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PTC India Financial Services Ltd.

BSE: 533344 Sector: Financials
NSE: PFS ISIN Code: INE560K01014
BSE LIVE 15:40 | 24 Nov 36.95 0.15
(0.41%)
OPEN

36.80

HIGH

37.35

LOW

36.65

NSE 15:56 | 24 Nov 36.95 0.30
(0.82%)
OPEN

36.80

HIGH

37.20

LOW

36.60

OPEN 36.80
PREVIOUS CLOSE 36.80
VOLUME 270023
52-Week high 50.70
52-Week low 36.05
P/E 8.07
Mkt Cap.(Rs cr) 2,373
Buy Price 36.95
Buy Qty 1916.00
Sell Price 0.00
Sell Qty 0.00
OPEN 36.80
CLOSE 36.80
VOLUME 270023
52-Week high 50.70
52-Week low 36.05
P/E 8.07
Mkt Cap.(Rs cr) 2,373
Buy Price 36.95
Buy Qty 1916.00
Sell Price 0.00
Sell Qty 0.00

PTC India Financial Services Ltd. (PFS) - Auditors Report

Company auditors report

TO THE MEMBERS OF

PTC INDIA FINANCIAL SERVICES LIMITED

Report on the Standalone Financial Statements

We have audited the accompanying standalone financial statements of PTC INDIAFINANCIAL SERVICES LIMITED ("the Company") which comprise the Balance Sheetas at March 31 2016 the Statement of Profit and Loss and the Cash Flow Statement for theyear then ended and a summary of the significant accounting policies and otherexplanatory information.

Management’s 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 standalone financial statements that give a true and fair view of the financialposition financial performance and cash flows of the Company in accordance with theaccounting principles generally accepted in India including the Accounting Standardsprescribed under section 133 of the Act as applicable.

This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding the assets of the Company andfor preventing and detecting frauds and other irregularities; selection and application ofappropriate accounting policies; making judgments and estimates that are reasonable andprudent; and design implementation and maintenance of adequate internal financialcontrols that were operating effectively for ensuring the accuracy and completeness ofthe accounting records relevant to the preparation and presentation of the financialstatements that give a true and fair view and are free from material misstatement whetherdue to fraud or error.

Auditor’s Responsibility

Our responsibility is to express an opinion on these standalone financial statementsbased on our audit.

We have taken into account the provisions of the Act the accounting and auditingstandards and matters which are required to be included in the audit report under theprovisions of the Act and the Rules made thereunder and the Order under section 143 (11)of the Act. We conducted our audit of the financial statements in accordance with theStandards on Auditing specified under Section 143(10) of the Act. Those Standards requirethat we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether the financial statements are free from materialmisstatement.

An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the financial statements. The procedures selected depend on theauditor’s 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’spreparation of the financial statements that give a true and fair view in order to designaudit procedures that are appropriate in the circumstances. An audit also includesevaluating the appropriateness of the accounting policies used and the reasonableness ofthe accounting estimates made by the Company’s Directors as well as evaluating theoverall presentation of the financial statements. We believe that the audit evidence wehave obtained is sufficient and appropriate to provide a basis for our audit opinion onthe standalone financial statements.

Opinion

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 of the state of affairs of the Companyas at March 31 2016 and its profit and its cash flows for the year ended on that date.

Report on Other Legal and Regulatory Requirements

1. As required by 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 the Cash Flow Statementdealt with by this Report are in agreement with the books of account.

d) In our opinion the aforesaid standalone financial statements comply with theAccounting Standards prescribed under section 133 of the Act as applicable.

e) On the basis of the written representations received from the directors as on March31 2016 taken on record by the Board of Directors none of the directors is disqualifiedas on March 31 2016 from being appointed as a director in terms of Section 164 (2) of theAct. 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 "A".

Our report expresses an unmodified opinion on the adequacy and operating effectivenessof the Company’s internal financial controls over financial reporting. g) Withrespect to the other matters to be included in the Auditor’s Report in accordancewith Rule 11 of the Companies (Audit and Auditor’s) Rules 2014 in our opinion andto 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 financialposition in its financial statements- Refer Note 25 to the financial statements

ii. The Company has made provision as required under the applicable law or accountingstandards for material foreseeable losses on long-term contracts including derivativecontracts.

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

2. As required by the Companies (Auditor’s Report) Order 2016 ("theOrder") issued by the Central Government in terms of Section 143(11) of the Act wegive in Annexure "B" a statement on the matters specified inparagraphs 3 and 4 of the Order.

For DELOITTE HASKINS & SELLS
Chartered Accountants
(Firm’s Registration No. 015125N)
Sd/-
Jaideep Bhargava
Partner
(Membership No. 90295)
GURGAON May 12 2016

ANNEXURE "A" TO THE INDEPENDENT AUDITOR’S REPORT

(Referred to in paragraph 1 (f) under ‘Report on Other Legal and RegulatoryRequirements’ of our report of even date)

Report on the Internal Financial Controls Over Financial Reporting under Clause (i) ofSub-section 3 of Section 143 of the Companies Act 2013 ("the Act")

We have audited the internal financial controls over financial reporting of PTCINDIA FINANCIAL SERVICES LIMITED ("the Company") as of March 31 2016 inconjunction with our audit of the financial statements of the Company for the year endedon that date.

Management’s Responsibility for Internal Financial Controls

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". 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 assetsthe prevention and detection of frauds and errors the accuracy and completeness of theaccounting records and the timely preparation of reliable financial information asrequired under the Companies Act 2013.

Auditor’s Responsibility

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") issued by the Institute of Chartered Accountants of Indiaand the Standards on Auditing prescribed under Section 143(10) of the Companies Act 2013to the extent applicable to an audit of internal financial controls. Those Standards andthe Guidance Note require that we comply with ethical requirements and plan and performthe audit to obtain reasonable assurance about whether adequate internal financialcontrols over financial reporting was established and maintained and if such controlsoperated effectively in all material 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 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.

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 controlssystem over financial reporting.

Meaning of Internal Financial Controls over Financial Reporting

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 authorisations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorised 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.

Opinion

In our opinion to the best of our information and according to the explanations givento us the Company has in all material respects an adequate internal financial controlssystem over financial reporting and such internal financial controls over financialreporting were operating effectively as at March 31 2016 based on "the internalcontrol over financial reporting criteria established by the Company considering theessential components of internal control stated in the Guidance Note on Audit of InternalFinancial Controls Over Financial Reporting issued by the Institute of CharteredAccountants of India".

For DELOITTE HASKINS & SELLS
Chartered Accountants
(Firm’s Registration No. 015125N)
Sd/-
Jaideep Bhargava
Partner
(Membership No. 90295)
GURGAON May 12 2016

ANNEXURE "B" TO THE AUDITOR’S REPORT

(Referred to in paragraph 2 under ‘Report on Legal and RegulatoryRequirements’ section of our report of even date)

Having regard to the nature of the Company’s business/ activities during the yearclauses (ii) and (vi) of the Order are not applicable. (i) In respect of its fixed assets:

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

(b) The fixed assets were physically verified during the year by the Management inaccordance with a regular programme of verification which in our opinion provides forphysical verification of all the fixed assets at reasonable intervals. According to theinformation and explanations given to us no material discrepancies were noticed on suchverification.

(c) According to the information and explanations given to us and the records examinedby us and based on the examination of the registered conveyance deed provided to us wereport that the title deed comprising an immovable property of building which isfreehold is held in the name of the Company as at the balance sheet date. In respect ofimmovable property of building that has been taken on lease and leasehold improvementsthereon disclosed as fixed asset in the financial statements the lease agreements are inthe name of the Company where the Company is the lessee in the agreement.

(ii) According to the information and explanations given to us the Company has grantedsecured loan to a company covered in the Register maintained under Section 189 of theCompanies Act 2013 in respect of which:

(a) The terms and conditions of the grant of such loan are in our opinion primafacie not prejudicial to the Company’s interest.

(b) The schedule of repayment of principal and payment of interest has been stipulatedand repayments or receipts of principle amounts and interest have been regular as perstipulations

(c) There is no overdue amount remaining outstanding at the year end.

(iii) In our opinion and according to the information and explanations given to us theCompany has complied with the provisions of section 185 and 186 of the Companies Act 2013in respect of grant of loans and providing guarantees and securities. The Company has notmade any investment during the year.

(iv) According to the information and explanations given to us the Company has notaccepted any deposit from the public during the year within the meaning of Section 73 to76 or any other relevant provisions of the Act.

(v) According to the information and explanations given to us in respect of statutorydues:

(a) The Company has generally been regular in depositing undisputed statutory duesincluding Provident Fund Income-tax Sales Tax Service Tax Cess and other materialstatutory dues applicable to it with the appropriate authorities. There were no undisputedamounts payable in respect of Provident Fund Income-tax Sales Tax Service Tax Cess andother material statutory dues in arrears as at March 31 2016 for a period of more thansix months from the date they became payable.

(b) There were no disputed dues in respect of Excise Duty Sales Tax Service TaxCustoms Duty and Value Added Tax which have not been deposited. Details of dues of IncomeTax which have not been deposited as on March 31 2016 on account of disputes are givenbelow:

Name of Statute Nature of Dues Forum where dispute is pending Period to which the amount relates Amount involved
(in Rs In lacs)*
Income-tax Act 1961 Income Tax Appellate Authority – upto Commissioners’ level 2008-09 3.08
2012-13 313.32**

* Amount as per demand orders including interest and penalty wherever indicated in theorder. ** Net of amount paid under protest of Rs 500 lacs.

(vi) In our opinion and according to the information and explanations given to us theCompany has not defaulted in the repayment of dues to bank financial institutions anddebenture holders. The Company has not taken any loans or borrowings from government.

(vii) In our opinion and according to the information and explanations given to us theterm loans (including debt instruments) have been applied by the Company for the purposesfor which they were obtained. The Company has not raised any money by way ofinitial public offer or further public offer.

(viii) To the best of our knowledge and according to the information and explanationsgiven to us no fraud by the Company and no material fraud on the Company by its officersor employees has been noticed or reported during the year.

(ix) In our opinion and according to the information and explanations given to us theCompany has paid managerial remuneration in accordance with the requisite approvalsmandated by the provisions of section 197 read with Schedule V to the Companies Act 2013.

(x) The Company is not a Nidhi Company and hence reporting under clause (xii) of theOrder is not applicable.

(xi) In our opinion and according to the information and explanations given to us theCompany is in compliance with Section 177 and 188 and of the Companies Act 2013 whereapplicable for all transactions with the related parties and the details of related partytransactions have been disclosed in the financial statements as required by the applicableaccounting standards.

(xii) During the year the Company has not made any preferential allotment or privateplacement of shares or fully or partly convertible debentures and hence reporting underclause (xiv) of the Order is not applicable to the Company.

(xiii) In our opinion and according to the information and explanations given to usduring the year the Company has not entered into any non-cash transactions with itsdirectors or directors of its holding or associate companies or persons connected withthem and hence provisions of section 192 of the Companies Act 2013 are not applicable.

(xiv) The Company is required to be registered under section 45-IA of the Reserve Bankof India Act 1934 and it has obtained the registration.

For DELOITTE HASKINS & SELLS
Chartered Accountants
(Firm’s Registration No. 015125N)
Sd/-
Jaideep Bhargava
Partner
(Membership No. 90295)
GURGAON May 12 2016