Mar 31, 2018
Report on the Standalone Ind AS Financial Statements
We have audited the accompanying standalone Ind AS financial statements of BOMBAY CYCLE & MOTOR AGENCY LIMITED, (the Company), which comprise the Balance Sheet as at 31st March, 2018, the Statement of Profit and Loss (including other comprehensive income), the statement of cash flow and the statement of the changes in equity for the year the ended and a summary of significant accounting policies and other explanatory information (herein after referred to as âstandalone Ind AS financial statementâ).
Managementâs Responsibility for the Standalone Financial Statements
The Companyâs Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 (hereinafter referred to as âthe Actâ) with respect to the preparation of these standalone Ind AS financial statements that give a true and fair view of the financial position, financial performance including other comprehensive income, cash flows and change in equity of the Company in accordance with the accounting principles generally accepted in India, including the Indian Accounting Standards (Ind AS) specified and referred to in sub Section (1) of Section 129 r/w Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014..
This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of internal financial controls with reference to financial statements, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the standalone Ind AS financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
Auditorâs Responsibility
Our responsibility is to express an opinion on these standalone financial statements based on our 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 there under.
We conducted our audit in accordance with the Standards on Auditing specified under Section 143(10) of the Act and also those 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 of material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the standalone Ind AS financial statements. The procedures selected depend on the auditorâs judgment, including the assessment of the risks of material misstatement of the standalone Ind AS financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Companyâs preparation of the standalone Ind AS financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Directors of the Company, as well as evaluating the overall presentation of the standalone Ind AS financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the standalone Ind AS financial statements.
Opinion
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone Ind AS financial statements read with the notes attached to and forming part of the same give the information required by the Act in the manner so required and also give a true and fair view in conformity with the accounting principles generally accepted in India including the Ind AS -
(a) in the case of the Balance Sheet, of the state of affairs of the Company as at March 31, 2018;
(b) in the case of the Statement of Profit and Loss, of the Profit of the Company for the financial year ended on that date; and in the case of the Cash Flow Statement, of the cash flows for the financial year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditorâs Report) Order, 2016 (âthe Orderâ) issued by Central Government of India in terms of sub Section (11) of section 143 of the Act, we give in the Annexure-A, a statement on the matters specified in the paragraph 3 and 4 of the Order, to the extent they are applicable to the Company.
2. As required by Section 143 (3) of the Act, to the extent applicable and relevant, 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 kept 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) and the Statement of Cash Flow dealt with by this Report are in agreement with the books of account;
(d) in our opinion, the aforesaid annexed standalone Ind AS financial statements comply with the requirements of the Indian Accounting Standards specified under and referred to in sub Section (1) of Section 129 r/w Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014;
(e) on the basis of the written representations received from the directors as on 31 March 2018 taken on record by the Board of Directors, none of the directors of the company are disqualified as on 31 March 2018 from being appointed as director in terms of Section 164 (2) of the Act;
(f) with respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate report in âAnnexure Bâ; and
(g) with respect to the other matters to be included in the Auditorâs Reports in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our knowledge and belief and according to information and explanation given to us:
i. The company has disclosed the impact, if any, of pending litigation as at 31st March, 2018 on its financial position in Note No. 23 (9) in its standalone Ind AS financial statements.
ii. The company did not have any long term contract including derivative contracts for which there were any material foreseeable losses.
iii. The provisions of Investor Education and Protection Fund are not applicable to the company.
Annexure âAâ to the Independent Auditorâs Report
The Annexure referred to in paragraph 1 of the Independent Auditorsâ Report to the members of BOMBAY CYCLE & MOTOR AGENCY LIMITED on the Standalone Ind AS Financial Statements for the year ended March 31st, 2018
i. (a) The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets.
(b) The fixed assets were physically verified by the management, as per the program of verification covering all the fixed assets at reasonable intervals. According to the information and explanations given to us, no material discrepancies were noticed on such verification.
(c) According to the information and explanations given to us and on the basis of our examination of the records of the Company, the title deeds of immovable properties are held in the name of the Company.
ii. The physical verification of inventory has been conducted at reasonable intervals by the management. In our opinion, the procedures of physical verification of inventory followed by the management are reasonable and adequate in relation to the size of the company and the nature of its business. The company is maintaining proper records of inventory and no material discrepancies were noticed on physical verification.
iii. The Company has not granted any loans, secured or unsecured, to companies, firms, Limited Liability Partnerships or other parties covered in the register maintained under Section 189 of the Companies Act, 2013. Accordingly, the provisions of clause 3(iii) (a), (b) and (c) of the order are not applicable.
iv. In our opinion and according to the information and explanations given to us, the Company has not granted any loans/advances to persons/parties covered under section 185 and 186 of the Act, with respect to the loans, investments, guarantees & security.
v. The company has not accepted any deposit from public within the meaning of section 73 to 76 or any other relevant provisions of the Act and the rules framed there under.
vi. The Central Government has not prescribed the maintenance of cost records under section 148(1) of the Act, for any of products of the Company.
vii. (a) According to information and explanation given to us and on the basis of our examination of the records of the Company, undisputed statutory dues including Provident Fund, Employeesâ State Insurance, Income Tax, Sales Tax, Service Tax, Value Added Tax, Cess and other Statutory dues have been generally regularly deposited during the year with the appropriate authorities.
(b) According to the information and explanations given to us and based on the records examined by us, the particulars of dues of Income Tax and Duty of Excise not paid as on 31 st March, 2018 on account of dispute are as follows:-
Name of the Statue |
Nature of Dues |
Amount (Rs. in Lakhs) |
Period to which the amount relates |
Forum where the dispute is pending |
Income Tax Department |
Income Tax |
19.02 |
A.Y. 2013-14 |
Rectification filed with AO |
Income Tax Department |
Income Tax |
0.84 |
A.Y. 2009-10 |
CIT |
Income Tax Department |
Income Tax |
30.12 |
A.Y. 2006-07 |
Supreme Court |
Income Tax Department |
Income Tax |
22.86 |
A.Y. 2001-02 |
Supreme Court |
Central Excise |
Excise |
6.00 |
- |
CESTAT |
viii. The Company does not have any loans or borrowings from any financial institution, banks, government or debenture holders during the year. Accordingly, paragraph 3(viii) of the Order is not applicable.
ix. The Company did not raise any money by way of initial public offer or further public offer (including debt instruments) and term loans during the year. Accordingly, paragraph 3 (ix) of the Order is not applicable.
x. According to the information and explanations given to us, no material fraud by the Company or on the Company by its officers or employees has been noticed or reported during the course of our audit.
xi. According to the information and explanations give to us and based on our examination of the records of the Company, the Company has paid/ provided for managerial remuneration in accordance with the requisite approvals mandated by the provisions of section 197 read with Schedule V to the Act.
xii. In our opinion and according to the information and explanations given to us, the Company is not a Nidhi company. Accordingly, paragraph 3(xii) of the Order is not applicable.
xiii. According to the information and explanations given to us and based on our examination of the records of the Company, transactions with the related parties are in compliance with sections 177 and 188 of the Act where applicable and details of such transactions have been disclosed in the financial statements as required by the applicable accounting standards.
xiv. According to the information and explanations give to us and based on our examination of the records of the Company, the Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year.
xv According to the information and explanations given to us and based on our examination of the records of the Company, the Company has not entered into non-cash transactions with directors or persons connected with him. Accordingly, paragraph 3(xv) of the Order is not applicable.
xvi. The Company is not required to be registered under Section 45-IA of the Reserve Bank of India Act, 1934.
Annexure âBâ to the Auditorsâ Report
The Annexure referred to in paragraph 2 (f) of the Independent Auditorsâ Report to the members of BOMBAY CYCLE & MOTOR AGENCY LIMITED on the Standalone Financial Statements for the year ended March 31st, 2018.
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 (âthe Actâ)
We have audited the internal financial controls over financial reporting of Bombay Cycle & Motor Agency Limited (âthe Companyâ) as of March 31, 2018 in conjunction with our audit of the standalone Ind AS financial statements of the Company for the year ended on that date.
Managementâs Responsibility for Internal Financial Controls
The Companyâs management is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued by the Institute of Chartered Accountants of India (ICAI). These responsibilities include the design, implementation and maintenance of internal financial controls with reference to financial statements, that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to companyâs policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013.
Auditorsâ Responsibility
Our responsibility is to express an opinion on the Companyâs internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (the âGuidance Noteâ) and the Standards on Auditing, issued by ICAI and deemed to be prescribed under section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls, both applicable to an audit of Internal Financial Controls and, both issued by the ICAI. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether internal financial controls with reference to financial statements was established and maintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial control system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditorâs judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Companyâs internal financial controls system over financial reporting.
Meaning of Internal Financial Controls Over Financial Reporting
A companyâs internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A companyâs internal financial control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the companyâs assets that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls Over Financial Reporting
Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Opinion
In our opinion, the Company has, in all material respects, an internal financial controls with reference to financial statements and such internal financial controls over financial reporting were operating effectively as at March 31, 2018, based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India.
Financial Reporting issued by the Institute of Chartered Accountants of India.
For N. G THAKRAR & CO
Chartered Accountants
Firm Registration Number: 110907W
N. G. Thakrar
Partner
M. No. 036213
Place: Mumbai
Dated: 25th May, 2018.
Mar 31, 2017
To
The Members of
Bombay Cycle & Motor Agency Ltd,
Report on the Standalone Financial Statements
We have audited the accompanying financial statements of BOMBAY CYCLE & MOTOR AGENCY LIMITED, (the Company), which comprise the Balance Sheet as at 31st March, 2017, the Statement of Profit and Loss and Cash Flow Statement for the year the ended and a summary of significant accounting policies and other explanatory information.
Managementâs Responsibility for the Standalone Financial Statements
The Company''s Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 (hereinafter referred to as âthe Actâ) with respect to the preparation of these standalone financial statements that give a true and fair view of the financial position and financial performance and the Cash Flows of the Company in accordance with the accounting principles generally accepted in India, including the Accounting Standards specified and referred to in sub Section (1) of Section 129 r/w Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of 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, which have been used for the purpose of preparation of the standalone financial statements by the Directors of the Company.
Auditorâs Responsibility
Our responsibility is to express an opinion on these standalone financial statements based on our 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 there under.
We conducted our audit in accordance with the Standards on Auditing specified under Section 143(10) of the Act and also those 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 of material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the financial statements. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of 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 that give a true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Directors of the Company, 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 on the standalone financial statements.
Opinion
In our opinion and to the best of our information and according to the explanations given to us, the accompanying financial statements read with the notes attached to and forming part of the same give the information required by the Act in the manner so required and also 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, 2017;
(b) in the case of the Statement of Profit and Loss, of the Profit of the Company for the financial year ended on that date; and
(c) in the case of the Cash Flow Statement, of the cash flows for the financial year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2016 (the Order) issued by Central Government of India in terms of sub Section (11) of section 143 of the Act, we give in the Annexure A, a statement on the matters specified in the paragraph 3 and 4 of the Order, to the extent they are applicable to the Company.
2. As required by Section 143 (3) of the Act, to the extent applicable and relevant, 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 kept by the Company so far as it appears from our examination of those books;
(c) the Balance Sheet, the Statement of Profit and Loss and the Cash Flow Statement dealt with by this Report are in agreement with the books of account;
(d) in our opinion, the aforesaid annexed standalone financial statements comply with the requirements of the Accounting Standards specified under and referred to in sub Section (1) of Section 129 r/w Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014;
(e) on the basis of the written representations received from the directors as on 31 March 2017 taken on record by the Board of Directors, none of the directors of the company are disqualified as on 31 March 2017 from being appointed as director in terms of Section 164 (2) of the Act;
(f) with respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate report in âAnnexure Bâ; and
(g) with respect to the other matters to be included in the Auditor''s Reports in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our knowledge and belief and according to information and explanation given to us:
i. The company has disclosed the impact if any, of pending litigation as at 31st March, 2017 on its financial position in Note No. 27 (8) in its standalone financial statements.
ii. The company did not have any long term contract including derivative contracts for which there were any material foreseeable losses
iii. The provisions of Investor Education and Protection Fund are not applicable to the company.
iv. The Company has provided requisite disclosures in the financial statements as to holdings as well as dealings in Specified Bank Notes during the period from 8th November 2016 to 30th December 2016. Based on audit procedures and relying on the management representation we report that the disclosures are in accordance with books of accounts maintained by the Company and as produced to us by the management -Refer note No. 27(7).
Annexure A to the Independent Auditorâs Report
The Annexure referred to in paragraph 1 of the Independent Auditors'' Report to the members of BOMBAYCYCLE & MOTORAGENCY LIMITED on the Standalone Financial Statements for the year ended March 31st, 2017
i. (a) The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets.
(b) The fixed assets were physically verified by the management, as per the program of verification covering all the fixed assets at reasonable intervals. According to the information and explanations given to us, no material discrepancies were noticed on such verification.
(c) According to the information and explanations given to us and on the basis of our examination of the records of the Company, the title deeds of immovable properties are held in the name of the Company.
ii The physical verification of inventory has been conducted at reasonable intervals by the management. In our opinion, the procedures of physical verification of inventory followed by the management are reasonable and adequate in relation to the size of the company and the nature of its business. The company is maintaining proper records of inventory and no material discrepancies were noticed on physical verification.
iii. The Company has not granted any loans, secured or unsecured, to companies, firms, Limited Liability Partnerships or other parties covered in the register maintained under Section 189 of the Companies Act, 2013.
iv. In our opinion and according to the information and explanations given to us, the Company has not granted any loans / advances to persons / parties covered under section 185 and 186 of the Act, with respect to the loans, investments, guarantees & security.
v. The company has not accepted any deposit from public within the meaning of section 73 to 76 or any other relevant provisions of the Act and the rules framed there under.
vi. The Central Government has not prescribed the maintenance of cost records under section 148(1) of the Act, for any of products of the Company.
vii. (a) According to information and explanation given to us and on the basis of our examination of the records of the Company, undisputed statutory dues including Provident Fund, Employees'' State Insurance, Income Tax, Sales Tax, Service Tax, Value Added Tax, Cess and other Statutory dues have been generally regularly deposited during the year with the appropriate authorities.
(b) According to the information and explanations given to us and based on the records examined by us, the particulars of dues of Income Tax and Duty of Excise not paid as on 31st March, 2017 on account of dispute are as follows:-
Name of the Statue |
Nature of Dues |
Amount (Rs. in Lakhs) |
Period to which the amount relates |
Forum where the dispute is pending |
Income Tax Department |
Income Tax |
19.02 |
A.Y.2013-14 |
Rectification filed with AO |
Income Tax Department |
Income Tax |
0.84 |
A.Y.2009-10 |
CIT |
Income Tax Department |
Income Tax |
30.12 |
A.Y.2006-07 |
Supreme Court |
Income Tax Department |
Income Tax |
22.86 |
A.Y.2001-02 |
Supreme Court |
Central Excise |
Excise |
6.00 |
- |
CESTAT |
viii. The Company does not have any loans or borrowings from any financial institution, banks, government or debenture holders during the year. Accordingly, paragraph 3(viii) of the Order is not applicable.
ix. The Company did not raise any money by way of initial public offer or further public offer (including debt instruments) and term loans during the year. Accordingly, paragraph 3 (ix) of the Order is not applicable.
x. According to the information and explanations given to us, no material fraud by the Company or on the Company by its officers or employees has been noticed or reported during the course of our audit.
xi. According to the information and explanations give to us and based on our examination of the records of the Company, the Company has paid / provided for managerial remuneration in accordance with the requisite approvals mandated by the provisions of section 197 read with Schedule V to the Act.
xii. In our opinion and according to the information and explanations given to us, the Company is not a Nidhi company. Accordingly, paragraph 3(xii) of the Order is not applicable.
xiii. According to the information and explanations given to us and based on our examination of the records of the Company, transactions with the related parties are in compliance with sections 177 and 188 of the Act where applicable and details of such transactions have been disclosed in the financial statements as required by the applicable accounting standards.
xiv. According to the information and explanations give to us and based on our examination of the records of the Company, the Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year.
xv. According to the information and explanations given to us and based on our examination of the records of the Company, the Company has not entered into non-cash transactions with directors or persons connected with him. Accordingly, paragraph 3(xv) of the Order is not applicable.
xvi. The Company is not required to be registered under Section 45-IA of the Reserve Bank of India Act, 1934.
Annexure-B to the Auditorsâ Report
The Annexure referred to in paragraph 2 (f) of the Independent Auditors'' Report to the members of BOMBAY CYCLE & MOTOR AGENCY LIMITED on the Standalone Financial Statements for the year ended March 31st, 2017.
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 (âthe Actâ)
We have audited the internal financial controls over financial reporting of Bombay Cycle & Motor Agency Limited (âthe Companyâ) as of March 31, 2017 in conjunction with our audit of the standalone financial statements of the Company for the year ended on that date.
Managementâs Responsibility for Internal Financial Controls
The Company''s management is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued by the Institute of Chartered Accountants of India (ICAI). These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to company''s policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013.
Auditorsâ Responsibility
Our responsibility is to express an opinion on the Company''s internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (the âGuidance Noteâ) and the Standards on Auditing, issued by ICAI and deemed to be prescribed under section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls, both applicable to an audit of Internal Financial Controls and, both issued by the ICAI. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial control system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Company''s internal financial controls system over financial reporting.
Meaning of Internal Financial Controls Over Financial Reporting
A company''s internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company''s internal financial control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company''s assets that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls Over Financial Reporting
Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Opinion
In our opinion, the Company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at March 31, 2017, based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India.
For N.GTHAKRAR&CO
Chartered Accountants
Firm Registration Number: 110907W
N. G Thakrar
Partner M. No. 036213
Place: Mumbai
Dated: 25th May, 2017.
Mar 31, 2016
INDEPENDENT AUDITORSâ REPORT
To
The Members of
Bombay Cycle & Motor Agency Ltd,
Report on the Standalone Financial Statements
We have audited the accompanying financial statements of BOMBAY CYCLE & MOTOR AGENCY LIMITED, (the Company), which comprise the Balance Sheet as at 31st March, 2016, the Statement of Profit and Loss and Cash Flow Statement for the year the ended and a summary of significant accounting policies and other explanatory information.
Managementâs Responsibility for the Standalone Financial Statements
The Company''s Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 (hereinafter referred to as âthe Actâ) with respect to the preparation of these standalone financial statements that give a true and fair view of the financial position and financial performance and the Cash Flows of the Company in accordance with the accounting principles generally accepted in India, including the Accounting Standards specified and referred to in sub Section (1) of Section 129 r/w Section 1 33 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities;
selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of 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, which have been used for the purpose of preparation of the standalone financial statements by the Directors of the Company.
Auditorâs Responsibility
Our responsibility is to express an opinion on these standalone financial statements based on our 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 there under.
We conducted our audit in accordance with the Standards on Auditing specified under Section 143(10) of the Act and also those 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 of material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the financial statements. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of 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 that give a true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Directors of the Company, 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 on the standalone financial statements.
Opinion
In our opinion and to the best of our information and according to the explanations given to us, the accompanying financial statements read with the notes attached to and forming part of the same give the information required by the Act in the manner so required and also 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, 2016;
(b) in the case of the Statement of Profit and Loss, of the Profit of the Company for the financial year ended on that date; and
(c) in the case of the Cash Flow Statement, of the cash flows for the financial year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2016 (the Order) issued by Central Government of India in terms of sub Section (11) of section 143 of the Act, we give in the Annexure A, a statement on the matters specified in the paragraph 3 and 4 of the Order, to the extent they are applicable to the Company
2. As required by Section 143 (3) of the Act, to the extent applicable and relevant, 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 kept by the Company so far as it appears from our examination of those books;
(c) the Balance Sheet, the Statement of Profit and Loss and the Cash Flow Statement dealt with by this Report are in agreement with the books of account;
(d) in our opinion, the aforesaid annexed standalone financial statements comply with the requirements of the Accounting Standards specified under and referred to in sub Section (1) of Section 129 r/w Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014;
(e) on the basis of the written representations received from the directors as on 31 March 2016 taken on record by the Board of Directors, none of the directors of the company are disqualified as on 31 March 2016 from being appointed as director in terms of Section 164 (2) of the Act;
(f) with respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate report in âAnnexure Bâ; and
(g) with respect to the other matters to be included in the Auditor''s Reports in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our knowledge and belief and according to information and explanation given to us:
i. The company has disclosed the impact of pending litigation in Note No. 27 (7) to the financial statements as complied and certified by the directors and management of the company, on its financial position in its financial statements.
ii. The company did not have any long term contract including derivative contracts for which there were any material foreseeable losses
iii. The provisions of Investor Education and Protection Fund are not applicable to the company.
Annexure A to the Independent Auditorâs Report
The Annexure referred to in paragraph 1 of the Independent Auditors'' Report to the members of BOMBAY CYCLE & MOTOR AGENCY LIMITED
on the Standalone Financial Statements for the year ended March 31st, 2016
i. (a) The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets.
(b)The fixed assets were physically verified by the management, as per the program of verification covering all the fixed assets at reasonable intervals. According to the information and explanations given to us, no material discrepancies were noticed on such verification.
(c) According to the information and explanations given to us and on the basis of our examination of the records of the Company, the title deeds of immovable properties are held in the name of the Company.
ii The physical verification of inventory has been conducted at reasonable intervals by the management. In our opinion, the procedures of physical verification of inventory followed by the management is reasonable and adequate in relation to the size of the company and the nature of its business. The company is maintaining proper records of inventory and no material discrepancies were noticed on physical verification.
iii. The Company has not granted any loans, secured or unsecured, to companies, firms, Limited Liability Partnerships or other parties covered in the register maintained under Section 189 of the Companies Act, 2013.
iv. In our opinion and according to the information and explanations given to us, the Company has complied with the provisions of section 185 and 186 of the Act, with respect to the loans, investments, guarantees & security.
v. The company has not accepted any deposit from public within the meaning of section 73 to 76 or any other relevant provisions of the Act and the rules framed hereunder.
vi. The Central Government has not prescribed the maintenance of cost records under section 148(1) of the Act, for any of products of the Company.
vii. (a)According to information and explanation given to us and on the basis of our examination of the records of the Company, undisputed statutory dues including Provident Fund, Employees'' State Insurance, Income Tax, Sales Tax, Service Tax, Duty of Customs, Duty of Excise, Value Added Tax, Cess and other Statutory dues have been generally regularly deposited during the year with the appropriate authorities.
(b) According to the information and explanations given to us and based on the records examined by us, the particulars of dues of Income Tax and Duty of Excise not paid as on 31st March, 2016 on account of dispute are as follows:-
Name of the Statue |
Nature of Dues |
Amount (?) in lakhs) |
Period to which the amount relates |
Forum where the dispute is pending |
Income Tax Department Income Tax Department Income Tax Department Central Excise |
Income Tax Income Tax Income Tax Excise |
22.86 30.12 0.84 6.00 |
A.Y.2001-02 A.Y.2006-07 A.Y.2009-10 |
Supreme Court Supreme Court CIT CESTAT |
viii. The Company does not have any loans or borrowings from any financial institution, banks, government or debenture holders during the year. Accordingly, paragraph 3(viii) of the Order is not applicable.
ix. The Company did not raise any money by way of initial public offer or further public offer (including debt instruments) and term loans during the year. Accordingly, paragraph 3 (ix) of the Order is not applicable.
x. According to the information and explanations given to us, no material fraud by the Company or on the Company by its officers or employees has been noticed or reported during the course of our audit.
xi. According to the information and explanations give to us and based on our examination of the records of the Company, the Company has paid provided for managerial remuneration in accordance with the requisite approvals mandated by the provisions of section 197 read with Schedule V to the Act.
xii. In our opinion and according to the information and explanations given to us, the Company is not a Nidhi company. Accordingly, paragraph 3(xii) of the Order is not applicable.
xiii. According to the information and explanations given to us and based on our examination of the records of the Company, transactions with the related parties are in compliance with sections 177 and 188 of the Act where applicable and details of such transactions have been disclosed in the financial statements as required by the applicable accounting standards.
xiv. According to the information and explanations give to us and based on our examination of the records of the Company, the Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year.
xv. According to the information and explanations given to us and based on our examination of the records of the Company, the Company has not entered into non-cash transactions with directors or persons connected with him. Accordingly, paragraph 3(xv) of the Order is not applicable.
xvi. The Company is not required to be registered under Section 45-IA of the Reserve Bank of India Act, 1934.
Annexure - B to the Auditorsâ Report
The Annexure referred to in paragraph 2 (f) of the Independent Auditors'' Report to the members of BOMBAY CYCLE & MOTOR AGENCY LIMITED on the Standalone Financial Statements for the year ended March 31st, 2016
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 (âthe Actâ)
We have audited the internal financial controls over financial reporting of Bombay Cycle & Motor Agency Limited (âthe Companyâ) as of March 31, 2016 in conjunction with our audit of the standalone financial statements of the Company for the year ended on that date.
Managementâs Responsibility for Internal Financial Controls
The Company''s management is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued by the Institute of Chartered Accountants of India. These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to company''s policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013.
Auditorsâ Responsibility
Our responsibility is to express an opinion on the Company''s internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (the âGuidance Noteâ) and the Standards on Auditing, issued by ICAI and deemed to be prescribed under section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls, both applicable to an audit of Internal Financial Controls and, both issued by the Institute of Chartered Accountants of India. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial control system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Company''s internal financial controls system over financial reporting.
Meaning of Internal Financial Controls Over Financial Reporting
A company''s internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company''s internal financial control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company''s assets that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls Over Financial Reporting
Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Opinion
In our opinion, the Company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at March 31, 2016, based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India.
For N. Gl THAKRAR & CO
Chartered Accountants
Firm Registration Number: 110907W
N. Gl Thakrar
Partner
M.No.036213
Place: Mumbai
Dated: 25th May, 2016.
Mar 31, 2015
We have audited the accompanying standalone financial statements of
BOMBAY CYCLE & MOTOR AGENCY LIMITED ("the Company"), which comprise
the Balance Sheet as at 31st March, 2015, the Statement of Profit &
Loss and also Cash Flow Statement for the year ended upon that date and
a summary of significant accounting policies and other explanatory
information. The report is prepared as per the provisions of the
Companies Act, 2013 and rules framed thereunder.
A: - Management's Responsibility for the Standalone Financial
Statements:-
The company's Board of Directors is responsible for the matters stated
in Section 134(5) of the Companies Act, 2013 ("the Act") with
respect to the preparation of these standalone financial statements
that give a true and fair view of the financial position, financial
performance and cash flows of the company in accordance accounting
principles generally accepted in India including the Accounting
standards specified and referred to in sub Section (1) of Section 129
r/w S.133 of the Companies Act, 2013 read with Rule 7 of the Companies
(Accounts) Rules, 2014.This responsibility also includes maintenance of
adequate accounting records in accordance with the provisions of the
Act for safeguarding 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 the design,
implementation and maintenance of 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 state-ments that give a true and fair view and are free from
material misstatements whether due to fraud or error.
B: - Auditor's Responsibility:-
Our responsibility is to express an opinion on these standalone
financial statements based on our 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 Standards on Auditing
specified under Section 143(10) of the Act and also those 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 misstatements.
An audit involves performing procedures to obtain audit evidence about
amounts and disclosures in the financial statements. The procedures
selected depend on auditor's judgment including the assessment of the
risks of 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 the accounting policies used
and reasonableness of the accounting estimates made by the Company's
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.
C: - Opinion:-
In our opinion and to the best of our information and according to the
explanation given to us, the aforesaid standalone financial statements
read with the notes attached to and forming part of the same give the
information required by the Companies Act, 2013 in the manner so
required and give a true and fair view in conformity with the
accounting principles generally accepted in India: -
1. In the case of the Balance Sheet, of the State of affairs of the
Company as at 31st March, 2015
2. In the case of the Statement of Profit & Loss, of the Profit for the
year ended on that date and
3 In the case of the Cash Flow Statement, of the Cash Flow for the year
ended on that date.
D: - Report on other Legal and Regulatory Requirements:-
(1) As required by the Companies (Auditor's Report) Order 2015 issued
by the Central Government on 10th April 2015 in terms of Section
143(11) of the Companies Act, 2013, we enclose in the annexure a
statement on the matter specified in the said order to the extent they
are applicable to the Company and based on such checks applied by us as
considered necessary and also based on information and explanations
given by the Directors
(2) As required by Section 143(3) of the Companies Act, 2013 and Rule
11 ( to the extent applicable and relevant) of The Companies (Audit and
Auditors) Rules 2014 , 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, the 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 annexed standalone Balance Sheet and
Statement of Profit & Loss and Cash Flow Statement dealt with by the
report comply with the requirements of the Accounting standards
specified under and referred to in sub Section (1) of Section 129 r/w
S.133 of the Companies Act, 2013 read with Rule 7 of the Companies
(Accounts) Rules, 2014 ;
(e) On the basis of written representation received from the directors
as on 31st March 2015 and taken on record by the board of directors,
none of the Directors of the company are disqualified as on 31st March
2015 from being appointed as director under section 164(2) of The
Companies' Act 2013;
(f) In our opinion and on the basis of written representation received
from the directors, the company has adequate internal financial control
system in place and the same is operating effectively;
(g) The company has disclosed the impact of pending litigations in Note
No.1 in the Statement under Note No.27 to financial statements as
compiled and certified by the directors and management of the company,
on its financial position in its financial statements;
(h) The Company did not have any long- term contracts including
derivative contracts for which there were any material foreseeable
losses;
(i) There were no amounts which were required to be transferred to the
Investor Education and Protection Fund by the Company.
i) The company has maintained proper records to show full particulars
including quantitative details and situation of the Fixed Assets and
the same has been physically verified by the Management once in every
half-year. In our opinion, the frequency of such verification is
reasonable. No material discrepancies were reportedly noticed on such
verification.
ii) There were no sales and/or dispositions of the Fixed Assets during
the year.
iii) Physical verification of inventory of the Company at all its
locations has been conducted by the Management during the year during
the last week of each month which frequency in our opinion is
reasonable.
iv) In our opinion, the procedures of physical verification of
inventories followed by the Management are reasonable and adequate in
relation to the size of the company and nature of its business.
v) According to the inventory records produced to us for our
verification, we are of the opinion that the company is maintaining
proper records of inventory and discrepancies noticed on physical
verification of inventories, if any, referred to above, though not
material, have been properly dealt with in the books of account. Proper
provision has been made for estimated fall in realizable value of stock
of spare parts for those models of cars for which servicing activity
has been discontinued.
vi) As per the information and explanation given to us and the records
produced to us for verification, the Company has not granted any loans,
secured or unsecured either to companies, firms or other parties
covered in the register maintained under Section 189 of The Companies
Act 2013 and thus no further comments about loans granted are
applicable.
vii) There are proper and adequate inter- nal control systems
commensurate with the size of the company and the nature of its
business with regard to and on the purchases of inventory, fixed assets
and with regard to the sale of goods and services.
viii) According to the information and explanations given to us, the
company has during the year not either accepted or solicited any
deposits from the public within the meaning of Sections 73 to 76 or
other relevant provisions of the Companies Act 2013 and thus the
question of compliance with the directives issued by the Reserve Bank
of India and the relevant provisions of the Companies' Act 2013 and the
rules framed there under does not arise. No order has been passed by
the Company Law Board or National Company Law Tribunal or Reserve Bank
of India or any Court or any other Tribunal in this regard.
ix) Maintenance of cost records has not been specified by the Central
Govt. under Sec. 148(1) of the Companies Act, 2013 for the Company.
x) According to the records of the company, the company has been
generally regular in depositing undisputed statutory dues including
provident fund, employees state Insurance, Income tax, Sales tax, value
added tax, Wealth tax, Service tax, Customs Duty, Excise Duty, Cess and
other Statutory dues, applicable to it, with the appropriate
authorities,
xi) During the course of our examination of the books of account
carried out in accordance with the generally accepted auditing
practices and as per the information and explanation given to us on our
inquiries by the management, in this behalf, we have not come across
for year under review any frauds by or against the company nor have we
been informed of such a case by the Management. As regards such cases
in the past, the process of judicial hearings is in the advanced stage
and the judgment is expected soon.
xii) According to the information and explanations given to us and the
records examined by us, the company has not defaulted in repayment to a
financial institution or bank or debenture holders.
xiii) According to the information and explanations given to us the
company has not given any guarantee for loans taken by others from bank
or financial institutions.
xiv) There are no accumulated losses of the company as at current year
end and also at the end of preceding previous year.
xv) On the basis of information and explanations given to us and
records examined by us, during the year the company has not obtained
any term loans. During the earlier year however, one term loan for
purchase of motor car was obtained and the same was applied for the
purposes of the loan that is purchase of the motor car.
xvi) In our opinion and according to the information and explanations
given to us, during the year there were no amount required to be
transferred to investor education and protection fund in accordance
with the relevant provisions of the Companies Act, 1956 and the rules
made thereunder.
xvii) On the basis of information and explanations given to us and
records examined by us, the company has not given any guarantee for
loans taken by others from bank or financial institutions and as such
further comments are not warranted.
FORA. B. JOG & COMPANY
(I.C.A.I. REGN. NO. 104321W)
CHARTERED ACCOUNTANTS
(A. B. JOG)
PROPRIETOR.
MEMBERSHIP NO. 010655
Place : MUMBAI
DATED: 12th May, 2015
Mar 31, 2014
We have audited the accompanying Financial Statement of BOMBAY CYCLE &
MOTOR AGENCY LIMITED, which comprise the Balance Sheet as at 31st
March, 2014, the statement of Profit & Loss and also Cash Flow
Statement for the year ended upon that date and a summary of
significant accounting policies and other explanatory information. The
report is prepared as per the provisions of the Companies Act, 1956 as
the accounts under audit and the process of audit for the year ended
31st March, 2014 are governed by the said Act.
A: - 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 principles generally accepted in India
including the Accounting standards referred to in sub Section (3c) of
Section 211 of the Companies Act, 1956 as amended. 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 fair view and are free from material
misstatements whether due to fraud or error.
B: - 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 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 misstatements.
An audit involves performing procedures to obtain audit evidence about
amounts and disclosures in the financial statements. The procedures
selected depend on auditor''s judgment including the assessment of the
risks of 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 the accounting policies used
and reasonableness of the accounting estimates made by management, as
well as evaluating the overall presentation of the financial statments.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
C: - Opinion:-
In our opinion and to the best of our information and according to the
explanation given to us, the aforesaid financial statements read with
the notes attached to and forming part of the same give the information
required by the Companies Act, 1956 in the manner so required and give
a true and fair view in conformity with the accounting principles
generally accepted in India: -
(1) In the case of the Balance Sheet, of the State of affairs of the
Company as at 31st March, 2014
(2) In the case of the Statement of Profit & Loss, of the Profit for
the year ended on that date and
(3) In the case of the Cash Flow Statement, of the Cash Flow for the
year ended on that date.
D: - Report on other Legal and Regulatory Requirements:-
(1) As required by the Companies (Auditor''s Report) Order 2003 issued
by the Central Government on 12th June 2003 and Companies (Auditor''s
Report) (Amendment) Order 2004 issued by the Central Government on 25th
November 2004 both in terms of Section 227(4A) of the Companies Act,
1956, we enclose in the annexure, a statement on the matters specified
in the said order to the extent they are applicable to the Company and
based on such checks applied by us as considered necessary and also
based on information and explanations given by the Directors.
(2) As required by Section 227(3) of the Companies Act, 1956, we report
that:
(a) 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.
(b) 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
(c) The Balance Sheet, the 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 annexed Balance Sheet and Profit & Loss
Statement and Cash Flow Statement dealt with by the report comply with
the requirements of the Accounting standards referred to in sub Section
(3c) of Section 211 of the Companies Act, 1956 as amended.
(e) On the basis of written representation received from the directors
as on 31st March, 2014 and taken on record by the board of directors,
none of the Directors of the company are disqualified as on 31st March,
2014 from being appointed as director under clause (g) of sub-section
(1) of section 274 of The Companies'' Act 1956
ANNEXURE TO THE AUDITOR''S REPORT M/S. BOMBAY CYCLE & MOTOR AGENCY
LIMITED
(Referred to in Para D (1) of our Report of even date)
i) The company has maintained proper records to show full particulars
including quantitative details and situation of the Fixed Assets and
the same has been physically verified by the Management once in every
half-year. In our opinion, the frequency of such verification is
reasonable. No material discrepancies were reportedly noticed on such
verification.
ii) There were no sales and/or dispositions of Fixed Assets during the
year.
iii) The physical verification of inventory of the Company at all its
locations has been conducted by the Management during the year during
the last week of each month which frequency in our opinion is
reasonable.
iv) In our opinion, the procedures of physical verification of
inventories followed by the Management are reasonable and adequate in
relation to the size of the company and nature of its business.
v) According to the inventory records produced to us for our
verification, we are of the opinion that the Company is maintaining
proper records of inventory and discrepancies noticed on physical
verification of inventories, if any, referred to above, though not
material have been properly dealt with in the books of account. Proper
provision has been made for estimated fall in realizable value of stock
of spare parts for those models of cars for which servicing activity
has been discontinued.
vi) a) As per the information and explanation given to us and the
records produced to us for verification, the Company has not granted
any loans, secured or unsecured either to companies, firms or other
parties covered in the register required to be maintained under Section
301 of the companies Act 1956 or to any other third party and thus no
further comments about loans granted are applicable.
b) As regards loans taken, the company has not taken any loans during
the year nor were any old loans outstanding at the beginning of the
year from companies, firms or other parties covered in the register
required to be maintained under section 301 of the Companies Act 1956.
However a term loan for purchase of motor car has been taken from a non
banking finance company and the repayment of the loan installments as
well as payment of interest is regular. The terms of loan and rate of
interest is not prejudicial to the interests of the company.
vii) There are proper and adequate internal control systems
commensurate with the size of the Company and the nature of its
business with regard to and on the purchases of inventory, fixed assets
and with regard to the sale of goods and services.
viii) In our opinion and according to the information and explanation
given to us, the particulars of contracts or arrangements referred to
in Section 301 of the Act have been entered in the Register required to
be maintained under that section. The transactions made in pursuance of
such contracts or arrangements, in our opinion and according to the
information and explanation given to us, have been made at prices
available with Company for such transactions or price at which
transaction for similar goods or services have been made with other
parties at the relevant time.
ix) According to the information and explanations given to us, the
Company has during the year not either accepted or solicited any
deposits from the public within the meaning of section 58A of the
Companies Act 1956 and thus the question of compliance with the
directives issued by the Reserve Bank of India and the provisions of
Section 58A and 58AA or any other relevant provisions of the Companies''
Act 1956 and the rules framed there under does not arise. No order has
been passed by the Company Law Board or National Company Law Tribunal
or Reserve Bank of India or any Court or any other Tribunal in this
regard.
x) On the basis of the activity reports reviewed by us, the company has
an internal audit system commensurate with its present size and nature
of business but the same needs to be strengthened and further improved.
xi) Maintenance of cost records has not been prescribed by the Central
Govt. under Sec. 209(i) (d) of the Companies Act, 1956 for the Company.
xii) According to the records of the company, the company has been
generally regular in depositing undisputed statutory dues including
provident fund, employees state Insurance, Income tax, Sales tax (value
added tax), Wealth tax, Service tax, Customs Duty, Excise Duty, Cess
and other Statutory dues, applicable to it, with the appropriate
authorities,
xiii) During the course of our examination of the books of account
carried out in accordance with the generally accepted auditing
practices and as per the information and explanation given to us on our
inquiries by the management, in this behalf, we have not come across
for year under review any frauds by or against the Company nor have we
been informed of such a case by the Management. As regards such cases
in the past, the process of judicial hearings is in the advanced stage
and the judgment is expected soon.
xiv) According to the information and explanations given to us and the
records examined by us, the Company has not defaulted in repayment to a
financial institution or banks.
xv) According to the information and explanations given to us the
Company has not granted any loans on the basis of security by way of
pledge of shares, debentures and other securities.
xvi) In our opinion and according to the information and explanations
given to us, the nature of the activities of the Company dose not
attract any special statute applicable to chit fund and nidhi/ mutual
fund/societies and as such the prescribed comments are not furnished.
xvii) There are no accumulated losses of the Company as at current year
end and also at the end of preceding previous year.
xviii) On the basis of information and explanations given to us and
records examined by us, during the year the Company has obtained one
term loan, for purchase of motor car and the same was applied for the
purposes of the loan that is purchase of the motor car.
xix) In our opinion and according to the information and explanations
given to us, during the year the Company has no dealing or trading in
shares, securities and debentures. All the investments in shares,
securities, debentures and other instruments are held by the company in
its own name.
xx) On the basis of information and explanations given to us and
records examined by us, the Company has not given any guarantee for
loans taken by others from banks or financial institutions and as such
further comments are not warranted.
xxi) According to the information and explanations given to us, the
Company has not raised any money either by public issue or by private
placement of shares or debentures during the financial year under
consideration and as such the questions of price of issue, creation of
security or charge or end use of monies raised do not arise.
xxii) On the basis of overall examination of the Balance sheet and
information and explanation given to us, we report that the Company has
not utilized any funds raised on short-term basis for long-term
investments.
FOR A. B. JOG & COMPANY
(I.C.A.I. REGN. NO. 104321W)
Chartered Accountants
(A. B. JOG)
Proprietor
Membership No. 010655
Place : Mumbai
Dated : 19th April, 2014
Mar 31, 2013
We have audited the accompanying Financial Statement of BOMBAY CYCLE &
MOTOR AGENCY LIMITED, which comprise the Balance Sheet as at 31st
March, 2013, the statement of Profit & Loss and also Cash Flow
Statement for the year ended on that date and a summary of significant
accounting policies and other explanatory information.
A: - ManagementÂs Responsibility for the Finan- cial Statements:-
The CompanyÂs management is resposible 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 ac- counting principles generally accepted in India
including the Accounting standards referred to in sub Section (3c) of
Section 211 of the Compa- nies Act, 1956 as amended. This
responsibility includes the design, implementation and mainte- nance of
internal control relevant to the prepara- tion and presentation of the
financial statements that give a true and fair view and are free from
material misstatements whether due to fraud or error.
B: - AuditorÂs Responsibility:-
Our responsibility is to express an opin- ion on these financial
statements based on our audit. We conducted our audit in accordance
with 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 reason-
able assurance about whether the financial state- ments are free from
material misstatements.
An audit involves performing procedures to obtain audit evidence about
amounts and dis- closures in the financial statements. The proce-
dures selected depend on auditorÂs judgment including the assessment of
the risks of mate- rial misstatement of the financial statements,
whether due to fraud or error. In making those risk assessments, the
auditor considers inter- nal control relevant to the CompanyÂs prepa-
ration 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 appropri- ateness of the accounting
policies used and reasonableness of the accounting estimates made by
management, as well as evaluating the overall presentation of the
financial statments.
We believe that the audit evidence we have obtained is sufficient and
appropriate to pro- vide a basis for our audit opinion.
C: - Opinion:-
In our opinion and to the best of our information and according to the
explanation given to us, the aforesaid financial statements read with
the notes attached to and forming part of the same give the information
required by the Companies Act, 1956 in the manner so required and give
a true and fair view in con- formity with the accounting principles
gener- ally accepted in India: -
(1) In the case of the Balance Sheet, of the State of affairs of the
Company as at 31st March, 2013
(2) In the case of the Statement of Profit & Loss, of the Profit for
the year ended on that date and
(3) In the case of the Cash Flow Statement, of the Cash Flow for the
year ended on that date.
D: - Report on other Legal and Regulatory Requirements:-
(1) As required by the Companies (Audi- torÂs Report) Order 2003 issued
by the Central Government on 12th June 2003 and Companies (AuditorÂs
Report) (Amendment) Order 2004 issued by the Central Government on 25th
November 2004 both in terms of Section 227(4A) of the Companies Act,
1956, we enclose in the annexure, a statement on the matter specified
in the said order to the extent they are applicable to the Com- pany
and based on such checks ap- plied by us as considered necessary and
also based on information and ex- planations given by the Directors.
(2) As required by Section 227(3) of the Companies Act, 1956, we report
that:
(a) In our opinion, proper books of ac- count as required by law have
been kept by the Company so far as appears from our examination of
those books.
(b) We have obtained all the infomation and explanations which to the
best of our knowledge and belief were necessary for the pur- pose of
our audit
(c) The Balance Sheet, the 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 annexed Bal- ance Sheet and Profit & Loss
State- ment and Cash Flow Statement dealt with by the report comply
with the requirements of the Account- ing standards referred to in sub
Section (3c) of Section 211 of the Com- panies Act, 1956 as amended.
(e) On the basis of written representation received from the directors
as on 31st March 2013 and taken on record by the board of directors,
none of the Direc- tors of the company are disqualified as on 31st
March 2013 from being ap- pointed as director under clause (g) of
sub-section (1) of section 274 of The Companies Act 1956
ANNEXURE TO THE AUDITORÂS REPORT M/S. BOMBAY CYCLE & MOTOR AGENCY
LIMITED
(Referred to in Para D (1) of our Report of even date)
i) The company has maintained proper records to show full particulars
including quantitative details and situation of the Fixed Assets and
the same has been physically verified by the Management once in every
half-year. In our opinion, the frequency of such verification is rea-
sonable. Although no material discrep- ancies were reportedly noticed
on such verification, a special utility survey re- vealed many assets
were not giving use- ful results and were in impaired state of affairs.
A thorough evaluation of their func- tioning was carried out and all
impaired items of fixed assets were segregated, scrap value ascertained
and appropri- ate impairment loss has been booked in the books of
account.
ii) There were certain sales and disposi- tions consequent to
abovementioned im- pairment of the Fixed Assets during the year. The
same have been properly dealt with in the books of account under audit.
iii) The physical verification of inventory of the Company at all its
locations has been conducted by the Management during the year during
the last week of each month which frequency in our opinion is
reasonable.
iv) In our opinion, the procedures of physi- cal verification of
inventories followed by the Management are reasonable and adequate in
relation to the size of the company and nature of its business.
v) According to the inventory records pro- duced to us for our
verification, we are of the opinion that the Company is main- taining
proper records of inventory and discrepancies noticed on physical
verifi- cation of inventories, if any, referred to above, though not
material have been properly dealt with in the books of ac- count.
Proper provision has been made for estimated fall in realizable value
of stock of spare parts for those models of cars for which servicing
activity has been discontinued.
vi) a) As per the information and explanation given to us and the
records produced to us for verification, the Company has not granted
any loans, secured or unsecured either to companies, firms or other
parties covered in the register required to be main- tained under
Section 301 or to any other third party and thus no further comments
about loans granted are applicable. b) As regards loans taken, the
company has not taken any loans during the year nor were any old loans
outstanding at the be- ginning of the year from anybody. vii) There
are proper and adequate internal control systems commensurate with the
size of the Company and the nature of its busi- ness with regard to and
on the purchases of inventory, fixed assets and with regard to the sale
of goods and services. viii) In our opinion and according to the
infor- mation and explanation given to us, the par- ticulars of
contracts or arrangements re- ferred to in Section 301 of the Act have
been entered in the Register required to be main- tained under that
section. The transactions made in pursuance of such contracts or
arrangements, in our opinion and accord- ing to the information and
explanation given to us, have been made at prices available with
Company for such transactions or price at which transaction for similar
goods or services have been made with other par- ties at the relevant
time. ix) According to the information and explana- tions given to us,
the Company has during the year not either accepted or solicited any
deposits from the public within the mean- ing of section 58A of the
Companies Act 1956 and thus the question of compliance with the
directives issued by the Reserve Bank of India and the provisions of
Section 58A and 58AA or any other relevant provi- sions of the
Companies Act 1956 and the rules framed there under does not arise.
No order has been passed by the Com- pany Law Board or National Company
Law Tribunal or Reserve Bank of India or any
Court or any other Tribunal in this re- gard.
x) On the basis of the activity reports re- viewed by us, the company
has an in- ternal audit system commensurate with its present size and
nature of business but the same needs to be strengthened and further
improved.
xi) Maintenance of cost records has not been prescribed by the Central
Govt. under Sec. 209(i) (d) of the Companies Act, 1956 for the
Company.
xii) According to the records of the com- pany, the company has been
regular in depositing undisputed statutory dues including provident
fund, employees state Insurance, Income tax, Sales tax (value added
tax), Wealth tax, Service tax, Customs Duty, Excise Duty, Cess and
other Statutory dues, applicable to it, with the appropriate
authorities,
xiii) During the course of our examination of the books of account
carried out in accordance with the generally accepted auditing
practices and as per the infor- mation and explanation given to us on
our inquiries by the management, in this behalf, we have not come
across for year under review any frauds by or against the Company nor
have we been informed of such a case by the Man- agement. As regards
such cases in the past, the process of judicial hearings is in the
advanced stage and the judg- ment is expected soon.
xiv) According to the information and expla- nations given to us and
the records ex- amined by us, the Company has not de- faulted in
repayment to a financial insti- tution or banks.
xv) According to the information and expla- nations given to us the
Company has not granted any loans on the basis of security by way of
pledge of shares, de- bentures and other securities.
xvi) In our opinion and according to the in- formation and explanations
given to us, the nature of the activities of the Com- pany dose not
attract any special stat- ute applicable to chit fund and nidhi/ mutual
fund/societies and as such the prescribed comments are not furnished.
xvii) There are no accumulated losses of the Company as at current year
end and also at the end of preceding previous year.
xviii) On the basis of information and explana- tions given to us and
records examined by us, during the year the Company has not obtained
any term loans. As such, the ques- tion of applying them for the
purposes ap- plied for does not arise.
xix) In our opinion and according to the infor- mation and explanations
given to us, dur- ing the year the Company has no dealing or trading in
shares, securities and deben- tures. All the investments in shares,
securi- ties, debentures and other instruments are held by the company
in its own name.
xx) On the basis of information and explana- tions given to us and
records examined by us, the Company has not given any guar- antee for
loans taken by others from banks or financial institutions and as such
further comments are not warranted.
xxi) According to the information and explana- tions given to us, the
Company has not raised any money either by public issue or by private
placement of shares or deben- tures during the financial year under
con- sideration and as such the questions of price of issue, creation
of security or charge or end use of monies raised do not arise.
xxii) On the basis of overall examination of the Balance sheet and
information and expla- nation given to us, we report that the Com- pany
has not utilized any funds raised on short-term basis for long-term
investments.
FOR A. B. JOG & COMPANY
(I.C.A.I. REGN. NO. 104321W)
Chartered Accountants
(A. B. JOG)
Proprietor
Membership No. 010655
Place : Mumbai
Dated : 13th May, 2013
Mar 31, 2012
We have audited the attached Balance Sheet of BOMBAY CYCLE & MOTOR
AGENCY LIMITED, as at 31st March, 2012, the Profit & Loss Statement and
also Cash Flow Statement for the year ended upon that date annexed
thereto. 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 misstatements. An audit includes
examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements. And the audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion. With these remarks we now report as follows:
1. As required by the Companies (Auditor's Report) Order 2003 issued
by the Central Government on 12th June 2003 and Companies (Auditor's
Report) (Amendment) Order 2004 issued by the Central Government on 25th
November 2004 both in terms of Section 227(4A) of the Companies Act,
1956, we enclose in the annexure a statement on the matter specified in
the said order to the extent they are applicable to the Company and
based on such checks applied by us as considered necessary and also
based on information and explanations given by the Directors.
2. Further to our comments in the Annexure referred in paragraph 1
above :
(a) 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;
(b) 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;
(c) The Balance Sheet and Profit & Loss Statement and Cash Flow
Statement dealt with by the report are in agreement with the books of
accounts;
(d) In our opinion, the annexed Balance Sheet and Profit & Loss
Statement and Cash Flow Statement dealt with by the report comply with
the requirements of the Accounting standards referred to in sub Section
(3c) of Section 211 of the Companies Act, 1956 as amended;
(e) On the basis of written representation received from the directors
as on 31st March, 201 2 and taken on record by the board of directors,
none of the Directors of the company are disqualified as on 31st March,
2012 from being appointed as director under clause (g) of sub-section
(1) of Section 274 of The Companies' Act 1956;
(f) In our opinion and according to the best of our information and
according to the explanation given to us, the said accounts read with
the notes attached to and forming part of the same give the information
required by the Companies Act, 1956 in the manner so required and give
a true and fair view in conformity with the accounting principles
generally accepted in India:-
1) In the case of the Balance Sheet, of the State of affairs of the
Company as at 31st March, 2012.
2) In the case of the Profit & Loss Statement of the Profit for the
year ended on that date.
AND
3) In the case of the Cash Flow Statement of the Cash Flow for the year
ended on that date.
i) The company has maintained proper records to show full particulars
including quantitative details and situation of the Fixed Assets and
the same has been physically verified by the Management once in every
half-year. In our opinion, the frequency of such verification is
reasonable. No material discrepancies were reportedly noticed on such
verification.
ii) There were no sales / dispositions of the Fixed Assets during the
year.
iii) The physical verification of inventory of the Company at all its
locations has been conducted by the Management during the year during
the last week of each month which frequency in our opinion is
reasonable.
iv) In our opinion, the procedures of physical verification of
inventories followed by the Management are reasonable and adequate in
relation to the size of the Company and nature of its business.
v) According to the inventory records produced to us for our
verification, we are of the opinion that the Company is maintaining
proper records of inventory and discrepancies noticed on physical
verification of inventories, if any, referred to above, though not
material have been properly dealt with in the books of account.
vi) a) As per the information and explanation given to us and the
records produced to us for verification, the Company has not granted
any loans, secured or unsecured either to Companies, firms or other
parties covered in the register required to be maintained under Section
301 or to any other third party and thus no further comments about
loans granted are applicable.
b) As regards loans taken, the company has not taken any loans during
the year nor were any old loans outstanding at the beginning of the
year from anybody.
vii) There are proper and adequate internal control systems
commensurate with the size of the Company and the nature of its
business with regard to and on the purchases of inventory, fixed assets
and with regard to the sale of goods and services.
viii) In our opinion and according to the information and explanation
given to us, the particulars of contracts or arrangements referred to
in Section 301 of the Act have been entered in the Register required to
be maintained under that section. The transactions made in pursuance of
such contracts or arrangements, in our opinion and according to the
information and explanation given to us, have been made at prices
available with Company for such transactions or price at which
transaction for similar goods or services have been made with other
parties at the relevant time.
ix) According to the information and explanations given to us, the
Company has during the year neither accepted nor solicited any deposits
from the public within the meaning of Section 58A of the Companies Act
1956 and thus the question of compliance with the directives issued by
the Reserve Bank of India and the provisions of Section 58A and 58AA or
any other relevant provisions of the Companies Act 1956 and the rules
framed there under does not arise. No order has been passed by the
Company Law Board or National Company Law Tribunal or Reserve Bank of
India or any Court or any other Tribunal in this regard.
x) On the basis of the activity reports reviewed by us, the Company has
an internal audit system commensurate with its present size and nature
of business but the same needs to be strengthened and further improved.
xi) Maintenance of cost records has not been prescribed by the Central
Govt. under Sec. 209(i) (D) of the Companies Act, 1956 for the
Company.
xii) According to the record of the Company, the Company has been
regular in depositing undisputed statutory dues including provident
fund, employees state Insurance, Income tax, Sales tax (value added
tax), Wealth tax, Service tax, Customs Duty, Excise Duty, Cess and
other Statutory dues, applicable to it, with the appropriate
authorities.
xiii) During the course of our examination of the books of account
carried out in accordance with the generally accepted auditing
practices and as per the information and explanation given to us on our
inquiries by the management, in this behalf, we have not come across
for year under review any frauds by or against the Company nor have we
been informed of such a case by the Management. As regards such cases
in the past, the process of judicial hearings is in the advanced stage
and the judgment is expected soon.
xiv) According to the information and explanations given to us and the
records examined by us, the Company has not defaulted in repayment to a
financial institution or banks.
xv) According to the information and explanations given to us the
Company has not granted any loans on the basis of security by way of
pledge of shares, debentures and other securities.
xvi) In our opinion and according to the information and explanations
given to us, the nature of the activities of the company does not
attract any special statute applicable to chit fund and nidhi / mutual
fund / societies and as such the prescribed comments are not furnished.
xvii) There are no accumulated losses of the company as at current year
end but had such losses at the end of proceeding previous year end but
they were not more than fifty percent of its net worth as on that date.
The company had earned cash profits in such proceeding previous year.
xviii) On the basis of information and explanations given to us and
records examined by us, during the year the Company has not obtained
any term loans. As such, the question of applying them for the
purposes applied for does not arise.
xix) In our opinion and according to the information and explanations
given to us, during the year company has no dealing or trading in
shares, securities and debentures. All the investments in shares,
securities, debentures and other instruments are held by the company in
its own name.
xx) On the basis of information and explanations given to us and
records examined by us, the company has not given any guarantee for
loans taken by others from bank or financial institutions and as such
further comments are not warranted.
xxi) According to the information and explanations given to us, the
company has not raised any money either by public issue or by private
placement of shares or debentures during the financial year under
consideration and as such the questions of price of issue, creation of
security or charge or end use of monies raised do not arise.
xxii) On the basis of overall examination of the Balance sheet and
information and explanation given to us, we report that the company has
not utilized any funds raised on short-term basis for long-term
investments.
For A. B. Jog & Company
(I.C.A.I REGN. NO. 104321W)
Chartered Accountants
(A. B. Jog)
Proprietor
Membership No. 010655
Place: Mumbai.
Dated: 4th May, 2012.
Mar 31, 2010
We have audited the attached Balance Sheet of BOMBAY CYCLE & MOTOR
AGENCY LIMITED, as at 31st March, 2010, the Profit & Loss Account and
also the Cash Flow Statement for the year ended upon that date annexed
thereto. 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 misstatements. An audit includes
examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements. And the audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion. With these remarks we now report as follows:
1. As required by the Companies (Auditors Report) Order 2003 issued
by the Central Government on 12m June, 2003 and Companies (Auditors
Report) (Amendment) Order 2004 issued by the Central Government on 25th
November, 2004, both in terms of Section 227(4A) of the Companies Act,
1956, we enclose in the Annexure a statement on the matters specified
in the said order to the extent they are applicable to the Company and
based on such checks applied by us as considered necessary and also
based on information and explanations given by the Directors.
2. Further to our comments in the Annexure referred in paragraph 1
above :
(a) 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
those books;
(b) 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;
(c) The Balance Sheet and Profit & Loss Account and Cash Flow Statement
dealt with by the report are in agreement with the books of accounts;
(d) In our opinion, the annexed Balance Sheet and Profit & Loss Account
and Cash Flow Statement dealt with by the report comply with the
requirements of the Accounting Standards referred to in sub-Section
(3c) of Section 211 of the Companies Act, 1956 as amended;
(e) On the basis of written representation received from the directors
as on 31st March 2010 and taken on record by the Board of Directors,
none of the Directors of the Company are disqualified as on 31st March
2010 from being appointed as director under clause (g) of sub-section
(1) of section 274 of the Companies Act, 1956;
(f) In our opinion and according to the best of our information and
according to the explanation given to us, the said accounts read with
the notes attached to and forming part of the same give the information
required by the Companies Act, 1956, in the manner so required and give
a true and fair view in conformity with the accounting principles
generally accepted in India:-
1) In the case of Balance Sheet, of the State of affairs of the Company
as at 31st March, 2010;
2) In the case of the Profit and Loss Account of the Profit for the
year ended on that date and ultimate deficit carried to the Balance
Sheet.
AND
3) In the case of Cash Flow Statement, of the Cash Flows for the year
ended on that date.
ANNEXURE TO THE AUDITORS REPORT M/S BOMBAY CYCLE & MOTOR AGENCY
LIMITED
( Referred to in Para 1 of the Report of even date )
i) The Company has maintained proper records to show full particulars
including quantitative details and situation of the Fixed Assets and
the same has been physically verified by the Management once in every
half-year. In our opinion, the frequency of such verification is
reasonable. No material discrepancies were reportedly noticed on such
verification.
ii) There were no sales/dispositions of the Fixed Assets during the
year.
iii) The physical verification of inventory of the Company at all its
locations has been conducted by the Management during the year during
the last week of each month which frequency in our opinion is
reasonable.
iv) In our opinion, the procedures of physical verification of
inventories followed by the Management are reasonable and adequate in
relation to the size of the Company and nature of its business.
v) According to the inventory records produced to us for our
verification, we are of the opinion that the Company is maintaining
proper records of inventory and discrepancies noticed on physical
verification of inventories, if any, referred to above, though not
material, have been properly dealt with in the books of account.
vi) (a) As per the information and explanation given to us and the
records produced to us for verification, the Company has not granted
any loans, secured or unsecured either to companies, firms or other
parties covered in the register required to be maintained under Section
301 or to any other third party and thus no further comments about
loans granted are applicable.
(b) As regards loans taken, the Company has not taken any loans during
the year nor any old loans were outstanding at the beginning of the
year from anybody. However a liability towards interest was
outstanding to the extent of Rs.8 Lakhs at the beginning of Current
Year (Previous
Year Rs. 10 Lakhs) which was paid off fully (Previous year Rs. 2 Lakhs)
in the current year and the outstanding at the end of the year is NIL
(Previous year Rs. 8 Lakhs) from a party covered in the reg- ister
maintained under Section 301 of the Companies Act, 1956. The maximum
amount involved during the current year was Rs. 8 Lakhs (Previous year
Rs. 10 Lakhs).
vii) There are proper and adequate internal
control systems commensurate with the size of the Company and the
nature of its business with regard to and on purchases of inventory,
fixed assets and with regard to the sale of goods and services.
viii) In our opinion and according to the information and explanation
given to us, the particulars of contracts or arrangements referred to
in Section 301 of the Act have been entered in the Register required to
be maintained under that section. The transactions made in pursuance of
such contracts or arrangements, in our opinion and according to the
information and explanation given to us, have been made at prices
available with Company for such transactions or price at which
transaction for similar goods or services have been made with other
parties at the relevant time.
ix) According to the information and explanations given to us, the
Company has during the year neither accepted nor solicited any deposits
from the public within the meaning of section 58A of the Companies Act,
1956 and thus the question of compliance with the directives issued by
the Reserve Bank of India and the provisions of Section 58A and 58AA or
any other relevant provisions of the Companies Act, 1956 and the rules
framed there under does not arise. No order has been passed by the
Company Law Board or National Company Law Tribunal or Reserve Bank of
India or any Court or any other Tribunal in this regard.
x) On the basis of the activity reports reviewed by us, the Company has
an internal audit sys- tem commensurate with its present size and
nature of business but the same needs to be strengthened and further
improved.
xi) Maintenance of cost records has not been prescribed by the Central
Govt, under section 209 (i) (d) of the Companies Act, 1956 for the
Company.
xii) According to the records of the Company, the Company has been
regular in depositing undisputed statutory dues including Provident
Fund, Employees State Insurance, Income tax, Sales tax, (Value Added
Tax), Wealth tax, Service tax, Customs Duty, Excise Duty, Cess and
other Statutory dues, applicable to it, with the appropriate
authorities.
xiii) During the course of our examination of the books of account
carried out in accordance with the generally accepted auditing
practices and as per the information and explanation given to us on our
inquiries by the manage- ment, in this behalf, we have not come across
for year under review any frauds by or against the Company nor have we
been informed of such a case by the Management. As regards such cases
in the past, the process of judicial hearings is in the advanced stage
and the judgement is expected soon.
xiv) According to the information and explanations given to us and the
records examined by us, the Company has not defaulted in repayment to
financial Institutions or banks.
xv) According to the information and explanations given to us the
Company has not granted any loans on the basis of security by way of
pledge of shares, debentures and other securities.
xvi) In our opinion and according to the information and explanations
given to us, the nature of the activities of the Company does not
attract any special statute applicable to chit fund and nidhi/mutual
fund/societies and as such the prescribed comments are not furnished.
xvii) The accumulated losses of the Company are not more than fifty per
cent of its net worth. The Company has also earned cash profits during
the financial year covered by our audit and also in the immediately
preceding financial year.
xviii)On the basis of information and explanations given to us and
records examined by us, during the year the Company has not obtained
any term loans. As such, the question of applying them for the purposes
does not arise.
xix) In our opinion and according to the information and explanations
given to us, during the year Company has no dealing or trading in
shares, securities and debentures. All the investments in shares,
securities, debentures and other investments are held by the Company in
its own name.
xx) On the basis of information and explanations given to us and
records examined by us, the Company has not given any guarantee for
loans taken by others from banks or financial institutions and as such
further comments are not warranted.
xxi) According to the information and explanations given to us, the
Company has not raised any money either by public issue or by private
placement of shares or debentures during the financial year under
consideration and as such the questions of price of issue, creation of
security or charge or end use of monies raised do not arise.
xxii) On the basis of overall examination of the Balance Sheet and
information and explana- tion given to us, we report that the Company
has not utilized any fundi, raised on short-term basis for long-term
investments.
For A. B. Jog & Company
(I.C.A.I REGN. NO. 104321W)
Chartered Accountants
(A. B. Jog )
Proprietor
Membership No. 010655
Mumbai, 25th May, 2010.