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Majestic Auto Ltd.

BSE: 500267 Sector: Auto
NSE: MAJESAUTO ISIN Code: INE201B01022
BSE LIVE 15:54 | 20 Sep 127.10 3.10
(2.50%)
OPEN

126.45

HIGH

129.75

LOW

124.05

NSE 05:30 | 01 Jan Stock Is Not Traded.
OPEN 126.45
PREVIOUS CLOSE 124.00
VOLUME 17348
52-Week high 144.80
52-Week low 86.25
P/E
Mkt Cap.(Rs cr) 132
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 126.45
CLOSE 124.00
VOLUME 17348
52-Week high 144.80
52-Week low 86.25
P/E
Mkt Cap.(Rs cr) 132
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Majestic Auto Ltd. (MAJESAUTO) - Auditors Report

Company auditors report

To the Members of Majestic Auto Ltd.

We have audited the accompanying standalone financial statements of Majestic AutoLimited ("the Company") which comprise the Balance Sheet as at 31st March'2016the Statement of Profit and Loss and Cash Flow Statement for the year then ended and asummary of significant accounting policies and other explanatory information.

Management's Responsibility for the Standalone Financial Statements

The Company's Board of Directors is responsible for the matters stated in Section134(5) of the Companies Act 2013 ("the Act") with respect to the preparationand presentation of these standalone financial statements that give a true and fair viewof the financial position financial performance and cash flows of the Company inaccordance with the accounting principles generally accepted in India including theAccounting Standards specified under Section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014. This responsibility also includes maintenance ofadequate accounting records in accordance with the provisions of the Act for safeguardingthe assets of the Company and for preventing and detecting frauds and otherirregularities; selection and application of appropriate accounting policies; makingjudgments and estimates that are reasonable and prudent; and design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the accuracy and completeness of the accounting records relevant to thepreparation and presentation of the financial statements that give a true and fair viewand are free from material misstatement whether due to fraud or error.

Auditor's Responsibility

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 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 andthe disclosures in the financial statements. The procedures selected depend on theauditor's judgment including the assessment of the risks of 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 of thefinancial statements that give a true and fair view in order to design audit proceduresthat are appropriate in the circumstances. An audit also includes evaluating theappropriateness of the accounting policies used and the reasonableness of the accountingestimates made by the Company's Directors as well as evaluating the overall presentationof 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.

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid standalone financial statements give the information requiredby the Act in the manner so required and give a true and fair view in conformity with theaccounting principles generally accepted in India of the state of affairs of the Companyas at 31 March 2016 its profit and its cash flows for the 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") as amended issued by the Central Government of India in terms of sub-section (11) ofsection 143 of the Act we give in "Annexure A" a statement on the mattersspecified in the paragraph 3 and 4 of the Order to the extent applicable.

2. As required by Section 143 (3) of the Act we report that: (a)

We have sought and obtained all the information and explanations which to the best ofour knowledge and belief were necessary for the purpose of our audit; (b) In our opinionproper books of account as required by law have been kept by the Company so far as itappears from our examination of those books; (c) The Balance Sheet Statement of Profitand Loss and Cash Flow Statement dealt with by this Report are in agreement with the booksof account; (d) In our opinion the aforesaid standalone financial statements comply withthe Accounting Standards specified under Section 133 of the Act as applicable; (e) On thebasis of the written representations received from the directors as on 31 March 2016 takenon record by the Board of Directors none of the directors is disqualified as on 31 March2016 from being appointed as a director in terms of Section 164 (2) of the Act; (f) Withrespect to the adequacy of the internal financial controls over financial reporting of theCompany and the operating effectiveness of such controls refer to our separate Report in"Annexure B".(g)

With respect to the other matters to be included in the Auditor's Report in accordancewith Rule 11 of the Companies (Audit and Auditors) Rules 2014 in our opinion and to thebest of our information and according to the explanations given to us: i. the Company hasdisclosed the impact of pending litigations on its financial position in its financialstatements; and ii. the Company did not have any long term contracts including derivativecontract for which there were any material foreseeable losses iii. There were no amountswhich were required to be transferred to the Investor Education and Protection Fund by theCompany.

For and on behalf of B.D. Bansal & Co.
Chartered Accountants
ICAI Reg No. 000621N
Place : Ludhiana (Anil Gupta)
Date : 16.05.2016 Partner
Membership No.89988

Annexure A to the Independent Auditors' Report

(Annexure referred to in paragraph 1 under the heading "Report on Other Legal andRegulatory Requirements" of the Independent Auditor's Report to the members ofMajestic Auto Limited for the year ended 31 March 2016) i) a) The Company hasmaintained proper records showing full particulars including quantitative details andsituation of fixed assets. b) As explained to us all the fixed assets have not beenphysically verified by the management during the year but there is a regular program ofverification which in our opinion is reasonable having regard to the size of the companyand the nature of its assets. As informed to us no material discrepancies were noticed onsuch verification.

(c) According to the information and explanation given to us and on the basis of ourexamination of the records of the company the title deeds/lease deeds of immovableproperty are held in the name of the company. ii) The inventories except goods in transitin the custody of the Company has been physically verified during the year by themanagement. In our opinion the frequency of the verification is reasonable. iii) TheCompany has not granted any loans secured or unsecured to companies firms LimitedLiability partnerships or other parties covered in the Register maintained under section189 of the Act. iv) In our opinion and according to the information and explanations givento us the company has complied with the provisions of section 185 and 186 of theCompanies Act 2013 in respect of many investments during the year. The company has notgranted any loans or provided gurantees and securities during the year. v) According tothe information and explanation given to us the Company has not accepted any deposits fromthe public and hence the directives issued by the Reserve Bank of India and the provisionsof Sections 73 to 76 or any other relevant provisions of the Act and the Companies(Acceptance of Deposit) Rules 2015 with regard to the deposits accepted from the publicare not applicable. vi) We have broadly reviewed the cost records maintained by theCompany pursuant to the Companies (Cost Records and Audit) Rules 2014 prescribed by theCentral Government under section 148(1)(d)of the Companies Act 2013 and are of theopinion that prima facie the prescribed cost records have been made and maintained.However we have not made a detailed examination of the cost records with a view todetermine whether they are accurate or complete. vii) a) According to information andexplanations given to us and on the basis of our examination of the books of account andrecords the Company has been generally regular in depositing undisputed statutory duesincluding Provident Fund Employees State Insurance Income-Tax Sales tax Service TaxDuty of Customs Duty of Excise Value added Tax Cess and other material statutory dueswith the appropriate authorities. According to the information and explanations given tous no undisputed amounts payable in respect of the above were in arrears as at March 312016 for a period of more than six months from the date on when they become payable. b)According to the information and explanations given to us there are no dues of Income TaxSales Tax Wealth Tax Service Tax Custom Duty Excise Duty and Cess which have not beendeposited on account of any dispute except as stated below:

S. No. Nature of Statute Nature of Dispute Amount Unpaid Rs. Period to which the amount relates Forum where dispute is pending
1 U.P. Trade Tax Penalty Under U.P. Trade Tax Act 198108 A.Y. 2005-06 Assistant Commissioner (Appeals) U.P. Trade Tax Noida

viii) In our opinion and according to the information and explanations given to us theCompany has not defaulted in the repayment of dues to banks and financial institutions.The Company has not taken any loan from the government and has not issued any debentures.

ix) Based upon the audit procedure performed and the information and explanations givenby the management the company has not raised money by way of initial public offer orfurther public offer including debt instruments and the company has applied the Term Loanfor the purpose for which the loans were raised. x) Based upon the audit proceduresperformed and the information and explanations given by the management we report that nofraud by the Company or no fraud / material fraud on the Company by its officers andemployees of the Company has been noticed or reported during the year. xi) Based upon theaudit procedures performed and the information and explanations given by the managementthe company has paid/provided for managerial remuneration in accordance with the requisiteapprovals mandated by the provisions of section 197 read with Schedule V to the CompaniesAct. xii) The Company is not a nidhi company. Therefore the provisions of clause 3(xii)of the order are not applicable to the Company and hence not commented upon. xiii)According to the information and explanations given by the management transactions withthe related parties are in compliance with section 177 and 188 of Companies Act 2013where applicable and the details have been disclosed in the notes to the financialstatements as required by the applicable accounting standards. xiv) Based upon the auditprocedures performed and the information and explanations given by the management thecompany has not made any preferential allotment or private placement of shares or fully orpartly convertible debentures during the year under review. xv) According to theinformation and explanations given by the management the Company has not entered into anynon-cash transactions with directors or persons connected with them. xvi) The company isnot required to be registered under section 45-IA of the Reserve Bank of India Act 1934and accordingly the provisions of clause 3 (xvi) of the Order are not applicable to theCompany and hence not commented upon.

For and on behalf of B.D. Bansal & Co.
Chartered Accountants
ICAI Reg No. 000621N
Place : Ludhiana (Anil Gupta)
Date : 16.05.2016 Partner
Membership No.89988

Annexure B to the Independent Auditors' Report

[Referred to in paragraph 2(f) under the heading "Report on Other Legal andRegulatory Requirements" of the Independent Auditor's Report to the members ofMajestic Auto Limited for the year ended 31 March 2016]

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 MajesticAuto Limited ("the company") as on March 31 2016 in conjunction with our auditof the standalone 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). 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 company's policies the safeguarding of its assets theprevention 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.

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 auditinvolves performing procedures to obtain audit evidence about the adequacy of the internalfinancial controls system over financial reporting and their operating effectiveness. Ouraudit of internal financial controls over financial reporting included obtaining anunderstanding of internal financial controls over financial reporting assessing the riskthat a material weakness exists and testing and evaluating the design and operatingeffectiveness of internal control based on the assessed risk. The procedures selecteddepend on the auditor's judgement including the assessment of the risks of materialmisstatement 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 controls systemover financial reporting.

Meaning of Internal Financial Controls Over Financial Reporting

A Company's internal financial control over financial reporting is a process designedto provide reasonable assurance regarding the reliability of financial reporting and thepreparation of financial statements for external purposes in accordance with generallyaccepted accounting principles. A Company's internal financial control over financialreporting includes those policies and procedures that (1) pertain to the maintenance ofrecords that in reasonable detail accurately and fairly reflect the transactions anddispositions of the assets of the Company; (2) provide reasonable assurance thattransactions are recorded as necessary to permit preparation of financial statements inaccordance with generally accepted accounting principles and that receipts andexpenditures of the Company are being made only in accordance with authorizations ofmanagement and Directors of the Company; and (3) 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 March 31 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 and on behalf of B.D. Bansal & Co.
Chartered Accountants
ICAI Reg No. 000621N
Place : Ludhiana (Anil Gupta)
Date : 16.05.2016 Partner
Membership No.89988