The Members of
Patel Integrated Logistics Limited
Report on the Standalone Financial Statements
We have audited the accompanying standalone financial statements of Patel IntegratedLogistics Limited ("the Company") which comprise the Balance Sheet as at March31 2017 the Statement of Profit and Loss 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 standalone financial statements that give a true and fair view of the financialposition financial performance and cash flows of the company in accordance with theaccounting principles generally accepted in India including the Accounting Standardsreferred specified under section 133 of the Act read with Rule 7 of the Companies(Accounts) Rules 2014. This responsibility also includes maintenance of adequateaccounting records in accordance with the provisions of the Act for safeguarding theassets of the Company and for preventing and detecting frauds and other irregularities;selection and application of appropriate accounting policies; making judgments andestimates that are reasonable and prudent; and design implementation and maintenance ofadequate internal financial controls that were operating effectively for ensuring theaccuracy and completeness of the accounting records relevant to the preparation andpresentation of the financial statements that give a true and fair view and are free frommaterial misstatement whether due to fraud or error.
Our responsibility is to express an opinion on these standalone financial statementsbased on our audit.
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 misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts anddisclosures in the financial statements. The procedures selected depend on the auditor'sjudgment including the assessment of the risks of material misstatement of the financialstatements whether due to fraud or error. In making those risk assessments the auditorconsiders 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 control systemover financial reporting and the operating effectiveness of such controls. An audit alsoincludes evaluating the appropriateness of accounting policies used and the reasonablenessof the accounting estimates made by the Company's Directors as well as evaluating theoverall 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.
In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid financial statement gives the information required by the Actin the manner so required and give a true and fair view in conformity with accountingprinciples generally accepted in India of state of affairs of the company as at March 312017 and its profits and its cash flows for the year ended as 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 ofthe Act we give in the "Annexure 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 dealt with by this Report arein agreement with the books of account;
d) In our opinion the aforesaid standalone financial statement comply with theAccounting Standards specified under Section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014;
e) On the basis of written representations received from the directors as on March 312017 and taken on record by the Board of Directors none of the directors is disqualifiedas on March 312017 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 B" 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 other matters to be included in theAuditor's Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules2014:
i. The Company has disclosed the impact of pending litigations on its financialposition in its financial statements - Refer to Note No.31 to the financial statements;
ii. The Company did not have any long term contracts including derivative contracts assuch the question of commenting on any material foreseeable losses thereon does not arise;
iii. There has been no delay in transferring amounts required to be transferred tothe Investor Education and Protection Fund by the Company;
iv. The Company has provided the requisite disclosure in its standalone financialstatements as to holdings as well as dealings in Specified Bank Notes as defined in theNotification S.O. 3407(E) dated the 8th November 2016 of the Ministry of Finance duringthe period from November 8 2016 to December 30 2016 and these are in accordance with thebooks of accounts maintained by the company. Refer Note No. 40 to the financialstatements.
For M S P & CO.
Chartered Accountants FR No: 107565W
M. S. Parikh
Partner M No: 08684
Date: May 26 2017
"Annexure A" forming a part of Independent Auditor's Report
The Annexure referred to in Independent Auditor's Report to the members of the companyon standalone financial statements
for the year ended March 31 2017 we report that.
On the basis of such checks as we considered appropriate and according to theinformation and explanations given to us
during the course of our audit we report that:
1) (a) The Company has maintained proper records showing full particulars includingquantitative details and situation of
(b) The company has a regular programme of physical verification of its fixed assets bywhich fixed assets are verified in a phased manner over a period of three years. Inaccordance with this programme certain fixed assets were verified during the year and nomaterial discrepancies were noticed on such verification. In our opinion this periodicityof physical verification is reasonable having regard to the size of the company and thenature of its assets.
(c) According to the information and explanations given to us and the records examinedby us and based on the examination of registered sale deed provided to us we report thatthe title deeds comprising all the immovable properties of land and building owned by thecompany are held in its name. However some of the immovable properties are mortgagedagainst the bank loan. In respect of immovable properties of land that have been taken onlease and disclosed as property in the financial statements the lease agreements are inthe name of the company where the company is lessee in the agreement.
2) In view of there being no requirement to carry and hold any stock of inventoriestherefore the provisions of clause (ii) of the order is not applicable to the company.
3) According to the information and explanations given to us the Company has grantedunsecured interest free loans to companies covered in the register maintained undersection 189 of the Companies Act 2013 in respect of which:
(a) The terms and conditions of the grant of such loans are in our opinion primafacie not prejudicial to the Company's interest.
(b) The schedule of repayment of principal has been stipulated and repayments orreceipts of principal amounts have been regular as per stipulations.
(c) There is no overdue amount remaining outstanding as at the year-end.
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 loans and investments made.
5) The Company has complied with the provisions of Sections 73 to 76 of the Act andthe Companies (Acceptance of Deposits) Amendment Rules 2015 with regards to the depositsaccepted from public. According to the information and explanation given to us no orderunder the aforesaid sections has been passed by the Company Law Board or National CompanyLaw Tribunal or Reserve Bank of India or any court or any other tribunal against theCompany.
6) The Central Government has not prescribed maintenance of cost records undersub-section (1) of section 148 of the Act in respect of any of the activities of theCompany.
7) (a) In our opinion and according to the information and explanations given to us andon the basis of our examinations of
the records of the Company amount deducted/accrued in the books of accounts in respectof undisputed statutory dues including Income Tax Service Tax Cess and other materialstatutory dues have been regularly deposited during the year by the Company with theappropriate authorities. As explained to us the company did not have any dues on accountof employees' state insurance and duty of excise.
(b) According to the information and explanations given to us no undisputed statutorydues including Income Tax Service Tax Cess and other material statutory dues were inarrears as at March 31 2017 for the period more than six months from the date they becomepayable.
(c) According to the information and explanations given to us there are no materialdues of Customs Income Tax Duty of Excise Service Tax Cess and other materialstatutory dues which have not been deposited with the appropriate authorities on accountof any dispute.
8) In our opinion and according to the information and explanations given to us theCompany has not defaulted in any repayment of loan to a financial institution or bank.
9) Based upon the audit procedures performed and according to the information andexplanations given to us term loans have been applied for the purposes for which it wasraised. The company has not raised monies by way of Initial Public offer or further publicoffer (including debt instruments).
10) According to the information and explanations given to us no material fraud by theCompany or on the Company by its officers or employees has been noticed or reported duringthe year.
11) According to the information and explanations given to us and based on ourexamination of the records of the Company the managerial remuneration has been paid orprovided in accordance with the requisite approvals mandated by the provisions of section197 read with Schedule V to the Act.
12) In our opinion and according to the information and explanation given to us theCompany is not a Nidhi Company. Therefore this clause of the Order is not applicable tothe Company.
13) According to the information and explanations given to us and based on ourexamination of records of the Company transactions with the related parties are incompliance with section 177 and 188 of the Act where applicable and the 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 records of the Company the Company has not made any preferential allotmentor private placement of shares or fully or partly convertible debentures during the yearunder review. Therefore this clause of the Order is not applicable to the Company.
15) According to the information and explanations given to us and based on ourexamination of records of the Company the Company has not entered into any non-cashtransactions with directors or persons connected with him. Therefore this clause of theOrder is not applicable to the Company.
16) In our opinion and according to the information and explanations given to us thecompany is not required to be registered under section 45 - IA of Reserve Bank of IndiaAct 1934. Therefore this clause of the Order is not applicable to the Company.
For M S P & CO.
FR No: 107565W
M. S. Parikh
M No: 08684
Date: May 26 2017
"Annexure B" forming part of 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").
We have audited the internal financial controls over financial reporting of PatelIntegrated Logistics Limited ("the Company") as of March 312017 in conjunctionwith 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 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. These responsibilities includethe design implementation and maintenance of adequate internal financial controls thatwere operating effectively for ensuring the orderly and efficient conduct of its businessincluding adherence to company's policies the safeguarding of its assets the preventionand detection of frauds and errors the accuracy and completeness of the accountingrecords and the timely preparation of reliable financial information as required underthe Companies Act 2013.
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 to the extent applicable toan audit of internal financial controls both issued by the Institute of CharteredAccountants of India. Those Standards and the Guidance Note require that we comply withethical requirements and plan and perform the audit to obtain reasonable assurance aboutwhether adequate 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 qualified audit opinion on the Company's internal financialcontrols system over 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 (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.
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 M S P & CO.
Chartered Accountants FR No: 107565W
M. S. Parikh
Partner M No: 08684
Place: Mumbai Date: May 26 2017