We have audited the accompanying standalone financial statements of PAN
INDIA CORPORATION LIMITED (the Company), which comprise the Balance
Sheet as at 31st March, 2015, the Statement of Profit and Loss, the
Cash Flow Statement for the year then ended, and a summary of the
significant accounting policies and other explanatory information.
Management''s Responsibility for the Standalone Financial Statements
The Company''s Board of Directors is responsible for the matters stated
in Section 134(5) of the Companies Act, 2013 (the Act) with respect
to the preparation and presentation of these standalone financial
statements that give a true and fair view of the financial position,
financial performance and cash flows of the Company in accordance with
the accounting principles generally accepted in India, including the
Accounting Standards specified under Section 133 of the Act, read with
Rule 7 of the Companies (Accounts) Rules, 2014. This responsibility
also includes maintenance of adequate accounting records in accordance
with the provisions of the Act for safeguarding of the assets of the
Company and for preventing and detecting frauds and other
irregularities; selection and application of appropriate accounting
policies; making judgments and estimates that are reasonable and
prudent; and design, implementation and maintenance of adequate
internal financial controls, that were operating effectively for
ensuring the accuracy and completeness of the accounting records,
relevant to the preparation and presentation of the financial
statements that give a true and fair view and are free from material
misstatement, whether due to fraud or error.
Our responsibility is to express an opinion on these financial
statements based on our audit. We have taken into account the
provisions of the Act, the accounting and auditing standards and
matters which are required to be included in the audit report under the
provisions of the Act and the Rules made there under.
We conducted our audit in accordance with the Standards on Auditing
specified under Section 143(10) of the Act. Those Standards require
that we comply with ethical requirements and plan and perform the audit
to obtain reasonable assurance about whether the financial statements
are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and the disclosures in the financial statements. The
procedures selected depend on the auditor''s judgment, including the
assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal financial control relevant
to the Company''s preparation of the financial statements that give a
true and fair view in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing
an opinion on whether the Company has in place an adequate internal
financial controls system over financial reporting and the operating
effectiveness of such controls. An audit also includes evaluating the
appropriateness of the accounting policies used and the reasonableness
of the accounting estimates made by the Company''s Directors, as well as
evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion on the standalone
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid financial statements give the
information required by the Act in the manner so required and give a
true and fair view in conformity with the accounting principles
generally accepted in India, of the state of affairs of the Company as
at 31st March, 2015, and its profit/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, 2015 (The
Order) Issued By The Central Government Of India In Terms Of
Sub-section (11) Of Section 143 Of The Act, We Give In The Annexure A
Statement On The Matters Specified In The Paragraph 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 Best Of 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 The Company So Far As It Appears From Our Examination Of
(C) The Balance Sheet, The Statement Of Profit And Loss, And The Cash
Flow Statement Dealt With By This Report Are In Agreement With The
Books Of Account.
(D) In Our Opinion, The Aforesaid Financial Statements Comply With The
Accounting Standards 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 31st March, 2015 Taken On Record By The Board Of
Directors, None Of The Directors Is Disqualified As On 31st March, 2015
From Being Appointed As A Director In Terms Of Section 164 (2) Of The
(F) With Respect To The Other Matters To Be Included In The Auditor''s
Report In Accordance With Rule 11of The Companies (Audit And Auditors)
Rules, 2014, In Our Opinion And To The Best Of Our Information And
According To The Explanations Given To Us:
i. The company has disclosed the impact of pending litigation on its
financial position in its financial statements-Refer Note 18 to the
ii. The Company did not have any long-term contracts including
derivative contracts for which there were any material foreseeable
iii. There were no amounts which were required to be transferred to the
Investor Education and Protection Fund by the Company.
The Annexure referred to in paragraph 1 under the heading of Report on
other Legal and Regulatory Requirements of Our Report of even date to
the members of PAN INDIA CORPORATION LIMITED. On the accounts of the
company for the year ended 31st March, 2015.
On the basis of such checks as we considered appropriate and according
to the information and explanation given to us during the course of our
audit, we report that:
1. A. The company has maintained proper records showing full
particulars including quantitative details and situation of its fixed
B. As explained to us, the fixed assets have been physically verified
by the management during the year, which in our opinion is reasonable.
2. a. As informed to us, the inventory has been physically verified
during the year by the management. In our opinion, the frequency of
verification is reasonable.
b. The procedure of physical verification of inventories followed by
the management is reasonable and adequate in relation to the size of
the company and the nature of its business.
c. As informed to us, the company has maintained proper records of
inventory. No material discrepancies were noticed on such verification.
3. The Company has not granted any loans to companies, firms or other
parties covered in the register maintained under section 189 of the
Companies Act, 2013.
4. In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the company and the nature of its
business for the purchase of inventory, fixed assets and also for the
sale of goods & services.
During the course of our audit, we have not observed any major
weaknesses in internal controls.
5. The company has not accepted any deposits during the year from the
public within the meaning of the provisions of Section 73 to 76 or any
other relevant provision of the Companies Act,2013 and rules made there
under. Hence, the clause (v) of the order is not applicable.
6. We have been informed that the Central government has not
prescribed maintenance of cost records under section 148 (1) of the
Companies Act, 2013.
7. a. According to the records of the company, undisputed statutory
dues including Provident Fund, Employees'' State Insurance, Income Tax,
Sales Tax, Wealth Tax, Service Tax, Duty of Customs, Duty of Excise,
Value Added Tax, Cess and any other statutory dues to the extent
applicable have been regularly deposited with the appropriate
authorities. According to the information and explanations given to us,
no undisputed amounts payable in respect of the aforesaid dues were
outstanding as at 31st March, 2015 for a period of more than six months
from the date of becoming payable except
Name of the Statue Nature of Dues Amount Period to which
CompaniesAct, R.O.C Fees Amount Financial Year
1956 unascertained 2009-10
Value Added Tax, Cess which have not been deposited on account of any
c. There is no amount which is required to be transferred to investor
education and protection fund in accordance with the relevant
provisions of the Companies Act, 2013(1 of 2013) and rules made there
8. The accumulated losses of the company are more than fifty percent
of its net worth. The company has incurred cash loss during the
financial year covered by our audit and there was cash loss in the
immediately preceding financial year.
9. Based on our audit procedures and on the basis of information''s and
explanations given by the management, the Company has not taken any
loans from any financial institution, bank or debenture holders, so
there is no question of default in repayment;
10. As explained by the management, company has not given guarantee
for loans taken by other from banks or financial institutions.
11. According to the information and explanations given to us, the
Company has not taken any term loan.Accordingly, the provisions of the
clause (xi) of the said Order are not applicable to the Company.
12. As explained to us, no fraud on or by the Company has been noticed
or reported during the year.
Accordingly, provisions of the clause (xii) of the said Order are not
applicable to the Company.
For J.KUMAR & ASSOCIATES
Place: New Delhi Membership No. 073856
Dated: 28.05.2015 FRN NO. 016917N