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Bombay Cycle & Motor Agency Ltd.

BSE: 501430 Sector: Others
NSE: N.A. ISIN Code: INE691K01017
BSE 00:00 | 19 Feb 715.10 -9.85
(-1.36%)
OPEN

725.00

HIGH

728.50

LOW

715.00

NSE 05:30 | 01 Jan Bombay Cycle & Motor Agency Ltd
OPEN 725.00
PREVIOUS CLOSE 724.95
VOLUME 96
52-Week high 1515.00
52-Week low 700.00
P/E 9.87
Mkt Cap.(Rs cr) 29
Buy Price 705.10
Buy Qty 1.00
Sell Price 769.00
Sell Qty 1.00
OPEN 725.00
CLOSE 724.95
VOLUME 96
52-Week high 1515.00
52-Week low 700.00
P/E 9.87
Mkt Cap.(Rs cr) 29
Buy Price 705.10
Buy Qty 1.00
Sell Price 769.00
Sell Qty 1.00

Bombay Cycle & Motor Agency Ltd. (BOMBAYCYCLE) - Auditors Report

Company auditors report

To

The Members of Bombay Cycle & Motor Agency Ltd

Report on the Financial Statements: Opinion

We have audited the accompanying financial statements of Bombay Cycle & Motor Agency Ltd (the Company) which comprise the Balance Sheet as at 31st March 2019 the Statement of Profit and Loss (includingComprehensive Income) the statement of Changes in Equity and the Statement of Cash flows for the year ended on that date and a summary of the significant and other explanatory information (hereinafter referred to as the financial statements).

In our opinion and to the best of our information and according to the explanations given to us the aforesaid financial statements give the information required by the Companies Act 2013 (the Act) in the manner so required and give a true and fair view in conformity with the Indian Accounting Standards prescribed under section 133 of the Act read with the Companies (Indian Accounting Standards) Rules 2015 as amended (Ind AS) and other accounting principles generally accepted in India of the state of affairs of the Company as at March 31 2019 the profit and total comprehensive income changes in equity and its cash flows for the year ended on that date.

Basis for Opinion

We conducted our audit in accordance with the Standards on Auditing (SAs) specified under section 143(10) of the Act. Our responsibilities under those Standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statements section of our report. We are independent of the Company in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India (ICAI) together with the independence requirements that are relevant to our audit of the financial statements under the provisions of the Act and the Rules made thereunder and we have fulfilled our other ethical responsibilities in accordance with these requirements and the ICAI's Code of Ethics. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the financial statements.

Key Audit Matters

Key audit matters (`KAM') are those matters that in our professional judgment were of most significance in our audit of the financial statements of the current period. These matters were addressed in the context of our audit of the financial statements as a whole and in forming our opinion thereon and we do not provide a separate opinion on these matters. We have determined the matters described below to be the key audit matters to be communicated in our report.

Description of Key Audit Matters

The Key Audit MatterHow our Audit addressed the matter
Evaluation of uncertain tax positionsPrincipal Audit Procedures
The Company has material uncertain tax positions including matters under dispute which involves significant judgment to determine the possible outcome of these disputes consequently having an impact on related accounting and disclosures in the financial statementsOur audit procedures included the following substantive procedures:
 Obtained details of completed tax assessments and demands for earlier years up to the year ended March 31 2019 from management.
Refer Note 26(7) to the Financial Statements Involved our team to understand and analyze selected key correspondences consultations by management for key uncertain tax positions;
 Discussed with appropriate senior management and evaluated management's underlying key assumptions in estimating the tax provisions;
 Evaluated uncertain tax positions as at April 1 2018 to check whether any change was required to management's position on these uncertainties.
 Based on the procedures we noted no significant issues on the accuracy of management's judgment to determine possible outcomes of the disputes.
Claims against the Company not acknowledged as debtPrincipal Audit Procedures
There are currently 9 litigation initiated against the Company wherein financial loss plus further interest damages etc. are yet to be crystallized.
Our audit procedures included the following substantive procedures:
Refer Note 26(7) to the Financial Statements. Obtained details of the litigations up to the year ended March 31 2019 from management.
 Read and analysed selected key correspondences consultations by management for these claims;
 Discussed with appropriate senior management and evaluated management's opinion that Company has fair chance of winning these cases and therefore no provision has been made.
 Based on the procedures we noted no significant issues on the accuracy of management's judgment to determine possible outcomes of the claims and disputes.

Management's Responsibility for the 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 financial statements that give a true and fair view of the financial position financial performance changes in equity and cash flows of the Company in accordance with the accounting principles generally accepted in India including the accounting Standards specified under section 133 of the Act. 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 design implementation and maintenance of adequate internal financial controls that were operating effectively 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.

In preparing the financial statements management is responsible for assessing the Company's ability to continue as a going concern disclosing as applicable matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or to cease operations or has no realistic alternative but to do so.

The Board of Directors are also responsible for overseeing the company's financial reporting process.

Auditor's Responsibilities for the Audit of the Financial Statements:

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement whether due to fraud or error and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with SAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if individually or in the aggregate they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

As part of an audit in accordance with SAs we exercise professional judgment and maintain professional skepticism throughout the audit. We also:

 Identify and assess the risks of material misstatement of the financial statements whether due to fraud or error design and perform audit procedures responsive to those risks and obtain audit evidence that is provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error as fraud may involve collusion forgery intentional omissions misrepresentations or the override of internal control.

 Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances. Under section 143(3)(i) of the Companies Act 2013 we are also responsible for expressing our opinion on whether the company has adequate internal financial controls system in place and the operating effectiveness of such controls.

 Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.

 Conclude on the appropriateness of management's use of the going concern basis of accounting and based on the audit evidence obtained whether a material uncertainty exists related to events or conditions that may cast significant on the Company's ability to continue as a going concern. If we conclude that a material uncertainty exists we are required to draw attention in our auditor's report to the related disclosures in the financial statements or if such disclosures are inadequate to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However future events or conditions may cause the Company to cease to continue as a going concern.

 Evaluate the overall presentation structure and content of the financial statements including the disclosures and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

We communicate with those charged with governance regarding among other matters the planned scope and timing of the audit and significant significant we identify during our audit.

We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence and where applicable related safeguards.

From the matters communicated with those charged with governance we determine those matters that were of most significance in the audit of the financial statements of the current period and are therefore the key audit matters.

We describe these matters in our auditor's report unless law or regulation precludes public disclosure about the matter or when in extremely rare circumstances we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor's Report) Order 2016 (the Order) issued by the Central Government in term of Section 143(11) of the Act we give in Annexure A a statement on matters specified in paragraph 3 and 4 of the Order.

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 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 Statement of Changes in Equity and the Statement of Cash Flow dealt with by this Report are in agreement with the relevant books of account.

d) In our opinion the aforesaid financial statements comply with the Ind AS specified under 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 March 31 2019 taken on record by the Board of Directors none of the directors is disqualified as on March 31 2019 from being appointed as a 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 effectivenes and the operating such controls refer to our separate Report in Annexure B. Our report expresses an unmodified opinion on the adequacy and operating effectiveness of the Company's internal financial controls over financial reporting.

g) With respect to the other matters to be included in the Auditor's Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 as amended in our opinion and to the best of our information and according to the explanations given to us:

i. The Company has disclosed the impact if any of pending litigations as at 31st March 2019 on its financial position in Note No. 26 (7) in its financial statements.

ii. The Company did not have any long-term contract including derivative contract for which there were any material foreseeable losses.

iii. The provisions of Investors Education and Protection Fund are not applicable to company.

For N. G. THAKRAR & CO

Chartered Accountants

Firm Registration No. 110907W

N. G. THAKRAR

Partner

Membership No.: 036213

Place: Mumbai Date : 15th May 2019

Annexure - `A' to the Independent Auditors' Report

The Annexure referred to in paragraph 1 of the independent Auditors' Report to the members of BOMBAY CYCLE & MOTOR AGENCY LIMITED on the Financial Statement for the year ended March 31st 2019.

i. In respect of Company's Fixed Asset:

a. The Company has maintained proper records showing full particulars including quantitative details and situation of fixed assets.

b. The Company has a regular programme of physical verification of its fixed assets by which all the assets have been physically verified by the management during the year at regular intervals which in our opinion is reasonable having regard to the size of the company and the nature of its assets. According to the information and explanation 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 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 nature of business. The company is maintaining proper records of inventory and no material discrepancies were noticed on physical verification.

iii. The Company has not granted unsecured loans to any companies firms Limited Liability Partnerships or other parties covered in the register maintained under section 189 of the Companies Act 2013. Accordingly Paragraph 3(iii) (a) (b) and (c) of the order is 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 grant of loans making investments and providing guarantees and securities.

v. The Company has not accepted any deposits from the public during the year within the meaning of sections 73 to 76 of the Act or any other relevant provisions of the Act and the rules framed there under and therefore provisions of paragraph 3(v) of the Order is not applicable to the Company.

vi. The Central Government has not prescribed the maintenance of cost records under section 148(1) of the Act for any of the services rendered by the Company.

vii. According to the information and explanation given to us in respect of statutory dues:

a. The Company has generally been regular in depositing undisputed statutory dues including provident fund employees' state insurance income-tax goods and service tax cess and other material statutory dues as applicable to the Company.

b. According to the information and explanations given to us and based on records examined by us the particulars of dues of income Tax service Tax and duty of excise not paid as on 31st March 2019 on account of dispute are as follows: -

Name of the StatuteNature of DuesAmount (Rs.  in lakhs)Period to which the amount relatesForum where the dispute is pending
Service Tax DepartmentService Tax6.00Apr-13 to June- 17Appel filed with Commissioner of Service Tax (Appeals-I)
Income Tax DepartmentIncome Tax153.00A. Y. 2002-03Supreme Court
Central ExciseExcise6.00-CESTAT

viii. To the best of our knowledge and according to the information and explanations given to us the Company does not have any loans or borrowings from banks or financial institutions government and has not issued any debentures. 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. To the best of our knowledge and 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 year.

xi. In our opinion and according to the information and explanations given to us the Company has paid/provided 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 and hence reporting under paragraph 3(xiv) of the Order is not applicable.

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. According to the information and explanation given to us and based on examination of the records of the Company the Company is not required to be registered under section 45-IA of the Reserve Bank of India Act 1934.

For N. G. THAKRAR & CO

Chartered Accountants

Firm Registration No. 110907W

N. G. THAKRAR

Partner

Membership No.: 036213

Place: Mumbai Date : 15th May 2019

Annexure - B to the Independent Auditors' Report

(Referred to in paragraph 2(f) under `Report on Other Legal and Regulatory Requirements' section of our report of even date for the year ended March 31 2019) for ensuring the

Report on the Internal Financial Controls over Financial Reporting under Clause (i) of Sub-section 3 of Section 143 of the Companies Act 2013 (the Act)

We have audited the internal financial controls over financial reporting of Bombay Cycle & Motor Agency Ltd (the Company) as of March 31 2019 in conjunction with 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 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 (the `Guidance Note'). These responsibilities include the design implementation and maintenance of adequate internal financial controls that were operating effectively 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.

Auditors' 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 and the Standards on Auditing deemed to be prescribed under section 143(10) of the Companies Act 2013 to the extent applicable to an audit of internal financial controls. 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 controls 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 auditors' 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 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 as at March 31 2019 based on 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 authorisations of management and directors of the company; and

(3) Provide reasonable assurance regarding prevention or timely detection of unauthorised 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 appropriate to provide the policies or procedures may deteriorate.

Opinion

In our opinion to the best of our information and according to the explanations given to us 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 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. G. THAKRAR & CO

Chartered Accountants

Firm Registration No. 110907W

N. G. THAKRAR

Partner

Membership No.: 036213

Place: Mumbai

Date : 15th May 2019