Home  »  Company  »  Competent Automo  »  Quotes  »  Auditor Report
Enter the first few characters of Company and click 'Go'

Auditor Report of Competent Automobiles Co Ltd.

Mar 31, 2015

We have audited the accompanying financial statements of COMPETENT AUTOMOBILES COMPANY LIMITED ("the Company"), which comprise the Balance Sheet as at 31st March 2015, and the Statement of Profit & Loss Account and the Cash Flow Statement for the year ended 31st March 2015, and a summary of significant accounting policies and other explanatory information.

Management''s Responsibility for the Financial Statements

The Company''s Management and Board of Directors are responsible for the matters stated in Section 134(5) of the Companies Act, 2013 (''the Act'') with respect to the preparation of these financial statements that give true and fair view of the financial position, financial performance and cash flows of the Company in accordance with the accounting principles generally accepted in India, including the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of Companies (Accounts) Rules, 2014. This responsibility 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; the selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and the 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 financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

Auditor''s Responsibility

Our responsibility is to express an opinion on these financial statements based on our audit. While conducting the audit, we have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made thereunder.

We conducted our audit in accordance with the Standards on Auditing specified under Section 143(10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor''s judgment, including the assessment of risks material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the company''s preparation of the financial statements, that give a true and fair view, in order to design audit procedures that are appropriate in circumstances, but not for the purpose of expressing an opinion on whether the Company has an adequate internal financial control system over financial reporting in place and the operating effectiveness of such controls. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by the Company''s Board of Directors, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Opinion

In our opinion and to the best of our information and according to the explanations given to us, the aforesaid financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India of the state of affairs of the company as at March 31st, 2015, its Profit and its cash flows for the year ended on that date.

Report on Other Legal and Regulatory Requirements

I. As required by the Companies (Auditor''s Report) order, 2015 ("the order") issued by the Central Government of India in terms of sub section (11) of Section 143 of the Act, we enclose in the Annexure, a statement on the matters specified in Paragraph''s 3 and 4 of the Order.

II. 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 purpose of our audit;

b) In our opinion proper books of account as required by law have been kept by the company so far as appears from our examination of those books;

c) The Balance Sheet, Statement of Profit & Loss and Cash Flow Statement dealt with by this Report are in agreement with the books of account;

d) In our opinion, the aforesaid financial statements comply with the applicable Accounting Standards specified under Section 133 the Act read with Rule 7 of the Companies (Accounts) Rules, 2014;

e) On the basis of written representations received from the directors as on March 31, 2015, and taken on record by the Board of Directors, none of the Directors is disqualified as on March 31, 2015, from being appointed as a director in terms of Section 164(2) of the Act.

f) In our opinion and to the best of our information and according to the explanations given to us , we report as under with respect to the other matters to be included in the Auditor''s Report in accordance with Rule 11 of the Companies (Audit and Auditor''s) Rules, 2014:

(i) The company has disclosed the impact of pending litigations on its financial position in its Financial Statements - Refer Note no. 29 to the Financial Statements.

(ii) The Company did not have any material foreseeable losses on long-term contracts including derivative contracts.

(iii) There has been no delay in transferring amounts, required to be transferred, to Investor Education and Protection Fund by the Company.

ANNEXURE TO AUDITOR''S REPORT

(Referred to in paragraph - 1 of our report of even date on the accounts for the year ended on 31st March, 2015 of COMPETENT AUTOMOBILES COMPANY LIMITED.

1. In respect to its Fixed Assets:

a) The company has maintained proper records showing full particulars including quantitative details and situation of its fixed assets on the basis of available information.

b) As explained to us, the management during the year has physically verified the fixed assets, which in our opinion is reasonable having regard to the size of the company and the nature of its fixed assets. We are informed that, no material discrepancy has been noticed by the management on such verification.

2. In respect of its Inventories :

a) The inventories have been physically verified during the year by the management. In our opinion, the frequency of verification is reasonable.

b) The procedure of physical verification of inventories followed by the management is reasonable and adequate in relation to the size of the Company and the nature of its business.

c) On the basis of our examination of the inventory records, we are of the opinion that the company is maintaining proper records of inventory. The discrepancies noticed on verification between the physical stocks and the book records are not material. The discrepancies noted on such verification have been properly dealt with in the books of accounts.

3. The Company has not granted any secured or unsecured loan to companies, firms and other parties covered in the register maintained under section 189 of the Act.

4. In our opinion and according to the information and explanations given to us, there are adequate internal control procedures commensurate with the size of the company and the nature of its business with regard to purchase of inventory, fixed assets and for the sale of goods and services. During the course of our audit, no major weakness has been noticed in the internal control systems.

5. According to the information and explanation given to us, the Company has not accepted any deposits from the public covered under Section 73 to 76 of the Companies Act, 2013.

6. The provision of maintaining Cost records under Section 148(1) of the Companies Act, 2013 are not applicable to the company.

7. In respect of statutory dues:

a) According to the information and explanation given to us and on the basis of our examination of records of the company, the company has been regular in depositing with the appropriate authorities, undisputed statutory dues including Provident Fund, Investor Education Protection Fund, ESIC contribution, Income-Tax, Sales- Tax, Wealth-Tax, Custom duty, Excise duty, Cess, Service tax, Value Added Tax and other statutory dues applicable to it. According to the information and explanation given to us, no undisputed amounts payable in respect of Income-Tax, Wealth-Tax, Sales Tax, Service Tax, Excise Duty & Custom Duty were outstanding as at March 31st 2015, for a period of more than six months from the date they became payable.

b) According to the information and explanation given to us and on the basis of our examination of records of the Company, the disputed sales tax demand of Rs.287.56 lacs in respect of financial year 1991 -92 under Central Sales Tax Act,1956 has not been deposited on account of disputed matters pending before appropriate authorities. Against this, the Company has filed an appeal before Additional Commissioner of Sales Tax (Appeals) -I, New Delhi.

c) According to the information and explanation given to us, the Company had transferred the amounts, required to be transferred to Investor Education and Protection Fund in accordance with the relevant provisions of the Act and rules made there under, within time.

8. The Company does not have any accumulated losses at the end of the year. The company has not incurred any cash losses during the financial year covered by our audit and in the immediately preceding financial year.

9. Based on our audit procedures and the information and explanations given by the management, we are of the opinion that the company has not defaulted in repayment of dues to banks. The company did not have any outstanding debentures or any outstanding loans from any financial institutions except vehicle and term loans.

10. According to information and explanation given to us, the company has not given any guarantee for loans taken by others from bank or financial Institutions.

11. According to the information and explanation given to us, the term loans have been applied for the purpose for which they were raised.

12. According to information and explanation given to us and on an overall examination of the balance sheet of the company, no fraud on or by the company has been noticed or reported during the year.

For DINESH MEHTA & Co. Chartered Accountants Firm Regn. No. 000220N

Place: New Delhi (HIREN MEHTA) Dated: 30/05/2015 Partner M. No. 90772


Mar 31, 2014

We have audited the accompanying financial statements of COMPETENT AUTOMOBILES COMPANY LIMITED ("the Company"), which comprise the Balance Sheet as at 31st March 2014, and the Statement of Profit & Loss Account and the Cash Flow Statement for the year ended 31st March 2014, and a summary of significant accounting policies and other explanatory information.

Management''s Responsibility for the Financial Statements

The Company''s Management is responsible for the preparation of these financial statements that give a true and fair view of the financial position, financial performance and cash flows of the Company in accordance with the Accounting Standards notified under the Companies Act, 1956 of India (the "Act"), read with the General Circular 15/ 2013 dated September 13, 2013 of the Ministry of Corporate Affairs in respect of Section 133 of the Companies Act, 2013.This responsibility includes the design, implementation and maintenance of internal control relevant to the preparation and fair presentation of the financial statements that are free from material misstatement, whether due to fraud or error. Auditor''s Responsibility

Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with the standards on Auditing issued by the Institute of Chartered Accountants of India. Those Standards require that we comply with ethical requirements and plan perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor''s judgment, including the assessment of risks material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the company''s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity''s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Opinion

In our opinion and to the best of our information and according to the explanations given to us, the financial statements give the information required by the 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 March 31, 2014;

b) In the case of the Statement of Profit & Loss, of the Profit of the Company for the Period ended on that date.

c) In the case of the Cash Flow Statement, of the Cash Flows of the Company for the year ended on that date. Report on Other Legal and Regulatory Requirements

I. As required by the Companies (Auditor''s Report) order, 2003 ("the order") issued by the Central Government of India in terms of sub section (4A) of Section 227 of the Companies Act 1956, we enclose in the Annexure, a statement on the matters specified in Paragraph''s 4 and 5 of the Order.

II. As required by section 227 (3) of the Act, we report that:

a) We have obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purpose of our audit;

b) In our opinion proper books of account as required by law have been kept by the company so far as appears from our examination of those books;

c) The Balance Sheet, Statement of Profit & Loss and Cash Flow Statement dealt with by this Report are in agreement with the books of account;

d) In our opinion, the Balance Sheet, Statement of Profit and Loss and Cash Flow Statement dealt with by this report comply with the Accounting Standards notified under the Act read with the General Circular 15/ 2013 dated September 13, 2013 of the Ministry of Corporate Affairs in respect of Section 133 of the Companies Act, 2013;

e) On the basis of written representations received from the directors as on March 31, 2014, and taken on record by the Board of Directors, none of the Directors is disqualified as on March 31, 2014, from being appointed as a director in terms of clause (g) of Sub Section (1) of Section 274 of the Companies Act, 1956.

ANNEXURE TO AUDITOR''S REPORT (Referred to in paragraph – 1 of our report of even date on the accounts for the year ended on 31st March, 2014 of COMPETENT AUTOMOBILES COMPANY LIMITED.

1. In respect to its Fixed Assets:

a) The company has maintained proper records showing full particulars including quantitative details and situation of its fixed assets on the basis of available information.

b) As explained to us, the management during the year has physically verified the fixed assets, which in our opinion is reasonable having regard to the size of the company and the nature of its fixed assets. We are informed that, no material discrepancy has been noticed by the management on such verification.

c) In our opinion, the company has not disposed off a substantial part of its fixed assets during the year and the going concern status of the company is not affected.

2. In respect of its Inventories :

a) The inventories have been physically verified during the year by the management. In our opinion, the frequency of verification is reasonable.

b) The procedure of physical verification of inventories followed by the management is reasonable and adequate in relation to the size of the Company and the nature of its business.

c) On the basis of our examination of the inventory records, we are of the opinion that the company is maintaining proper records of inventory. The discrepancies noticed on verification between the physical stocks and the book records are not material. The discrepancies noted on such verification have been properly dealt with in the books of accounts.

3. The Company has not granted/taken any secured or unsecured loan to/from companies, firms and other parties covered in the register maintained under section 301 of the Companies Act, 1956 except loans taken from two directors ( Mr. Raj Chopra and Mrs. Kavita Ahuja) of the company. The rate of interest and other terms and conditions of the loans taken are not prima facie prejudicial to the interest of the company. The principal amount outstanding as on 31st March 2014 under both accounts is NIL. Maximum amount outstanding during the year were Rs. 30 lacs and Rs. 225 lacs in respect of loan taken from Mrs Kavita Ahuja and Mr. Raj Chopra respectively.

4. In our opinion and according to the information and explanations given to us, there are adequate internal control procedures commensurate with the size of the company and the nature of its business with regard to purchase of inventory, fixed assets and for the sale of goods and services. During the course of our audit, no major weakness has been noticed in the internal control systems.

5. Based on the audit procedures applied by us and according to the information and explanations provided by the management, we are of the opinion that no transactions that need to be entered into the register maintained u/s 301 have taken place during the year.

6. According to the information and explanation given to us, the company has not accepted any deposits from the public within the meaning of Section 58A and 58AA of the Companies Act, 1956 and the rules framed there under.

7. In our opinion the company has internal audit system, commensurate with its size and nature of the business.

8. The provision of maintaining Cost records under Section 209(1)(d) of the Companies Act, 1956 are not applicable to the company.

9. In respect of statutory dues:

a) According to the records of the company, the company has been regular in depositing with the appropriate authorities, undisputed statutory dues including Provident Fund, Investor Education Protection Fund, ESIC contribution, Income- Tax, Sales- Tax, Wealth-Tax, Custom duty, Excise duty, Cess, Service tax and other statutory dues applicable to it. According to the information and explanation given to us, no undisputed amounts payable in respect of Income-Tax, Wealth-Tax, Sales Tax, Service Tax, Excise Duty & Custom Duty were outstanding as at March 31st 2014, for a period of more than six months from the date they became payable.

b) According to the records of the Company, the disputed sales tax demand of Rs.287.56 lacs in respect of financial year 1991-92 under Central Sales Ta x Act,1956 has not been deposited on account of disputed matters pending before appropriate authorities. Against this, the Company has filed an appeal before Additional Commissioner of Sales Ta x (Appeals) –I, New Delhi.

10. The Company does not have any accumulated losses at the end of the year. The company has not incurred any cash losses during the financial year covered by our audit and in the immediately preceding financial year.

11. Based on our audit procedures and the information and explanations given by the management, we are of the opinion that the company has not defaulted in repayment of dues to banks. The company did not have any outstanding debentures or any outstanding loans from any financial institutions except vehicle and term loans.

12. The Company has not granted any loans or advances on the basis of securities by way of pledge of shares, debentures, and other securities.

13. The Provision of any special statue applicable to Chit Fund/ Nidhi /Mutual Benefit Fund/ Socities are not applicable to the company.

14. In our opinion, the company is not a dealer or trader in shares, securities, debentures, or other investments.

15. According to information and explanation given to us, the company has not given any guarantee for loans taken by others from bank or financial Institutions.

16. According to the information and explanation given to us, the term loans have been applied for the purpose for which they were raised.

17. According to the information and explanations given to us and on an overall examination of the balance sheet of the company, we report that no funds raised on short-term basis have been used for long term investment. The Company has availed cash credit facility from the bank, which is used for working capital requirement.

18. Based on our examination of records and the information provided to us by management, we report that the Company has not made preferential allotment of shares to parties and companies covered in the register maintained under section 301 of the Act.

19. According to information and explanation given to us, the company has not issued any debentures during the year.

20. The Company has not raised any money by public issue.

21. According to information and explanation given to us and on an overall examination of the balance sheet of the company, no fraud on or by the company has been noticed or reported during the year.



For Dinesh Mehta & Co.,

Firm Registration No.-000220N

Chartered Accountants

Hiren Mehta Place: New Delhi Partner

Date : 29th May, 2014 Membership No. - 90772


Mar 31, 2013

We have audited the accompanying financial statements of COMPETENT AUTOMOBILES COMPANY LIMITED (''the Company”), which comprise the Balance Sheet as at 31st March, 2013 and the statement of Profit and Loss Account for the period ended 31st March, 2013 and a summary of significant accounting policies and other explanatory information.

Management is responsible for the preparation of these financial statements that give a true and fair view of the financial position, financial performance and cash flows of the company in accordance with the Accounting Standards referred to in sub section (3C) of Section 211 of the Companies Act, 1956 (''the Act”). This responsibility includes the design, implementation and maintenance of internal control relevant to the preparation and presentation of the financial statements that give a true and view and are free from material misstatement, whether due to fraud or error.

Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with the standards on Auditing issued by the Institute of Chartered Accountants of India. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor''s judgement, including the assessment of risks material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the company''s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. In our opinion and to the best of our information and according to the explanations given to us, the financial statements give the information required by the 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 March 31, 2013;

b) In the case of the Profit and Loss Account, of the Profit for the Period ended on that date, and;

c) In the case of the Cash flow Statement, of the Cash Flows for the year ended on that date.

1. As required by the Companies (Auditor''s Report) order, 2003 (''the order”) issued by the Central Government of India in terms of sub section (4A) of Section 227 of the Act, we give in the Annexure a statement on the matters specified in Paragraph''s 4 and 5 of the Order.

2. As required by section 227 (3) of the Act, we report that:

a) We have obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purpose of our audit;

b) In our opinion proper books of account as required by law have been kept by the company so far as appears from our examination of those books;

c) The Balance Sheet, Statement of Profit and Loss Account dealt with by this Report are in agreement with the books of account;

d) In our opinion, the Balance Sheet, Statement of Profit and Loss comply with the Accounting Standards referred to in sub section (3C) of Section 211 of the Companies Act, 1956;

e) On the basis of written representations received from the directors as on March 31, 2013, and taken on record by the Board of Directors, none of the Directors is disqualified as on March 31, 2013, from being appointed as a director in terms of clause (g) of Sub Section (1) of Section 274 of the Companies Act, 1956.

f) Since the Central Government has not issued any notification as to the rate at which the cess is to be paid under Section 441A of the Companies Act, 1956 nor has it issued any Rules under the said section, prescribing the manner in which such cess is to be paid, no cess is due and payable by the Company.

ANNEXURE TO AUDITOR''S REPORT

(Referred to in paragraph – 1 of our report of even date on the accounts for the year ended on 31st March, 2013 of COMPETENT AUTOMOBILES COMPANY LIMITED.

1. In respect to its Fixed Assets:

a) The company has maintained proper records showing full particulars including quantitative details and situation of its fixed assets on the basis of available information.

b) As explained to us, the management during the year has physically verified the fixed assets, which in our opinion is reasonable having regard to the size of the company and the nature of its fixed assets. We are informed that, no material discrepancy has been noticed by the management on such verification.

c) In our opinion, the company has not disposed off a substantial part of its fixed assets during the year and the going concern status of the company is not affected.

2. In respect of its Inventories :

a) The inventories have been physically verified during the year by the management. In our opinion, the frequency of verification is reasonable.

b) The procedure of physical verification of inventories followed by the management are reasonable and adequate in relation to the size of the Company and the nature of its business.

c) On the basis of our examination of the inventory records, we are of the opinion that the company is maintaining proper records of inventory. The discrepancies noticed on verification between the physical stocks and the book records are not material. The discrepancies noted on such verification have been properly dealt with in the books of accounts.

3. The Company has not granted/taken any secured or unsecured loan to/from companies, firms and other parties covered in the register maintained under section 301 of the Companies Act, 1956 except loans taken from two directors ( Mr. Raj Chopra and Mrs. Kavita Ahuja) of the company. The rate of interest and other terms and conditions of the loans taken are not prima facie prejudicial to the interest of the company. The principal amount outstanding as on 31st March 2013 under both accounts is NIL. Maximum amount outstanding during the year were Rs. 75 lacs and Rs. 350 lacs in respect of loan taken from Mrs Kavita Ahuja and Mr. Raj Chopra respectively.

4. In our opinion and according to the information and explanations given to us, there are adequate internal control procedures commensurate with the size of the company and the nature of its business with regard to purchase of inventory, fixed assets and for the sale of goods and services. During the course of our audit, no major weakness has been noticed in the internal control systems.

5. Based on the audit procedures applied by us and according to the information and explanations provided by the management, we are of the opinion that no transactions that need to be entered into the register maintained u/s 301 have taken place during the year.

6. According to the information and explanation given to us, the company has not accepted any deposits from the public within the meaning of Section 58A and 58AA of the Companies Act,1956 and the rules framed there under.

7. In our opinion the company has internal audit system, commensurate with its size and nature of the business.

8. The provision of maintaining Cost records under Section 209(1)(d) of the Companies Act, 1956 are not applicable to the company.

9. In respect of statutory dues:

a) According to the records of the company, the company has been regular in depositing with the appropriate authorities, undisputed statutory dues including Provident Fund, Investor Education Protection Fund, ESIC contribution, Income-Ta x , Sales- Tax, Wealth-Tax, Custom duty, Excise duty, Cess, Service tax and other statutory dues applicable to it. According to the information and explanation given to us, no undisputed amounts payable in respect of Income-Tax, Wealth-Tax, Sales Tax, Service Tax, Excise Duty & Custom Duty were outstanding as at March 31st 2013, for a period of more than six months from the date they became payable.

b) According to the records of the Company, the disputed sales tax demand of Rs.287.56 lacs in respect of financial year 1991-92 under Central Sales Tax Act,1956 has not been deposited on account of disputed matters pending before appropriate authorities. Against this, the Company has filed an appeal before Additional Commissioner of Sales Ta x (Appeals) –I, New Delhi.

10. The Company does not have any accumulated losses at the end of the year. The company has not incurred any cash losses during the financial year covered by our audit and in the immediately preceding financial year.

11. Based on our audit procedures and the information and explanations given by the management, we are of the opinion that the company has not defaulted in repayment of dues to banks. The company did not have any outstanding debentures or any outstanding loans from any financial institutions except vehicle and term loans.

12. The Company has not granted any loans or advances on the basis of securities by way of pledge of shares, debentures, and other securities.

13. The Provision of any special statue applicable to Chit Fund/ Nidhi /Mutual Benefit Fund/ Socities are not applicable to the company.

14. In our opinion, the company is not a dealer or trader in shares, securities, debentures, or other investments.

15. According to information and explanation given to us, the company has not given any guarantee for loans taken by others from bank or financial Institutions.

16. According to the information and explanation given to us, the company had taken term loans for purchase of land at Goa and Noida for business projects and Vehicles for test drive purpose. Loans have been utilised for the said purposes.

17. According to the information and explanations given to us and on an overall examination of the balance sheet of the company, we report that no funds raised on short-term basis have been used for long term investment. The Company has availed cash credit facility from the bank, which is used for working capital requirement.

18. Based on our examination of records and the information provided to us by management, we report that the Company has not made preferential allotment of shares to parties and companies covered in the register maintained under section 301 of the Act.

19. According to information and explanation given to us, the company has not issued any debentures during the year.

20. The Company has not raised any money by public issue.

21. According to information and explanation given to us and on an overall examination of the balance sheet of the company, no fraud on or by the company has been noticed or reported during the year.

For DINESH MEHTA & Co.

Firm Regn. No. 000220N

Chartered Accountants

Sd/-

(HIREN MEHTA)

Place: New Delhi Partner

Dated: 30.05.2013 M No - 90772


Mar 31, 2012

We have audited the attached Balance sheet of COMPETENT AUTOMOBILES COMPANY LIMITED as at 31st March 2012 and the related Profit & Loss Account and the Cash Flow Statement for the year ended on that date, which we have signed under reference to this report. These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on these financial statements based on our audit.

We conducted our audit in accordance with auditing standards generally accepted in India. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by the manage- ment, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.

As required by the Companies (Auditors Report) Order, 2003 issued by the Central Government of India in terms of section 227 (4A) of the Companies Act 1956, we enclose in the annexure, a statement on the matters specified in paragraph 4 & 5 of the said order.

1. Further to our comments in the Annexure referred to in paragraph above, we report that:

a. We have obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purpose of audit;

b. In our opinion, proper books of accounts, as required by law, have been kept by the Company, so far as appears from our examination of the books;

c. The Balance sheet, Profit & Loss Account and Cash Flow Statement dealt with by this report, are in agreement with the books of accounts.

d. In our opinion, the Balance Sheet, Profit & Loss Account and Cash Flow Statement dealt with by this report are in compliance with the Accounting Standards referred to in Section 211(3C) of the Companies Act,1956.

e. On the basis of written representations received from the directors, as on 31st March,2012 and taken on record by the Board of Directors, we report that none of the directors is disqualified as on 31st March,2012 from being appointed as a director in terms of clause (g) of sub section (1) of section 274 of the Companies Act, 1956.

2. In our opinion and to the best of our information and according to the explanations given to us, the accounts, subject to the significant accounting policies & notes thereon, give the information required by the Companies Act 1956, in the manner so required and present a true and fair view:-

a. In the case of Balance Sheet of the state of affairs of the Company, as at 31st March 2012;

b. In the case of Profit & Loss Account of the profit of the Company for the year ended on that date;

c. In the case of Cash Flow Statement, of the cash flow for the period ended on that date.

ANNEXURE TO AUDITOR'S REPORT

(Referred to in Paragraph-3 of our report of even date on the accounts for the year ended on 31st March, 2012 of COMPETENT AUTOMOBILES COMPANY LIMITED)

1. In respect to its fixed Assets :

(a) The Company has maintained proper records showing full particulars including quantitative details and situation of its Fixed Assets on the basis of available information.

(b) As explained to us, the Management during the year has physically verified the fixed assets, which in our opinion is reasonable having regard to the size of the company and nature of its fixed assets. We are informed that no material discrepancy has been noticed by the management on such verification.

(c) In our opinion, the Company has not disposed off a substantial part of its fixed assets during the year and the going concern status of the Company is not affected.

2. In respect of its inventories:

(a) The inventories have been physically verified during the year by the management. In our opinion, the frequency of verification is reasonable.

(b) The procedures of physical verification of inventories followed by the management are reasonable and adequate in relation to the size of the Company and the nature of its business.

(c) On the basis of our examination of the records of inventory, we are of the opinion that the Company is maintaining proper records of inventory. The discrepancies noticed on verification between the physical stocks and the book records were not material. Discrepancies noted on such verification have been properly dealt with in the books of account.

3. The Company has not granted/taken any loans secured or unsecured to/from companies, firms and other parties covered in the register maintained under section 301 of the Companies Act, 1956 except a loan taken from two directors of the company. The rate of interest and other terms and conditions of the loan taken are not prima facie prejudicial to the interest of the company. The principal amount outstanding as on 31st March 2012 under this account is ' 75.00 lacs (Maximum outstanding during the year amounting ' 865.00 lacs).

4. In our opinion and according to the information and explanations given to us, there are adequate internal control procedures commensurate with the size of the Company and the nature of its business with regard to purchase of inventory, fixed assets and sale of goods and services. During the course of our audit, no major weakness has been noticed in the internal control systems.

5. Based on the audit procedures applied by us and according to the information and explanations provided by the management, we are of the opinion that no transactions that need to be entered into the register maintained under section 301 have taken place during the year.

6. According to the information and explanations given to us,the Company has not accepted any deposits from the public within the meaning of Sections 58A and 58AA of the Companies Act 1956, and the rules framed there under.

7. In our opinion, the Company has an internal audit system, commensurate with its size and nature of the business.

8. The provisions of maintaining Cost records under Section 209(1) (d) of the Companies Act, 1956 are not applicable to the company.

9. In respect of statutory dues:

(a) According to the records of the Company, the Company has been regular in depositing with the appropriate authorities undisputed statutory dues including Provident Fund, Investor Education Protection fund, ESIC contribution, Income- Tax, Sales-Tax, Wealth-Tax, Custom Duty, Excise-Duty, Cess, Service Tax and other statutory dues applicable to it. According to the information and explanations given to us, no undisputed amounts payable in respect of income- tax, wealth-tax, sales tax, customs duty and excise duty were outstanding, as at 31st March, 2012 for a period of more than six months from the date they became payable.

(b) According to the records of the Company, the disputed sales tax demand of ' 287.56 lacs in respect of financial year 1991-92 under Central Sales Tax Act,1956 has not been deposited on account of disputed matters pending before appropriate authorities. Against this, the Company has filed an appeal before Additional Commissioner of Sales Tax (Appeals) -I, New Delhi.

10. The Company does not have any accumulated losses at the end of the year. The company has not incurred any cash losses during the financial year covered by our audit and the immediately preceding financial year.

11. Based on our audit procedures and the information and explanations given by the management, we are of the opinion that the Company has not defaulted in repayment of dues to banks. The company did not have any outstanding debentures or any outstanding loans from any financial institution during the year except vehicle and term loans.

12. The Company has not granted loans or advances on the basis of securities by way of pledge of shares, debentures and other securities.

13. The provisions of any special statute applicable to Chit fund/ Nidhi /Mutual benefit fund/Societies are not applicable to the Company.

14. In our opinion the Company is not a dealer or trader in shares, securities, debentures or other investments.

15. According to information and explanations given to us, the Company has not given any guarantee for loans taken by others from bank or financial institutions.

16. According to the information and explanations given to us, the Company had taken term loans for purchase of land at GOA for hotel project and vehicles for test drive purpose.

17. According to the information and explanations given to us and on an overall examination of the balance sheet of the Company, we report that no funds raised on short-term basis have been used for long-term investment. The Company has availed cash credit facility from the bank, which is used for working capital requirement.

18. Based on our examination of records and the information provided to us by management, we report that the Company has not made preferential allotment of shares to parties and companies covered in the register maintained under section 301 of the Act.

19. According to the information and explanations given to us, the company has not issued any debentures during the year.

20. The Company has not raised any money through a public issue during the year.

21. According to the information and explanations given to us and on an overall examination of the balance sheet of the Company, no fraud on or by the company has been noticed or reported during the year.

For DINESH MEHTA & CO.

Firm Registration No. 000220N

Chartered Accountants

Sd/-

Place : New Delhi (HIREN MEHTA)

Dated : 29/08/2012 Partner

M.No. 90772










Mar 31, 2010

We have audited the attached Balance sheet of COMPETENT AUTOMOBILES COMPANY LIMITED as at 31st March, 2010 and the related Profit & Loss Account and the Cash Flow Statement for the year ended on that date, which we have signed under reference to this report. These financial statements are the responsibility of the Companys management. Our responsibility is to express an opinion on these financial statements based on our audit.

We conducted our audit in accordance with auditing standards generally accepted in India. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by the management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.

As required by the Companies (Auditors Report) Order, 2003 issued by the Central Government of India in terms of section 227 (4A) of the Companies Act 1956, we give in the annexure, a statement on the matters specified in paragraph 4 & 5 of the said order.

1. Further to our comments in the Annexure referred to in paragraph above, we report that:

a. We have obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purpose of audit;

b. In our opinion, proper books of accounts, as required by law, have been kept by the Company, so far as appears from our examination of the books;

c. The Balance sheet, Profit & Loss Account and Cash Flow Statement dealt with by this report, are in agreement with the books of accounts.

d. In our opinion, the Balance Sheet, Profit & Loss Account and Cash Flow Statement dealt with by this report are in compliance with the Accounting Standards referred to in Section 211(3C) of the Companies Act,1956.

e. On the basis of written representations received from the directors, as on 31st March,2010 and taken on record by the Board of Directors, we report that none of the directors is disqualified as on 31st March,2010 from being appointed as a director in terms of clause (g) of sub section (1) of section 274 of the Companies Act, 1956.

2. In our opinion and to the best of our information and according to the explanations given to us, the accounts, subject to the significant accounting policies & notes thereon, give the information required by the Companies Act 1956, in the manner so required and present a true and fair view:-

a. In the case of Balance Sheet of the state of affairs of the Company, as at 31st March 2010;

b. In the case of Profit & Loss Account of the profit of the Company for the year ended on that date;

c. In the case of Cash Flow Statement, of the cash flow for the period ended on that date.

ANNEXURE TO AUDITORS REPORT (Referred to in Paragraph-3 of our report of even date on the accounts for the year ended on 31st March, 2010 of COMPETENT AUTOMOBILES COMPANY LIMITED)

1. (a) The Company has maintained proper records showing full particulars including quantitative details and situation of its Fixed Assets.

(b) As explained to us, the Management during the year has physically verified the fixed assets, which in our opinion is reasonable having regard to the size of the company and nature of its fixed assets. We are informed that no material discrepancy has been noticed by the management on such verification.

2. (a) The inventory has been physically verified during the year by the management. In our opinion, the frequency of verification is reasonable.

(b) The procedures of physical verification of inventories followed by the management are reasonable and adequate in relation to the size of the Company and the nature of its business.

(c) On the basis of our examination of the records of inventory, we are of the opinion that the Company is maintaining proper records of inventory. The discrepancies noticed on verification between the physical stocks and the book records were not material. Discrepancies noted on such verification have been properly dealt with in the books of account.

3. The Company has not granted/taken any loans secured or unsecured to/from companies, firms and other parties covered in the register maintained under section 301 of the Companies Act, 1956 except a loan amounting to Rs. 150.00 Lacs taken from one of the directors of the company Sh. Raj Chopra. The rate of interest and other terms and conditions of the loan taken are not prima facie prejudicial to the interest of the company. The principal amount outstanding as on 31st March 2010 under this account is Rs. 150.00 lacs.

4. In our opinion and according to the information and explanations given to us, there are adequate internal control procedures commensurate with the size of the Company and the nature of its business with regard to purchase of inventory, fixed assets and sale of goods. During the course of our audit, no major weakness has been noticed in the internal control systems.

5. Based on the audit procedures applied by us and according to the information and explanations provided by the management, we are of the opinion that no transactions that need to be entered into the register maintained under section 301 have taken place during the year.

6. The Company has not accepted any deposits from the public within the meaning of Sections 58A and 58AA of the Companies Act 1956, and the rules framed there under.

7. In our opinion, the Company has an internal audit system, commensurate with its size and nature of the business.

8. Cost records under Section 209( 1) (d) of the Companies Act, 1956 are not required to be maintained.

9. (a) According to the records of the Company, the Company is regular in depositing with appropriate authorities undisputed statutory dues including provident fund, investor education protection fund, ESIC contribution, income- tax, sales-tax, wealth-tax, custom duty, excise-duty, cess, service tax and other statutory dues applicable to it.

(b) According to the information and explanations given to us, no undisputed amounts payable in respect of income- tax, wealth-tax, sales tax, customs duty and excise duty were outstanding, as at 31st March, 2010 for a period of more than six months from the date they became payable.

(c) According to the records of the Company, there are no dues of income tax, custom duty/wealth-tax, excise duty/ cess, which have not been deposited on account of any dispute except disputed sales tax demand of Rs. 287.56 lacs in respect of financial year 1991-92. Against this, the Company has filed an appeal before Additional Commissioner of Sales Tax (Appeals) -I, New Delhi.

10. The Company does not have any accumulated losses at the end of the year. The company has not incurred any cash losses during the financial year covered by our audit and the immediately preceding financial year.

11. Based on our audit procedures and the information and explanations given by the management, we are of the opinion that the Company has not defaulted in repayment of dues to banks. The company did not have any outstanding debentures or any outstanding loans from any financial institution during the year except vehicle and term loan.

12. The Company has not granted loans or advances on the basis of securities by way of pledge of shares, debentures and other securities.

13. The provisions of any special statute applicable to Chit fund/Nidhi/Mutual benefit fund/Societies are not applicable to the Company.

14. In our opinion the Company is not a dealer or trader in shares, securities, debentures or other investments.

15. According to information and explanations given to us, the Company has not given any guarantee for loans taken by others from bank or financial institutions.

16. According to the information and explanations given to us, the Company had taken term loans for purchase of land at GO A for hotel project and vehicles for test drive purpose.

17. According to the information and explanations given to us and on an overall examination of the balance sheet of the Company, we report that no funds raised on short-term basis have been used for long-term investment. The Company has availed cash credit facility from the bank, which is used for working capital requirement.

18. Based on our examination of records and the information provided to us by management, we report that the Company has not made preferential allotment of shares to parties and companies covered in the register maintained under section 301 of the Act.

19. According to the information and explanations given to us, the company has not issued any debentures during the year.

20. The Company has not raised any money through a public issue during the year.

21. According to the information and explanations given to us and on an overall examination of the balance sheet of the Company, no fraud on or by the company has been noticed or reported during the year.

For DINESH MEHTA & CO. Chartered Accountants

Place: New Delhi (HIREN MEHTA)

Dated: 30/08/2010 Partner

M.No. 90772

 
Subscribe now to get personal finance updates in your inbox!