Mar 31, 2018
INDEPENDENT AUDITORâS REPORT
To,
The Members of
Patel Integrated Logistics Limited
Report on the Standalone Ind AS Financial Statements
We have audited the accompanying Standalone Ind AS Financial Statements of Patel Integrated Logistics Limited (âthe Companyâ), which comprise the Balance Sheet as at March 31, 2018, the Statement of Profit and Loss (including Other Comprehensive Income), the Cash Flow Statement and the Statement of Changes in Equity for the year then ended, and a summary of significant accounting policies and other explanatory information (hereinafter referred to as âStandalone Ind AS Financial Statementsâ)
Managementâs Responsibility for the Standalone Ind AS Financial Statements
The Company''s Board of Directors is responsible for the matters stated in section 134(5) of the Companies Act 2013 (âthe Actâ) with respect to the preparation of these Standalone Ind AS Financial Statements that give a true and fair view of the financial position, financial performance including other comprehensive income, cash flows and changes in equity of the Company in accordance with the accounting principles generally accepted in India, including the Accounting Standards (Ind AS) referred 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 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 Standalone Ind AS Financial Statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
Auditorâs Responsibility
Our responsibility is to express an opinion on these Standalone Ind AS 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 thereunder.
We conducted our audit of the Standalone Ind AS Financial Statements 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 Standalone Ind AS Financial Statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the Standalone Ind AS Financial Statements. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the Standalone Ind AS 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 Standalone Ind AS Financial Statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of 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 Standalone Ind AS 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 Ind AS Financial Statements.
Opinion
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid Standalone Ind AS Financial Statements give the information required by the Act, in the manner so required and give a true and fair view in conformity with accounting principles generally accepted in India, of the state of affairs of the Company as at March 31, 2018, its profit, total comprehensive income, its cash flows and the changes in equity for the year ended on that date.
Other Matters
The standalone financial Statements of the company for the year ended March 31, 2017 were audited by M S P & Co who expressed an unmodified opinion on those statement vide their report dated May 26, 2017, which we have relied upon.
Basis of opinion
We conducted our audit in accordance with Standards on Auditing (SAs). Our responsibilities under those standards are further described in the Auditor''s Responsibilities for the Audit of the Standalone Ind AS Financial Statements section of our report. We are independent of the Company in accordance with the ethical requirements that are relevant to our audit of the Standalone Ind AS Financial Statements, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
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 the Act, we give in the âAnnexure Aâ a statement on the matters specified in paragraphs 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 purpose of our audit;
b) In our opinion, proper books of account as required by law have been kept by the Company so far as appears from our examination of those books;
c) The Balance Sheet, the statement of Profit and Loss including Other Comprehensive Income, the Cash Flow Statement and Statement of Changes in Equity dealt with by this Report are in agreement with the books of account;
d) In our opinion, the aforesaid Standalone Ind AS Financial Statement comply with the Indian Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014;
e) On the basis of written representations received from the directors as on March 31, 2018, and taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2018 from being appointed as a director in terms of section 164(2) of the Act;
f) With respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate Report in âAnnexure Bâ; and
g) With respect to the other matters to be included in the Auditor''s Report in accordance with Rule 11 of 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 litigations on its financial position in its Standalone Ind AS Financial Statements - Refer Note 34 to the Standalone Financial Statements.
ii. The Company did not have any long term contracts including derivative contracts for which there were any material foreseeable losses.
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 Independent Auditor''s Report to the members of the Company on the Standalone Ind AS Financial
Statements for the year ended March 31, 2018, we report that:
On the basis of such checks as we considered appropriate and according to the information and explanations given to us during the course of our audit, we report that:
i) (a) The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets.
(b) The company has a regular programme of physical verification of its fixed assets by which fixed assets are verified in a phased manner over a period of three years. In accordance with this programme, certain fixed assets were verified during the year and no material discrepancies were noticed on such verification. In our opinion, this periodicity of physical verification is reasonable having regard to the size of the company and the nature of its assets.
(c) According to the information and explanations given to us and the records examined by us and based on the examination of registered sale deed provided to us, we report that, the title deeds, comprising all the immovable properties of land and building owned by the company are held in its name. However some of the immovable properties are mortgaged against the bank loan. In respect of immovable properties of land that have been taken on lease and disclosed as property in the Standalone Ind AS Financial Statements, the lease agreements are in the name of the company, where the company is lessee in the agreement.
ii) In view of there being no requirement to carry and hold any stock of inventories, therefore the provisions of clause (ii) of the order is not applicable to the company.
iii) According to the information and explanations given to us, the Company has granted unsecured interest free loans to companies covered in the register maintained under section 189 of the Companies Act, 2013, in respect of which:
- The terms and conditions of the grant of such loans are, in our opinion, prima facie, not prejudicial to the Company''s interest.
- The schedule of repayment of principal has been stipulated and repayments or receipts of principal amounts have been regular as per stipulations.
- There is no overdue amount remaining outstanding as at the year-end.
iv) In our opinion and according to the information and explanations given to us , the company has complied with the provisions of Section 185 and 186 of the Act, with respect to loans and investments made.
v) The Company has complied with the provisions of Sections 73 to 76 of the Act, and the companies (Acceptance of Deposits) Amendment Rules, 2015 with regards to the deposits accepted from public. According to the information and explanation given to us, no order under the aforesaid sections has been passed by the company Law Board or National Company Law Tribunal or Reserve Bank of India or any court or any other tribunal against the Company.
vi) The Central Government has not prescribed the maintenance of cost records under sub- section (1) of section 148 of the Act for any of the activities of the Company.
vii) According to the information and explanations given to us and on the basis of our examinations of the books of accounts and records of the Company, amount deducted/accrued in the books of accounts in respect of undisputed statutory dues including Provident Fund, Income Tax, Sales Tax, Service Tax, GST, Duty of Customs, Duty of Excise, Value Added Tax, Cess and other material statutory dues have been regularly deposited during the year by the Company with the appropriate authorities.
According to the information and explanations given to us, no undisputed amounts payable in respect of the above were in arrears as at March 31, 2018 for the period more than six months from the date they become payable.
According to the information and explanations given to us, there are no material dues of customs, income tax, duty of excise, service tax, GST which have not been deposited with appropriate authorities on account of any dispute.
viii) In our opinion and according to the information and explanations given to us, the Company has not defaulted in repayment of loan to a financial institutions, banks and Government and dues to debenture holders.
ix) Based upon the audit procedures performed and according to the information and explanations given to us, no moneys has been raised by way of initial public offer or further public offer (including debt instruments) and term loans availed has been applied for the purposes for which it was raised.
x) According to the information and explanations given to us, no material fraud by the Company or on the Company by its officers or employees has been noticed or reported during the year.
xi) According to the information and explanations given to us and based on our examination of the records of the Company, the managerial remuneration has been paid or provided in accordance with the requisite approvals mandated by the provisions of section 197 read with Schedule V to the Act.
xii) In our opinion and according to the information and explanation given to us, the Company is not a Nidhi Company. Therefore, this clause of the Order is not applicable to the Company.
xiii) According to the information and explanations given to us and based on our examination of records of the Company, transactions with the related parties are in compliance with section 177 and 188 of the Act where applicable and the details of such transactions have been disclosed in the Standalone Ind AS Financial Statements as required by the applicable accounting standards.
xiv) According to the information and explanations given to us and based on our examination of records of the Company, the Company has made preferential allotment by conversion of share warrants into equity shares during the year under review. The company has not made private placement of shares or fully or partly convertible debentures during the year under review.
xv) According to the information and explanations given to us and based on our examination of records of the Company, the Company has not entered into any non-cash transactions with directors or persons connected with him. Therefore, this clause of the Order is not applicable to the Company.
xvi) In our opinion and according to the information and explanations given to us, the company is not required to be registered under section 45 - IA of Reserve Bank of India Act, 1934. Therefore, this clause of the Order is not applicable to the Company.
âAnnexure Bâ forming part of Independent Auditorâs Report on the Standalone Ind AS Financial Statements of Patel Integrated Logistics Limited
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 (âthe Actâ).
We have audited the internal financial controls over financial reporting of Patel Integrated Logistics Limited (âthe Companyâ) as of March 31, 2018 in conjunction with our audit of the Standalone Ind AS Financial Statements of the Company for the year ended on that date.
Managementâs Responsibility for Internal Financial Controls
The Company''s management is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued by the Institute of Chartered Accountants of India. These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to company''s policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013.
Auditors'' Responsibility
Our responsibility is to express an opinion on the Company''s internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (the âGuidance Noteâ) and the Standards on Auditing prescribed under section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls, both issued by the Institute of Chartered Accountants of India. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the Standalone Ind AS Financial Statements, whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Company''s internal financial controls system over financial reporting.
Meaning of Internal Financial Controls over Financial Reporting
A company''s internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of Standalone Ind AS Financial Statements for external purposes in accordance with generally accepted accounting principles. A company''s internal financial control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of Standalone Ind AS Financial Statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company''s assets that could have a material effect on the Standalone Ind AS Financial Statements.
Inherent Limitations of Internal Financial Controls over Financial Reporting
Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Opinion
In our opinion, the Company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at March 31, 2018, based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note.
For Hitesh Shah & Associates
Chartered Accountants
FRN 103716W
Hitesh Shah
Partner MNO: 040999
Place: Mumbai,
Date: May 30, 2018
Mar 31, 2016
To,
The Members of Patel Integrated Logistics Limited Report on the Financial Statements
We have audited the accompanying financial statements of Patel Integrated Logistics Limited (âthe Companyâ), which comprise the Balance Sheet as at 31st March, 2016, the Statement of Profit and Loss, the Cash Flow Statement for the year then ended, and a summary of significant accounting policies and other explanatory information.
Managementâs Responsibility for the Financial Statements
The Companyâs Board of Directors is responsible for the matters stated in section 134(5) of the Companies Act 2013 (âthe Actâ) with respect to the preparation of these 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 referred 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 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.
Auditorâs Responsibility
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 and the order under section 143(11) of the Act.
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 disclosures in the financial statements. The procedures selected depend on the auditorâs 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 Companyâs preparation and fair presentation of the financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by the Companyâs 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 financial statements.
Opinion
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 accounting principles generally accepted in India, of the state of affairs of the Company as at 31st March, 2016, its profit and its cash flows for the year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditorâs Report) Order, 2016 (âthe Orderâ), issued by the Central Government of India in terms of sub-section (11) of section 143 of the Act, we give in the "Annexure Aâ a statement on the matters specified in paragraphs 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 purpose of our audit;
b) In our opinion, proper books of account as required by law have been kept by the Company so far as appears from our examination of those books;
c) The Balance Sheet, the statement of Profit and Loss, and Cash Flow Statement dealt with by this Report are in agreement with the books of account;
d) In our opinion, the aforesaid financial statement 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 written representations received from the directors as on 31st March, 2016, and taken on record by the Board of Directors, none of the directors is disqualified as on 31st March, 2016 from being appointed as a director in terms of section 164(2) of the Act;
f) With respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate Report in "Annexure Bâ; and
g) With respect to the other matters to be included in the Auditorâs Report in accordance with Rule 11 of 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 does not have any pending litigations which would impact its financial position.
ii. The Company did not have any long term contracts including derivative contracts for which there were any material foreseeable losses under the applicable law or accounting standards.
iii. There was no amount which was required to be transferred to the Investor Education and Protection Fund by the Company.
Annexure âAâ Forming Part of Independent Auditorâs Report
The Annexure referred to in Independent Auditor''s Report to the members of the Company on the financial statements for the year ended 31st March, 2016, we report that:
On the basis of such checks as we considered appropriate and according to the information and explanations given to us during the course of our audit, we report that:
i) (a) The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets.
(b) The Company has a regular programme of physical verification of its fixed assets by which fixed assets are verified in a phased manner over a period of three years. In accordance with this programme, certain fixed assets were verified during the year and no material discrepancies were noticed on such verification. In our opinion, this periodicity of physical verification is reasonable having regard to the size of the company and the nature of its assets.
(c) The title deeds of immovable properties owned by the company are held in its name. However, some of the immovable properties are mortgaged against the bank loan.
ii) In view of there being no requirement to carry and hold any stock of inventories, therefore the provision of clause (ii) of the order is not applicable to the Company.
iii) The Company has not granted any loans, secured or unsecured to Companies, Firms, Limited Liability Partnerships or other parties covered in the register maintained u/s 189 of the Act, therefore, the provision of sub - clause (a), (b) and (c) of the Order is not applicable to the Company.
iv) In our opinion and according to the information and explanations given to us, the Company has complied with the provisions of Section 185 and 186 of the Act, with respect to loans and investments made.
v) The Company has complied with the provision of sections 73 to 76 of the Act, and the Companies (Acceptance of Deposits) Amendment Rules, 2015 with regards to the deposits accepted from the public. According to the information and explanation given to us, no order under the aforesaid sections has been passed by the Company Law Board or National Company Law Tribunal or Reserve Bank of India or any court or any other tribunal.
vi) The Central Government has not prescribed the maintenance of cost records under sub- section (1) of section 148 of the Act for any of the activities of the Company.
vii) (a) According to the information and explanations given to us and on the basis of our examination of the records of the
Company, amount deducted / accrued in the books of account in respect of undisputed statutory dues including Provident Fund, Income tax, Service tax, Cess and other material statutory dues have been regularly deposited during the year by the Company with the appropriate authorities.
According to the information and explanations given to us, no undisputed amounts payable in respect of Provident Fund, Income Tax, Service Tax, Cess and other material statutory dues were in arrears as at 31st March, 2016 for the period more than six months from the date they become payable.
(b) According to the information and explanations given to us, there are no material dues of Income Tax, Service Tax, Cess and other material statutory dues which have not been deposited with appropriate authorities on account of any dispute.
viii) In our opinion and according to the information and explanations given to us, the Company has not defaulted in repayment of loan to a financial institution or bank.
ix) Based upon the audit procedures performed and according to the information and explanations given to us, the moneys raised by way of initial public offer or further public offer (including debt instruments) and term loans have been applied for the purposes for which it was raised.
x) According to the information and explanations given to us, no material fraud by the Company or on the Company by its officers or employees has been noticed or reported during the year.
xi) According to the information and explanations given to us and based on our examination of the records of the Company, the managerial remuneration has been paid or provided in accordance with the requisite approvals mandated by the provisions of section 197 read with Schedule V to the Act.
xii) In our opinion and according to the information and explanation given to us, the Company is not a Nidhi Company. Therefore, this clause of the Order is not applicable to the Company.
xiii) According to the information and explanations given to us and based on our examination of records of the Company, transactions with the related parties are in compliance with section 177 and 188 of the Act where applicable and the details of such transactions have been disclosed in the financial statements as required by the applicable accounting standards.
xiv) According to the information and explanations given to us and based on our examination of records of the Company, the Company has made preferential allotment of equity shares and warrants during the year under review and the requirements of section 42 of the Act have been complied and the amount raised will be used for the purposes for which funds were raised.
xv) According to the information and explanations given to us and based on our examination of records of the Company, the Company has not entered into any non-cash transactions with directors or persons connected with him. Therefore, this clause of the Order is not applicable to the Company.
xvi) In our opinion and according to the information and explanations given to us, the company is not required to be registered under section 45 - IA of Reserve Bank of India Act, 1934, therefore the provision of clause (xvi) of the order is not applicable to the Company.
"Annexure Bâ Forming Part of Independent Auditorâs Report
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 ("the Actâ).
We have audited the internal financial controls over financial reporting of Patel Integrated Logistics Limited (âthe Companyâ) as of March 31, 2016 in conjunction with our audit of the financial statements of the Company for the year ended on that date.
Managementâs Responsibility for Internal Financial Controls
The Companyâs management is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued by the Institute of Chartered Accountants of India. These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to companyâs policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013.
Auditorsâ Responsibility
Our responsibility is to express an opinion on the Companyâs internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls over Financial Reporting (the âGuidance Noteâ) and the Standards on Auditing, to the extent applicable to an audit of internal financial controls, both issued by the Institute of Chartered Accountants of India. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditorâs judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Companyâs internal financial controls system over financial reporting.
Meaning of Internal Financial Controls over Financial Reporting
A companyâs internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A companyâs internal financial control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the companyâs 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 financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Opinion
In our opinion, the Company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at March 31, 2016, based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued by the Institute of Chartered Accountants of India.
For M S P & CO.
Chartered Accountants
(FRN. 107565W)
M. S. PARIKH
(Partner)
(M No. 08684)
Place: Mumbai,
Date: May 27, 2016
Mar 31, 2015
We have audited the accompanying financial statements of Patel
Integrated Logistics Limited ("the Company"), which comprise the
Balance Sheet as at March 31,2015, Profit and Loss Statement and the
Cash Flow Statement for the year then ended, and a summary of
significant accounting policies.
Management's Responsibility for the 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 of these 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
referred 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 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.
Auditor's Responsibility
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
thereunder.
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 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 control relevant to the
Company's preparation and fair presentation 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 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.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid financial statement gives the
information required by the Act, in the manner so required and give a
true and fair view in conformity with accounting principles generally
accepted in India, of the state of affairs of the Company as at 31st
March, 2015, and its profit 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 paragraphs 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
purpose of our audit.
b) In our opinion proper books of account as required by law have been
kept by the Company so far as appears from our examination of those
books.
c) The Balance Sheet, Profit and Loss Statement and Cash Flow Statement
dealt with by this Report are in agreement with the books of account.
d) In our opinion, the aforesaid financial statement comply with the
Accounting Standards specified under Section 133 of the Act, read with
Rule 7 ofthe Companies (Accounts) Rules, 2014.
e) On the basis of written representations received from the directors
as on March 31, 2015, and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31, 2015 from being
appointed as a director in terms of section 164(2) of the Act; and
f) In our opinion and to the best of our information and according to
the explanations given to us, we report as under with respect to other
matters to be included in the Auditor's Report in accordance with Rule
11 of the Companies (Audit and Auditors) Rules, 2014:
i. The Company does not have any pending litigations which would
impact its financial position.
ii. The Company does not have any long term contracts including
derivative contracts, as such 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, to the Investor Education and Protection Fund by the
Company.
Annexure to Independent Auditor's Report
The Annexure referred to in paragraph 1 of our Report of even date to
the members of Patel Integrated Logistics Limited on the accounts ofthe
company for the year ended 31st March, 2015.
On the basis of such checks as we considered appropriate and according
to the information and explanations given to us during the course ofour
audit, we report that:
(i) (a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets on the basis of available information.
(b) We have been informed that the physical verification of fixed
assets is done in a phased manner to cover all the fixed assets in the
span of 3 years which, in our opinion, is reasonable having regards to
the size of the company and nature of its assets. No material
discrepancies were noticed on such verification.
(ii) In view of there being no requirement to carry and hold any stock
of inventories, therefore, the provision of clause (ii) of paragraph 3
of the said Order is not applicable to the Company.
(iii) The Company has not granted any loans, secured or unsecured to
companies, firms or other parties covered in the register maintained
u/s 189 of the Act, therefore, the provision of clause (iii) (a) and
(b) of paragraph 3 ofthe said Order is not applicable to the Company.
(iv) In our opinion and according to the information and explanations
given to us, there is an adequate internal control system commensurate
with the size of the Company and the nature of its business with regard
to purchase of fixed assets and sale of services. The activities of the
Company do not involve purchase of inventory and sale of goods. We have
not observed any major weakness in the internal control system during
the course of audit.
(v) The Company has complied with the provision of sections 73 to 76 of
the Act, and the Companies (Acceptance of Deposits) Amendment Rules,
2015 with regards to the deposits accepted from the public. According
to the information and explanation given to us, no order under the
aforesaid sections has been passed by the Company Law Board or National
Company Law Tribunal or Reserve Bank of India or any court or any other
tribunal.
(vi) The Central Government has not prescribed maintenance of cost
records under sub-section (1) of section 148 of the Act in respect of
any of the activities of the Company.
(vii) (a) According to the information and explanations given to us and
on the basis of our examinations of the records of the Company, amount
deducted/accrued in the books of accounts in respect of undisputed
statutory dues including Provident Fund, Income Tax, Sales Tax, Wealth
Tax, Service Tax, Custom Duty, Value Added Tax, Cess and other material
statutory dues have been generally regularly deposited during the year
by the Company with the appropriate authorities.
According to the information and explanations given to us, no
undisputed statutory dues including Provident Fund, Income Tax, Sales
Tax, Wealth Tax, Service Tax, Custom Duty, Value Added Tax, Cess and
other material statutory dues were in arears as at March 31,2015 for
the period more than Six months from the date they become payable.
(b) According to the information and explanations given to us, there
are no material dues of Income Tax, Sales Tax, Wealth Tax, Service Tax,
Custom Duty, Value Added Tax, Cess and other material statutory dues
which have not been deposited with the appropriate authorities on
account of any dispute.
(c) According to the information and explanations given to us the
amounts which were required to be transferred to the investor education
and protection fund in accordance with the relevant provision of the
Companies Act, 1956 and the rules there under has been transferred to
such fund within time.
(viii) The Company has no accumulated loss as at 31st March, 2015 and
has not incurred cash losses in the financial year covered under audit
and in the immediately preceding financial year.
(ix) In our opinion and according to the information and explanations
given to us, the Company has not defaulted in repayment of dues to
banks, financial institutions and debenture holders during the year.
(x) In our opinion and according to the information and explanations
given to us, the company has not given any guarantee for loans taken by
others from banks or financial institutions.
(xi) In our opinion and according to the information and explanations
given to us, the term loan has been applied for the purpose for which
the same were obtained.
(xii) In our opinion and according to the information and explanation
given to us, we have neither come across any instances of fraud on or
by the company nor have we been informed of any such case by the
management.
For M S P & CO.
Chartered Accountants
(FRN. 107565W)
M. S. PARIKH
(Partner)
(M No. 08684)
Place: Mumbai,
Date: 28th May, 2015
Mar 31, 2014
We have audited the accompanying financial statements of Patel
Integrated Logistics Limited, which comprise of Balance Sheet as at
31st March, 2014, and the Statement of Profit and Loss and Cash Flow
Statement for the year then ended, and a summary of signifi cant
accounting policies and other explanatory information.
Management''s Responsibility for the Financial Statements
The Company''s Management is responsible for the preparation of these fi
nancial statements that give a true and fair view of the financial
position, financial performance and cash fl ows of the Company in
accordance with the Accounting Standards notifi ed under the Companies
Act, 1956 (the Act) read with the General Circular 15/2013 dated 13th
September, 2013 of the Ministry of Corporate Affairs in respect of
Section 133 of the Companies Act, 2013 and in accordance with the
accounting principles generally accepted in India. This responsibility
includes the design, implementation and maintenance of internal control
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.
Auditor''s Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. 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 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 control relevant to the
Company''s preparation and fair presentation of the financial
statements in order to design audit procedures that are appropriate in
the circumstances. An audit also includes evaluating the
appropriateness of accounting policies used and the reasonableness of
the accounting estimates made by management, as well as evaluating the
overall presentation of the financial statements.
We believe that the audit evidence we have obtained is suffi cient and
appropriate to provide a basis for our audit opinion
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the 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.
a. in the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2014;
b. in the case of the Profit and Loss Statement, of the Profit for
the year ended on that date; and
c. in the case of Cash Flow Statement, of the cash fl ows for the year
ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2003 ("the
Order") issued by the Central Government of India in terms of
sub-section (4A) of section 227 of the Act, we give in the Annexure a
statement on the matters specifi ed in paragraphs 4 and 5 of the Order.
2. As required by section 227(3) of the Act, we report that:
a) we have obtained all the information and explanations which to the
best of 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 the Company so far as appears from our examination of those
books
c) the Balance Sheet, Statement of Profit and Loss, and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account.
d) in our opinion, the Balance Sheet, Statement of Profit and Loss,
and Cash Flow Statement comply with the Accounting Standards notifi ed
under the Act read with the General Circular 15/2013 dated 13th
September, 2013 of the Ministry of Corporate Affairs in respect of
Section 133 of the Companies Act, 2013.
e) on the basis of written representations received from the directors
as on March 31, 2014, and taken on record by the Board of Directors,
none of the directors is disqualifi ed as on March 31, 2014, from being
appointed as a director in terms of clause (g) of sub-section (1) of
section 274 of the Companies Act, 1956.
Annexure to Independent Auditor''s Report The Annexure referred to in
paragraph 1 of the Our Report of even date to the members of Patel
Integrated Logistics Limited on the accounts of the company for the
year ended 31st March, 2014.
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:
(I) In respect of its fixed assets:
(a) The Company has maintained proper records showing full particulars,
including quantitative details and situation of fixed assets.
(b) We have been informed that the physical Verification of fixed
Assets is done in a phased manner to cover all the Fixed Assets in the
span of 3 years which, in our opinion, is reasonable having regard to
the size of the Company and the nature of its assets. No material
discrepancies were noticed on such Verification.
(c) The Fixed Assets disposed off during the year, in our opinion, do
not constitute a substantial part of the fixed assets of the Company
and such disposal has, in our opinion, not affected the going concern
status of the Company.
(II) In respect of inventory of stores, operating supplies, etc.:
In view of there being no requirement to carry and hold any stock of
inventories, therefore, the provision of this clause of the Companies
(Auditor''s Report) Order, 2003 (as amended) is not applicable to the
Company.
(III) (a) According to the information and explanation given to us and
on the basis of our examination the Company has not granted any loans,
secured or unsecured to companies, fi rms or other parties covered in
the register maintained u/s 301 of the Companies Act, 1956, therefore,
the provision of this clause III (b), (c) and (d) of the Companies
(Auditor''s Report) Order, 2003 (as amended) is not applicable to the
Company.
(e) The Company has taken unsecured loan from two companies listed in
the register maintained under section 301 of the Companies Act, 1956.
The maximum amount outstanding during the year was Rs.1,15,00,000/- (1
Company) and the year end balance of loan taken from such company is
Rs. Nil.
(f) In our opinion and according to the information and explanation
given to us, the rate of interest and other terms and conditions are
prima-facie not prejudicial to the interest of the company.
(g) The principal amounts are been repaid as per the repayment schedule
and there is no interest outstanding to the loan amount in the fi
nancial statement.
(IV) In our opinion and according to the information and explanations
given to us, there is an adequate internal control system commensurate
with the size of the Company and the nature of its business with regard
to purchase of fixed assets and sale of services. During the course of
our audit, we have neither come across nor have we been informed of any
continuing failure to correct major weaknesses in the internal control
system.
(V) In respect of contracts or arrangement entered in the Register
maintained in pursuance of section 301 of the Companies Act, 1956, to
the best of our knowledge and belief and according to the information
and explanations given to us;
(a) The transactions made in pursuance of contracts or arrangements
that are required to be entered in the Register maintained under
Section 301 of the Companies Act, 1956, have been duly entered by the
Company.
(b) In our opinion, the transactions in pursuance of contracts or
arrangements that are required to be entered in the Register maintained
under Section 301 of the Companies Act, 1956 aggregating during the
year to Rs. 500,000/- (Rupees Five Lacs Only) or more in respect of any
party during the year, the rates are considered to be reasonable having
regard to the prevailing market price at the relevant time.
(VI) In our opinion and according to the explanations given to us, the
Company has complied with the provision of sections 58A and 58AA of the
Companies Act, 1956 and the Companies (Acceptance of Deposits) Rules,
1975, and the Directives issued by the Reserve Bank of India with
regards to the deposits accepted from the public. According to the
information and explanation given to us, no order under the aforesaid
sections has been passed by the Company Law Board on the Company.
(VII) In our opinion, the Company has an in house internal audit system
and it has also assigned internal audit through independent fi rm of
Chartered Accountants which is commensurate with the size and nature of
Company''s business.
(VIII) The Central Government has not prescribed maintenance of cost
records under section 209(1)(d) of the Companies Act, 1956 in respect
of any of the activities of the Company.
(IX) (a) In our opinion and according to the explanations given to us,
the undisputed statutory dues including Provident Fund, Investor
Education and Protection Fund, Employees'' State Insurance, Income-tax,
Sales-tax, Wealth Tax, Service Tax, Custom Duty, Excise Duty, cess to
the extent applicable and any other statutory dues have generally been
regularly deposited with the appropriate authorities. According to the
information and explanations given to us there were no outstanding
statutory dues as on 31st of March, 2014 for a period of more than six
months from the date they became payable.
(b) According to the information and explanations given to us, there is
no amounts payable in respect of income tax, wealth tax, service tax,
sales tax, customs duty and excise duty which have not been deposited
on account of any disputes.
(X) The Company has no accumulated loss as at 31st March, 2014 and has
not incurred cash losses in the financial year covered under audit and
in the immediately preceding financial year.
(XI) In our opinion and according to the information and explanations
given to us, the Company has not defaulted in repayment of dues to
banks and financial institutions.
(XII) In our opinion and according to the information and explanations
given to us, the Company has not granted any loans and advances on the
basis of security by way of pledge of shares, debentures and other
securities.
(XIII) The Company is not a chit fund or a nidhi /mutual benefit
fund/society. Therefore, the provision of this clause of the Companies
(Auditor''s Report) Order, 2003 (as amended) is not applicable to the
Company.
(XIV) In our opinion and according to information and explanations
given to us, the Company is not dealing in or trading in Shares,
securities, debentures and other investments. Therefore, the provision
of this clause of the Companies (Auditor''s Report) Order, 2003 (as
amended) is not applicable to the Company.
(XV) In our opinion and according to the information and explanations
given to us, the company has not given any guarantee for loans taken by
others from banks or financial institutions.
(XVI) In our opinion and according to the information and explanations
given to us, the term loan has been applied for the purpose for which
the same were obtained.
(XVII) According to the information and explanations given to us, and
on an overall examination of the Balance Sheet of the Company, no funds
have been raised on short term basis, which are used during the year
for long term investment and vice versa.
(XVIII) The Company has not made any preferential allotment of shares
to parties and companies covered in the register maintained u/s 301 of
the Companies Act, 1956 during the year. Therefore, the provision of
this clause of the Companies (Auditor''s Report) Order, 2003 (as
amended) is not applicable to the Company.
(XIX) In our opinion and according to the information and explanations
given to us, the Company has not issued any debentures.
(XX) The Company has not raised any money by public issue during the
year.
(XXI) To the best of our knowledge and according to the information and
explanation given to us, we have neither come across any instances of
fraud on or by the company nor have we been informed of any such case
by the management.
For M S P & CO.
Chartered Accountants (FRN. 107565W)
M. S. Parikh
(Partner)
(Membership No. 08684)
Place: Mumbai,
Date : 28th May, 2014
Mar 31, 2013
Report on the Financial Statements
We have audited the accompanying fnancial statements of Patel
Integrated Logistics Limited, which comprise of Balance Sheet as at
31st March, 2013, and the Statement of Proft and Loss and Cash Flow
Statement for the year ended, and a summary of signifcant accounting
policies and other explanatory information.
Management''s Responsibility for the Financial Statements
Management is responsible for the preparation of these fnancial
statements that give a true and fair view of the fnancial position,
fnancial performance and cash fows of the Company in accordance with
the Accounting Standards referred to in sub-section (3C) of section 211
of the Companies Act, 1956 ("the Act"). This responsibility includes
the design, implementation and maintenance of internal control relevant
to the preparation and presentation of the fnancial statements that
give a true and fair view and are free from material misstatement,
whether due to fraud or error.
Auditor''s Responsibility
Our responsibility is to express an opinion on these fnancial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the fnancial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the fnancial statements. The procedures
selected depend on the auditor''s judgment, including the assessment of
the risks of material misstatement of the fnancial statements, whether
due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the Company''s preparation and
fair presentation of the fnancial statements in order to design audit
procedures that are appropriate in the circumstances. An audit also
includes evaluating the appropriateness of accounting policies used and
the reasonableness of the accounting estimates made by management, as
well as evaluating the overall presentation of the fnancial statements.
We believe that the audit evidence we have obtained is suffcient and
appropriate to provide a basis for our audit opinion.
In our opinion and to the best of our information and according to the
explanations given to us, the fnancial 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.
a. in the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2013;
b. in the case of the Proft and Loss Statement, of the Proft for the
year ended on that date; and
c. in the case of Cash Flow Statement, of the cash fows for the year
ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2003 ("the
Order") issued by the Central Government of India in terms of
sub-section (4A) of section 227 of the Act, we give in the Annexure a
statement on the matters specifed in paragraphs 4 and 5 of the Order.
2. As required by section 227(3) of the Act, we report that:
a) we have obtained all the information and explanations which to the
best of 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 the Company so far as appears from our examination of those
books
c) the Balance Sheet, Statement of Proft and Loss and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account.
d) in our opinion, the Balance Sheet, Statement of Proft and Loss and
Cash Flow Statement comply with the Accounting Standards referred to in
subsection (3C) of section 211 of the Companies Act, 1956;
e) on the basis of written representations received from the directors
as on March 31, 2013, and taken on record by the Board of Directors,
none of the directors is disqualifed as on March 31, 2013, from being
appointed as a director in terms of clause (g) of sub-section (1) of
section 274 of the Companies Act, 1956.
ANNEXURE TO INDEPENDENT AUDITOR''S REPORT
The Annexure referred to in paragraph 1 of the Our Report of even date
to the members of Patel Integrated Logistics Limited on the accounts of
the company for the year ended 31st March, 2013.
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:
(I) In respect of its fxed assets:
(a) The Company has maintained proper records showing full particulars,
including quantitative details and situation of fxed assets.
(b) We have been informed that the Company has put in place a policy of
physical verifcation of fxed Assets in a phased manner to cover all the
Fixed Assets in the span of 3 years which, in our opinion, is
reasonable having regard to the size of the Company and the nature of
its assets. No material discrepancies were noticed on such verifcation.
(c) The Fixed Assets disposed off during the year, in our opinion, do
not constitute a substantial part of the fxed assets of the Company and
such disposal has, in our opinion, not affected the going concern
status of the Company.
(II) In respect of inventory of stores, operating supplies, etc.:
In view of there being no requirement to carry and hold any stock of
inventories, therefore, the provision of this clause of the Companies
(Auditor''s Report) Order, 2003 (as amended) is not applicable to the
Company.
(III) (a) According to the information and explanation given to us and
on the basis of our examination the Company has not granted any loans,
secured or unsecured to companies, frms or other parties covered in the
register maintained u/s 301 of the Companies Act, 1956, therefore, the
provision of this clause III (b), (c) and (d) of the Companies
(Auditor''s Report) Order, 2003 (as amended) is not applicable to the
Company.
(e) The Companies has taken unsecured loan from two companies listed in
the register maintained under section 301 of the Companies Act, 1956.
The maximum amount outstanding during the year was Rs.1,76,00,000/- (2
Companies) and the year end balance of loan taken from such company is
Rs.1,15,00,000/- (1 Company).
(f) In our opinion and according to the information and explanation
given to us, the rate of interest and other terms and conditions are
prima-facie not prejudicial to the interest of the company.
(g) The principal amounts are been repaid as per the repayment schedule
and interest outstanding if any at the year end has been added to the
loan amount in the fnancial statement.
(IV) In our opinion and according to the information and explanations
given to us, there is an adequate internal control system commensurate
with the size of the Company and the nature of its business with regard
to purchase of fxed assets and sale of services. During the course of
our audit, we have neither come across nor have we been informed of any
continuing failure to correct major weaknesses in the internal control
system.
(V) In respect of contracts or arrangement entered in the Register
maintained in pursuance of section 301 of the Companies Act, 1956, to
the best of our knowledge and belief and according to the information
and explanations given to us;
(a) The transactions made in pursuance of contracts or arrangements
that are required to be entered in the Register maintained under
Section 301 of the Companies Act, 1956, have been duly entered by the
Company.
(b) In our opinion, the transactions in pursuance of contracts or
arrangements that are required to be entered in the Register maintained
under Section 301 of the Companies Act, 1956 aggregating during the
year to Rs. 500,000/- (Rupees Five Lacs Only) or more in respect of
any party during the year, the rates are considered to be reasonable
having regard to the prevailing market price at the relevant time.
(VI) In our opinion and according to the explanations given to us, the
Company has complied with the provision of sections 58A and 58AA of the
Companies Act, 1956 and the Companies (Acceptance of Deposits) Rules,
1975 and the Directives issued by the Reserve Bank of India with
regards to the deposits accepted from the public. According to the
information and explanation given to us, no order under the aforesaid
sections has been passed by the Company Law Board on the Company.
(VII) In our opinion, the Company has an in house internal audit system
and it has also assigned internal audit through independent frm of
Chartered Accountants which is commensurate with the size and nature of
Company''s business.
(VIII) The Central Government has not prescribed maintenance of cost
records under section 209(1)(d) of the Companies Act, 1956 in respect
of any of the activities of the Company.
(IX) (a) In our opinion and according to the explanations given to us,
the undisputed statutory dues including Provident Fund, Investor
Education and Protection Fund, Employees'' State Insurance, Income-Tax,
Sales-Tax, Wealth Tax, Service Tax, Custom Duty, Excise Duty, Cess to
the extent applicable and any other statutory dues have generally been
regularly deposited with the appropriate authorities. According to the
information and explanations given to us there were no outstanding
statutory dues as on 31st of March, 2013 for a period of more than six
months from the date they became payable.
(b) According to the information and explanations given to us, there is
no amounts payable in respect of income tax, wealth tax, service tax,
sales tax, customs duty and excise duty which have not been deposited
on account of any disputes.
(X) The Company has no accumulated loss as at 31st March, 2013 and has
not incurred cash losses in the fnancial year covered under audit and
in the immediately preceding fnancial year.
(XI) In our opinion and according to the information and explanations
given to us, the Company has not defaulted in repayment of dues to
banks and fnancial institutions.
(XII) In our opinion and according to the information and explanations
given to us, the Company has not granted any loans and advances on the
basis of security by way of pledge of shares, debentures and other
securities.
(XIII) The Company is not a chit fund or a nidhi /mutual beneft
fund/society Therefore, the provision of this clause of the Companies
(Auditor''s Report) Order, 2003 (as amended) is not applicable to the
Company.
(XIV) In our opinion and according to information and explanations
given to us, the Company is not dealing in or trading in shares,
securities, debentures and other investments. Therefore, the provision
of this clause of the Companies (Auditor''s Report) Order, 2003 (as
amended) is not applicable to the Company.
(XV) In our opinion and according to the information and explanations
given to us, the company has not given any guarantee for loans taken by
others from banks or fnancial institutions.
(XVI) In our opinion and according to the information and explanations
given to us, the term loan has been applied for the purpose for which
the same were obtained.
(XVII) According to the information and explanations given to us, and
on an overall examination of the Balance Sheet of the Company, no funds
have been raised on short term basis, which are used during the year
for long term investment and vice versa.
(XVIII) The Company has not made any preferential allotment of shares
to parties and companies covered in the register maintained u/s 301 of
the Companies Act, 1956 during the year. Therefore, the provision of
this clause of the Companies (Auditor''s Report) Order, 2003 (as
amended) is not applicable to the Company.
(XIX) In our opinion and according to the information and explanations
given to us, the Company has not issued any debentures.
(XX) The Company has not raised any money by public issue during the
year.
(XXI) To the best of our knowledge and according to the information and
explanation given to us, we have neither come across any instances of
fraud on or by the company nor have we been informed of any such case
by the management.
For M S P & CO.
Chartered Accountants
(FRN. 107565W)
M. S. Parikh
(Partner)
(Membership No. 08684)
Place: Mumbai,
Date: 29th May, 2013
Mar 31, 2012
1. We have audited the attached Balance Sheet of Patel Integrated
Logistics Limited, as at 31st March, 2012, the related Profit and Loss
Account and the Cash Flow Statement for the year ended on that date
annexed thereto. These financial statements are the responsibility of
the Company's Management. Our responsibility is to express an opinion
on these financial statements based on our audit.
2. We have conducted our audit in accordance with the auditing
standards generally accepted in India. These Standards require that we
plan and perform the audit to obtain reasonable assurance about whether
the financial statements are free of material misstatements. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by the Management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides a reasonable
basis for our opinion.
3. As required by the Companies (Auditor's Report) Order 2003, as
amended by the Companies (Auditor's Report Amendment) Order, 2004,
issued by the Central Government of India in terms of sub-section (4A)
of Section 227 of The Companies Act, 1956, and on the basis of such
checks of the books and records of the Company as we considered
appropriate and according to the information and explanations given to
us, we enclose in the Annexure a statement on the matters specified in
paragraphs 4 and 5 of the said Order.
4. We further report that:
i) We have obtained all the information and explanations, which, to the
best of our knowledge and belief, were necessary for the purposes of
our audit;
ii) In our opinion, proper books of account as required by law have
been kept by the Company so far as appears from our examination of
those books;
iii) The Balance Sheet, Profit and Loss Account and Cash Flow Statement
dealt with by this report are in agreement with the books of account;
iv) In our opinion, the Balance Sheet, Profit and Loss Account and Cash
Flow Statement dealt with by this report comply with the Accounting
Standards referred to in sub-section (3C) of section 211 of the
Companies Act, 1956;
v) On the basis of the written representations received from the
Directors as on 31st March, 2012 and taken on record by the Board of
Directors, we report that none of the directors are disqualified as on
31st March, 2012 from being appointed as director in terms of clause
(g) of sub section (1) of section 274 of the Companies Act, 1956;
vi) In our opinion and to the best of our information and according to
the explanations given to us, the said financial statements read with
the significant accounting policies and notes thereon, give the
information required by the Companies Act, 1956 in the manner so
required and give a true & fair view in conformity with the accounting
principles generally accepted in India:-
a. in the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2012;
b. in the case of the Profit and Loss Account, of the Profit of the
Company for the year ended on that date;
and
c. in the case of Cash Flow Statement, of the cash flows of the
Company for the year ended on that date.
ANNEXURE TO AUDITORS' REPORT OF PATEL INTEGRATED LOGISTICS LIMITED
(Referred to in paragraph 3 of our report of even date)
(I) In respect of its fixed assets:
(a) The Company has maintained proper records showing full particulars,
including quantitative details and situation of fixed assets.
(b) We have been informed that all the Fixed Assets have been
physically verified by the management in a phased manner over the
period of three years which, in our opinion, is reasonable having
regard to the size of the Company and the nature of its assets. No
material discrepancies were noticed on such verification.
(c) During the year no substantial part of fixed assets has been
disposed off by the Company. Therefore, the provisions of clause I(c)
of paragraph 4 of the aforesaid Order, in our opinion, are not
applicable to the Company.
(II) In respect of inventory of stores, operating supplies, etc.:
In view of there being no requirement to carry and hold any stock of
inventories, the provisions of clause II of paragraph of the aforesaid
Order, in our opinion, are not applicable to the Company.
(III) In respect of the loans, secured or unsecured, granted or taken
by the Company to companies, firms or other parties covered in the
Register maintained under section 301 of the Companies Act, 1956,
according to the information and explanations given to us :
(a) The Company has granted loans to one company listed in the register
maintained under section 301 of the Companies Act, 1956. The maximum
amount outstanding during the year was Rs. 20,12,203/- and the year end
balance of loan granted to such company is Rs. Nil/-. Since the year
end balance of such loan outstanding was Nil the provision of Clause
III (b), (c) and (d) of paragraph 4 of the aforesaid Order, are not
applicable to the Company.
(e) The Company has taken unsecured loan from one company listed in the
register maintained under section 301 of the Companies Act, 1956. The
maximum amount outstanding during the year was Rs. 61,00,000/- and the
year end balance of loan taken from such company is Rs. 61,00,000/-.
(f) In our opinion and according to the information and explanation
given to us, the rate of interest and other terms and conditions of the
loans taken by the company, are prima facie not prejudicial to the
interest of the company.
(g) The principal amounts are repayable on demand and there is no
repayment schedule. The interest is paid regularly.
(IV) In our opinion and according to the information and explanations
given to us, there is an adequate internal control system commensurate
with the size of the Company and the nature of its business with regard
to purchase of fixed assets and sale of services. During the course of
our audit, we have neither come across nor have we been informed of any
continuing failure to correct major weaknesses in the internal control
system.
(V) In respect of contracts or arrangements entered in the Register
maintained in pursuance of Section 301 of the Companies Act, 1956, to
the best of our knowledge and belief and according to the information
and explanations given to us:
(a) The transactions made in pursuance of contracts or arrangements
that are required to be entered in the register maintained under
Section 301 of the Companies Act, 1956, have been duly entered by the
Company.
(b) In our opinion, the transactions in pursuance of contracts or
arrangements that are required to be entered in the register maintained
under Section 301 of the Companies Act, 1956 aggregating during the
year to Rs. 5,00,000/- (Rupees Five Lacs Only) or more in respect of
any party during the year, the rates are considered to be reasonable
having regard to the prevailing market price at the relevant time.
(VI) In our opinion and according to the explanations given to us, the
Company has complied with the provisions of Sections 58A and 58AA of
the Companies Act, 1956 and the Companies (Acceptance of Deposits)
Rules, 1975, with regard to the deposits accepted from the public.
According to the information and explanations given to us, no order
under the aforesaid sections has been passed by the Company Law Board
on the Company.
(VII) In our opinion, the Company has an internal audit system,
commensurate with the size of the Company and nature of its business.
(VIII) The Central Government has not prescribed maintenance of cost
records under section 209(1)(d) of the Companies Act, 1956 in respect
of any of the activities of the Company.
(IX) According to the information and explanations given to us in
respect of statutory dues:
(a) The Company has generally been regular in depositing undisputed
dues of Provident Fund, Employees' State Insurance, Income Tax, Wealth
Tax, Service Tax, Cess and other statutory dues applicable to it, with
the appropriate authorities during the year. According to the
information and explanation given to us, no undisputed amounts payable
in respect of Provident Fund, Employees' State Insurance, Income Tax,
Wealth Tax, Service Tax, Sales Tax, and Cess were in arrears as at 31st
March, 2012 for a period of more than six months from the date they
became payable.
(b) There are no statutory dues, which have not been deposited on
account of any dispute.
(X) The Company has no accumulated loss as at 31st March, 2012 and has
not incurred cash losses in the financial year covered under audit and
in the immediately preceding financial year.
(XI) In our opinion and according to the information and explanations
given to us, the Company has not defaulted in repayment of dues to
Banks, Financial Institutions. The Company has not issued any
debentures.
(XII) In our opinion and according to the information and explanations
given to us, the Company has not granted any loans and advances on the
basis of security by way of pledge of shares, debentures and other
securities.
(XIII) In our opinion, the Company is not a chit fund or a nidhi,
mutual benefit fund/society. Therefore, the provisions of clause XIII
of paragraph 4 of the aforesaid Order, are not applicable to the
Company.
(XIV) In our opinion and according to the information and explanation
given to us, the Company is not dealing in or trading in shares,
securities, debentures and other investments. Accordingly, the
provision of Clause XIV of paragraph 4 of the aforesaid Order, are not
applicable to the Company.
(XV) According to the information and explanations given to us, the
Company has not given any guarantee for loans taken by others from bank
or financial institutions. Accordingly, the provision of Clause XV of
paragraph 4 of the aforesaid Order, are not applicable to the Company.
(XVI) In our opinion and according to the information and explanations
given to us, the term loans have been applied for the purpose for which
the same were obtained.
(XVII) According to the information and explanations given to us, and
on an overall examination of the Balance Sheet of the Company, funds
raised on short term basis have, prima facie, not been used during the
year for long term investment.
(XVIII) The Company has not made any preferential allotment of shares
to parties and companies covered in the register maintained under
section 301 of the Companies Act, 1956, during the year. Therefore, the
provisions of clause XVIII of paragraph 4 of the aforesaid Order, in
our opinion, are not applicable to the Company.
(XIX) The Company has not issued any debentures during the year under
audit. Therefore, the provisions of clause XIX of paragraph 4 of the
aforesaid Order, in our opinion, are not applicable to the Company.
(XX) During the year the company has reissued its forfeited equity
shares. However, the Company has not raised any money by public issue
during the year. Therefore, the provisions of clause XX of paragraph 4
of the aforesaid Order, in our opinion, are not applicable to the
Company.
(XXI) To the best of our knowledge and according to the information and
explanation given to us, we have neither come across any instances of
fraud on or by the Company nor have we been informed of any such case
by the Management.
For M S P & CO.
Chartered Accountants
M. S. Parikh
(Partner)
Membership No. 08684
Mumbai,
Dated: 30th August, 2012.
Mar 31, 2011
1. We have audited the attached Balance Sheet of Patel Integrated
Logistics Limited, as at 31st March, 2011, the related Profit and Loss
Account and the Cash Flow Statement for the year ended on that date
annexed thereto. These financial statements are the responsibility of
the Company's Management. Our responsibility is to express an opinion
on these financial statements based on our audit.
2. We have conducted our audit in accordance with the auditing
standards generally accepted in India. These Standards require that we
plan and perform the audit to obtain reasonable assurance about whether
the financial statements are free of material misstatements. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by the Management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides a reasonable
basis for our opinion.
3. As required by the Companies (Auditor's Report) Order 2003, as
amended by the Companies (Auditor's Report Amendment) Order, 2004,
issued by the Central Government of India in terms of sub-section (4A)
of Section 227 of The Companies Act, 1956, and on the basis of such
checks of the books and records of the Company as we considered
appropriate and according to the information and explanations given to
us, we enclose in the Annexure a statement on the matters specified in
paragraphs 4 and 5 of the said Order.
4. We further report that:
i) We have obtained all the information and explanations, which, to the
best of our knowledge and belief, were necessary for the purposes of
our audit;
ii) In our opinion, proper books of account as required by law have
been kept by the Company so far as appears from our examination of
those books;
iii) The Balance Sheet, Profit and Loss Account and Cash Flow Statement
dealt with by this report are in agreement with the books of account;
iv) In our opinion, the Balance Sheet, Profit and Loss Account and Cash
Flow Statement dealt with by this report comply with the Accounting
Standards referred to in sub-section (3C) of Section 211 of the
Companies Act, 1956;
v) On the basis of the written representations received from the
Directors as on 31st March, 2011 and taken on record by the Board of
Directors, we report that none of the directors are disqualified as on
31st March, 2011 from being appointed as director in terms of Clause
(g) of sub-section (1) of Section 274 of the Companies Act, 1956;
vi) In our opinion and to the best of our information and according to
the explanations given to us, the said financial statements read with
the significant accounting policies and notes thereon, give the
information required by the Companies Act, 1956 in the manner so
required and give a true & fair view in conformity with the accounting
principles generally accepted in India:-
a. in the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2011;
b. in the case of the Profit and Loss Account, of the profit of the
Company for the year ended on that date;
and
c. in the case of Cash Flow Statement, of the cash flows of the
Company for the year ended on that date.
ANNEXURE TO AUDITORS' REPORT OF PATEL INTEGRATED LOGISTICS LIMITED
(Referred to in paragraph 3 of our report of even date)
(I) In respect of its fixed assets:
(a) The Company has maintained proper records showing full particulars,
including quantitative details and situation of fixed assets.
(b) We have been informed that most of the Fixed Assets have been
physically verified by the management during the year in a phased
manner which, in our opinion, is reasonable having regard to the size
of the Company and the nature of its assets. No material discrepancies
were noticed on such verification.
(c) During the year no substantial part of fixed assets has been
disposed off by the Company. Therefore, the provisions of clause I(c)
of paragraph 3 of the aforesaid Order, in our opinion, are not
applicable to the Company.
(II) In respect of inventory of stores, operating supplies, etc.:
In view of there being no requirement to carry and hold any stock of
inventories, the provisions of clause II of paragraph of the aforesaid
Order, in our opinion, are not applicable to the Company.
(III) In respect of the loans, secured or unsecured, granted or taken
by the Company to companies, firms or other parties covered in the
Register maintained under section 301 of the Companies Act, 1956,
according to the information and explanations given to us :
(a) The Company has granted loans to one company listed in the register
maintained under section 301 of the Companies Act, 1956. The maximum
amount outstanding during the year was Rs.20,12,203/- and the year end
balance of loan granted to such company is Rs. 20,12,203/-.
(e) The Company has taken unsecured loan from one company listed in the
register maintained under section 301 of the Companies Act, 1956. The
maximum amount outstanding during the year was Rs.1,06,00,000/- and the
year end balance of loan taken from such company is Rs.61,00,000/-.
(f) In our opinion and according to the information and explanation
given to us, the rate of interest and other terms and conditions of the
loans taken by the company, are prima facie not prejudicial to the
interest of the company.
(g) The principal amounts are repayable on demand and there is no
repayment schedule. The interest is paid regularly.
(IV) In our opinion and according to the information and explanations
given to us, there is an adequate internal control system commensurate
with the size of the Company and the nature of its business with regard
to purchase of fixed assets and sale of services. During the course of
our audit, we have neither come across nor have we been informed of any
continuing failure to correct major weaknesses in the internal control
system.
(V) In respect of contracts or arrangements entered in the Register
maintained in pursuance of Section 301 of the Companies Act, 1956, to
the best of our knowledge and belief and according to the information
and explanations given to us:
(a) The transactions made in pursuance of contracts or arrangements
that are required to be entered in the register maintained under
Section 301 of the Companies Act, 1956, have been duly entered by the
Company.
(b) In our opinion, the transactions in pursuance of contracts or
arrangements that are required to be entered in the Register maintained
under Section 301 of the Companies Act, 1956 aggregating during the
year to Rs. 5,00,000/- (Rupees Five Lacs Only) or more in respect of
any party during the year, the rates are considered to be reasonable
having regard to the prevailing market price at the relevant time.
(VI) In our opinion and according to the explanations given to us, the
Company has complied with the provisions of Sections 58A and 58AA of
the Companies Act, 1956 and the Companies (Acceptance of Deposits)
Rules, 1975, with regard to the deposits accepted from the public.
According to the information and explanations given to us, no order
under the aforesaid sections has been passed by the Company Law Board
on the Company.
(VII) In our opinion, the Company has an internal audit system,
commensurate with the size of the Company and nature of its business.
(VIII) The Central Government has not prescribed maintenance of cost
records under section 209(1)(d) of the Companies Act, 1956 in respect
of any of the activities of the Company.
(IX) According to the information and explanations given to us in
respect of statutory dues:
(a) The Company has generally been regular in depositing undisputed
dues of Provident Fund, Employeesà State Insurance, Income Tax, Wealth
Tax, Service Tax, Cess and other statutory dues applicable to it, with
the appropriate authorities during the year. According to the
information and explanations given to us, no undisputed amounts payable
in respect of Provident Fund, Employees' State Insurance, Income Tax,
Wealth Tax, Service Tax and Cess were in arrears as at 31st March, 2011
for a period of more than six months from the date they became payable.
(b) There are no statutory dues, which have not been deposited on
account of any dispute.
(X) The Company has no accumulated loss as at 31st March, 2011 and has
not incurred cash losses in the financial year covered under audit and
in the immediately preceding financial year.
(XI) In our opinion and according to the information and explanations
given to us, the Company has not defaulted in repayment of dues to
banks, financial institutions. The Company has not issued any
debentures.
(XII) In our opinion and according to the information and explanations
given to us, the Company has not granted any loans and advances on the
basis of security by way of pledge of shares, debentures and other
securities.
(XIII) In our opinion, the Company is not a chit fund or a nidhi,
mutual benefit fund/society. Therefore, the provisions of Clause XIII
of paragraph 3 of the aforesaid Order, are not applicable to the
Company.
(XIV) In our opinion and according to the information and explanations
given to us, the Company has undertaken 27 nos. of transactions with
regards to purchase of shares and 33 nos. of transactions with regards
to sale of shares during the year.
(XV) According to the information and explanations given to us, the
Company has not given any guarantee for loans taken by others from bank
or financial institutions. Accordingly, the provision of Clause XV of
paragraph 3 of the aforesaid Order, are not applicable to the Company.
(XVI) In our opinion and according to the information and explanations
given to us, the term loans have been applied for the purpose for which
the same were obtained.
(XVII)According to the information and explanations given to us, and on
an overall examination of the Balance Sheet of the Company, funds
raised on short term basis have, prima facie, not been used during the
year for long term investment.
(XVIII)The Company has not made any preferential allotment of shares to
parties and companies covered in the Register maintained under section
301 of the Companies Act, 1956, during the year. Therefore, the
provisions of Clause XvIII of paragraph 3 of the aforesaid Order, in
our opinion, are not applicable to the Company.
(XIX) The Company has not issued any debentures during the year under
audit. Therefore, the provisions of Clause XIX of paragraph 3 of the
aforesaid Order, in our opinion, are not applicable to the Company.
(XX) The Company has not raised any money by public issue during the
year. Therefore, the provisions of Clause XX of paragraph 3 of the
aforesaid Order, in our opinion, are not applicable to the Company.
(XXI) To the best of our knowledge and according to the information and
explanation given to us, we have neither come across any instances of
fraud on or by the Company nor have we been informed of any such case
by the Management.
For M S P & CO.
Chartered Accountants
M.S.PARIkh
(Partner)
Membership No. 08684
Mumbai,
Dated: 30th August, 2011
Mar 31, 2010
1. We have audited the attached Balance Sheet of Patel Integrated
Logistics Limited, as at 31st March, 2010, the related Proft and Loss
Account and the Cash Flow Statement for the year ended on that date
annexed thereto. These fnancial statements are the responsibility of
the Companys Management. Our responsibility is to express an opinion
on these fnancial statements based on our audit.
2. We have conducted our audit in accordance with the auditing
standards generally accepted in India. These standards require that we
plan and perform the audit to obtain reasonable assurance about whether
the fnancial statements are free of material misstatements. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the fnancial statements. An audit also includes
assessing the accounting principles used and signifcant estimates made
by the Management, as well as evaluating the overall fnancial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
3. As required by the Companies (Auditors Report) Order 2003, as
amended by the Companies (Auditors Report Amendment) Order, 2004,
issued by the Central Government of India in terms of sub-section (4A)
of Section 227 of The Companies Act, 1956, and on the basis of such
checks of the books and records of the Company as we considered
appropriate and according to the information and explanations given to
us, we enclose in the Annexure a statement on the matters specifed in
paragraphs 4 and 5 of the said Order.
4. We further report that:
i) We have obtained all the information and explanations, which, to the
best of our knowledge and belief, were necessary for the purposes of
our audit;
ii) In our opinion, proper books of account as required by law have
been kept by the Company so far as appears from our examination of
those books;
iii) The Balance Sheet, Proft and Loss Account and Cash Flow Statement
dealt with by this report are in agreement with the books of account;
iv) In our opinion, the Balance Sheet, Proft and Loss Account and Cash
Flow Statement dealt with by this report comply with the Accounting
Standards referred to in sub-section (3C) of section 211 of the
Companies Act, 1956;
v) On the basis of the written representations received from the
Directors as on 31st March, 2010 and taken on record by the Board of
Directors, we report that none of the directors are disqualifed as on
31st March, 2010 from being appointed as director in terms of clause
(g) of sub section (1) of section 274 of the Companies Act, 1956;
vi) In our opinion and to the best of our information and according to
the explanations given to us, the said fnancial statements read with
the signifcant accounting policies and notes thereon, give the
information required by the Companies Act, 1956 in the manner so
required and give a true & fair view in conformity with the accounting
principles generally accepted in India:-a. in the case of the Balance
Sheet, of the state of affairs of the Company as at 31st March, 2010;
b. in the case of the Proft and Loss Account, of the Proft of the
Company for the year ended on that date;
and
c. in the case of Cash Flow Statement, of the cash fows of the Company
for the year ended on that date.
ANNEXURE TO AUDITORS REPORT OF PATEL INTEGRATED LOGISTICS LIMITED
(Referred to in paragraph 3 of our report of even date)
(I) In respect of its fxed assets:
(a) The Company has maintained proper records showing full particulars,
including quantitative details and situation of fxed assets.
(b) We have been informed that most of the Fixed Assets have been
physically verifed by the management during the year in a phased manner
which, in our opinion, is reasonable having regard to the size of the
Company and the nature of its assets. No material discrepancies were
noticed on such verifcation.
(c) During the year no substantial part of fxed assets has been
disposed off by the Company. Therefore, the provisions of clause I(c)
of paragraph 3 of the aforesaid Order, in our opinion, are not
applicable to the Company.
(II) In respect of inventory of stores, operating supplies, etc.:
In view of there being no requirement to carry and hold any stock of
inventories, the provisions of clause II of paragraph of the aforesaid
Order, in our opinion, are not applicable to the Company.
(III) In respect of the loans, secured or unsecured, granted or taken
by the Company to companies, frms or other parties covered in the
Register maintained under section 301 of the Companies Act, 1956,
according to the information and explanations given to us :
(a) The Company has not granted any loans to companies listed in the
register maintained under section 301 of the Companies Act, 1956.
Therefore, the provisions of clause III(b) to (d) of paragraph 3 of the
aforesaid Order, in our opinion, are not applicable to the Company.
(e) The Company has taken unsecured loan from one company listed in the
register maintained under section 301 of the Companies Act, 1956. The
maximum amount outstanding during the year was Rs.1,91,47,138/- and the
year end balance of loan taken from such company is Rs.1,06,00,000/-.
(f) In our opinion and according to the information and explanation
given to us, the rate of interest and other terms and conditions of the
loans taken by the company, are not prima facie prejudicial to the
interest of the company.
(g) The principal amounts are repayable on demand and there is no
repayment schedule. The interest is paid regularly.
(IV) In our opinion and according to the information and explanations
given to us, there is an adequate internal control system commensurate
with the size of the Company and the nature of its business with regard
to purchase of fxed assets and sale of services. During the course of
our audit, we have neither come across nor have we been informed of any
continuing failure to correct major weaknesses in the internal control
system.
(V) In respect of contracts or arrangements entered in the Register
maintained in pursuance of Section 301 of the Companies Act, 1956, to
the best of our knowledge and belief and according to the information
and explanations given to us:
(a) The transactions made in pursuance of contracts or arrangements
that are required to be entered in the Register maintained under
Section 301 of the Companies Act, 1956, have been duly entered by the
Company.
(b) In our opinion, the transactions in pursuance of contracts or
arrangements that are required to be entered in the Register maintained
under Section 301 of the Companies Act, 1956 aggregating during the
year to Rs. 500,000/- (Rupees Five Lacs Only) or more in respect of any
party during the year, the rates are considered to be reasonable having
regard to the prevailing market price at the relevant time.
(VI) In our opinion and according to the explanations given to us, the
Company has complied with the provisions of Sections 58A and 58AA of
the Companies Act, 1956 and the Companies (Acceptance of Deposits)
Rules, 1975, with regard to the deposits accepted from the public.
According to the information and explanations given to us, no order
under the aforesaid sections has been passed by the Company Law Board
on the Company.
(VII) In our opinion, the Company has an internal audit system,
commensurate with the size of the Company and nature of its business.
(VIII) The Central Government has not prescribed maintenance of cost
records under section 209(1)(d) of the Companies Act, 1956 in respect
of any of the activities of the Company.
(IX) According to the information and explanations given to us in
respect of statutory dues:
(a) The Company has generally been regular in depositing undisputed
dues of Provident Fund, Employees State Insurance, Income Tax, Wealth
Tax, Service Tax, Cess and other statutory dues applicable to it, with
the appropriate authorities during the year. According to the
information and explanation given to us, no undisputed amounts payable
in respect of Provident Fund, Employees State Insurance, Income Tax,
Wealth Tax, Service Tax, Sales Tax, and Cess were in arrears as at 31st
March, 2010 for a period of more than six months from the date they
became payable.
(b) There are no statutory dues, which have not been deposited on
account of any dispute.
(X) The Company has no accumulated loss as at 31st March, 2010 and has
not incurred cash losses in the fnancial year covered under audit and
in the immediately preceding fnancial year.
(XI) In our opinion and according to the information and explanations
given to us, the Company has not defaulted in repayment of dues to
Banks, Financial Institutions. The Company has not issued any
debentures.
(XII) In our opinion and according to the information and explanations
given to us, the Company has not granted any loans and advances on the
basis of security by way of pledge of shares, debentures and other
securities.
(XIII) In our opinion, the Company is not a chit fund or a nidhi,
mutual beneft fund/society. Therefore, the provisions of clause XIII of
paragraph 3 of the aforesaid Order, are not applicable to the Company.
(XIV) In our opinion and according to the information and explanation
given to us, the Company is not dealing in or trading in shares,
securities, debentures and other investments. Accordingly, the
provision of Clause XIV of paragraph 3 of the aforesaid Order, are not
applicable to the Company.
(XV) According to the information and explanations given to us, the
Company has not given any guarantee for loans taken by others from bank
or fnancial institutions. Accordingly, the provision of Clause XV of
paragraph 3 of the aforesaid Order, are not applicable to the Company.
(XVI) In our opinion and according to the information and explanations
given to us, the term loans have been applied for the purpose for which
the same were obtained.
(XVII) According to the information and explanations given to us, and
on an overall examination of the Balance Sheet of the Company, funds
raised on short term basis have, prima facie, not been used during the
year for long term investment.
(XVIII)The Company has not made any preferential allotment of shares to
parties and companies covered in the register maintained under section
301 of the Companies Act, 1956, during the year. Therefore, the
provisions of clause XVIII of paragraph 3 of the aforesaid Order, in
our opinion, are not applicable to the Company.
(XIX) The Company has not issued any debentures during the year under
audit. Therefore, the provisions of clause XIX of paragraph 3 of the
aforesaid Order, in our opinion, are not applicable to the Company.
(XX) The Company has not raised any money by public issue during the
year. Therefore, the provisions of clause XX of paragraph 3 of the
aforesaid Order, in our opinion, are not applicable to the Company.
(XXI) To the best of our knowledge and according to the information and
explanation given to us, a senior offcer of the Company perpetrated
some dealings with outside parties (not related with the Company),
resulting in misappropriation of funds of such parties. The facts were
reported and a F.I.R. was lodged with the Police. Currently, the matter
is subjudice.
For M S P & CO. Chartered Accountants
M.S.Parikh
(Partner)
Membership No. 08684
Mumbai,
Dated: 25th August, 2010