ACC-215

Assignment-2
Topic:AUDITING AND
CORPORATE
GOVERNANCE
Name: Amandeep Singh
Reg.no:12014541
Roll NO: RQ2018A04
Date of allotment: 13March, 2022
Date of submission: 24March, 2022
Faculty member: Lipika Dhingra
COMPANY NAME : Automotive Stampings and Assemblies
Limited

INTRODUCTION

Automotive Stampings and Assemblies Limited (ASAL) a TATA Autocomp Systems

Limited subsidiary and a part of TATA Enterprise was incorporated as a Public Limited Company
under the Companies Act, 1956 on March 13, 1990 as JBM Tools Limited and subsequently, on
August 1, 2003 the name was changed to Automotive Stampings and Assemblies Limited. ASAL
manufacture sheet metal components for passenger vehicles, commercial vehicles, and
tractors. Presently ASAL operates two state-of-art Plants – one at Pune, Maharashtra and the
other at Pantnagar, Uttarakhand. Some of the Industry leaders and prestigious companies are
our application partners viz. Tata Motors Limited, General Motors, Fiat, Piaggio, Ashok Leyland
to name a few.

VISION

To be amongst the Top 5 Indian Auto-component companies, delivering

value to all stakeholders.

MISSION

Differentiation through Safety, Quality and Constant Innovation.

Board Of Directors

Designation
Name
Mr.Pradeep Bhargava Chairman
Mr.Bharat Parekh Director
Mr.Sanjay Sinha Director
Mr.Deepak Rastogi Director
Ms.Bhavna Bindra Director
Mr.Arvind Goel Director
Mr.Prakash Gurav Director

IDENTIFICATION OF TYPE OF AUDITOR’S REPORT

1) Unqualified Audit Report (2015-2016)

2) Unqualified Audit Report (2016-2017)

3) Unqualified Audit Report (2017-2018)

4) Unqualified Audit Report (2018-2019)

5) Unqualified Audit Report (2019-2020)

COMPARISION OF AUDITIOR’S REPORT

Year Comparision Reason for

change
1) Unqualified Audit  We have audited the accompanying financial statements of Automotive No change
Report (2015- Stampings and Assemblies Limited (“the Company”), which comprise in the
2016) the Balance Sheet as at March 31, 2016, the Statement of Profit and auditor’s
Loss, the Cash Flow Statement for the year then ended, and a summary report
of the significant accounting policies and other explanatory information.
 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.
 In audit opinion, the aforesaid financial statements comply with the
Accounting Standards specified under Section 133 of the Act, read with
Rule 7 of the Companies (Accounts) Rules, 2014.
 The Company is maintaining proper records showing full particulars,
including quantitative details and situation, of fixed assets.
2) Unqualified Audit  We have audited the accompanying financial statements of Automotive No change
Report (2016- Stampings and Assemblies Limited (“the Company”), which comprise in the
2017) the Balance Sheet as at March 31, 2017 the Statement of Profit and Loss auditor’s
(including Other Comprehensive Income), the Cash Flow Statement and report
the Statement of Changes in Equity for the year then ended, and a
summary of the significant accounting policies and other explanatory
information
 The financial information of the Company for the year ended March 31,
2016 and the transition date opening balance sheet as at April 1, 2015
included in these Ind AS financial statements, are based on the
previously issued statutory financial statements for the years ended
March 31, 2016 and March 31, 2015 prepared in accordance with the
Companies (Accounting Standards) Rules, 2006 (as amended) which
were audited by us, on which we expressed an unmodified opinion
dated April 28, 2016 and April 22, 2015 respectively. The adjustments to
those financial statements for the differences in accounting principles
adopted by the Company on transition to the Ind AS have been audited
by us.
3) Unqualified Audit  We have audited the accompanying Ind AS financial statements of No change
Report (2017- Automotive Stampings And Assemblies Limited (“the Company”), which in the
2018) comprise the Balance Sheet as at 31 March 2018, the Statement of auditor’s
Profit and Loss, the Statement of Changes in Equity and the Statement report
of Cash Flows for the year then ended, and summary of the significant
accounting policies and other explanatory information.
 The comparative financial information of the Company for the year
ended 31 March 2017 prepared in accordance with Ind AS included in
these Ind AS financial statements have been audited by the predecessor
auditor who had audited the financial statements for the relevant
periods. The report of the predecessor auditor on the comparative
financial information dated 28 April 2017 expressed an unmodified
opinion.
 We draw attention in the financial statements, which indicates that the
Company incurred a net loss of ` 4,647.91 Lakhs during the year ended
31 March 2018 and, as of that date, the Company’s liabilities exceeded
its total assets by ` 2,891.04 Lakh. As , these events or conditions, along
with other matters as set , indicate that a material uncertainty exists
that may cast significant doubt on the Company’s ability to continue as
a going concern.

4) Unqualified Audit  provide reasonable assurance that transactions are recorded as No change
Report (2018- necessary to permit preparation of financial statements in accordance in the
2019) with generally accepted accounting principles auditor’s
 We conducted our audit in accordance with the Standards on Auditing report
(SAs) specified under section 143(10) of the Act. Our responsibilities
under those SAs are further described in the Auditor’s 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 together
with the ethical requirements that are relevant to our audit of the
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 Code of Ethics.
 We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our opinion

5) Unqualified Audit  We conducted our audit in accordance with the Standards on Auditing No change
Report (2019- (SAs) specified under section 143(10) of the Act. Our responsibilities in the
2020) under those SAs are further described in the Auditor’s Responsibilities auditor’s
for the Audit of the Financial Statements section of our report. report
 We are independent of the Company in accordance with the Code of
 Ethics issued by the Institute of Chartered Accountants of India together
with the ethical requirements that are relevant to our audit of the
financial statements under the provisions of the Act and the Rules
thereunder, and we have fulfilled our other ethical responsibilities in
accordance with these requirements and the Code of Ethics.
 We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our opinion on the financial
statements.
 We draw attention to the financial statements, which indicates that the
Company incurred a net loss of INR 1,701.37 Lakhs during the year
ended 31 March 2020 and, as of that date, the Company’s liabilities
exceeded its total assets by INR 5,883.33 Lakhs. The fallout of the
COVID-19 pandemic is likely to have severe repercussions on the Indian
economy. Any valuation / forecasting assessments performed in this
environment are exposed to a higher-than-usual degree of estimation
uncertainty and judgement. These events or conditions, along with
other matters as set , indicates that a material uncertainty exists that
may cast significant doubt on the Company’s ability to continue as a
going concern.

Reason for same opinion reoprts for the last 5 years

An unqualified opinion is considered a clean report. This is the type of report that auditors give most
often. This is also the type of report that most companies expect to receive. An unqualified opinion
doesn’t have any kind of adverse comments and it doesn’t include any disclaimers about any clauses or
the audit process. This type of report indicates that the auditors are satisfied with the company’s
financial reporting. The auditor believes that the company’s operations are in good compliance with
governance principles and applicable laws. The company, the auditors, the investors and the public
perceive such a report to be free from material misstatements.

Opinion on true and fair view of financial statements

 A qualified audit report gives a subjective clearance to the financial statements representing a true and

fair view. This is subject to the matters on which a qualified opinion is expressed.

 An unqualified audit report opines that the financial statements represent a true and fair view without any

limitations.

Changes in assets and liabilities

1) The Company has incurred significant losses of ` 4,647.91 lakhs for the financial year ended March
31, 2018 and the Company’s total liabilities exceeded its total assets by ` 2,891.04 Lakh as at March
31, 2018.

The Company’s management has carried out an assessment of the Company’s financial performance
and expects it to continue its operations and meet its liabilities as and when they fall due. Based on
the followings considerations, the Management of the Company are of the opinion that the
preparation of the financial statements of the Company on a going concern basis is appropriate;
 Support letter from the Holding Company
 Financial support from the Holding Company and other Group Companies to meet its short-
term liabilities. 3. Expected increase in revenue based on orders in hand from current and
upcoming projects of existing customers.
 Robust business plans for the above expected increase in revenue.

2) The Company has incurred significant losses of INR 1,264.04 lakhs for the financial year ended
March 31, 2019 and the Company’s total liabilities exceeded its total assets by INR 4,155.07 lakhs as
at March 31, 2019
3) The Company has incurred significant losses of INR 1,701.37 lakhs for the financial year ended
March 31, 2020 and the Company’s total liabilities exceeded its total assets by INR 5,883.33 lakhs as
at March 31, 2020.
The Company’s management has carried out an assessment of the Company’s financial performance
and expects it to continue its operations and meet its liabilities as and when they fall due. Based on
the followings considerations, the Management of the Company are of the opinion that the
preparation of the financial statements of the Company on a going concern basis is appropriate;
 Support letter from the Holding Company.
 The Company has prepared a strategic plan for the next five years. It is now getting updated
after giving the unexpected effect of COVID - 19 on its performance for the year 2020-21.
The said plan takes into account reductions in costs through operational efficiency
improvement initiatives and rationalization of existing operations, adding new businesses,
increase in sales volumes from the existing and new customers, raising of finance from
various sources etc. which will help in improving the Company’s future financial
performance.