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PAL Credit & Capital Ltd.

BSE: 511306 Sector: Financials
NSE: PALCREDIT ISIN Code: INE983B01025
BSE LIVE 15:14 | 26 Aug Stock Is Not Traded.
NSE 05:30 | 01 Jan Stock Is Not Traded.
OPEN 1.31
PREVIOUS CLOSE 1.37
VOLUME 25
52-Week high 1.31
52-Week low 0.00
P/E
Mkt Cap.(Rs cr) 3
Buy Price 0.00
Buy Qty 0.00
Sell Price 1.31
Sell Qty 975.00
OPEN 1.31
CLOSE 1.37
VOLUME 25
52-Week high 1.31
52-Week low 0.00
P/E
Mkt Cap.(Rs cr) 3
Buy Price 0.00
Buy Qty 0.00
Sell Price 1.31
Sell Qty 975.00

PAL Credit & Capital Ltd. (PALCREDIT) - Auditors Report

Company auditors report

To the Members of Pal Credit & Capital Limited Report on the Financial Statements

We have audited the accompanying financial statements of Pal Credit & CapitalLimited ("the Company") which comprise the Balance Sheet as at 31st March2016 the Statement of Profit and Loss the Cash Flow Statement for the year then endedand a summary of the significant accounting policies and other explanatory information.

Management's Responsibility for the 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 preparation ofthese financial statements that give a true and fair view of the financial performance andcash flows of the Company in accordance with the accounting principles generally acceptedin India including the

Accounting 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 financial statements based on ouraudit. 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 theprovision of the Act and the Rules made thereunder. We conducted our audit in accordancewith the Standards on Auditing specified under Section 143(10) of the Act. Those Standardsrequire that we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether the financial statements are free from materialmisstatement.

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 suffcient and appropriate toprovide a basis for our audit opinion on the financial statements.

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 31stMarch 2016 and its loss 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")issued by the Central Government of India in terms of subsection (11) of section 143 ofthe Act we give in the 'Annexure A' a statement on the matters specified in paragraphs 3and 4 of the Order.

2. As required by Section 143 (3) of the Act we report that: a. We have sought andobtained all the information and explanations which to the best of our knowledge andbelief 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 Sheetthe Statement of Profit and Loss and the Cash Flow Statement dealt with by this Reportare in agreement with the books of account. d. In our opinion the aforesaid financialstatements comply with the Accounting Standards specified under Section 133 of the Actread with Rule 7 of the Companies (Accounts) Rules 2014. e. On the basis of the writtenrepresentations received from the directors as on 31st March 2016 taken on record by theBoard of Directors none of the directors is disqualified as on 31st March 2016 frombeing appointed as a director in terms of Section 164(2) of the Act. f. With respect tothe adequacy of the internal financial controls over financial reporting of the Companyand 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 theAuditor's Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules2014 in our opinion and to the best of our information and according to the explanationsgiven to us: i. The Company does not have any pending litigations which would impact itsfinancial position. ii The Company did not have any long-term contracts includingderivative contracts for which there were any material foreseeable losses. iii There wereno amounts which were required to be transferred to the investor Education and ProtectionFund by the Company

For M. B. Agrawal & Co.
Chartered Accountants
Regi No.100137W
M. B. Agrawal
Partner
M. No.9045
Place: Mumbai
Date: 13th May 2016

Annexure-A to Independent Auditors' Report

(Referred to in paragraph 1 under the heading of Report on Other Legal and RegulatoryRequirements of Our Report of even date) (i) (a) The Company has maintained proper recordsshowing full particulars including quantitative details and situation of fixed assets onthe basis of available information.

(b) As explained to us all the assets have been physically verified by the managementsin a phased periodical manner which in our opinion is reasonable having regard to thesize of the Company and the nature of its assets. No material discrepancies were noticedon such verification.

(c) The company has no immovable properties.

(ii) In respect of its inventories the Company has no inventory. (iii) The company hasnot granted any loans secured or unsecured to companies firms or other parties coveredin the register maintained under section 189 of the Companies Act. Accordingly clauses(a) (b) and (c) are not applicable to the Company.

(iv) The Company has not granted any loans nor made any investments or providedguarantees. So the clause is not applicable to the company.

(v) According to the information and explanations provided to us the company has notobtained deposits from the public as defined according to the provisions of section 73 to76 of the Companies Act 2013 and the Rules framed thereunder.

(vi) According to the information and explanations provided to us maintenance of thecost records prescribed by the Central Government of India under section 148(1) of theCompanies Act 2013 are not applicable to the company.

(vii) (a) As per the information and explanations given to us and as per the records ofthe Company the Company is generally regular in depositing with appropriate authoritiesthe undisputed statutory dues including Provident Fund Employees' State Insurance IncomeTax Sales Tax Wealth Tax Service Tax Custom Duty Excise Duty Value Added Tax Cessand other material statutory dues applicable to it.

(b) According to the information and explanations given to us there are no dues whichare not deposited on account of dispute in respect of Income Tax Wealth Tax Sales TaxService Tax Customs Duty Excise Duty Value Added Tax and Cess in arrears as at March31 2016 for a period of more than six months from the date they became payable.

(viii) In our opinion and according to the information and explanations given to usthe Company has not defaulted in repayment of dues to financial institutions bankgovernment or dues to debenture holders (ix) The Company has not raised any money by wayof initial public offer or further public offer (including debt instruments) and termloans during the year.

(x) Any fraud by the Company or any fraud on the Company by its offcers or employeeshas not been noticed or reported during the year.

(xi) Managerial remuneration has been paid or provided 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 and therefore the compliance requirementsrelevant to a Nidhi Company are not applicable. (xii) All transactions with relatedparties are in compliance with section 177 and 188 of the Companies Act 2013 whereapplicable and the details have been disclosed in the financial statements etc. asrequired by the applicable accounting standards.

(xiv) The Company has not made any preferential allotment or private placement ofshares or fully or partly convertible debentures during the year under review thereforethe compliance of the requirement of section 42 of the Companies Act 2013 are notapplicable.

(xv) Pursuant to the provisions of section 192 of the Companies Act 2013 the Companyhas not entered into any non-cash transactions with directors or persons connected withhim/her. (xvi) The Company is registered under section 45-IA of the Reserve Bank of IndiaAct 1934.

For M/s M.B. Agrawal & Co.
Chartered Accountants
Regi. No. 100137W
M.B. Agrawal
Partner.
M. No.9045
Place: Mumbai
Date: 13th May 2016.

Annexure-B to the Independent Auditor's Report

Report on the internal Financial Controls under clause (i) of Sub-section 3 of Section143 of the Companies Act 2013 ("the Act") referred to in paragraph 2 (f) onReport on Other Legal and Regulatory Requirements of our report.

We have audited the internal financial controls over financial reporting of Pal Creditand Capital Limited ("the Company") as of 31 March 2016 in conjunction with ouraudit of the standalone financial statements of the Company for the year ended on thatdate.

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 effcient 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 judgment including the assessment of the risks of materialmisstatement of the financial statements whether due to fraud or error. VVe believe thatthe audit evidence we have obtained is suffcient and appropriate to provide a basis forour audit opinion on the Company's internal financial controls system over financialreporting.

Meaning of Internal Financial Controls over Financial Reporting

A company's internal financial control over financial reportin9 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 authorisations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorised 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 internal financialcontrols system over financial reporting and such internal financial controls overfinancial reporting were operating effectively as at 31 March 2016 based on the internalcontrol over financial reporting criteria established by the Company considering theessential components of internal control stated in the Guidance Note on Audit of InternalFinancial Controls Over Financial Reporting issued by the Institute of CharteredAccountants of India.

For M. B. Agrawal & Co.
Chartered Accountants
Regi No.100137W
M. B. Agrawal
Partner
M. No.9045
Place: Mumbai
Date: 13th May 2016