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PSP Projects Ltd.

BSE: 540544 Sector: Infrastructure
NSE: PSPPROJECT ISIN Code: INE488V01015
BSE LIVE 15:57 | 17 Nov 417.60 19.75
(4.96%)
OPEN

401.75

HIGH

430.00

LOW

401.20

NSE 15:57 | 17 Nov 418.65 20.05
(5.03%)
OPEN

400.00

HIGH

432.70

LOW

399.05

OPEN 401.75
PREVIOUS CLOSE 397.85
VOLUME 15055
52-Week high 465.75
52-Week low 189.05
P/E 31.73
Mkt Cap.(Rs cr) 1,503
Buy Price 417.60
Buy Qty 588.00
Sell Price 0.00
Sell Qty 0.00
OPEN 401.75
CLOSE 397.85
VOLUME 15055
52-Week high 465.75
52-Week low 189.05
P/E 31.73
Mkt Cap.(Rs cr) 1,503
Buy Price 417.60
Buy Qty 588.00
Sell Price 0.00
Sell Qty 0.00

PSP Projects Ltd. (PSPPROJECT) - Auditors Report

Company auditors report

on the Standalone Financial Statements

To the Members of PSP PROJECTS LIMITED

Report on the Financial Statements

1. We have audited the accompanying Standalone Financial Statements of PSP ProjectsLimited ("the Company") which comprise the Balance Sheet as at March 31 2017the Statement of Profit and Loss and Cash Flow Statement for the year ended and a summaryof significant accounting policies and other explanatory information.

Management Responsibility for the Financial Statements

2. 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 Rules 7 of the Companies (Accounts) Rules 2014. Thisresponsibility also includes maintenance of adequate accounting records in accordance withthe provisions of the Act for safeguarding the assets of the Company and for preventingand detecting frauds and other irregularities; selection and application of appropriateaccounting policies; making judgments and estimates that are reasonable and prudent; anddesign implementation and maintenance of adequate internal financial controls that wereoperating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the Financial Statements thatgive a true and fair view and are free from material misstatement whether due to fraud orerror.

Auditor's Responsibility

3. Our responsibility is to express an opinion on these Financial Statements based onour audit.

4. 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 reports under theprovisions of the Act and the Rules made there under.

5. We conducted our audit in accordance with the Standards on Auditing specified underSection 143(10) of the Act. Those Standards require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetherthe Financial Statements are free from material misstatement.

6. An audit involves performing procedures to obtain audit evidence about the amountsand the disclosures in the Financial Statements. The procedures selected depend on theauditor's judgment including the assessment of the risks of material misstatement of theFinancial Statements whether due to fraud or error. In making those risk assessments theauditor considers internal financial control relevant to the Company's preparation of theFinancial Statements that give a true and fair view in order to design audit proceduresthat are appropriate in the circumstances. An audit also includes evaluating theappropriateness of accounting policies used and the reasonableness of the accountingestimates made by Company's director as well as evaluating the overall presentation ofthe Financial Statements.

7. We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Financial Statements.

Opinion

8. In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid Financial Statements give the information required by the Actin the manner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India of the state of affairs of the company as at 31stMarch 2017 and its profit and cash flows for the year ended on that date.

Report on other legal and regulatory Requirements

9. As required by the Companies (Auditor's Report) Order 2016 ("the Order")issued by the Central Government of India in terms of sub-section (11) of section 143 ofthe Act we give in the Annexure A statement on the matters specified in paragraphs 3 and4 of the Order.

10. 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 purpose 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 the Cash Flow Statementdealt with by 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 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 a director interms of section 164(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.

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 and Companies(Audit and Auditors) Amendment Rules 2017 in our opinion and to the best of ourinformation 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; and

iii) There were no amounts which were required to be transferred to the InvestorEducation and Protection Fund by the company.

iv) The Company has provided requisite disclosures in the financial statements as toholdings as well as dealings in Specified Bank Notes as defined in the notificationS.O.3407 (E) dated 8th November 2016 of the Ministry of Finance during theperiod from 8th November 2016 to 30th December 2016. Based on audit procedures andrelying on the management representation we report that the disclosures are in accordancewith books of account maintained by the Company and as produced to us by the Management -Refer Note - 40.

For Prakash B Sheth & CO.
Chartered Accountants
FRN: 108069W
(Prakash B. Sheth)
Place : Ahmedabad Proprietor
Date : 19th June 2017 Membership No.:036831

ANNEXURE A TO INDEPENDENT AUDITORS' REPORT

Referred to in paragraph 9 of the Independent Auditors' Report of even date to themembers of PSP Projects Limited on the standalone Financial Statements for the year endedon 31st March 2017.

Referred to in our report of even date

i. (a) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.

(b) According to the information and explanation given to us the Fixed Assets havebeen physically verified by the management once during the period and no materialdiscrepancies were noticed on such verification.

(c) According to the information and explanations given by the management the titledeeds of land included in fixed assets and having gross book value of ' 18 81.52Lakhs are mortgaged with the ICICI Bank Ltd. As per confirmation from the bank and theinformation provided to us by the management the title deeds are held in the name of theCompany.

ii. As explained to us inventories have been physically verified at reasonableintervals by the management during the period. In our opinion the frequency of suchverification is reasonable. No material discrepancies were noticed during suchverification.

iii. (a) According to the information and explanations given to us The company hasgranted unsecured loan to a wholly owned foreign subsidiary company covered in theregister maintained u/s 189 of the Act. The terms and conditions of the loans granted arenot prejudicial to the Company's interest.

(b) The borrower has been regular in the payments of the interest as stipulated. Theterms of arrangements do not stipulate any repayment schedule and the loans are repayableon demand.

(c) There are no overdue amounts of the loans granted to the bodies corporate listed inthe register maintained u/s 189 of the Act.

iv. In our opinion and according to the information and explanation given to us theprovision of Section 185 and 186 of the Act in respect of loans to its wholly ownedsubsidiary investment made guarantees and securities given have been complied with bythe Company.

v. In our opinion and according to the information and explanation given to us thecompany has not accepted deposits as per the directives issued by the Reserve Bank ofIndia under the provision of sections 73 to 76 or any other relevant provisions of the Actand the rules framed there under. Accordingly paragraph 3 (V) of the order is notapplicable to the company.

vi. We have broadly reviewed the books of accounts maintained by the company pursuantto the rules made by the Central Government for the maintenance of cost records u/s 148(1)of the Companies Act 2013 related to projects of the company and are of the opinion thatprima facie the specified accounts and records have been made and maintained. We havenot however made a detailed examination of the same.

vii. (a) According to the information and explanations given to us and the records ofthe Company examined by us in our opinion the Company is generally regular in depositingthe undisputed statutory dues in respect of sales tax including value added tax providentfund employees' state insurance income tax service tax duty of customs duty ofexcise cess and other material statutory dues as applicable though there has been aslight delay in few cases with the appropriate authorities. Further No undisputed amountpayable in respect thereof were outstanding at the period end for the period of more thansix month from the date they became payable.

(b) According to the information and explanations given to us and the records of thecompany examined by us dues in respect of service tax and excise as at 31stMarch 2017 which have been not been deposited on account of disputes pending is as under:

Name of Statue Nature of the Dues

' in Lakhs

Period to which amount relates Forum where dispute is pending
Central Board of Excise & Customs Service Tax 17.45 2006- 07

2007- 08 & 2008-09

Appeal is filed in tribunal & unconditional stay has been in receipt & matter pending for final PH.
Central Board of Excise & Customs Service Tax 97.39 2008-09 Appeal is filed in tribunal & unconditional stay has been in receipt & matter pending for final PH.
Central Board of Excise & Customs Excise 0.70 2014-15 Appeal is filed with Commissioner (Appeals) with Central Excise
Central Board of Excise & Customs Excise 14.84 2014-15 & 2015-16 Appeal is filed with Commissioner (Appeals) with Central Excise
Central Board of Excise & Customs Excise 1.74 2015-16 Appeal is filed with Commissioner (Appeals) with Central Excise
Central Board of Excise & Customs Excise 4.91 2014-15 & 2015-16 Appeal is filed with Commissioner (Appeals) with Central Excise

viii. According to the records of the Company examined by us and the information andexplanation given to us the Company has not defaulted in repayment of loans or borrowingsto any financial institution or bank or Government as at the balance sheet date. Thecompany did not have any outstanding dues to debenture holders during the period.

ix. According to the records of the Company examined by us and the information andexplanation given to us the term loans were applied for the purposes for which loans wereobtained. The company has not raised any monies by way of initial public offer or furtherpublic offer (including debt instruments).

x. During the course of our examination of the books and records of the Companycarried out in accordance with the generally accepted auditing practices in India andaccording to the information and explanations given to us we have neither come across anyinstance of material fraud by the Company or on the Company by its officers or employeesnoticed or reported during the period nor have we been informed of any such case by theManagement.

xi. According to the records of the Company examined by us and the information andexplanation given to us the Company has paid/ provided for managerial remuneration inaccordance with the requisite approvals mandated by the provisions of Section 197 readwith Schedule V to the Act.

xii. As the company is not a Nidhi Company and the Nidhi Rules 2014 are not applicableto it the provisions of clause 3(xii) of the Order are not applicable to the Company.

xiii. According to the records of the Company examined by us and the information andexplanation given to us the Company has entered into transactions with related parties incompliance with the provisions of Sections 177 and 188 of the Act. The details of suchrelated party transactions have been disclosed in the Financial Statements as requiredunder Accounting Standard (AS) 18 Related Party Disclosures specified under Section 133of the Act read with Rule 7 of the Companies (Accounts) Rules 2014.

xiv. According to the records of the Company examined by us and the information andexplanation given to us the Company has not made any preferential allotment or privateplacement of shares or fully or partly convertible debentures during the period underreview. Accordingly the provisions of Clause 3(xiv) of the Order are not applicable tothe Company.

xv. According to the records of the Company examined by us and the information andexplanation given to us the Company has not entered into any non cash transactions withits directors or persons connected with him. Accordingly the provisions of Clause 3(xv)of the Order are not applicable to the Company.

xvi. According to the records of the Company examined by us and the information andexplanation given to us the Company is not required to be registered under Section 45-IAof the Reserve Bank of India Act 1934. Accordingly the provisions of Clause 3(xvi) ofthe Order are not a applicable to the Company.

For Prakash B Sheth & CO.
Chartered Accountants
FRN: 108069W
(Prakash B. Sheth)
Place : Ahmedabad Proprietor
Date : 19h June 2017 Membership No.:036831

ANNEXURE B TO INDEPENDENT AUDITORS' REPORT

Referred to in paragraph 10 (f) of the Independent Auditors' Report of even date to themembers of PSP Projects Limited on the

standalone Financial Statements for the year ended on 31st March 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 PSPProjects Limited ("the Company") as of 31st March 2017 inconjunction with our audit of the standalone Financial Statements of the Company for theperiod 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.

Auditors' Responsibility

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 judgment 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 (1) pertain to themaintenance of records that in reasonable detail accurately and fairly reflect thetransactions and dispositions of the assets of the company; (2) provide reasonableassurance that transactions are recorded as necessary to permit preparation of FinancialStatements in accordance with generally accepted accounting principles and that receiptsand expenditures 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

7. 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.

Opinion

8. In our opinion to the best of our information and according to the explanationgiven to us the Company has in all material respects an adequate internal financialcontrols system over financial reporting and such internal financial controls overfinancial reporting were operating effectively as at 31st March 2017 based onthe internal control over financial reporting criteria established by the Companyconsidering the essential components of internal control stated in the Guidance Note onAudit of Internal Financial Controls Over Financial Reporting issued by the Institute ofChartered Accountants of India.

For Prakash B Sheth & CO.
Chartered Accountants
FRN: 108069W
(Prakash B. Sheth)
Place : Ahmedabad Proprietor
Date : W* June 2017 Membership No.:036831