's key internal controls over the
exceed its current assets, however, total liabilities
management assessment, including the preparation of
do not exceed total assets. The directors of theCompany made their assessment of going concern
cash flow forecasts & liquidity assessment.
by preparing a cash flow forecast in which some
• We assessed the management's cash flow forecasts
key assumptions were applied and note 3.5 to the
by analyzing the key assumptions used, such as future
Standalone Financial Statements explains how the
revenue, gross profit, operating expenses, and capital
directors of the Company have formed a judgement
expenditure with reference to historical data, current
that the going concern is appropriate in preparing
performance, internal investment and production plans,
the financial statements.
as well as applicable external market information.
• Considering the reliability of cash flow forecasts made
These key assumptions included forecasts of
by management in prior years by comparing them with
sales volumes, average selling prices, raw materialcosts and the availability of banking and other
the current year's results.
financing facilities as well as financial support
• We evaluated the availability of banking and financing
from the Promoters.
facilities by examining relevant documentation, includingbanking facility agreements signed before and after the
We identified Going Concern as a key audit matter
reporting period. Additionally, we assessed the impact
due to the significant degree of management
of any covenants and restrictive terms contained within
judgement required in assessing and forecasting
these agreements.
the company's future cash flow, which are inherently
• We also verified whether any waivers were
uncertain. Furthermore, management judgement
obtained from the financial institutions from which
and uncertainties could have a significant impacton the preparation of financial statements and may
borrowings were made.
be subject to management bias.
• Assessed the disclosures made by the Companyin this regard.
Based on our procedures we noted that the key assumptionsused in the forecasts were within a reasonable range ofour expectations.
3 Contingent Liabilities:
Evaluation of uncertain tax positions
• We gained an understanding of how to identify claims,
(Refer to Note 40 to the standalone financial
litigations, and contingent liabilities. We identified
statements)
key controls in the process and performed tests onselected controls.
The company is currently involved in assessmentproceedings and related litigations with directand indirect tax authorities, as well as certainother parties. Estimating the probable outflowof economic resources and determining theappropriate level of provisioning and/or disclosures
• We obtained a summary of the company's legal andtax cases and assessed management's position bydiscussing the probability of success in significant casesand the potential magnitude of any loss with the legalcounsel or consultant and operational management.
required involves a high level of management
• The current status of direct and indirect tax assessments/
judgement. The management's judgement is
litigations was reviewed.
supported by advice from independent taxand legal consultants, as deemed necessary.Any unexpected adverse outcomes could have asignificant impact on the company's reported profit
• Recent orders and communication received from taxauthorities and certain other parties were read, alongwith management responses to such communication.
and financial position.
• When relevant, we read the most recent independent tax/legal advice obtained by management and evaluated the
We identified this area as a key audit matter due to
grounds presented therein.
the uncertainty of the final result and the significantmanagement judgment in assessment.
• The adequacy of disclosure in the standalone financialstatements was assessed.
Based on the above procedures, we did not identify anymaterial exceptions relating to management's assessment ofprovisions and contingent liabilities.
INFORMATION OTHER THAN THE STANDALONEFINANCIAL STATEMENTS AND AUDITOR'S REPORTTHEREON (HEREINAFTER REFERRED AS "OTHERINFORMATION")
The Company's Board of Directors is responsible for the otherinformation. The other information comprises the Board'sreport, management discussion and analysis included in theannual report but does not include the financial statementsand our auditor's report thereon. The Annual Report isexpected to be made available to us after the date of thisauditor's report.
Our opinion on the standalone financial statements doesnot cover the other information and we do not express anyform of assurance opinion thereon.
In connection with our audit of the standalone financialstatements, our responsibility is to read the otherinformation identified above and, in doing so, considerwhether the other information is materially inconsistentwith the standalone financial statements, or our knowledgeobtained during the course of our audit or otherwise appearsto be materially misstated.
If, based on work we have performed, we conclude thatthere is a material misstatement of this other information,we are required to report that fact. We have nothing to reportin this regard.
The Company's Management and Board of Directors areresponsible for the matters stated in Section 134(5) of theAct with respect to the preparation of these StandaloneFinancial Statements that give a true and fair view of thefinancial position, financial performance, cash flows andchanges in equity of the Company in accordance with theaccounting principles generally accepted in India, includingthe Ind AS. This responsibility also includes maintenanceof adequate accounting records in accordance with theprovisions of the Act for safeguarding the assets of theCompany and for preventing and detecting frauds andother irregularities; selection and application of appropriateaccounting policies; making judgments and estimates thatare reasonable and prudent; and design, implementationand maintenance of adequate internal financial controls,that were operating effectively for ensuring the accuracy
and completeness of the accounting records, relevant to thepreparation and presentation of the Standalone FinancialStatements that give a true and fair view and are free frommaterial misstatement, whether due to fraud or error.
In preparing the Standalone Financial Statements, theCompany's Management and Board of Directors areresponsible for assessing the Company's ability to continueas a going concern, disclosing, as applicable, mattersrelated to the going concerned and using the going concernbasis of accounting unless management either intends toliquidate the Company or to cease operations, or has norealistic alternative but to do so.
The Board of Directors are responsible for overseeing theCompany's financial reporting process.
Our objectives are to obtain reasonable assurance aboutwhether the Standalone Financial Statements as a wholeare free from material misstatement, whether due to fraudor error, and to issue an auditor's report that includes ouropinion. Reasonable assurance is a high level of assurance,but is not a guarantee that an audit conducted in accordancewith SAs will always detect a material misstatementwhen it exists.
Misstatements can arise from fraud or error and areconsidered material if, individually or in the aggregate, theycould reasonably be expected to influence the economicdecisions of users taken on the basis of these StandaloneFinancial Statements. As part of an audit in accordancewith SAs, we exercise professional judgment and maintainprofessional scepticism throughout the audit. We also:
a) Identify and assess the risks of material misstatementof the Standalone Financial Statements, whether dueto fraud or error, design and perform audit proceduresresponsive to those risks, and obtain audit evidencethat is sufficient and appropriate to provide a basisfor our opinion. The risk of not detecting a materialmisstatement resulting from fraud is higher than forone resulting from error, as fraud may involve collusion,forgery, intentional omissions, misrepresentations, orthe override of internal control.
b) Obtain an understanding of internal control relevantto the audit in order to design audit procedures thatare appropriate in the circumstances. Under Section143(3) (i) of the Act, we are also responsible forexpressing our opinion on whether the Company has
an adequate internal financial controls system in placeand the operating effectiveness of such controls.
c) Evaluate the appropriateness of accounting policiesused and the reasonableness of accounting estimatesand related disclosures made by management.
d) Conclude on the appropriateness of management'suse of the going concern basis of accounting and,based on the audit evidence obtained, whethera material uncertainty exists related to events orconditions that may cast significant doubt on theCompany's ability to continue as a going concern.If we conclude that a material uncertainty exists, weare required to draw attention in our auditor's reportto the related disclosures in the Standalone FinancialStatements or, if such disclosures are inadequate, tomodify our opinion. Our conclusions are based on theaudit evidence obtained up to the date of our auditor'sreport. However, future events or conditions may causethe Company to cease to continue as a going concern.
e) Evaluate the overall presentation, structure, and contentof the Standalone Financial Statements, including thedisclosures, and whether the Standalone FinancialStatements represent the underlying transactions andevents in a manner that achieves fair presentation.
Materiality is the magnitude of misstatements in theStandalone Financial Statements that, individually or in theaggregate, makes it probable that the economic decisionsof a reasonably knowledgeable user of the StandaloneFinancial Statements may be influenced. We considerquantitative materiality and qualitative factors in (i) planningthe scope of our audit work and in evaluating the resultsof our work, and (ii) evaluating the effect of any identifiedmisstatements in the Standalone Financial Statements.
We communicate with those charged with governanceregarding, among other matters, the planned scope andtiming of the audit and significant audit findings, includingany significant deficiencies in internal control that weidentify during our audit.
We also provide those charged with governance with astatement that we have complied with relevant ethicalrequirements regarding independence, and to communicatewith them all relationships and other matters that mayreasonably be thought to bear on our independence, andwhere applicable, related safeguards.
From the matters communicated with those charged withgovernance, we determine those matters that were of
most significance in the audit of the standalone financialstatements of the current period and are therefore the keyaudit matters. We describe these matters in our auditor'sreport unless law or regulation precludes public disclosureabout the matter or when, in extremely rare circumstances,we determine that a matter should not be communicatedin our report because the adverse consequences of doingso would reasonably be expected to outweigh the publicinterest benefits of such communication.
1. As required by the Companies (Auditor's Report) Order,2020 ("the Order"), issued by the Central Governmentin terms of Section 143 (11) of the Act, we give in"Annexure A", a statement on the matters specified inparagraphs 3 and 4 of the Order, to the extent applicable.
2. As required by Section 143 (3) of the Act and based onour audit we report that:
a) We have sought and except for the matter describedin the Basis for Qualified Opinion paragraphobtained all the information and explanationswhich to the best of our knowledge and beliefwere necessary for the purposes of our audit;
b) Except for the matter described in the Basis forQualified Opinion paragraph and for the mattersstated in paragraph 2(i)(vi) below on reportingin relation to audit trail as required under Rule11(g) of the Companies (Audit and Auditors)Rules, 2014 (as amended), in our opinion, properbooks of account as required by law have beenkept by the Company so far as it appears from ourexamination of those books;
c) The Balance Sheet, the Statement of Profit andLoss (including Other Comprehensive Income),the Statement of Changes in Equity and theStatement of Cash Flows statement dealt with bythis report agree with the books of account.
d) Except for the matter described in the Basisfor Qualified Opinion paragraph, in our opinion,the aforesaid Standalone Financial Statementscomply with the Ind AS specified under section133 of the Act.
e) On the basis of the written representationsreceived from the directors as on March 31,2025,taken on record by the Board of Directors, none ofthe directors is disqualified as on March 31,2025,
from being appointed as a director in terms ofSection 164 (2) of the Act;
f) the modification relating to the maintenance ofaccounts and other matters connected therewithas the matter described in the Basis for QualifiedOpinion paragraph above, and the paragraph 2(b)above on reporting under Section 143(3)(b) ofthe Act and paragraph 2 (i)(vi) below on reportingunder Rule 11(g) of the Companies (Audit andAuditors) Rules, 2014.
g) With respect to the adequacy of the internalfinancial controls with reference to standalonefinancial statements of the Company and theoperating effectiveness of such controls, refer toour separate report in "Annexure B". Our reportexpresses a modified opinion on the adequacyand operating effectiveness of the Company'sinternal financial controls with reference tofinancial statements; and
h) With respect to the other matters to be includedin the auditor's report in accordance with therequirements of section 197(16) of the Act, asamended, we report that in our opinion and tothe best of our information and according to theexplanations given to us, the remuneration paid bythe Company to its directors during the year is inaccordance with the provisions of section 197 ofthe Act. The remuneration paid to directors is notin excess of the limit laid down under Section 197of the Act. The Ministry of Corporate Affairs hasnot 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 inthe Auditor's Report in accordance with rule 11 ofthe Companies (Audit and Auditors) Rules, 2014,in our opinion and to the best of our informationand according to the explanations given to us:
i. The Company has disclosed the impact ofpending litigations as of March 31, 2025,on its financial position in its StandaloneFinancial Statements - Refer to note 40 to theStandalone Financial Statements.
ii. The Company did not have any long-termcontracts including derivatives contracts forwhich there were foreseeable losses;
iii. There were no amounts that were required tobe transferred to the Investor Education andProtection Fund by the Company.
iv. (a) The Management has represented that,to the best of its knowledge and belief,no funds (which are material eitherindividually or in the aggregate) havebeen advanced or loaned or invested(either from borrowed funds or sharepremium or any other sources or kindof funds) by the Company to or inany other person or entity, includingforeign entity ("Intermediaries"), withthe understanding, whether recordedin writing or otherwise, that theIntermediary shall, whether, directlyor indirectly lend or invest in otherpersons or entities identified in anymanner whatsoever by or on behalf ofthe Company ("Ultimate Beneficiaries")or provide any guarantee, securityor the like on behalf of the UltimateBeneficiaries;
(b) The Management has represented,that, to the best of its knowledge andbelief, no funds (which are materialeither individually or in the aggregate)have been received by the Companyfrom any person or entity, includingforeign entity ("Funding Parties"), withthe understanding, whether recorded inwriting or otherwise, that the Companyshall, whether, directly or indirectly, lendor invest in other persons or entitiesidentified in any manner whatsoeverby or on behalf of the Funding Party("Ultimate Beneficiaries") or provide anyguarantee, security or the like on behalfof the Ultimate Beneficiaries;
(c) Based on the audit procedures thathave been considered reasonableand appropriate in the circumstances,nothing has come to the notice thathas 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 materialmisstatement; and
v. During the year Company has not declared/paid any dividend hence reporting under rule11 (f) is not applicable to that extent.
vi. Based on our examination, which includedtest checks, except for the instancementioned below, the company has usedaccounting software for maintaining itsbooks of account which has a feature ofrecording audit trail (edit log) facility andthe same has operated throughout the yearfor all relevant transactions recorded in thesoftware. Further, during the course of ouraudit we did not come across any instanceof audit trail feature being tampered with.
Additionally, the audit trail has beenpreserved by the company as per thestatutory requirements for record retention,other than the consequential impact ofexceptions given below:
- Spine payroll - except that no audit trailenabled at the database level to log anydirect data changes made.
- The organization has used accountingsoftware SAP B1, which does not havethe feature of recording an audit trail.
Chartered AccountantsFirm's Registration No: 0109983Wby the hand of
Partner
Membership No: (F) 156378Pune, May 24, 2025. UDIN: 25156378BMMJYM2564