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Competent Automobiles Ltd.

BSE: 531041 Sector: Others
NSE: N.A. ISIN Code: INE823B01015
BSE LIVE 15:40 | 09 Dec 168.80 0.60
(0.36%)
OPEN

174.50

HIGH

181.90

LOW

168.50

NSE LIVE 05:30 | 01 Jan Stock Is Not Traded.
OPEN 174.50
PREVIOUS CLOSE 168.20
VOLUME 5088
52-Week high 219.00
52-Week low 120.00
P/E 7.80
Mkt Cap.(Rs cr) 103.81
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 174.50
CLOSE 168.20
VOLUME 5088
52-Week high 219.00
52-Week low 120.00
P/E 7.80
Mkt Cap.(Rs cr) 103.81
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Competent Automobiles Ltd. (COMPETENTAUTO) - Auditors Report

Company auditors report

To

The Members of

COMPETENT AUTOMOBILES COMPANY LIMITED

We have audited the accompanying financial statements of COMPETENT AUTOMOBILES COMPANYLIMITED ("the Company") which comprise the Balance Sheet as at 31stMarch 2016 and the Statement of Profit & Loss Account and the Cash Flow Statement forthe year ended 31st March 2016 and a summary of significant accountingpolicies and other explanatory information.

Management’s Responsibility for the Financial Statements

The Company’s Management and Board of Directors are responsible for the mattersstated in Section 134(5) of the Companies Act 2013 (‘the Act’) with respect tothe preparation of these financial statements that give true and fair view of thefinancial position financial performance and cash flows of the Company in accordance withthe accounting principles generally accepted in India including the Accounting Standardsspecified under Section 133 of the Act read with Rule 7 of Companies (Accounts) Rules2014. This responsibility includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding the assets of the Company andfor preventing and detecting frauds and other irregularities; the selection andapplication of appropriate accounting policies; making judgments and estimates that arereasonable and prudent; and the design implementation and maintenance of adequateinternal financial controls that were operating effectively for ensuring the accuracy andcompleteness of the accounting records relevant to the preparation and presentation ofthe financial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.

Auditor’s Responsibility

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

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

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

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid financial statements give the information required by the Actin the manner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India of the state of affairs of the company as at March31st 2016 its Profit and its cash flows for the year ended on that date.

Report on Other Legal and Regulatory Requirements

I. As required by the Companies (Auditor’s Report) Order 2016 ("theorder") issued by the Central Government of India in terms of sub section (11) ofSection 143 of the Act we enclose in the "Annexure I" a statement on thematters specified in Clause’s 3 and 4 of the Order.

II. As required by section 143 (3) of the Act we report that:

a) We have sought and obtained all the information and explanations which to the bestof 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 thecompany so far as appears from our examination of those books;

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

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

e) On the basis of written representations received from the directors as on March 312016 and taken on record by the Board of Directors none of the Directors is disqualifiedas on March 31 2016 from being appointed as a director in terms of Section 164(2) of theAct.

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 "Annexure-II"; and

g) In our opinion and to the best of our information and according to the explanationsgiven to us we report as under with respect to the other matters to be included in theAuditor’s Report in accordance with Rule 11 of the Companies (Audit andAuditor’s) Rules 2014:

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

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

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

For DINESH MEHTA & Co.
Chartered Accountants
Firm Regn. No. 000220N
(HIREN MEHTA)
Place: New Delhi Partner
Dated: May 30 2016 M. No - 90772

Annexure-I to the Independent Auditors’ Report

The Annexure referred to in Independent Auditor’s Report to the members of theCompany on the financial statements for the year ended 31 March 2016 we report that:

1. In respect to its Fixed Assets:

a) The Company has maintained proper records showing full particulars includingquantitative details and situation of its fixed assets on the basis of availableinformation.

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

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.

2. The inventories have been physically verified during the year by the management. Inour opinion the frequency of verification is reasonable. The discrepancies noticed onverification between the physical stocks and the book records are not material. Thediscrepancies noted on such verification have been properly dealt with in the books ofaccounts.

3. As per information and explanation given to us and on the basis of our examinationof the records of the company the Company has not granted any loans secured or unsecuredto the companies firms limited liability partnerships or other parties covered in theregister under section 189 of the Companies Act 2013 (‘the Act’) thereforeclause 3 (iii) (a) (iii) (b) and (iii) (‘c) of the order are not applicable to thecompany.

4. In our opinion and according to the information and explanations given to us theCompany has complied with the provisions of section 185 and 186 of the Act with respectto the loans investments guarantees and security made.

5. As per information and explanation given to us the Company has not accepted anydeposits and accordingly directives issued by Reserve Bank of India and the provisions ofsection 73 to 76 or any other relevant provision of Companies Act 2013 and the rulesframed thereunder would not apply and accordingly clause 3(v) of the order is notapplicable to the company.

6. The Central Government has not prescribed the maintenance of cost records undersection 148(1) of the Act and accordingly clause 3(vi) of the order is not applicable.

7. a) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company the company is regular in depositing undisputedstatutory dues including provident fund employees state insurance income-tax sales taxvalue added tax duty of customs service tax cess and other statutory dues toappropriate authorities.

According to the information and explanations given to us no undisputed statutory duespayable in respect of provident fund income tax sales tax duty of customs value addedtax service tax cess and other material statutory dues were in arrears as at 31 March2016 for a period of more than six months from the date they became payable.

(b) According to the information and explanations given to us there are no dues ofincome tax or sales tax or service tax or duty of customs or value added tax which havenot been deposited with the appropriate authority on account of any disputes;

8. Based on our audit procedures and the information and explanations given by themanagement we are of the opinion that the company has not defaulted in repayment of duesto banks. The company did not have any outstanding debentures or any outstanding loansfrom government or from any financial institutions except vehicle loans.

9. The Company did not raise any money by way of initial public offer or further publicoffer (including debt instruments) and term loans during the year. Accordingly clause 3(ix) of the order is not applicable.

10. According to the information and explanation given to us by management we haveneither come across any instances of fraud by the company or any fraud on the company byits officers or employees noticed or reported during the period nor have we been informedany such case by the company.

11. According to the information and explanation given 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.

12. In our opinion and according to the information and explanations given to us theCompany is not a Nidhi Company. Accordingly clause 3(xii) of the order is not applicable.

13. 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.

14. According to the information and explanations given 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. Accordingly clause 3(xiv) of the order is not applicable.

15. 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 clause 3(xv) ofthe order is not applicable.

16. The Company is not required to be registered under section 45-IA of the ReserveBank of India Act 1934.

For DINESH MEHTA & Co.
Chartered Accountants
Firm Regn. No. 000220N
(HIREN MEHTA)
Place: New Delhi Partner
Dated: May 30 2016 M. No - 90772

Annexure - II to the Independent Auditors’ Report

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 COMPETENTAUTOMOBILES COMPANY LIMITED ("the Company") as of 31 March 2016 in conjunctionwith our audit of the financial statements of the Company for the year ended on that date.

Management’s Responsibility for Internal Financial Controls

The Company’s 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’). Theseresponsibilities include the design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the orderly and efficientconduct of its business including adherence to company’s policies the safeguardingof its assets the prevention and detection of frauds and errors the accuracy andcompleteness of the accounting records and the timely preparation of reliable financialinformation as required under the Companies Act 2013.

Auditors’ Responsibility

Our responsibility is to express an opinion on the Company’s 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 Institute of Chartered Accountants ofIndia. Those Standards and the Guidance Note require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetheradequate internal financial controls over financial reporting was established andmaintained and if such controls operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls system over financial reporting and their operatingeffectiveness. Our audit of internal financial controls over financial reporting includedobtaining an understanding of internal financial controls over financial reportingassessing the risk that a material weakness exists and testing and evaluating the designand operating effectiveness of internal control based on the assessed risk. The proceduresselected depend on the auditor’s judgment including the assessment of the risks ofmaterial misstatement of the financial statements whether due 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 Company’s internal financial controlssystem over financial reporting.

Meaning of Internal Financial Controls over Financial Reporting

A company’s 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 company’s internal financial control overfinancial reporting includes those policies and procedures that (i) pertain to themaintenance of records that in reasonable detail accurately and fairly reflect thetransactions and dispositions of the assets of the company; (ii) 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 authorizations ofmanagement and directors of the company; and (iii) provide reasonable assurance regardingprevention or timely detection of unauthorized acquisition use or disposition of thecompany’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 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.

Opinion

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 31 March 2016 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 DINESH MEHTA & Co.
Chartered Accountants
Firm Regn. No. 000220N
(HIREN MEHTA)
Place: New Delhi Partner
Dated: May 30 2016 M. No - 90772

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