The Members of
PS IT Infrastructure & Services Limited
Report on the Financial Statement
We have audited the accompanying financial statements of PS IT Infrastructure &Services Limited which comprise the balance Sheet as at 31st March 2017 the statement ofprofit & loss and the cash flow statement for the year then ended and a summary ofsignificant accounting policies and other explanatory information.
Management's Responsibility for the Financial Statements
The Company's Board of Directors is responsible for the matter in section 134(5) of theCompanies Act 2013 ("the Act") with respect to the preparation of thesefinancial statements that give a true and fair view of the financial position financialperformance and cash flows of the Company in accordance with the accounting principlesgenerally accepted in India including the Accounting Standards specified under section133 of the Act. This responsibility also includes the maintenance of adequate accountingrecords in accordance with the provision of the Act for safeguarding of the assets of theCompany and for preventing and detecting the frauds and other irregularities selectionand application of appropriate accounting policies; making judgments and estimates thatare reasonable and prudent; and design implementation and maintenance of internalfinancial control 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.
Our responsibility is to express an opinion on these financial statements based on ouraudit. We have taken into account the provision of the Act the accounting and auditingstandards and matters which are required to be included in the audit report under theprovision of the act and the Rules made there under.
We have taken into account the provision of the Act and the Rules made thereunderincluding the accounting standards and matters which are required to be included in theaudit report.
We conducted our audit in accordance with the Standards on Auditing specified undersection 143(10) of the Act and other applicable authoritative Pronouncements issued by theInstitute of Chartered Accountant of India. Those standards require that we comply withethical requirements and plan and perform the audit to obtain reasonable assurance aboutwhether the financial statements are free of material misstatement.
An audit involves performing procedure to obtain audit evidence about the amounts anddisclosures in the financial statements. The procedure selected depend on the auditor'sjudgment including the assessment of the risks of material misstatement of the financialstatements whether due to fraud or error. In making those risk assessments the auditorconsiders internal control relevant to the Company's preparation of the financialstatements that give a true & fair view in order to design audit procedure that areappropriate in the circumstances. An audit also includes evaluating the appropriateness ofaccounting policies used and the reasonableness of the accounting estimates made bymanagement as well as evaluating 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.
In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid financial statements subject to (g) below give the informationrequired by the Act in the manner so required and give a true and fair view in conformitywith the accounting principles generally accepted in India of the state of affairs of theCompany as at 31st March 2017 its Profit and its cash flows for the year ended on thatdate.
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 section 143(11) of the Act we givein the Annexure "A" a statement on the matters specified in paragraphs 3 and 4of 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 it appears from our examination of those books;
c. The Balance Sheet the Statement of Profit and Loss and Cash Flow Statement dealtwith by this report are in agreement with the books of the 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 Companies (Accounts)Rules 2014.
e. On the basis of written representations received from the directors as on 31stMarch 2017 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2017 from being appointed as director in terms of section164(2) of the Act.
f. With respect to the adequacy of the internal financial controls over financialreporting of the Company and the operating effectiveness of such controls refer to ourseparate Report in Annexure "B" and;
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 as amended inour opinion and to the best of our knowledge and belief and according to the informationand explanations given to us.
i. The Company has disclosed the impact of pending litigations if any on itsfinancial position in its financial statements; however there isn't any litigationspending against the name of the company so far as appeared from the records and has beentold to us by the management.
ii. The Company did not have any long-term contracts including derivatives contractsfor which there were any material foreseeable losses;
iii. The Company was not required to transfer any fund into the Investors Education andProtection Fund during the year.
iv. The Company has provided requisite disclosures in its financial statements as toholdings as well as dealings in Specified Bank Notes during the period from 8 November2016 to 30 December 2016 and these are in accordance with the books of accountsmaintained by the Company.
For B. S. Kedia & Co.
M. No.: 066852
Date: May 30 2017
Annexure "A" to Independent Auditor's Report
Referred to in paragraph 9 of the Independent Auditors Report of even date to themember of M/s. PS IT Ifrastructure & Services Limited on the standalone financialstatements for the year ended March 31 2017-
i. In respect of its fixed assets:
a) The company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.
b) It has been explained to us that the Company has a regular program for physicalverification of fixed assets which in our opinion is reasonable having regard to the sizeof the company and the nature of its assets and no material discrepancies were noticed onsuch verification.
c) In our opinion and according to the information and explanations given to us nosubstantial part of fixed assets has been disposed during the year and therefore does notaffect the going concern assumption.
ii. In respect of its Inventories:
a) The inventory of shares has been physically verified by the management at reasonableintervals during the year. In our opinion the frequency of such verification isreasonable.
b) As per the information given to us the procedures of physical verification ofinventory followed by management are in our opinion reasonable and adequate in relationto the size of the company and nature of its business.
c) In our opinion and according to the information and explanation given to us Companyis maintaining proper records of inventory. No material discrepancy was noticed onphysical verification.
iii. The Company has not granted any loans secured or unsecured to companies firmsor other parties covered under section 189 of the Companies Act 2013.
iv. In our opinion and according to the information and explanations given to us theprovisions of section 185 and
186 of the Companies Act 2013 does not apply to the company.
v. The Company has not received any public deposits during the year.
vi. As informed by the management the Central Government has not prescribedmaintenance of cost records under sub section (1) of Section 148 of the Act in respect ofthe 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 tous the Company has generally been regular in depositing undisputed statutory duesincluding Provident Fund Act Employee's State Insurance income tax sales tax wealthtax service tax value added tax custom duty excise duty Cess and other materialstatutory dues applicable to it with the appropriate authorities.
b) According to the information and explanations given to us there were no undisputedamounts payble in respect of Provident Fund Act Employee's State Insurance income taxsales tax wealth tax service tax value added tax custom duty excise duty Cess andother material statutory dues in arrear as at March 31 2017 for a period of more than sixmonths from the date they became payable.
c) According to the information and explanations given to us the dues outstanding ofincome tax sales-tax service tax duty of customs duty of excise or value added taxwhich have not been deposited on account of any dispute are as follows:
Name of the Statue Nature Disputed Amount Financial Year for Forum where disput whichit relates is pending
Income Tax Act 1961 Income Tax 15018910/- 2014-15 Income Tax Appellate
Income Tax Act 1961 Income Tax 4835760/- 2013-14 Income Tax Appellate
Income Tax Act 1961 Income Tax 266155140/- 2012-13 Income Tax Appellate
d) According to the information and explanations given to us there were no amountswhich required to be transferred by the Company to the Investor Education and ProtectionFund.
viii. The Company does not have any loans or borrowings from any financial institutionbanks government or debenture holders during the year. Accordingly paragraph 3(viii) ofthe Order is not.
ix. The Company did not raise any money by way of initial public offer or furtherpublic offer (including debt instruments) and term loans during the year. Accordinglyparagraph 3 (ix) of the Order is not applicable.
x) According to the information and explanations given to us no material fraud by theCompany or on the
Company by its officers or employees has been noticed or reported during the course ofour audit.
xi) According to the information and explanations give to us and based on ourexamination of the records of the
Company the Company has not paid/provided for any managerial remuneration during theyear.
xii) In our opinion and according to the information and explanations given to us theCompany is not a nidhi company. Accordingly paragraph 3(xii) of the Order is notapplicable.
xiii) According to the information and explanations given to us and based on ourexamination of the records of the Company there is been no transactions with the relatedparties during the said period. Therefore this paragraph is not applicable in case of thecompany.
xiv) According to the information and explanations give to us and based on ourexamination of the records of the Company the Company has not made any preferentialallotment or private placement of shares or fully or partly convertible debentures duringthe year.
xv) According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has not entered into non-cashtransactions with directors or persons connected with him. Accordingly paragraph 3(xv) ofthe Order is not applicable.
xvi) According to the information and explanations given to us we report that theCompany is not required to be registered itself under section 45-IA of the Reserve Bank ofIndia Act 1934.
For B. S. Kedia & Co.
Chartered Accountants FRN: 317159E
M. No.: 066852
Date: May 30 2017
Annexure "B" to Independent Auditor's Report
Referred to in paragraph 10(g) of the Independent Auditors' Report of even date to themembers of M/s. PS IT
Infrastructure & Services Limited on the standalone financial statements for theyear ended March 31 2017
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143 of the Act
1. We have audited the internal financial controls over financial reporting of M/s. PSIT Infrastructure & Services Limited ("the Company") as of March 31 2017 inconjunction with our audit of the standalone financial statements of the Company for theyear ended on that date.
Management's Responsibility for Internal Financial Controls
2. The Company's management is responsible for establishing and maintaining internalfinancial controls based on the internal control over financial reporting criteriaestablished by the Company considering the essential components of internal control statedin the Guidance Note on Audit of Internal Financial Controls over Financial Reportingissued by the Institute of Chartered Accountants of India (ICAI). These responsibilitiesinclude the design implementation and maintenance of adequate internal financial controlsthat were operating effectively for ensuring the orderly and efficient conduct of itsbusiness including adherence to company's policies the safeguarding of its assets theprevention and detection of frauds and errors the accuracy and completeness of theaccounting records and the timely preparation of reliable financial information asrequired under the Act.
3. Our responsibility is to express an opinion on the Company's internal financialcontrols over financial reporting based on our audit. We conducted our audit in accordancewith the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting(the "Guidance Note") and the Standards on Auditing deemed to be prescribedunder section 143(10) of the Act to the extent applicable to an audit of internalfinancial controls both applicable to an audit of internal financial controls and bothissued by the ICAI. Those Standards and the Guidance Note require that we comply withethical requirements and plan and perform the audit to obtain reasonable assurance aboutwhether adequate internal financial controls over financial reporting was established andmaintained and if such controls operated effectively in all material respects.
4. Our audit involves performing procedures to obtain audit evidence about the adequacyof the internal financial controls system over financial reporting and their operatingeffectiveness. Our audit of internal financial controls over financial reporting includedobtaining an understanding of internal financial controls over financial reportingassessing the risk that a material weakness exists and testing and evaluating the designand operating effectiveness of internal control based on the assessed risk. The proceduresselected depend on the auditor's judgement including the assessment of the risks ofmaterial misstatement of the financial statements whether due to fraud or error.
5. We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Company's internal financial controls systemover financial reporting.
Meaning of Internal Financial Controls over Financial Reporting
6. A company's internal financial control over financial reporting is a processdesigned to provide reasonable assurance regarding the reliability of financial reportingand the preparation of financial statements for external purposes in accordance withgenerally accepted accounting principles. A company's internal financial control overfinancial reporting includes those policies and procedures that -
a) pertain to the maintenance of records that in reasonable detail accurately andfairly reflect the transactions and dispositions of the assets of the company;
b) provide reasonable assurance that transactions are recorded as necessary to permitpreparation of financial statements in accordance with generally accepted accountingprinciples and that receipts and expenditures of the company are being made only inaccordance with authorisations of management and directors of the company; and
c) provides reasonable assurance regarding prevention or timely detection ofunauthorised acquisition use or disposition of the company's assets that could have amaterial effect on the financial statements.
Inherent Limitations of Internal Financial Controls over Financial Reporting
7. Because of the inherent limitations of internal financial controls over financialreporting includhg 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.
8. In our opinion the Company has in all material respects an adequate internalfinancial controls system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at March 31 2017 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note on Audit ofInternal Financial Controls Over Financial Reporting issued by the Institute of CharteredAccountants of India.
For B. S. Kedia & Co.
M. No.: 066852
Date: May 30 2017