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Panasonic Carbon India Company Ltd.

BSE: 508941 Sector: Engineering
NSE: PANCARBON ISIN Code: INE013E01017
BSE LIVE 15:57 | 17 Nov 591.70 9.35
(1.61%)
OPEN

590.20

HIGH

604.00

LOW

581.65

NSE 05:30 | 01 Jan Stock Is Not Traded.
OPEN 590.20
PREVIOUS CLOSE 582.35
VOLUME 15678
52-Week high 719.90
52-Week low 420.00
P/E 22.35
Mkt Cap.(Rs cr) 284
Buy Price 0.00
Buy Qty 0.00
Sell Price 591.70
Sell Qty 50.00
OPEN 590.20
CLOSE 582.35
VOLUME 15678
52-Week high 719.90
52-Week low 420.00
P/E 22.35
Mkt Cap.(Rs cr) 284
Buy Price 0.00
Buy Qty 0.00
Sell Price 591.70
Sell Qty 50.00

Panasonic Carbon India Company Ltd. (PANCARBON) - Auditors Report

Company auditors report

To

The Members of Panasonic Carbon India Co. Limited Report on the Financial Statements

1. We have audited the accompanying standalone financial statements of PanasonicCarbon India Co. Limited ("the Company") which comprise the Balance Sheetas at 31st March 2017 the Statement of Profit and Loss the Cash FlowStatement for the year then ended and a summary of the significant accounting policiesand other explanatory information.

Management's Responsibility for the Financial Statements

2. 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 of 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.

Auditor's Responsibility

3. Our responsibility is to express an opinion on these financial statements based onour audit. We have taken into account the provisions of the Act the accounting andauditing standards and matters which are required to be included in the audit report underthe provisions of the Act and the Rules made thereunder.

4. 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.

5. An audit involves performing procedures to obtain audit evidence about the amountsand the 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.

6. We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the financial statements.

Opinion

7. 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 profit and its cash flows for the year ended on that date.

Report on Other Legal and Regulatory Requirements

8. 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 give in the Annexure – "A" a statement on the mattersspecified in paragraphs 3 and 4 of the Order.

9. 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 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 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 – "B".

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 disclosed the impact of pending litigations on its financialposition in its financial statements - Refer Note no. 23 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 has been no delay in transferring amounts required to be transferred to theInvestor Education and Protection Fund by the Company.

iv. The Company has provided requisite disclosures in the financial statements as toholdings as well as dealings in Specified Bank Notes during the period from 8thNovember 2016 to 30th December 2016. Based on audit procedures and relying onthe management representation we report that the disclosures are in accordance with booksof account maintained by the Company and as produced to us by the Management-Refer noteno. 36 to the financial statements.

For BRAHMAYYA & CO.
Chartered Accountants
Firm Registration No: 000511S
R.Nagendra Prasad
Place : Chennai Partner
Date : 10th May 2017

Membership No: 203377

ANNEXURE A TO AUDITORS' REPORT

Referred to in paragraph 8 of our report of even date

1. (a) The company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets;

(b) Fixed assets have been physically verified by the management during the year basedon the programme of verifying all the assets over a period of three years which in ouropinion is reasonable having regard to the size of the Company and the nature of itsfixed assets.

No material discrepancies were noticed 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. Physical verification of inventory has been conducted by the Management atreasonable intervals. The discrepancies noticed on verification between the physicalstocks and the book records were not material and have been adequately dealt with in thebooks of account.

3. In our opinion and according to the information and explanations given to us 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. Therefore clauses (iiia) (iiib) and (iiic) of paragraph 3 of the Orderare not applicable to the company for the year.

4. In our opinion and according to the information and explanations given to us thereare no loans investments guarantees and securities granted in respect of which theprovisions of section 185 and 186 of the Act are applicable.

5. The company has not accepted any deposits from the public to which the directivesissued by the Reserve Bank of India and the provision of section 73 to 76 of the Act orany other relevant provisions of the Act and the rules framed there under apply.

6. We have broadly reviewed the cost records maintained by the Company prescribed bythe Central Government under Section 148(1) of the Act and are of the opinion that primafacie the prescribed cost records have been maintained.

7. a) According to the information and explanations given to us and on the basis of ourexamination of the books of account the company has been regular in depositing undisputedstatutory dues including provident fund employees state insurance income-tax sales-taxservice tax duty of customs duty of excise cess and other statutory dues with theappropriate authorities during the year. There are no undisputed amounts payable inrespect of statutory dues which are outstanding as at 31st March 2017 for aperiod of more than six months from the date they become payable.

b) Based on our audit procedures and on the information and explanations given to usthere are no dues outstanding in respect of sales tax service-tax duty of customs dutyof excise value added tax on account of any dispute. Income tax demands under the IncomeTax Act 1961 for the assessment years 1999-2000 to 2007-08 aggregating toRs.18746659/- have not been deposited since the Company 's appeals are pending disposalbefore the Income Tax Appellate Authorities.

8. During the year under report the company did not avail any loan or borrowings frombanks or financial institutions and also did not have any debentures outstanding duringthe year under report. Accordingly the provisions of clause 3(viii) of the Order are notapplicable.

9. The Company did not raise any money by way of initial public offer or further publicoffer (including debt instruments) and the company has not availed any term loans duringthe year and accordingly the provisions of clause 3(ix) of the Order are not applicable.

10. To the best of our knowledge and belief and according to the information andexplanations given to us there have been no cases of fraud by the company or on thecompany by its officers or employees has been noticed or reported during the year underreport.

11. According to the information and explanations give 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 paragraph 3(xii) of the Order is notapplicable.

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 give 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 them. Accordingly paragraph 3(xv)of the 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 BRAHMAYYA & CO.
Chartered Accountants
Firm Registration No: 000511S
R.Nagendra Prasad
Place : Chennai Partner
Date : 10th May 2017

Membership No: 203377

ANNEXURE - "B" TO AUDITORS' REPORT

Referred to in paragraph 9 (f) of our report of even date Report on the InternalFinancial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act2013 ("the Act")

1. We have audited the internal financial controls over financial reporting ofPanasonic Carbon India Co. Limited ("the Company") as of 31 March 2017 inconjunction with our audit of the financial statements of the Company for the year endedon that date.

Management's Responsibility for Internal Financial Controls

2. 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

3. 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.

4. Our audit involves performing procedures to obtain audit evidence about the adequacyof the 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.

5. 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

6. A company's internal financial control over financial reporting is a processdesigned to provide reasonable assurance regarding the reliability of financial reportingand the preparation of financial statements for external purposes in accordance withgenerally accepted accounting principles. A company's internal financial control overfinancial reporting includes those policies and procedures that (1) pertain to themaintenance of records that in reasonable detail accurately and fairly reflect thetransactions and dispositions of the assets of the company; (2) provide reasonableassurance that transactions are recorded as necessary to permit preparation of financialstatements in accordance with generally accepted accounting principles and that receiptsand expenditures 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

7. 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

8. 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 2017 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 BRAHMAYYA & CO.
Chartered Accountants
Firm Registration No: 000511S
R.Nagendra Prasad
Place : Chennai Partner
Date : 10th May 2017

Membership No: 203377