The Members of
Bombay Cycle & Motor Agency Ltd
Report on the Standalone Financial Statements
We have audited the accompanying financial statements of BOMBAY CYCLE & MOTORAGENCY LIMITED (the Company) which comprise the Balance Sheet as at 31st March2017 the Statement of Profit and Loss and Cash Flow Statement for the year the ended anda summary of significant accounting policies and other explanatory information.
Managements Responsibility for the Standalone Financial Statements
The Companys Board of Directors is responsible for the matters stated in Section134(5) of the Companies Act 2013 (hereinafter referred to as "the Act") withrespect to the preparation of these standalone financial statements that give a true andfair view of the financial position and financial performance and the Cash Flows of theCompany in accordance with the accounting principles generally accepted in Indiaincluding the Accounting Standards specified and referred to in sub Section (1) of Section129 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 accordancewith the provisions of the Act for safeguarding the assets of the Company and forpreventing and detecting frauds and other irregularities; selection and application ofappropriate accounting policies; making judgments and estimates that are reasonable andprudent; and design implementation and maintenance of adequate internal financialcontrols that were operating effectively for ensuring the accuracy and completeness ofthe accounting records relevant to the preparation and presentation of the financialstatements that give a true and fair view and are free from material misstatement whetherdue to fraud or error which have been used for the purpose of preparation of thestandalone financial statements by the Directors of the Company.
Our responsibility is to express an opinion on these standalone financial statementsbased on our audit.
We have taken into account the provisions of the Act the accounting and auditingstandards and matters which are required to be included in the audit report under theprovisions of the Act and the Rules made there under.
We conducted our audit in accordance with the Standards on Auditing specified underSection 143(10) of the Act and also those issued by the Institute of Chartered Accountantsof India. Those Standards require that we comply with ethical requirements and plan andperform the audit to obtain reasonable assurance about whether the financial statementsare free of material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the financial statements. The procedures selected depend on theauditors judgment including the assessment of the risks of material misstatement ofthe financial statements whether due to fraud or error. In making those risk assessmentsthe auditor considers internal control relevant to the Companys preparation and fairpresentation of the financial statements that give a true and fair view in order to designaudit procedures that are appropriate in the circumstances. An audit also includesevaluating the appropriateness of the accounting policies used and the reasonableness ofthe accounting estimates made by the Directors of the Company as well as evaluating theoverall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the standalone financial statements.
In our opinion and to the best of our information and according to the explanationsgiven to us the accompanying financial statements read with the notes attached to andforming part of the same give the information required by the Act in the manner sorequired and also give a true and fair view in conformity with the accounting principlesgenerally accepted in India
(a) in the case of the Balance Sheet of the state of affairs of the Company as atMarch 31 2017;
(b) in the case of the Statement of Profit and Loss of the Profit of the Company forthe financial year ended on that date; and
(c) in the case of the Cash Flow Statement of the cash flows for the financial yearended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditors Report) Order 2016 (the Order) issuedby Central Government of India in terms of sub Section (11) of section 143 of the Act wegive in the Annexure A a statement on the matters specified in the paragraph 3 and 4 ofthe 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 wereport that-
(a) we have sought and obtained all the information and explanations which to the bestof 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 theCompany 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 Statementdealt with by this Report are in agreement with the books of account;
(d) in our opinion the aforesaid annexed standalone financial statements comply withthe requirements of the Accounting Standards specified under and referred to in subSection (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 31March 2017 taken on record by the Board of Directors none of the directors of the companyare disqualified as on 31 March 2017 from being appointed as director in terms of Section164 (2) of the Act;
(f) with respect to the adequacy of the internal financial controls over financialreporting of the Company and the operating effectiveness of such controls refer to ourseparate report in "Annex-ure B"; and
(g) with respect to the other matters to be included in the Auditors Reports inaccordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 in our opinionand to the best of our knowledge and belief and according to information and explanationgiven to us:
i. The company has disclosed the impact if any of pending litigation as at 31st March2017 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 forwhich there were any material foreseeable losses
iii. The provisions of Investor Education and Protection Fund are not applicable to thecompany.
iv. The Company has provided requisite disclosures in the financial statements as toholdings as well as dealings in Specified Bank Notes during the period from 8th November2016 to 30th Decem-ber 2016. Based on audit procedures and relying on the managementrepresentation we report that the disclosures are in accordance with books of accountsmaintained by the Company and as produced to us by the management -Refer note No. 27(7).
For N. G. THAKRAR & CO.
Firm Registration Number: 110907W
N. G. THAKRAR
M. No. 036213
Dated: 25th May 2017.
Annexure A to the Independent Auditors Report
The Annexure referred to in paragraph 1 of the Independent Auditors Report to themembers of BOMBAY CYCLE & MOTOR AGENCY LIMITED on the Standalone FinancialStatements for the year ended March 31st 2017
i. (a) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.
(b) The fixed assets were physically verified by the management as per the program ofverification covering all the fixed assets at reasonable intervals. According to theinformation and explanations given to us no material discrepancies were noticed on suchverification.
(c) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company the title deeds of immovable properties areheld in the name of the Company.
ii The physical verification of inventory has been conducted at reasonable intervals bythe management. In our opinion the procedures of physical verification of inventoryfollowed by the management are reasonable and adequate in relation to the size of thecompany and the nature of its business. The company is maintaining proper records ofinventory and no material discrepancies were noticed on physical verification.
iii. The Company has not granted any loans secured or unsecured to companies firmsLimited Liability Partnerships or other parties covered in the register maintained underSection 189 of the Companies Act 2013.
iv. In our opinion and according to the information and explanations given to us theCompany has not granted any loans / advances to persons / parties covered under section185 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 section73 to 76 or any other relevant provisions of the Act and the rules framed thereunder.
vi. The Central Government has not prescribed the maintenance of cost records undersection 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 ourexamination of the records of the Company undisputed statutory dues including ProvidentFund Employees State Insurance Income Tax Sales Tax Service Tax Value AddedTax Cess and other Statutory dues have been generally regularly deposited during the yearwith the appropriate authorities.
(b) According to the information and expla- nations given to us and based on therecords examined by us the particulars of dues of Income Tax and Duty of Excise not paidas on 31st March 2017 on account of dispute are as follows:-
|Name of the Statue ||Nature of Dues ||Amount ||Period to which the amount relates ||Forum where the dispute is pending |
| || ||(Rs in Lakhs) || || |
|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 |
ix. The Company did not raise any money by way of initial public offer or furtherpublic 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 theCompany or on the Company by its officers or employees has been noticed or reported duringthe course of our audit.
xi. According to the information and explanations give to us and based on ourexamination of the records of the Company the Company has paid / provided for managerialremuneration in accordance with the requisite approvals mandated by the provisions ofsection 197 read with Schedule V to the Act.
xii. In our opinion and according to the in- formation and explanations given to usthe Company is not a Nidhi company. Accordingly paragraph 3(xii) of the Order is notapplicable.
xiii. According to the information and explanations given to us and based on ourexamination of the records of the Company transactions with the related parties are incompliance with sections 177 and 188 of the Act where applicable and details of suchtransactions have been disclosed in the financial statements as required by the applicableaccounting standards.
xiv. According to the information and explanations give to us and based on ourexamination of the records of the Company the Company has not made any preferentialallotment or private placement of shares or fully or partly convertible debentures duringthe year.
xv. According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has not entered into non-cashtransactions with directors or persons connected with him. Accordingly paragraph 3(xv) ofthe Order is not applicable.
xvi. The Company is not required to be registered under Section 45-IA of the ReserveBank of India Act 1934.
For N. G. THAKRAR & CO.
Firm Registration Number: 110907W
N. G. Thakrar
Dated: 25th May 2017.
Annexure - B to the Auditors Report
The Annexure referred to in paragraph 2 (f) of the Independent Auditors Report tothe members of BOMBAY CYCLE & MOTOR AGENCY LIMITED on the Standalone FinancialStatements for the year ended March 31st 2017.
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143 of the Companies Act 2013 ("the Act")
We have audited the internal financial controls over financial reporting of BombayCycle & Motor Agency Limited ("the Company") as of March 31 2017 inconjunction with our audit of the standalone financial statements of the Company for theyear ended on that date.
Managements Responsibility for Internal Financial Controls
The Companys management is responsible for establishing and maintaining internalfinancial controls based on the internal control over financial reporting criteriaestablished by the Company considering the essential components of internal control statedin the Guidance Note on Audit of Internal Financial Controls over Financial Reportingissued by the Institute of Chartered Accountants of India (ICAI). These responsibilitiesinclude the design implementation and maintenance of adequate internal financial controlsthat were operating effectively for ensuring the orderly and efficient conduct of itsbusiness including adherence to companys policies the safeguarding of its assetsthe prevention and detection of frauds and errors the accuracy and completeness of theaccounting records and the timely preparation of reliable financial information asrequired under the Companies Act 2013.
Our responsibility is to express an opinion on the Companys internal financialcontrols over financial reporting based on our audit. We conducted our audit in accordancewith the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting(the "Guidance Note") and the Standards on Auditing issued by ICAI and deemedto be prescribed under section 143(10) of the Companies Act 2013 to the extentapplicable to an audit of internal financial controls both applicable to an audit ofInternal Financial Controls and both issued by the ICAI. Those Standards and the GuidanceNote require that we comply with ethical requirements and plan and perform the audit toobtain reasonable assurance about whether adequate internal financial controls overfinancial reporting was established and maintained and if such controls operatedeffectively in all material respects. Our audit involves performing procedures to obtainaudit evidence about the adequacy of the internal financial control system over financialreporting and their operating effectiveness. Our audit of internal financial controls overfinancial reporting included obtaining an understanding of internal financial controlsover financial reporting assessing the risk that a material weakness exists and testingand evaluating the design and operating effectiveness of internal control based on theassessed risk. The procedures selected depend on the auditors judgement includingthe assessment of the risks of material misstatement of the financial statements whetherdue to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Companys internal financial controlssystem over financial reporting.
Meaning of Internal Financial Controls Over Financial Reporting
A companys internal financial control over financial reporting is a processdesigned to provide reasonable assurance regarding the reliability of financial reportingand the preparation of financial statements for external purposes in accordance withgenerally accepted accounting principles. A companys internal financial control overfinancial reporting includes those policies and procedures that (1) pertain to themaintenance of records that in reasonable detail accurately and fairly reflect thetransactions and dispositions of the assets of the company; (2) provide reasonableassurance that transactions are recorded as necessary to permit preparation of financialstatements in accordance with generally accepted accounting principles and that receiptsand expenditures of the company are being made only in accordance with authorisations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of un-authorised acquisition use or disposition of thecompanys 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 financialreporting including the possibility of collusion or improper management override ofcontrols material misstatements due to error or fraud may occur and not be detected.Also projections of any evaluation of the internal financial controls over financialreporting to future periods are subject to the risk that the internal financial controlover financial reporting may become inadequate because of changes in conditions or thatthe degree of compliance with the policies or procedures may deteriorate.
In our opinion the Company has in all material respects an adequate internalfinancial controls system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at March 31 2017 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note on Audit ofInternal Financial Controls Over Financial Reporting issued by the Institute of CharteredAccountants of India.
For N. G. THAKRAR & CO
Firm Registration Number: 110907W
N. G. Thakrar
M. No. 036213
Dated: 25th May 2017.