To the Members of Pan India Corporation Limited
Report on the Financial Statements
We have audited the accompanying financial statements of Pan India Corporation Limited("the Company") which comprise the Balance Sheet as at 31st March2017 the Statement of Profit and Loss and the Cash Flow Statement for the year thenended and a summary of 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 positionfinancial performance and cash flows of the Company in accordance with the accountingprinciples generally accepted in India including the Accounting Standards specified undersection 133 of the Act read with Rule 7 of the Companies (Accounts) Rules 2014. Thisresponsibility also includes maintenance of adequate accounting records in accordance withthe provisions of the Act for safeguarding the assets of the Company and for preventingand detecting frauds and other irregularities; selection and application of appropriateaccounting policies; making judgments and estimates that are reasonable and prudent; anddesign implementation and maintenance of adequate internal financial controls that wereoperating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the financial statements thatgive a true and fair view and are free from material misstatement whether due to fraud orerror.
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 theprovisions of the Act and the Rules made there under.
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 mis-statement.
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 but not for the purpose of expressing anopinion on whether the Company has in place an adequate internal financial controls systemover financial reporting and the operating effectiveness of such controls. An audit alsoincludes valuating the appropriateness of the accounting policies used and thereasonableness of the accounting estimates made by the Company's Directors as well asevaluating 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 on the financial statements.
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 2017 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 sub-section 11 of section 143 of theAct we give in the "Annexure-I"a statement on the matters specified inparagraphs 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 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 the Statement of Profit and Loss and the Cash Flow Statementdealt with by this Report are in agreement with the books of account;
d) In our opinion the aforesaid financial statements comply with the AccountingStandards 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 31stMarch 2017 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2017 from being appointed as a director in termsof Section 164 (2) of the Act;
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) With respect to the other matters to be included in the Auditor's Report inaccordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 in our opinionand to the best of our information and according to the explanations given to us:
i. The Company has discoled the impact of pending litigations on its financial positionin its financial statements - Refer Note 17 para 2.5 To the financial statements..
ii. The Company did not have any long-term contracts including derivative contracts forwhich there were any material foreseeable losses.
iii. There were no amounts which were required to be transferred to the InvestorEducation and Protection Fund by the Company.
iv. The Company has provided requisite disclosures in its financial statements as toholdings as well as dealings in Specified Bank Notes during the period from 8 November2016 to 30 December 2016 and these are in accordance with the books of accountsmaintained by the Company. Refer Note 17. 2.15 to the financial statements.
For Soni Gulati & Co.
Place: New Delhi
ANNEXURE-I TO THE INDEPENDENT AUDITOR'S REPORT OF PAN INDIA CORPORATION LIMITED
The Annexure referred to in our report to the members of Pan India Corporation Limited
(the Company') for the year ended 31st March2017.
We report that:
1. a) The company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.
b) According to the information and explanations given to us the fixed assets arephysically verified by the management on annual basis which in our opinion is atreasonable intervals. As per information and explanations given to us no materialdiscrepancies were noticed on such verification as compared to book records.
c) The company does not have any immovable property in its name hence clause (i) (c) ofparagraph 3 of the Order is not applicable to the Company.
2. a) As informed to us the inventory of share has been physically verified during theyear by the management. In our opinion the frequency of verification is reasonable.
b) The procedure of physical verification of inventories followed by the management isreasonable and adequate in relation to the size of the company and the nature of itsbusiness.
3. The company has not granted any loan secured or unsecured to companies firms orother parties covered in the register maintained under Section 189 of the Companies Act2013.
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 and investment made.
5. The Company has not accepted deposit from the public
6. The Central Government has not prescribed the maintenance of cost records undersub-section (1) of section 148 of the Companies Act 2013 for any of the activities ofthe company.
7. a). The company is regular in depositing undisputed statutory dues includingprovident fund employees' state insurance income tax sales tax service tax duty ofcustoms duty of excise value added tax cess and any other statutory dues applicable toit with appropriate authorities. According to the information and explanations given tous there are no undisputed statutory dues outstanding as at 31st March 2017for 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 disputedstatutory dues payable in respect of income tax sales tax duty of customs duty ofexcise and value added tax which are outstanding as at 31st March 2017.However according to information and explanations given to us the following dues of RocFees have not been deposited by the Company on account of disputes:
|Nature of the statute ||Nature of dues ||Amount (in Rs) ||Period to which the amount relates ||Forum where dispute is pending |
|Companies Act 1956 ||R.O.C Fees for increase in authorized capital ||Amount unascertained over 2.76cr. which has been accepted by the company but not deposited as part payment is not acceptable ||F.Y 199697 & F.Y 199899 ||Tis hazari Court |
8. According to the information and explanations given to us the company has not takenany loan from any financial institution government bank dues of debenture holder duringthe year; hence clause (viii) of paragraph 3 of the Order regarding default is notapplicable to the Company.
9. The company has not raised any money by way of initial public offer or furtherpublic offer (including debt instruments) and term loans during the year hence clause(ix) of paragraph 3 of the Order regarding default is not applicable to the Company.
10. Based upon the audit procedures performed and information and explanations given tous no fraud by the Company or on the Company by its officers or employees has beennoticed or reported during the year under audit.
11. According to the information and explanations 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 hence clause (xii) of paragraph 3 of the Order is notapplicable to the Company.
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 the provisions of section 177 and 188 of the Act where applicable and thedetails of such transactions have been disclosed in the financial statements as requiredby the applicable accounting standards.
14. According to the information and explanation 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.
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. Therefore provisions of clause(xv) of paragraph 3 of the Order are not applicable to the Company.
16. The company is not required to be registered under section 45-IA of the ReserveBank of India Act 1934.
For Soni Gulati & Co.
Place: New Delhi