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Network People Services Technologies Ltd.

BSE: 535391 Sector: IT
NSE: NPST ISIN Code: INE0FFK01017
BSE 05:30 | 01 Jan Network People Services Technologies Ltd
NSE 00:00 | 14 Oct 70.90 -0.70
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Network People Services Technologies Ltd. (NPST) - Auditors Report

Company auditors report

‘Auditor's Report on the Restated Standalone Statement of Assets and Liabilitiesas on March 31 2021 2020 and March 31 2019 Profit and Loss and Cash Flows for each ofthe years ended on March 31 2021 March 31 2020 and March 31 2019 of Network PeopleServices Technologies Limited (collectively the "Restated Standalone SummaryStatements")

To

The Board of Directors

Network People Services Technologies Limited 306 3rd Floor Lodha Supremus II RoadNo. 22 Wagle Estate Thane (West) MH 400 604 IN

Dear Sir/Ma'am

1. We have examined the attached Restated Standalone Summary Statements along withsignificant accounting policies and related notes of Network People Services TechnologiesLimited (the "Company") for the years ended March 31 2021 March 312020 and March 31 2019 annexed to this report and prepared by the Company for thepurpose of inclusion in the Offer Document in connection with its proposed Initial PublicOffer ("IPO") on the EMERGE Platform of National Stock Exchange of IndiaLimited.

2. These Restated Summary Statements have been prepared in accordance with therequirements of:

(i) Part I of Chapter III to the Companies Act 2013 ("the Act") read withCompanies (Prospectus and Allotment of Securities) Rules 2014;

(ii) The Securities and Exchange Board of India (Issue of Capital and DisclosureRequirements) Regulations 2018 ("ICDR Regulations") issued by theSecurities and Exchange Board of India ("SEBI") in pursuance to Section11 of the Securities and Exchange Board of India Act 1992 and related amendments /clarifications from time to time;

(iii) The terms of reference to our engagements with the Company requesting us to carryout the assignment in connection with the Draft Red Herring Prospectus / Red HerringProspectus / Prospectus being issued by the Company for its proposed IPO of equity shareson EMERGE Platform of National Stock Exchange of India Limited.; and

(iv) The Guidance Note on Reports in Company Prospectus (Revised 2016) issued by theInstitute of Chartered Accountants of India ("Guidance Note").

3. The Restated Standalone Summary Statements of the Company have been extracted by themanagement from the Audited Financial Statements of the Company for the financial yearsended on March 31 2021 March 31 2020 and March 31 2019.

4. In accordance with the requirements of Part I of Chapter III of Act including rulesmade therein ICDR Regulations Guidance Note and Engagement Letter we report that:

(i) The "Restated Standalone Summary Statement of Assets and Liabilities" asset out in Annexure 1 to this report of the Company as at March 31 2021 March 31 2020and March 31 2019 are prepared by the Company and approved by the Board of Directors.These Restated Standalone Summary Statement of Assets and Liabilities have been arrivedat after making such adjustments and regroupings to the individual financial statements ofthe Company as in our opinion were appropriate and more fully described in SignificantAccounting Policies and Notes to Accounts as set out in Annexure 4 to this Report.

(ii) The "Restated Standalone Summary Statement of Profit and Loss" as setout in Annexure 2 to this report of the Company for the years ended March 31 2021 March31 2020 and March 31 2019 are prepared by the Company and approved by the Board ofDirectors. These Restated Standalone Summary Statement of Profit and Loss have beenarrived at after making such adjustments and regroupings to the individual financialstatements of the Company as in our opinion were appropriate and more fully described inSignificant Accounting Policies and Notes to Accounts as set out in Annexure 4 to thisReport.

(iii) The "Restated Standalone Summary Statement of Cash Flow" as set out inAnnexure 3 to this report of the Company for the years ended March 31 2021 March 312020 and March 31 2019 are prepared by the Company and approved by the Board ofDirectors. These Statement of Cash Flow as restated have been arrived at after makingsuch adjustments and regroupings to the individual financial statements of the Company asin our opinion were appropriate and more fully described in Significant AccountingPolicies and Notes to Accounts as set out in Annexure 4 to this Report.

5. Based on the above and also as per the reliance placed by us on the auditedfinancial statements of the Company and report thereon given by the Statutory Auditor ofthe Company for the financial years ended March 31 2021 March 31 2020 and March 312019 we are of the opinion that:

a) The Restated Standalone Summary Statements have been made after incorporatingadjustments for the changes in accounting policies retrospectively in respective financialyears to reflect the same accounting treatment as per the changed accounting policy forall reporting years if any;

b) The Restated Standalone Summary Statements have been made after incorporatingadjustments for prior period and other material amounts in the respective financial yearsto which they relate and there are no qualifications which require adjustments;

c) Extra-ordinary items that need to be disclosed separately in the accounts has beendisclosed wherever required;

d) There were no qualifications in the Audit Reports issued by the Statutory Auditorsfor the financial year ended on March 31 2021 March 31 2020 and March 31 2019 whichwould require adjustments in this Restated Standalone Financial Statements of the Company;

e) Profits and losses have been arrived at after charging all expenses includingdepreciation and after making such adjustments/restatements and regroupings as in ouropinion are appropriate and are to be read in accordance with the Significant AccountingPolices and Notes to Accounts as set out in Annexure 4 to this report;

f) Adjustments in Restated Standalone Summary Statements have been made in accordancewith the correct accounting policies which includes the impact of provision of gratuitymade on actuarial valuation basis in the Restated Standalone Summary Statements;

g) There was no change in accounting policies which needs to be adjusted in theRestated Standalone Summary Statements except mentioned in clause (f) above;

h) There are no revaluation reserves which need to be disclosed separately in theRestated Standalone Financial Statements;

i) The company has not proposed any dividend for the said year.

6. Opinion:

In our opinion and to the best of information and explanation provided to us and alsoas per the reliance placed on reports submitted by previous auditors the restatedfinancial information of the Company read with significant accounting policies and notesto accounts as appearing in Annexure 4 are prepared after providing appropriateadjustments and regroupings as considered appropriate and disclosed in Annexure 4.

7. Audit for the Financial 2020-21 and Financial Year 2019-20 has been conducted byM/s. Keyur Shah & Co. Chartered Accountants and for the financial year 2018-19 hasbeen conducted by M/s. Parveen Kumar Garg & Associates Chartered Accountants.Accordingly reliance has been placed on the financial information examined by theseauditors for the said years. The financial report included for these years is based solelyon the report submitted by these auditors for the said years.

8. We have also examined the following other financial information relating to theCompany prepared by the Management and as approved by the Board of Directors of theCompany and annexed to this report relating to the Company for the financial year ended onMarch 31 2021 March 31 2020 and March 31 2019 proposed to be included in the DraftRed Herring Prospectus/ Red Herring Prospectus/ Prospectus ("Offer Document")for the proposed IPO.

Annexure of Restated Standalone Financial Statements of the Company: -

a. Significant Accounting Policies and Notes to Accounts as restated in Annexure 4;

b. Reconciliation of Restated Profit and Loss as appearing in Annexure 4 to thisreport.

c. Reconciliation of Restated Equity/Net worth as appearing in Annexure 4 to thisreport.

d. Details of Share Capital as Restated appearing in Annexure 5 to this report;

e. Details of Reserves and Surplus as Restated appearing in Annexure 6 to this report;

f. Details of Long Term/Short Term Borrowings as Restated appearing in Annexure 7 tothis report;

g. Nature of Security and Terms of Repayment for Long term/Short Term Borrowingsappearing in Annexure7.1 to this report;

h. Details of Deferred Tax Assets/Liabilities (Net) as Restated appearing in Annexure 8to this report;

i. Details of Other Long-Term Liabilities as Restated appearing in Annexure 9 to thisreport;

j. Details of Long Term/Short Term Provisions as Restated appearing in Annexure 10 tothis report;

k. Details of Trade Payables as Restated appearing in Annexure 11 to this report;

l. Details of Other Current Liabilities as Restated appearing in Annexure 12 to thisreport;

m. Details of Property Plant & Equipment as Restated appearing in Annexure 13 tothis report;

n. Details of Intangible Assets and Intangible Assets under Development as Restatedappearing in Annexure 14 to this report;

o. Details of Non-Current Investments as Restated appearing in Annexure 15 to thisreport;

p. Details of Long/Short Term Loans and Advances as Restated appearing in Annexure 16to this report;

q. Details of Other Current Assets as Restated appearing in Annexure 17 to this report;

r. Details of Trade Receivables as Restated appearing in Annexure 18 to this report;

s. Details of Inventories as Restated appearing in Annexure 19 to this report;

t. Details of Cash and Cash Equivalents as Restated appearing in Annexure 20 to thisreport;

u. Details of Revenue from operations as Restated appearing in Annexure 21 to thisreport;

v. Details of Other Income as Restated appearing in Annexure 22 to this report;

w. Details of Purchase of Stock in Trade as restated appearing in Annexure 23 to thisreport

x. Details of WIP as restated appearing in Annexure 23A to this Report

y. Details of Employee Benefit Expense as restated appearing in Annexure 24 to thisreport

z. Details of Finance Cost as restated appearing in Annexure 25 to this report

aa. Details of Other Expense as restated appearing in Annexure 26 to this report

bb. Statement of Tax Shelter as Restated appearing in Annexure 27 to this report cc.Capitalization Statement as Restated for the year ended March 31 2021 as appearing in

Annexure 28 to this report; dd. Details of Related Parties Transactions as Restatedappearing in Annexure 29 to this report;

9. We Keyur Shah & Co. Chartered Accountants have been subjected to the peerreview process of the Institute of Chartered Accountants of India ("ICAI") andhold a valid peer review certificate issued by the "Peer Review Board" of theICAI.

10. The preparation and presentation of the Restated Standalone Financial Statementsreferred to above are based on the Audited financial statements of the Company and are inaccordance with the provisions of the Act and ICDR Regulations. The Restated StandaloneFinancial Statements and information referred to above is the responsibility of themanagement of the Company.

11. The report should not in any way be construed as a re-issuance or re-dating of anyof the previous audit reports issued by any other firm of Chartered Accountants nor shouldthis report be construed as a new opinion on any of the financial statements referred totherein.

12. We have no responsibility to update our report for events and circumstancesoccurring after the date of the report.

13. In our opinion the above financial information contained in Annexure 1 to 29 ofthis report read with the respective Significant Accounting Polices and Notes to Accountsas set out in Annexure 4 are prepared after making adjustments and regrouping asconsidered appropriate and have been prepared in accordance with the Act ICDRRegulations Engagement Letter and Guidance Note.

14. Our report is intended solely for use of the management and for inclusion in theOffer Document in connection with the IPO. Our report should not be used referred to oradjusted for any other purpose except with our consent in writing.

For Keyur Shah & Co.
Chartered Accountants
Firm's Registration No.: 141173W
Keyur Shah
Proprietor
Membership No.: 153774
UDIN - 21153774AAAADL3066
Date: 30.05.2021
Place: Ahmedabad

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