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Pan Electronics (India) Ltd.

BSE: 517397 Sector: Engineering
NSE: N.A. ISIN Code: INE648E01010
BSE 16:01 | 20 Mar Pan Electronics (India) Ltd
NSE 05:30 | 01 Jan Pan Electronics (India) Ltd
OPEN 5.49
PREVIOUS CLOSE 5.49
VOLUME 340
52-Week high 5.77
52-Week low 3.90
P/E
Mkt Cap.(Rs cr) 2
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 5.49
CLOSE 5.49
VOLUME 340
52-Week high 5.77
52-Week low 3.90
P/E
Mkt Cap.(Rs cr) 2
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Pan Electronics (India) Ltd. (PANELECTRONICS) - Auditors Report

Company auditors report

TO THE MEMBERS OF PAN ELECTRONICS (INDIA) LIMITED

Report on the Standalone Financial Statements

We have audited the accompanying standalone financial statements of M/s. PANELECTRONICS (INDIA) LIMITED (‘the Company') which comprise the Balance Sheet asat 31st March 2017 the Statement of Profit and Loss and the Cash FlowStatement for the year then ended and a summary of significant accounting policies andother explanatory information.

Management's Responsibility for the Standalone 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 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.

Auditors' 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 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 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 sufficient 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 financial statements give the information required by the Act in themanner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India:

(a) In the case of the Balance Sheet of the state of affairs of the Company as atMarch 31st 2017;

(b) In the case of the Statement of Profit and Loss of the Loss for the year ended onthat date; and

(c) In the case of the Cash Flow Statement of the cash flows for the year ended onthat 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" a statement on the matters specified inparagraphs 3 and 4 of the Order.

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 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 standalone financial statements 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 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 March 31 2017 from being appointed as a director in terms of section164 (2) of the Act; and

(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;

(ii) the Company did not have any long-term contracts including derivative contractsfor which there were any material foreseeable losses;

(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 requisite disclosures in its financial statements as toholdings as well as dealings in Specified Bank Notes during the period from 8th November2016 to 30th December 2016 and such disclosures are in accordance with the Books ofaccounts maintained by the Company.

For B N Subramanya & Co. Chartered
Accountants
Firm Reg.No. 04142S
Bangalore Devendra Nayak
30/05/2017 Partner
Membership No.027449

Annexure A to the Independent Auditors' Report

The Annexure referred to in our Independent Auditors' Report to the members of theCompany on the standalone financial statements for the year ended 31st March2017 we report that:

i) Fixed Assets

a) The Company has maintained proper records of fixed assets showing full particularsincluding quantitative details and situation of the assets.

b) The Management has conducted a physical verification of the fixed assets during theyear and no material discrepancies were noticed on such verification.

c) The title deeds of immovable properties are held in the name of the company.

ii) Inventory

The inventory has been physically verified during the year by the management atreasonable intervals and there are no material discrepancies noticed.

iii) Loans and Advances

The Company has not granted loans secured or unsecured to companies firms LLP's orother parties covered in the register maintained u/s 189 of the Act.

iv) Loans/Investments/Guarantees

In our opinion and according to the information and explanations given to usprovisions of section 185 and 186 of the Companies Act 2013 have been complied with inrespect of loans investments guarantees and security given by the company.

v) Deposits

According to the information and explanation given to us the company has not acceptedany deposits consequently directives of the RBI and the provision of Section 73 and 76 orany other relevant provision of the Companies Act2013 and the rules framed there underare not applicable to the company.

vi) Cost records

According to information and explanation given to us the company is not required tomaintain cost records as per sub section (1) of section 148 of the Act hence no commentis required on the same.

vii) Statutory Dues

a) The Company is irregular in depositing with the appropriate authorities undisputedstatutory dues relating to Income tax. The company has the following arrears of statutorydues as at the balance sheet date which were outstanding for more than 6 months from thedate they became payable

Name of Statute Nature of the dues Amount in Rs. Period to which the amount relates Due date
Income Tax Act1961 Tax Deducted at Source Rs.79678 April 1st 2016 to September 30th2016 7th of Subsequent month

However the company is regular in depositing with appropriate authorities otherundisputed statutory dues including PF ESI Income Tax sales tax service tax customduty excise duty VAT cess and other material statutory dues applicable to it.

b) There are no dues of Sales Tax Service Tax Customs Duty Excise Duty and VAT whichhave not been deposited on account of any dispute. The particulars of Income Tax whichhave not been deposited on account of any dispute is as follows:

Name of Statute Nature of the dues Amount in Rs. Period to which the amount relates Forum where dispute is pending
Income Tax Act1961 Income Tax Rs.5495820 Assessment Year 2014- 15 Assessing officer

viii) Repayment of Loans

According to the information and explanations given to us and on the basis of ourexamination of the records of the Company the company has not defaulted in repayment ofloans or borrowings to a financial institution bank Government or dues to debentureholders.

ix) Diversion of Funds

According to the information and explanations given to us and on the basis of ourexamination of the records of the Company there were no further public offer during theyear and the company has not borrowed any term loans.

x) Frauds noticed / Detected

According to the information and explanations given to us and on the basis of ourexamination of the records of the Company no material fraud by the company or any fraudon the company by its officers or employees has been noticed or reported during the year.

xi) Managerial Remuneration

According to the information and explanations given to us and based on our examinationof the records of the company managerial remuneration has been paid in accordance withthe requisite approvals mandated by the provisions of section 197 read with Schedule V tothe Companies Act.

xii) Nidhi Company

The company is not a Nidhi Company as mentioned in section 406 of the Companies Act2013 and hence no comment is required on the same.

xiii) Related Party Transactions

According to the information and explanations given to us and on the basis of ourexamination of the records of the Company all transactions with the related parties arein compliance with sections 177 and 188 of Companies Act 2013 where applicable and thedetails of the transactions have been disclosed in the Financial Statements as required bythe accounting standards and The Companies Act 2013.

xiv)Preferential allotment

According to the information and explanations given to us and on the basis of 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 under review and hence no comment is required on the same.

xv) Non-cash transactions

According to the information and explanations given to us and on the basis of ourexamination of the records of the Company the company has not entered into any non-cashtransactions with directors or persons connected with him and hence no comment is requiredon the same.

xvi)Certification for Non-Banking Financial Institution

The company is not a Non-Banking Financial Institution hence registration undersection 45-IA of the Reserve Bank of India Act 1934 is not required.

For B N Subramanya & Co. Chartered
Accountants
Firm Reg.No. 04142S
Bangalore Devendra Nayak
30/05/2017 Partner
Membership No.027449

Annexure B to 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 M/s. PANELECTRONICS (INDIA) LIMITED ("the Company") as of March 31st 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

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 FinancialReporting" issued by the Institute of Chartered Accountants of India. 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:

(1) Pertain to the maintenance of records that in reasonable detail accurately andfairly reflect the transactions and dispositions of the assets of the company;

(2) Provide reasonable assurance that transactions are recorded as necessary to permitpreparation of financial statements in accordance with generally accepted accountingprinciples and that receipts and expenditures of the company are being made only inaccordance with authorisations of management and directors of the company; and

(3) Provide reasonable assurance regarding prevention or timely detection ofunauthorised acquisition use or disposition of the company's assets that could have amaterial 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 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 ofChartered

Accountants of India.

For B N Subramanya & Co. Chartered
Accountants
Firm Reg.No. 04142S
Bangalore Devendra Nayak
30/05/2017 Partner
Membership No.027449