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Competent Automobiles Ltd.

BSE: 531041 Sector: Others
NSE: N.A. ISIN Code: INE823B01015
BSE 15:14 | 26 Apr 165.35 -4.40
(-2.59%)
OPEN

182.00

HIGH

182.00

LOW

164.25

NSE 05:30 | 01 Jan Competent Automobiles Ltd
OPEN 182.00
PREVIOUS CLOSE 169.75
VOLUME 451
52-Week high 295.00
52-Week low 142.40
P/E 7.33
Mkt Cap.(Rs cr) 102
Buy Price 165.35
Buy Qty 46.00
Sell Price 167.90
Sell Qty 2.00
OPEN 182.00
CLOSE 169.75
VOLUME 451
52-Week high 295.00
52-Week low 142.40
P/E 7.33
Mkt Cap.(Rs cr) 102
Buy Price 165.35
Buy Qty 46.00
Sell Price 167.90
Sell Qty 2.00

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 AUTOMOBILESCOMPANY LIMITED ("the Company") which comprise the Balance Sheet as at 31stMarch 2018 the Statement of Profit & Loss Account (including other ComprehensiveIncome) the Statement of Changes of Equity and the Statement of Cash Flow Statement forthe year then ended and a summary of significant accounting policies and other explanatoryinformation.

Management's Responsibility for the Financial Statements

The Company's Management and Board of Directors are responsible for the matters statedin Section 134(5) of the Companies Act 2013 (‘the Act') with respect to thepreparation of these Ind AS financial statements that give true and fair view of thefinancial position financial performance including other comprehensive income cash flowsand changes in equity of the Company in accordance with the accounting principlesgenerally accepted in India including the Indian Accounting Standards (Ind AS) prescribedunder Section 133 of the Act.

This responsibility 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; the selection and application ofappropriate accounting policies; making judgments and estimates that are reasonable andprudent; and the 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 these Ind ASfinancial 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 Ins AS financial statements basedon our audit. In conducting the audit we have taken into account the provisions of theAct the accounting and auditing standards and matters which are required to be includedin the audit report under the provisions of the Act and the Rules made thereunder.

We conducted our audit of the Ind AS financial statements in accordance with theStandards on Auditing specified under Section 143(10) of the Act. Those Standards requirethat we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether these Ind AS financial statements are free frommaterial misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts anddisclosures in these Ins AS financial statements. The procedures selected depend on theauditor's judgment including the assessment of risks material misstatement of these IndAS financial statements whether due to fraud or error. In making those risk assessmentsthe auditor considers internal financial control relevant to the company's preparation ofthe Ind AS 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 Directors aswell as evaluating the overall presentation of the Ind AS financial statements.

We believe that the audit evidence obtained by us is sufficient and appropriate toprovide a basis for our audit opinion on Ind AS financial Statement.

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid Ind AS financial statements give the information required bythe 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 March 31 2018 its Profit/Loss Total Comprehensive Income/Loss its cash flows andchanges in the equity for the year ended on that date.

Other Matters

The Comparative financial information of the Company for the year ended 31st March2017 and the transition date Opening Balance Sheet as at 1st April 2016 included in theseInd AS financial Statement are based on the previously issued statutory financialstatements prepared in accordance with the Companies (Accounting Standards) Rules 2006audited by the predecessor Auditor whose report for the year ended 31st March 2017 &31st March 2016 dated 30th May 2017 & 30th May 2016 respectively expressed anunmodified opinion on those financial statements and have being restated to comply withInd AS Adjustments made to the previously issued said financial information prepared inaccordance with the Companies (Accounting Standards) Rules 2016 to comply with Ind AShave been audited by us

Our opinion is not modified in respect of these matters.

Report on Other Legal and Regulatory Requirements

I. As required by the Companies (Auditor's Report) Order 2016 ("the order")issued by the Central Government of India in terms of sub section (11) of Section 143 ofthe Act we enclose in the "Annexure I" a statement on the matters specified inClause'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 including Other ComprehensiveIncome the Cash Flow Statement and Statement of Changes in Equity dealt with by thisReport 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;

e) On the basis of written representations received from the directors as on March 312018 and taken on record by the Board of Directors none of the Directors is disqualifiedas on March 31 2018 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 and Auditor's) Rules2014:

(i) The company has disclosed the impact of pending litigations on its financialposition in its Financial State- ments – Refer Note no. 33 to the FinancialStatements.

(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 Pro- tection Fund by the Company.

For Ambani & Associates LLP
Chartered Accountants
Firm Regn. No. 016923N
Place: New Delhi (HITESH AMBANI)
Dated: May 30 2018 Partner
M. No – 506267

Annexure-I to the Independent Auditors' Report

The Annexure referred to in Independent Auditor's Report to the members of the Companyon the financial statements for the year ended 31st March 2018 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') therefore clause 3(iii) (a) (iii) (b) and (iii) (c) of the order are not applicable to the company.

4. In our opinion and according to the information and explanations given to us theCompany has complied with the provisions of sections 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 Goods and Service Act cess and otherstatutory dues to appropriate authorities. According to the information and explanationsgiven to us no undisputed statutory dues payable in respect of provident fund incometax sales tax duty of customs value added tax service tax Goods and Service Act cessand other material statutory dues were in arrears as at 31st March 2018 for a period ofmore 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 or Goods andServices Tax which have not been deposited with the appropriate authority on account ofany 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 Ambani & Associates LLP
Chartered Accountants
Firm Regn. No. 016923N
Place: New Delhi (HITESH AMBANI)
Dated: May 30 2018 Partner
M. No – 506267

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 31st March 2018 inconjunction with our audit of the financial statements of the Company for the year endedon 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 safeguarding ofits 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 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 (i) pertain to the maintenance ofrecords that in reasonable detail accurately and fairly reflect the transactions anddispositions of the assets of the company; (ii) 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 (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 31st March 2018 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 Ambani & Associates LLP
Chartered Accountants
Firm Regn. No. 016923N
Place: New Delhi (HITESH AMBANI)
Dated: May 30 2018 Partner
M. No – 506267