Mar 31, 2018
Report on the Standalone Ind AS Financial Statements
We have audited the accompanying standalone Ind AS financial statements of PS IT INFRASTRUCTURE & SERVICES LIMITED (âthe Companyâ), which comprise the Balance Sheet as at 31 March 2018, and 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 the significant accounting policies and other explanatory information.
Managementâs Responsibility for the Standalone Ind AS 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 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 change in equity of the Company in accordance with the Indian Accounting Standards (Ind AS) prescribed under section 133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015, as amended, and other accounting principles generally accepted in India.
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. In conducting 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 issued under section 143(11) of the Act.
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 the disclosures in the standalone Ind AS financial statements. The procedures selected depend on the auditorâs 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 Companyâs 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 the accounting policies used and the reasonableness of the accounting estimates made by the Companyâs Directors, as well as evaluating the overall presentation of the standalone Ind AS financial statements.
We believe that the audit evidence obtained by us 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 the Ind AS and other accounting principles generally accepted in India, of the state of affairs of the Company as at 31 March 2018, and its profit, total comprehensive income, its cash flows and changes in equity for the year ended on that date.
Basis for Qualified Opinion
a. Inventories include shares of some quoted companies worth Rs. 1240.16 Lakhs which are not held in the name of the company. This is in contravention to section 187 of the Companies Act, 2013.
Report on Other Legal and Regulatory Requirements
1. As required by Section 143(3) of the Act, based on our audit, we report that:
a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit.
b) In our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our examination of 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 relevant books of account.
d) In our opinion, the aforesaid standalone Ind AS financial statements comply with the Indian Accounting Standards prescribed under section 133 of the Act.
e) On the basis of the written representations received from the directors of the Company as on 31 March 2018 taken on record by the Board of Directors, none of the directors is disqualified as on 31 March 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 Aâ. Our report expresses an unmodified opinion on the adequacy and operating effectiveness of the Companyâs internal financial controls over financial reporting.
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, as amended, 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 37 to the 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.
2. As required by the Companies (Auditorâs Report) Order, 2016 (âthe Orderâ) issued by the Central Government in terms of Section 143(11) of the Act, we give in âAnnexure Bâ a statement on the matters specified in paragraphs 3 and 4 of the Order.
ANNEXURE âAâ TO THE INDEPENDENT AUDITORSâ REPORT
(Referred to in paragraph 1(f) under âReport on Other Legal and Regulatory Requirementsâ section of our report of even date)
Report on the Internal Financial Controls Over Financial Reporting 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 PS IT Infrastructure Limited (âthe Companyâ) as of 31 March 2018 in conjunction with our audit of the standalone 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.
Auditorâs 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) issued by the Institute of Chartered Accountants of India 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. 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, to the best of our information and according to the explanations given to us, 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 31 March 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 on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India.
ANNEXURE âBâ TO THE INDEPENDENT AUDITORSâ REPORT
ANNEXURE âBâ to the Independent Auditorâs Report
(Referred to in paragraph 2 under âReport on Other Legal and Regulatory Requirementsâ section of our report of even date)
(i) (a) The Company has maintained proper records showing full particulars, including quantitative details and situation of property, plant and equipment.
(b) The property, plant and equipment were physically verified during the year by the Management in accordance with a regular programme of verification which, in our opinion, provides for physical verification of all the property, plant and equipment at reasonable intervals. According to the information and explanation given to us, no material discrepancies were noticed on such verification.
(c) According to the information and explanations given to us and the records examined by us and based on the examination of the registered sale deed/ transfer deed / conveyance deed provided to us, we report that, the title deeds, comprising all the immovable properties of land and buildings which are freehold, are held in the name of the Company as at the balance sheet date.
(ii) As explained to us, the inventories were physically verified during the year by the Management at reasonable intervals and no material discrepancies were noticed on physical verification.
(iii) The Company has not granted any loans, secured or unsecured, to companies, firms, Limited Liablity Partnerships or other parties covered in the register maintained under Section 189 of the Companies Act, 2013.
(iv) In our opinion and according to the information and explanations given to us, the Company has complied with the provisions of Sections 185 and 186 of the Companies Act, 2013 in respect of grant of loans, making investments and providing guarantees and securities, as applicable.
(v) According to the information and explanations given to us, the Company has not accepted any deposit during the year and had no unclaimed deposits at the beginning of the year as per the provisions of Sections 73 to 76 or any other relevant provisions of the Companies Act, 2013.
(vi) The maintenance of cost records has been prescribed by the Central Government under section 148(1) of the Companies Act, 2013 in respect of specified products of the Company. For such products we have broadly reviewed the cost records maintained by the Company pursuant to the Companies (Cost Records and Audit) Rules, 2014, as amended, and are of the opinion that, prima facie, the prescribed cost records have been made and maintained.
We have, however, not made a detailed examination of the cost records with a view to determine whether they are accurate or complete.
(vii) According to the information and explanations given to us, in respect of statutory dues:
(a) The Company has generally been regular in depositing undisputed statutory dues, including Provident Fund, Employeesâ State Insurance, Income-tax, Goods & Services Tax, Sales Tax, Service Tax, Customs Duty, Excise Duty, Value Added Tax, Cess and other material statutory dues applicable to it to the appropriate authorities.
(b) There were no undisputed amounts payable in respect of Provident Fund, Employeesâ State Insurance, Income tax, Goods & Services Tax, Sales Tax, Service Tax, Customs Duty, Excise Duty, Value Added Tax, Cess and other material statutory dues in arrears as at 31 March 2018 for a period of more than six months from the date they became payable.
(c) Details of dues of Income-tax, Sales Tax, Service Tax, Custom Duty, Excise Duty and Value Added Tax which have not been deposited as on 31 March 2018 on account of disputes are given below:
FINANCIAL YEAR |
TAX AS PER ASSSTS |
FORUM WHERE DISPUTE |
INCOME |
IS PENDING |
|
2012-13 |
266,155,140.00 |
INCOME TAX APPEAL C.I.T |
2013-14 |
48,35,760.00 |
INCOME TAX APPEAL C.I.T |
2014-15 |
1,50,18,910.00 |
INCOME TAX APPEAL C.I.T |
(viii) In our opinion and according to the information and explanations given to us, the Company has not defaulted in the repayment of loans or borrowings to financial institutions, banks and government. The Company has not issued any debentures.
(ix) The Company has not raised moneys by way of initial public offer or further public offer (including debt instruments).In our opinion and according to the information and explanations given to us, the term loans have been applied by the Company during the year for the purposes for which they were raised.
(x) To the best of our knowledge and according to the information and explanations given to us, no fraud by the Company and no material fraud on the Company by its officers or employees has been noticed or reported during the year.
(xi) In our opinion and according to the information and explanations given to us, the Company has paid / provided managerial remuneration in accordance with the requisite approvals mandated by the provisions of section 197 read with Schedule V to the Companies Act, 2013.
(xii) The Company is not a Nidhi Company and hence reporting under clause (xii) of the CARO 2016 Order is not applicable.
(xiii) In our opinion and according to the information and explanations given to us the Company is in compliance with Section 177 and 188 of the Companies Act, 2013, where applicable, for all transactions with the related parties and the details of related party transactions have been disclosed in the financial statements etc. as required by the applicable accounting standards.
(xiv) During the year the Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures and hence reporting under clause (xiv) of CARO 2016 is not applicable to the Company.
(xv) In our opinion and according to the information and explanations given to us, during the year the Company has not entered into any non-cash transactions with its directors or directors of its holding, subsidiary or associate company or persons connected with them and hence provisions of section 192 of the Companies Act, 2013 are not applicable.
(xvi) The Company is not required to be registered under section 45-IA of the Reserve Bank of India Act, 1934.
For B. S. Kedia & Co.
Chartered Accountants
ICAI Registration No. 317159E
Place: Mumbai
Date: May 30, 2018
Vikash Kedia
Partner
M. No. 066852
Mar 31, 2015
We have audited the accompanying financial statements of PS IT
Infrastructure & Services Limited which comprise the balance sheet at
31st March 2015, the statement of profit & loss and 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
Management is responsible for the matter 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 specified under section 133
of the Act, read with Rule 7of the Companies (Accounts) Rule, 2014.
This responsibility also includes the maintenance of adequate
accounting records in accordance with the provision of the Act for
safeguarding of the assets of the Company and for preventing and
detecting the 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 internal control, 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.
Auditors Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We have taken into account the provision
of the Act, the accounting and auditing standards and matters which are
required to be included in the audit report under the provision of the
act and the Rules made there under.
We conducted our audit in accordance with the Standards on Auditing
issued by the Institute of Chartered Accountant 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 of material misstatement.
An audit involves performing procedure 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 control relevant to the CompanyÂs preparation and
fair presentation of the financial statements in order to design audit
procedure that are appropriate in the circumstances, but not for the
purpose of expressing an opinion on the effectiveness of the CompanyÂs
internal control. 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 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 statements subject to
(g) below give the information required by the Companies Act, 1956 in
the manner so required and give a true and fair view in conformity with
the accounting principles generally accepted in India of the state of
affairs of the Company as at 31st March 2015, 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, 2015 ("the
Order") issued by the Central Government of India in terms of section
143(11) of section 227 of the Act, 1956, 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
purposes of our audit;
b. In our opinion, proper books of account as required by law have
been kept by the Company so far as it appears from our examination of
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
the account;
d. In our opinion, the aforesaid financial statements comply with the
Accounting Standards specified under section 133 of the Act, read with
Rule 7 of Companies (Accounts) Rules, 2014.
e. On the basis of written representations received from the
directors, as on 31st March, 2015 taken on record by the Board of
Directors, none of the directors is disqualified as on 31st March,
2015, from being appointed as director in terms of section 164(2) of
the Act.
f. With respect to the other matters to be included in the AuditorÂs
Report in accordance with Rule 11 of the Companies Act, 2013 (Audit and
Auditors) Rules, 2014, in our opinion and to the best of our knowledge
and belief and according to the information and 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
derivatives contracts for which there were any material foreseeable
losses;
iii. The Company was not required to transfer any fund into the
Investors Education and Protection Fund during the year.
g. The Company has not complied with the Accounting Standard 22 (AS
22) issued by the Institute of Chartered Accountants of India in
respect of accounting for taxes on Income and further its effect on
profit and Loss account and Balance Sheet has not been ascertained by
the Company.
For RANJEET GOTHI & ASSOCIATES
Chartered Accountants FRN: 137993W
Sd/- RANJIT GOTHI
Proprietor M. No.: 158499
Surat, May 29th, 2015
Annexure to AuditorÂs Report
(Referred to in paragraph 1 under 'Report on Other Legal and Regulatory
Requirements' section 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) It has been explained to us that the Company has a regular program
for physical verification of fixed assets, which in our opinion is
reasonable having regard to the size of the company and the nature of
its assets and no material discrepancies were noticed on such
verification.
c) In our opinion and according to the information and explanations
given to us, no substantial part of fixed assets has been disposed
during the year and therefore does not affect the going concern
assumption.
ii. In respect of its Inventories:
a) The inventory of shares has been physically verified by the
management at reasonable intervals during the year. In our opinion, the
frequency of such verification is reasonable.
b) As per the information given to us, the procedures of physical
verification of inventory followed by management are, in our opinion,
reasonable and adequate in relation to the size of the company and
nature of its business.
c) In our opinion and according to the information and explanation
given to us, Company is maintaining proper records of inventory. No
material discrepancy was noticed on physical verification.
iii. The Company has not granted any loans, secured or unsecured, to
companies, firms or other parties covered under section 189 of the
Companies Act, 2013.
iv. In our opinion and according to the information and explanation
given to us, there are adequate internal control procedures
commensurate with the size of the company and the nature of its
business with regard to purchases of inventory and fixed assets and
with regard to the sale of goods. During the course of our audit we
have not observed any continuing failure to correct the major weakness
in internal control.
v. The Company has not received any public deposits during the year.
vi. As informed by the management, the Central Government has not
prescribed maintenance of cost records under sub section (1) of Section
148 of the Act, in respect of the activities carried on by the company.
vii. In respect of statutory dues:
a) According to the records of the company and information and
explanations given to us, the Company has generally been regular in
depositing undisputed statutory dues, including Provident Fund Act,
EmployeeÂs State Insurance, income tax, sales tax, wealth tax, service
tax, value added tax, custom duty excise duty, Cess and other material
statutory dues applicable to it, with the appropriate authorities.
b) According to the information and explanations given to us there were
no undisputed amounts payable in respect of Provident Fund Act,
EmployeeÂs State Insurance, income tax, sales tax, wealth tax, service
tax, value added tax, custom duty excise duty, Cess and other material
statutory dues in arrear as at March 31, 2015 for a period of more than
six months from the date they became payable.
c) According to the information and explanations given to us there were
no amounts which required to be transferred by the Company to the
Investor Education and Protection Fund.
viii. The company does not have accumulated losses at the end of
financial year and the Company has not incurred cash losses during the
financial year covered by our audit 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 the repayment of dues to
financial institutions, banks and debenture holders.
x. In our opinion and according to the information and explanations
given to us the company has not given guarantee for loan taken by
others from bank and financial institutions.
xi. According to the information and explanation given to us, the
company has not applied for any term loans.
xii. To the best of our knowledge and according to the information and
explanation given to us, no fraud by the Company and no material fraud
on the Company has been noticed or reported during the year.
For RANJEET GOTHI & ASSOCIATES
Chartered Accountants
FRN: 137993W
Sd/-
RANJIT GOTHI
Proprietor
M. No.: 158499
Surat, May 29th, 2015
Mar 31, 2014
We have audited the accompanying financial statements of PS IT
Infrastructure & Services Limited which comprise the balance sheet as at
31st March 2014, the statement of profit & loss and the cash flow
statement for the year then ended and a summary of significant
accounting policies and other explanatory information.
Management's Responsibility for the Financial Statements
Management is responsible for 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 Standards referred to in sub- section (3C) of section
211 of Company Act, 1956 ("the act"). 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.
Auditors 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
Accountant 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 of
material misstatement.
An audit involves performing procedure to obtain evidence about the
amounts and disclosures in the financial statements. The procedure
selected depends 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
procedure 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 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 financial statements subject to (f) below
give the information required by the Companies Act, 1956 in the manner
so required and give a true and fair view in conformity with the
accounting principles generally accepted in India:
(i) in the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March,
2014; and (ii) in the case of the Profit and Loss Account, of the
profit for the year ended on that date. (iii)in the case of the Cash
Flow Statement, of the 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, 2003 issued
by the Central Government of India in terms of sub-section (4A) of
section 227 of the Companies Act, 1956, we enclose in annexure a
statement on the matters specified in paragraphs 4 and 5 of the said
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 purposes of
our audit;
b. In our opinion, proper books of account as required by law have
been kept by the Company so far as appears from our examination of
those books;
c. The Balance Sheet and Statement of Profit and Loss and Cash Flow
Statement dealt with by this report are in agreement with the books of
the account;
d. In our opinion, the Balance Sheet and Statement of Profit and Loss
and Cash Flow Statement comply with the Accounting Standards referred to
in sub-section (3C) of section 211 of the Companies Act, 1956;
e. On the basis of written representations received from the
directors, as on 31st March, 2014 and taken on record by the Board of
Directors, none of the directors is disqualified as on 31st March,
2014, from being appointed as director in terms of clause (g) of
sub-section (1) of section 274 of the Companies Act, 1956;
f. The Company has not complied with the Accounting Standard 22 (AS
22) issued by the Institute of Chartered Accountants of India in
respect of accounting for taxes on Income and further its effect on
profit and Loss account and Balance Sheet has not been ascertained by
the Company.
The Annexure referred to in our report to the members of PS IT
Infrastructure & Services Limited for the year ended 31st March 2014.
We report that:
i. a) The company has generally maintained records showing full
particulars including quantitative details and situation of fixed
assets.
b) It has been explained to us that the Company has a regular program
for physical verification of fixed assets, which in our opinion is
reasonable having regard to the size of the company and the nature of
its assets and no material discrepancies were noticed on such
verification.
c) During the year, no substantial part of fixed assets of company was
disposed off.
ii. a) As explained to us, inventories have been physically verified
by the management a reasonable intervals during the year. In our
opinion, the frequency of such verification is reasonable.
b) As per the information given to us, the procedures of physical
verification of inventory followed by management are, in our opinion,
reasonable and adequate in relation to the size of the company and
nature of its business.
c) In our opinion and according to the information and explanation
given to us, Company is maintaining proper records of inventory. The
discrepancies noted on verification between the physical stocks and the
book records were not material having regard to size and operation of
the Company.
iii. a) According to the information and explanation given to us, the
Company hasnot granted loans Secured unsecured loans, to/from
companies, firms or other parties covered in the register maintained
under section 301 of the Companies Act, 1956, and hence the provision
of clause 4(iii) of the Companies (Auditors (Auditor's Report) Order
2004 are not applicable to the Company.
b) According to the information and explanation given to us, the
Company has not taken advances in the nature of unsecured loans from
parties covered in the register maintained under section 301 of the
Companies Act, 1956.
iv. In our opinion and according to the information and explanation
given to us, company has internal control procedures commensurate with
the size of the company and the nature of its business with regard to
purchases of inventory and fixed assets and with regard to the sale of
goods. During the course of our audit we have not observed any
continuing failure to correct the major weakness in internal control.
v. According to the information and explanation given to us, there
were no transactions made in pursuance of contracts or arrangements
that need to be entered into the register maintained under section 301
of the Companies Act, 1956.
vi. As informed by the management during the year, the company has not
accepted any deposit from the public within the purview of section 58A,
58AA or any other relevant provisions of the Companies Act.
vii. The Company does not have any formal internal audit system.
viii. According to the information and explanations given to us and in
our opinion the company is not required to maintain any cost record in
respect of any of its activity. Hence clause (viii) of the Order is not
applicable.
ix. a) We have been informed that Provident Fund Act and the provision
of Employee's State Insurance Scheme are not applicable to the Company.
According to the information and explanations given to us, there were no
undisputed statutory dues payable in respect of income tax, sales tax,
wealth tax, service tax, custom duty and excise duty which have been
remained outstanding as at 31st March 2014 for the period more than six
months from the date they became payable.
b) According to the information and explanations given to us there are
no dispute spending before the authorities in respect of Sales Tax,
Income Tax, Custom Duty and Cess.
x. The company does not have any accumulated losses at the end of
financial year and has not incurred cash losses in the financial year.
xi. Based on our audit procedures and on the basis of information and
explanations given by the management, we are of the opinion that the
company has not defaulted in repayment of dues to a bank and it has no
dues to financial institution or debenture holders.
xii. 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 provisions of any special statute as specified under the
clause (xiii) of the 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 a dealer or trader in shares,
securities, debentures and other investments.
xv. According to the information and explanation given to us, the
company has not given guarantee for loan taken by others from bank &
financial institutions.
xvi. According to the information and explanation given to us, the
company has not applied for any term loans.
xvii. According to the information and explanation given to us no funds
raised on short term or long term basis by the company.
xviii. According to the information and explanation give to us, 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.
xix. According to the information and explanation given to us, the
company has not issued any debentures during the year.
xx. The company has not raised any money by way of public issues
during the year.
xxi. Based upon the audit procedures performed and information and
explanations given by the management, we report that no fraud on or by
the company has been noticed or reported in this year.
For RANJEET GOTHI & ASSOCIATES
Chartered Accountants
FRN: 137993W
Sd/-
RANJEET GOTHI
Proprietor
M. No.: 158499
Place: Surat
Date: May 30, 2014
Mar 31, 2013
Report on the Financial Statement
We have audited the accompanying financial statements of Parag Shilpa
Investments Limited which comprise the balance sheet as at 31st March
2013'' the statement of profit & loss and the cash flow statement for
the year then ended and a summary of significant accounting policies
and other explanatory information.
Management''s Responsibility for the Financial Statements
Management is responsible for 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 Standards referred to in sub- section (3C) of section
211 of Company Act'' 1956 (''the actÂ). 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.
Auditors 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
Accountant 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 of
material misstatement.
An audit involves performing procedure to obtain evidence about the
amounts and disclosures in the financial statements. The procedure
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
procedure 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 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 financial statements subject to (f) below
give the information required by the Companies Act'' 1956 in the manner
so required and give a true and fair view in conformity with the
accounting principles generally accepted in India:
(i) in the case of the Balance Sheet'' of the state of affairs of the
Company as at 31st March'' 2013; and (ii) in the case of the Profit and
Loss Account'' of the profit for the year ended on that date. (iii) in
the case of the Cash Flow Statement'' of the 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'' 2003 issued
by the Central Government of India in terms of sub-section (4A) of
section 227 of the Companies Act'' 1956'' we enclose in annexure a
statement on the matters specified in paragraphs 4 and 5 of the said
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 purposes of
our audit;
b. In our opinion'' proper books of account as required by law have
been kept by the Company so far as appears from our examination of
those books;
c. The Balance Sheet and Statement of Profit and Loss and Cash Flow
Statement dealt with by this report are in agreement with the books of
the account;
d. In our opinion'' the Balance Sheet and Statement of Profit and Loss
and Cash Flow Statement comply with the Accounting Standards referred
to in sub-section (3C) of section 211 of the Companies Act'' 1956;
e. On the basis of written representations received from the
directors'' as on 31st March'' 2013 and taken on record by the Board of
Directors'' none of the directors is disqualified as on 31st March''
2013'' from being appointed as director in terms of clause (g) of
sub-section (1) of section 274 of the Companies Act'' 1956;
f. The Company has not complied with the Accounting Standard 22 (AS
22) issued by the Institute of Chartered Accountants of India in
respect of accounting for taxes on Income and further its effect on
profit and Loss account and Balance Sheet has not been ascertained by
the Company.
Annexure to Auditor''s Report
The Annexure referred to in our report to the members of Parag Shilpa
Investments Limited for the year ended 31stMarch 2013. We report that:
i. a) The company has generally maintained records showing full
particulars including quantitative details and situation of fixed
assets.
b) It has been explained to us that the Company has a regular program
for physical verification of fixed assets'' which in our opinion is
reasonable having regard to the size of the company and the nature of
its assets and no material discrepancies were noticed on such
verification.
c) During the year'' no substantial part of fixed assets of company was
disposed off.
ii. a) As explained to us'' inventories have been physically verified
by the management a reasonable intervals during the year. In our
opinion'' the frequency of such verification is reasonable.
b) As per the information given to us'' the procedures of physical
verification of inventory followed by management are'' in our opinion''
reasonable and adequate in relation to the size of the company and
nature of its business
c) In our opinion and according to the information and explanation
given to us'' Company is maintaining proper records of inventory. The
discrepancies noted on verification between the physical stocks and the
book records were not material having regard to size and operation of
the Company.
iii. a) According to the information and explanation given to us'' the
Company has not granted loans Secured unsecured loans'' to/from
companies'' firms or other parties covered in the register maintained
under section 301 of the Companies Act'' 1956'' and hence the provision
of clause 4(iii) of the Companies (Auditors (Auditor''s Report) Order
2004 are not applicable to the Company.
b) According to the information and explanation given to us'' the
Company has taken advances in the nature of unsecured loans from three
parties covered in the register maintained under section 301 of the
Companies Act'' 1956. The maximum amount of loan taken during the year
was Rs.9''88''600/- and the year ended balance was Rs. Nil. These loans
were interest free in nature and other terms and conditions of the
loans taken by the company are prima facie not prejudicial to the
interest of the company.
iv. In our opinion and according to the information and explanation
given to us'' company has internal control procedures commensurate with
the size of the company and the nature of its business with regard to
purchases of inventory and fixed assets and with regard to the sale of
goods. During the course of our audit we have not observed any
continuing failure to correct the major weakness in internal control.
v. According to the information and explanation given to us'' there
were no transactions made in pursuance of contracts or arrangements
that need to be entered into the register maintained under section 301
of the Companies Act'' 1956.
vi. As informed by the management during the year'' the company has not
accepted any deposit from the public within the purview of section 58A''
58AA or any other relevant provisions of the Companies Act.
vii. The Company does not have any formal internal audit system.
viii. According to the information and explanations given to us and in
our opinion the company is not required to maintain any cost record in
respect of any of its activity. Hence clause (viii) of the Order is not
applicable.
ix. a) We have been informed that Provident Fund Act and the provision
of Employee''s State Insurance Scheme are not applicable to the Company.
According to the information and explanations given to us'' there were
no undisputed statutory dues payable in respect of income tax'' sales
tax'' wealth tax'' service tax'' custom duty and excise duty which have
been remained outstanding as at 31st March 2013 for the period more
than six months from the date they became payable.
b) According to the information and explanations given to us there are
no disputes pending before the authorities in respect of Sales Tax''
Income Tax'' Custom Duty and Cess.
x. The company does not have any accumulated losses at the end of
financial year and has not incurred cash losses in the financial year.
xi. Based on our audit procedures and on the basis of information and
explanations given by the management'' we are of the opinion that the
company has not defaulted in repayment of dues to a bank and it has no
dues to financial institution or debenture holders.
xii. 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 provisions of any special statute as specified under the
clause (xiii) of the 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 a dealer or trader in shares''
securities'' debentures and other investments.
xv. According to the information and explanation given to us'' the
company has not given guarantee for loan taken by others from bank &
financial institutions.
xvi. According to the information and explanation given to us'' the
company has not applied for any term loans.
xvii. According to the information and explanation given to us no funds
raised on short term or long term basis by the company.
xviii. According to the information and explanation give to us'' 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.
xix. According to the information and explanation given to us'' the
company has not issued any debentures during the year.
xx. The company has not raised any money by way of public issues
during the year.
xxi. Based upon the audit procedures performed and information and
explanations given by the management'' we report that no fraud on or by
the company has been noticed or reported in this year.
For RAHUL R JAIN & ASSOCIATES
Chartered Accountants FRN: 133231W
Sd/-
RAHUL JAIN
Proprietor
M. No.: 068781
Place: Mumbai
Date: May 30'' 2013
Mar 31, 2011
We have audited the attached Balance Sheet of Parag Shilpa Investments
Limited as at 31st March 2011, the Profit & Loss Account of the Company
for the financial year ended on that date and also the Cash Flow
Statement of the Company 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.
1. We conducted our audit in accordance with auditing standards
generally accepted in India. Those 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 management, and also evaluating the overall financial statements
presentation. We believe that our audit provides a reasonable basis for
our opinion.
2. As required by the Companies (Auditor's Report) Order 2003 and
amended by 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, we enclose in the annexure
hereto a statement on the matters specified in paragraphs 4 and 5 of
the said Order.
3. Further to our comments in the Annexure referred to in paragraph 2
above, 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 purposes of our
Audit;
(b) In our opinion, proper books of account, as required by law, have
been kept by the Company, so far as appears from our examination of
those books;
(c) The Balance Sheet, Profit and Loss Account and Cash Flow Statement
referred to in this report are in agreement with the books of account;
(d) In our opinion the Balance Sheet, Profit and Loss account and Cash
Flow Statement comply with the requirements of the mandatory accounting
standards referred in subsection (3C) of section 211 of the Companies
Act, 1956;
(e) On the basis of written representation received from all the
directors, we report that none of the directors are disqualified as on
31st March, 2011 from being appointed as directors in terms of clause
(g) of sub-section (1) of Section 274 of the Companies Act, 1956;
(f) The company has not complied with the Accounting Standard 22 (AS
22) issued by the Institute of Chartered Accountants of India in
respect of accounting for taxes on Income and further its effect on
profit and Loss account and Balance Sheet has not been ascertained by
the Company.
(g) In our opinion and to the best of our information and according to
the explanations given to us, the said accounts subject to (f) above
and read together with the notes thereon give the information required
by the Companies Act, 1956, in the manner so required and give a true
and fair view in conformity with the accounting principles generally
accepted in India:
i. In so far as it relates to balance Sheet, of the state of affairs
of the Company as at 31st March, 2011;
ii. In so far as it relates to the Profit and Loss Account, of the
"Loss" of the Company or the year ended on that date; and
iii. in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
ANNEXURE TO THE AUDITORS' REPORT Referred to in paragraph 2 of our
report of even date
1. As the Company had no fixed assets during the year the relevant
clauses of the Companies (Auditor's Report) Order 2003 are not
applicable to the Company.
2. As the Company had no inventories during the year and the Company
has not carried out any manufacturing and/or trading activity, clauses
4(ii) and (viii) of the Companies (Auditor's Report) Order 2003 are not
applicable to the Company.
3. According to the information and explanation given to us, the
Company has not granted or taken any loan, secured or unsecured,
to/from companies, firms or other parties covered in the register
maintained under section 301 of the Companies Act, 1956, and hence the
provisions of clause 4(iii) of the Companies (Auditor's Report) Order
2003 are not applicable to the Company.
4. The Company has no internal audit system. However, during the
course of our audit, we have not observed any major weaknesses in
internal control.
5. There are no transactions made in pursuance of contracts or
arrangements that need to be entered into the register maintained under
section 301 of the Companies Act, 1956.
6. In our opinion and according to the information and explanations
given to us, the Company has not accepted any deposits from the public.
7. According to the information and explanation given to us and the
records of the Company examined by us the Company there were no
liability of depositing any statutory dues during the year.
8. According to the information and explanations given to us, no
undisputed dues payable in respect of income-tax, sales-tax,
wealth-tax, customs duty and cess were outstanding as at 31st March,
2011 for a period of more than six months from the date they became
payable.
9. The financial statements of the Company as on 31st March, 2011 do
not shows accumulated losses. However, the Company has incurred a cash
loss of Rs.25,200/ - during the financial year covered by our report.
10. There are no borrowings from financial institutions or banks and
no debentures have been issued by the Company.
11. In our opinion and according to the information and explanation
given to us, no loans and advances have been granted by the Company on
the basis of security by way of pledge of shares, debentures and other
securities. ..
12. According to the information and explanations given to us, the
provisions of any special statute applicable to Chit Fund, Nidhi or
Mutual Benefit Society are not applicable to the Company.
13. The Company has no investments during the year.
14. The Company has not given any guarantees for loans taken by others
from banks or financial institutions.
15. The Company has not taken any term loans during the year.
16. According to the information and explanations given to us and on
an overall examination of the Balance Sheet of the Company, we are of
the opinion that no funds raised on short-term basis during the year
have been used for long-term purposes by the Company.
17. During the year, 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." .
18. The Company has not raised any monies by way of debentures during
the year.
19. The Company has not raised any money by way of public issue during
the year.
20. In our opinion and according to the information and explanations
given to us, no fraud on or by the company has been noticed or reported
during the year.
For Patel Dalai & Associates
Chartered Accountants
Firm Regn. No: 126328W
Jitendra.D.Patel
Partner
Membership No: 34518
Mumbai
Dated: 2nd September, 2011.
Tel: 2872 6421-2872 0285