To the members of Provestment Services Limited
1. Report on the Financial Statements
We have audited the accompanying financial statements of Provestment Services Limited("The Company") which comprise the Balance Sheet as at March 31 2016 theStatement of Profit and Loss and Cash Flow Statement for the year then ended and a summaryof significant accounting policies and other explanatory information
2. Managements Responsibility' for the Standalone Financial Statements
The Company's Board of Directors is responsible for the matters stated in Section134(5) of the Companies Act 2013 ("the Act") with respect to the preparation ofthese financial statements that give a true and fair view of the financial positionfinancial performance and cash flows of the Company in accordance with the accountingprinciples generally accepted in India including the Accounting Standards specified underSection 133 of the Act read with Rule 7 of the Companies (Accounts) Rules 2014.
This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding of the assets of the Companyand for preventing and detecting frauds and other irregularities; selection andapplication of appropriate accounting policies; making judgments and estimates that arereasonable and prudent; and design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the accuracy andcompleteness of the accounting records relevant to the preparation and presentation ofthe financial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.
3. Auditors Responsibility'
Our responsibility is to express an opinion on these financial statements based on ouraudit.
We have taken into account the provisions of the Act the accounting and auditingstandards and matters w'hich are required to be included in the audit report under theprovisions of the Act and the Rules made there under.
We conducted our audit in accordance with Standards on Auditing specified under section143(10)Those standards require that we comply with ethical requirements and plan andperform the audit to obtain reasonable assurance about whether the financial statementsare free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the financial statements. The procedures selected depend on theauditors judgment including the assessment of the risks of material misstatement ofthe financial statements whether due to fraud or error. In making those risk assessmentsthe auditor considers internal financial control relevant to the Company's preparation ofthe financial statements that give a true and fair view' in order to design auditprocedures that are appropriate in the circumstances but not for the purpose of expressingan opinion on whether the company has in place an adequate internal financial controlssystem over financial reporting and the operating effectiveness of such controls. An auditalso includes evaluating the appropriateness of the accounting policies used and thereasonableness of the accounting estimates made by the Company's Directors as well asevaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the financial statements.
In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid standalone financial statements give the information requiredby the Act in the manner so required and give a true and fair view in conformity with theaccounting principles generally accepted in India.
(a) In the case of the Balance Sheet of the state of affairs of the Company as atMarch 31 2016:
(b) In the case of the Statement of Profit and Loss of the profit for the year endedon that date; and
(c) In the case of the Cash Flow' Statement of the cash flows of the Company for theyear ended on that date.
5. Emphasis of Matters
(a) Without qualifying our opinion we would like to draw' attention to note no.3.33 tothe financial statements. The company has invested Rs. 4.30 crores to Swiss Holidays PvtLtd to set up or acquire a Hotel in Switzerland with 50% sharing in the business. As M/sSwiss Holidays Pvt Ltd has failed to set up the venture hence Swiss Holidays Pvt Ltd isliable to pay interest @ 14% p.a. on the given amount in accordance with the signedagreement dt. 1st January 2014 between the company and M/s Swiss Holidays PvtLtd. Since the matter is in dispute and is in court of law the company has not recognizedinterest as its revenue.
(b) Without qualifying our opinion we draw attention to note no. 3.29 to the financialstatements regarding with the related parties. There w ere material transactions with thevarious related parties with whom the company entered into contract.
6. Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor's report) Order. 2.010 ("the Order")issued by the Central Government of India in terms of sub-section (11) of section 143 ofthe act we give in the Annexure A a statement on the matters specified in the paragraph3 and 4 of the Order to the extent applicable.
2. As required by section 143(3) of the Act we report that:
(a) We have sought and obtained all the information and explanations which to the bestof our knowledge and belief were necessary for the purposes of our audit;
(b) In our opinion proper books of account as required by law have been kept by theCompany so far as appears from our examination of those books;
(c) The Balance Sheet Statement of Profit and Loss and Cash Flow Statement dealt withby this Report are in agreement with the books of account;
(d) In our opinion the aforesaid financial statements comply with the AccountingStandards specified under Section 133 of the Act. read with Rule 7 of the Companies(Accounts) Rules 2014;
(e) On the basis of the written representations received from the directors as on 31stMarch 2016 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2016 from being appointed as a director in terms of Section164 (2) of the Act;
(f) With respect to adequacy of the internal financial controls over financialreporting of the company and the operating effectiveness of such control refer to ourseparate report in Annexure B.
(g) With respect to the other matters to be included in the Auditor's Report inaccordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 in our opinionand to the best of our information and according to the explanations given to us:
I. The Company does not have any pending litigations which would impact its financialposition.
II. The Company did not have any long-term contracts including derivative contracts forwhich there were any material foreseeable losses.
III. There is no requirement to transfer any amount to the Investor Education andProtection Fund by the Company.
For Ahuja Arun & Co.
(CA. Arun Ahuja)
M No.089709. FRN-012985N
Place: New Delhi
Annexure A to the Auditors Report (Year 2015-2016)
The annexure referred to in Independent Auditor's Report to the members of the Companyon the standalone financial statements for the year ended 31 march 2016 we report that:
i) (a) The Company is maintaining proper records showing full particulars includingquantitative details and situation of fixed assets.
(b) As informed to us the fixed assets have been physically verified by the managementduring the year. As informed to us. the discrepancies noticed during such physicalverification which are pending reconciliation/adjustment are not material in nature. Inour opinion the physical verification of the assets should be properly documented.
(c) According to the information and explanations given to us and on the basis of ourexamination of the records of the company the title deeds of immovable property are heldin the name of company except for the following immovable properties where isregistration of sale deed is pending.
|Address ||Purchase Value ||Book Value |
|1. D-40 Hosiery Complex Pahase-IIExt. Noida UP ||5032000 ||4271375 |
|2. G-30 Sector-63 Noida UP ||5000000 ||4444849 |
ii) The inventory of Foreign Currencies Shares and Securities has been physicallyverified at reasonable intervals by the management and according to the information andexplanations given to us there were no discrepancies noticed on physical verification.
iii) The company has not granted loans secured or unsecured to companies firms.Limited Liability Partnership or other parties covered in the register maintained undersection 189 of the Companies Act. Accordingly sub clauses (a) (b) and (c) of the clause(iii) of paragraph 3 of the order are not applicable.
iv) In our opinion and according to the information and explanation given to us thecompany has complied with section 185 and 186 of the act.
v) According to the information and explanation given to us the company has notaccepted any deposits from the public during the year covered by our audit report.
vi) The maintenance of cost records under sub section (1) of section 148 of theCompanies Act 2013 is not applicable to the Company.
vii) (a) According to the books and records as produced and examined by us inaccordance with Generally Accepted Auditing Practices in India and also based onmanagement representations undisputed statutory dues in respect of provident fund incometax service tax sales tax value added tax excise duty cess and other materialstatutory dues have generally been regularly deposited by the company with the appropriateauthorities in India subject to that the company is not depositing dues amounting (as on31 March 2016) Rs. 16419/- on account of Employees state Insurance.
(b) According to the records of the company there are no material dues of sales-taxincome-tax service tax customs tax excise duty cess which have not been deposited onaccount of any disputes.
viii) Based on our Audit Procedures and on the information and explanation given to usby the management in our opinion the company has not defaulted in repayment of any loanor borrowing to a financial institution bank and government. The company has not issuedany debentures.
ix) On the basis of the review of utilization of funds raised by way of term loans onan overall basis and related information made available to us the term loan taken by thecompany have been applied for the purposes for which they are obtained. The company hasnot raised any fund by way of initial public offer or further public offer (including debtinstruments).
x) To the best of our knowledge and belief and according to the information andexplanation given to us and records of the Company examined by us no fraud by theCompany or any fraud on the company by its officers or employees has been noticed orreported during the course of our audit.
xi) According to the information and explanation giver to us and based on ourexamination of records of the company the company has paid/ provided for managerialremuneration in accordance with the provisions of Section 197 read with Schedule V to theAct.
xii) The company is not a Nidhi company. Accordingly. paragraph 3(xii) is notapplicable.
xiii) Based on our Audit Procedures and on the information and explanation given to usby the management in our opinion all the transactions undertaken by the company with therelated parties are in compliance with section 177 and 188 of the Companies Act 2013 anddetails have been disclosed in the financial statements etc as required by the applicableaccounting standards.
xiv) According to the information and explanation given to us and based on ourexamination of our records of the Company the Company has not made any preferentialallotment or private placement of shares or fully or partly convertible debentures duringthe year covered by our audit report.
xv) Based on our Audit Procedures and on the information and explanation given to us bythe management the company has not entered into any non-cash transactions with directorsor persons connected with him. According paragraph 3(xv) of the Order is not applicable.
xvi) The company is not required to be registered under section 45-IA of the ReserveBank of India Act 1934
|Place: New Delhi || |
|Date: 30.05.2016 || |
| ||(CA. Arun Ahuja) |
| ||Partner |
| ||For Ahuja Arun & Co. |
| ||Chartered Accountants |
| ||M No.089709 FRN-012985N |
Annexure B to the Auditors Report (Year 2015-2016)
Report on the Internal Financial Controls under Clause (i) of sub-section 3 of Section143 of the Companies Act 2013
We have audited the internal financial controls over financial reporting of ProvestmentServices Ltd ("The Company") as of March 31 2016 in conjunction with our auditof the standalone financial statements of the Company for the year ended on that date.
Managements Responsibility for Internal Financial Controls
The Companys management is responsible for establishing and maintaining internalfinancial controls based on the internal control over financial reporting criteriaestablished by the Company considering the essential components of internal control statedin the Guidance Note on "Audit of Internal Financial Controls Over FinancialReporting" issued by the Institute of Chartered Accountants of India. Theseresponsibilities include the design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the orderly and efficientconduct of its business including adherence to companys policies the safeguardingof its assets the prevention and detection of frauds and errors the accuracy andcompleteness of the accounting records and the timely preparation of reliable financialinformation as required under the Companies Act 2013.
Our responsibility is to express an opinion on the Company's internal financialcontrols over financial reporting based on our audit.
We conducted our audit in accordance with the Guidance Note on Audit of InternalFinancial Controls over Financial Reporting (the Guidance Note) and theStandards on Auditing issued by ICAI and deemed to be prescribed under section 143(10) ofthe Companies Act 2013 to the extent applicable to an audit of internal financialcontrols both applicable to an audit of Internal Financial Controls and both issued bythe Institute of Chartered Accountants of India. Those Standards and the Guidance noterequire that we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether adequate internal financial controls over financialreporting was established and maintained and if such controls operated effectively in allmaterial respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls system over financial reporting and their operatingeffectiveness.
Our audit of internal financial controls over financial reporting included obtaining anunderstanding of internal financial controls over financial reporting assessing the riskthat a material weakness exists and testing and evaluating the design and operatingeffectiveness of internal control based on the assessed risk. The procedures selecteddepend on the auditors judgment including the assessment of the risks of materialmisstatement of the financial statements whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Companys internal financial controlssystem over financial reporting.
Meaning of Internal Financial Controls over Financial Reporting
A company's internal financial control over financial reporting is a process designedto provide reasonable assurance regarding the reliability of financial reporting and thepreparation of financial statements for external purposes in accordance with generallyaccepted accounting principles. A company's internal financial control over financialreporting includes those policies and procedures that (1) pertain to the maintenance ofrecords that in reasonable detail accurately and fairly reflect the transactions anddispositions of the assets of the company; (2) provide reasonable assurance thattransactions are recorded as necessary to permit preparation of financial statements inaccordance with generally accepted accounting principles and that receipts andexpenditures of the company are being made only in accordance with authorizations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorized acquisition use. or disposition of thecompany's assets that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls over Financial Reporting
Because of the inherent limitations of internal financial controls over financialreporting including the possibility of collusion or improper management override ofcontrols material misstatements due to error or fraud may occur and not be detected.Also projections of any evaluation of the internal financial controls over financialreporting to future periods are subject to the risk that the internal financial controlover financial reporting may become inadequate because of changes in conditions or thatthe degree of compliance with the policies or procedures may deteriorate.
In our opinion the Company has in all material respects an adequate internalfinancial controls system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at March 31 2016 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note on Audit ofinternal financial controls over financial reporting issued by the Institute of CharteredAccountants of India.
|Place: New Delhi || |
|Date: 30.05.2016 || |
| ||(CA. Arun Ahuja) |
| ||Partner |
| ||For Ahuja Arun & Co. |
| ||Chartered Accountants |
| ||M No. 089709 FRN-012985N |