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PCS Technology Ltd.

BSE: 517119 Sector: Consumer
NSE: N.A. ISIN Code: INE834B01012
BSE 00:00 | 25 Nov 4.27 -0.13
(-2.95%)
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NSE 05:30 | 01 Jan PCS Technology Ltd
OPEN 4.27
PREVIOUS CLOSE 4.40
VOLUME 6
52-Week high 6.94
52-Week low 1.94
P/E 8.54
Mkt Cap.(Rs cr) 9
Buy Price 4.40
Buy Qty 336.00
Sell Price 4.27
Sell Qty 95.00
OPEN 4.27
CLOSE 4.40
VOLUME 6
52-Week high 6.94
52-Week low 1.94
P/E 8.54
Mkt Cap.(Rs cr) 9
Buy Price 4.40
Buy Qty 336.00
Sell Price 4.27
Sell Qty 95.00

PCS Technology Ltd. (PCSTECHNOLOGY) - Auditors Report

Company auditors report

TO THE MEMBERS OF PCS TECHNOLOGY LIMITED Report on the Standalone Ind AS financialstatements Opinion:

We have audited the accompanying Standalone Ind AS financial statements of PCSTECHNOLOGY LIMITED ("the Company") which comprise the Balance Sheet as at March31 2019 the Statement of Profit and Loss (Including Other Comprehensive Income) theStatement of Changes in Equity and the Cash Flow Statement for the year then ended and asummary of the significant accounting policies and other explanatory information('theStandalone Ind AS financial statements)

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid Standalone Ind AS financial statements give the informationrequired by the Companies Act2013 ("the Act") in the manner so required andgive a true and fair view in conformity with the accounting principles generally acceptedin India including the Ind AS of the State of Affairs of the Company as at 31st March2019 and its Profit Total Comprehensive Income changes in equity and cash flows for theyear ended on that date.

Basis for Opinion:

We conducted our audit of the Standalone IND AS financial statements in accordance withthe Standards on Auditing specified under section 143(10) of the Act (SAs). Ourresponsibilities under those Standards are further described in the Auditor’sResponsibilities for the Audit of the Standalone IND AS Financial Statements section ofour report. We are independent of the Company in accordance with the Code of Ethics issuedby the Institute of Chartered Accountants of India (ICAI) together with the independencerequirements that are relevant to our audit of the Standalone IND AS financial statementsunder the provisions of the Act and the Rules made thereunder and we have fulfilled ourother ethical responsibilities in accordance with these requirements and the ICAI’sCode of Ethics. We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our audit opinion on the Standalone financialstatements.

Key Audit Matters:

Key audit matters are those matters that in our professional judgment were of mostsignificance in our audit of the standalone financial statements of the current period.These matters were addressed in the context of our audit of the standalone financialstatements as a whole and in forming our opinion thereon and we do not provide aseparate opinion on these matters. We have determined the matters described below to bethe key audit matters to be communicated in our report

Information other than the Standalone Financial Statements and Auditor's Report Thereon

The Company’s Board of Directors is responsible for the preparation of the otherinformation. The other information comprises the information included in the ManagementDiscussion and Analysis Board’s Report including Annexures to Board’s ReportBusiness Responsibility Report Corporate Governance and Shareholder’s Informationbut does not include the Standalone IND AS financial statements and our auditor’sreport thereon.

Our opinion on the Standalone IND AS financial statements does not cover the otherinformation and we do not express any form of assurance conclusion thereon.

In connection with our audit of the Standalone financial statements our responsibilityis to read the other information and in doing so consider whether the other informationis materially inconsistent with the Standalone IND AS financial statements or ourknowledge obtained during the course of our audit or otherwise appears to be materiallymisstated.

If based on the work we have performed we conclude that there is a materialmisstatement of this other information we are required to report that fact. We havenothing to report in this regard.

Management’s Responsibility for the Standalone Ind AS 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 preparationand

presentation of these Standalone Ind AS financial statements that give a true and fairview of the Standalone financial positionStandalone financial performance including OtherComprehensive Income Standalone changes in equity and Standalone cash flows of theCompany in accordance with the accounting principles generally accepted in Indiaincluding the Indian Accounting Standards (Ind AS) specified under Section 133 of the Act.This responsibility also includes maintenance of adequate accounting records in accordancewith the provisions of the Act for safeguarding the assets of the Group and for preventingand detecting frauds and other irregularities; selection and application of theappropriate 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 Standalone IndAS financial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error which have been used for the purpose ofpreparation of the Standalone Ind AS financial statements by the Board of Directors of thecompany.

In preparing the Standalone Ind As Financial Statements management is responsible forassessing the Company's ability to act as a going concerndisclosing as applicablematters related to going concern and using the going concern basis of accounting unlessmanagement either intends to liquidate the Company or to cease the operations or has norealistic alternative but to do so.

The Board of Directors are responsible for overseeing the Company’s financialreporting process.

Auditor’s Responsibility

Our objectives are to obtain reasonable assurance about whether the Standalone IND ASfinancial statements as a whole are free from material misstatement whether due to fraudor error and to issue an auditor’s report that includes our opinion. Reasonableassurance is a high level of assurance but is not a guarantee that an audit conducted inaccordance with SAs will always detect a material misstatement when it exists.Misstatements can arise from fraud or error and are considered material if individuallyor in the aggregate they could reasonably be expected to influence the economic decisionsof users taken on the basis of these Standalone IND AS financial statements.

As part of an audit in accordance with SAs we exercise professional judgment andmaintain professional skepticism throughout the audit. We also:

1. Identify and assess the risks of material misstatement of the Standalone IND ASfinancial statements whether due to fraud or error design and perform audit proceduresresponsive to those risks and obtain audit evidence that is sufficient and appropriate toprovide a basis for our opinion. The risk of not detecting a material misstatementresulting from fraud is higher than for one resulting from error as fraud may involvecollusion forgery intentional omissions misrepresentations or the override of internalcontrol.

2. Obtain an understanding of internal financial controls relevant to the audit inorder to design audit procedures that are appropriate in the circumstances. Under section143(3)(i) of the Act we are also responsible for expressing our opinion on whether theCompany has adequate internal financial controls system in place and the operatingeffectiveness of such controls.

3. Evaluate the appropriateness of accounting policies used and the reasonableness ofaccounting estimates and related disclosures made by management.

4. Conclude on the appropriateness of management’s use of the going concern basisof accounting and based on the audit evidence obtained whether a material uncertaintyexists related to events or conditions that may cast significant doubt on theCompany’s ability to continue as a going concern. If we conclude that a materialuncertainty exists we are required to draw attention in our auditor’s report to therelated disclosures in the Standalone IND AS financial statements or if such disclosuresare inadequate to modify our opinion. Our conclusions are based on the audit evidenceobtained up to the date of our auditor’s report. However future events or conditionsmay cause the Company to cease to continue as a going concern.

5. Evaluate the overall presentation structure and content of the Standalone IND ASfinancial statements including the disclosures and whether the Standalone IND ASfinancial statements represent the underlying transactions and events in a manner thatachieves fair presentation.

Materiality is the magnitude of misstatements in the Standalone IND AS financialstatements that individually or in aggregate makes it probable that the economicdecisions of a reasonably knowledgeable user of the financial statements may beinfluenced. We consider quantitative materiality and qualitative factors in (i) planningthe scope of our audit work and in evaluating the results of our work; and (ii) toevaluate the effect of any identified misstatements in the financial statements.

We communicate with those charged with governance regarding among other matters theplanned scope and timing of the audit and significant audit findings including anysignificant deficiencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have compliedwith relevant ethical requirements regarding independence and to communicate with themall relationships and other matters that may reasonably be thought to bear on ourindependence and where applicable related safeguards.

We believe that the audit evidence obtained by us and the audit evidence obtained bythe other auditors in terms of their reports referred to in the ‘Other Matter‘below is sufficient and appropriate to provide a basis for our audit opinion on theStandalone Ind AS financial statements.

Our opinion on the Standalone Ind AS financial statements above and our report onOther Legal and Regulatory Requirements below is not modified in respect of the abovematters with respect to our reliance on the work done and the reports of other auditors.

Report on Other Legal and Regulatory Requirements

Our opinion on the Standalone Ind AS financial statements above and our report onOther Legal and Regulatory Requirements below is not modified in respect of the abovematters with respect to our reliance on the work done and the reports of other auditors.

1. As required by section 143(3) of the Act based on our audit and based on theconsideration of reports of other auditors on separate financial statements of thesubsidiary companies referred in the ‘other Matter‘ Paragraph above we reportto the extent applicable 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 of the StandaloneInd AS financial statements.

b) In our opinion proper books of account as required by law relating to preparationof the aforesaid Standalone Ind AS financial statements have been kept so far as appearsfrom our examination of those books and the reports of other auditors.

c) The Standalone Balance Sheet the Standalone Statement of Profit and Loss includingOther Comprehensive Income Standalone Statement of Changes in Equity and the StandaloneCash Flow Statement dealt with by this report are in agreement with the books of accountmaintained for the purpose of preparation of the Standalone Ind AS financial statements.

d) In our opinion the Standalone Ind AS financial statements comply with the IndianAccounting Standards specified under Section 133 of the Act.

e) On the basis of written representations received from the directors as on 31stMarch2019 taken on record by the Board of Directors and the reports of the statutoryauditors of its subsidiary companies incorporated in India none of the directors isdisqualified as on 31st March2019 from being appointed as a 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 A" which is based on the auditors‘ reports ofthe company and its subsidiary companies incorporated in India. Our report expresses anunmodified opinion on the adequacy and operating effectiveness of the Company‘sinternal financial controls over financial reporting of Company and its subsidiarycompanies incorporated in India.

g) With respect to the other matters to be included in the Auditor’s Report inaccordance with the requirements of section 197(16) of the Act as amended:

In our opinion and to the best of our information and according to the explanationsgiven to us the remuneration paid by the Company to its directors during the year is inaccordance with the provisions of section 197 of the Act.

h) With respect to the other matters to be included in the Auditor’s Report inaccordance with Rules 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 Standalone Ind AS financial statements disclose the impact of pendinglitigations on it‘s financial position of the Group.- Refer Note No. 37 to theStandalone Financial Statements

ii. The Company do not have any long-term contracts including derivative contracts forwhich there were any material foreseeable losses.

iii. There has not been any delay in case of the company during the year under reportto transfer any sums to the Investor Education and Protection Fund.

For Vinod K Mehta & Co.
Chartered Accountants
(Firm Registration No. : 111508W)
Divyesh V Mehta
Partner
Membership No.:044293
Mumbai
Date: 24.05.2019

"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 under Clause (i) of Sub-section 3 of Section143 of the Companies Act2013 ("the Act")

We have audited the Internal Financial Controls over financial reporting of PCSTECHNOLOGY LIMITED ("the Company") incorporated in India as at 31st March 2019in conjunction with our audit of the Standalone Ind AS financial statements of the Companyfor the year ended as at on that date.

Management Responsibility for the 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 and its subsidiary companies incorporated in India consideringthe essential components of internal control stated in the Guidance Note on Audit ofInternal Financial Controls over Financial Reporting (the Guidance Note") issued bythe Institute of Chartered Accountants of India (ICAI). These responsibilities include thedesign implementation and maintenance of adequate internal financial controls that wereoperating effectively for ensuring the orderly and efficient conduct of its businessincluding adherence to the 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.

Auditor’s Responsibility

Our responsibility is to express an opinion on the Company and 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 issued by ICAI and deemedto be prescribed under Section 143(10) of the Act to the extent applicable to an audit ofinternal financial controls both applicable to an audit of Internal Financial Controlsand both issued by the ICAI. Those Standards and the Guidance Note require that we complywith ethical requirements and plan and perform the audit to obtain reasonable assuranceabout whether adequate internal financial controls over financial reporting wasestablished and maintained and if such controls operated effectively in all materialrespects.

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 auditor’s judgment including the assessment of the risks of materialmisstatement of the Standalone Ind AS financial statements whether due to fraud or error.

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 the maintenance of records that in reasonable detail accurately andfairly reflect the transactions and dispositions of the assets of the company.

(2) 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.

(3) provide reasonable assurance regarding prevention or timely detection ofunauthorized acquisition use or disposition of the company’s assets that could havea 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 knowledge and according to the explanations given tousthe Company in India 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 2019 based on theinternal control over financial reporting criteria established by the Companiesconsidering 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 Vinod K Mehta & Co.
Chartered Accountants
(Firm Registration No. : 111508W)
Divyesh V Mehta
Partner
Membership No.:044293
Mumbai
Date: 24.05.2019

"ANNEXURE B" TO THE INDEPENDENT AUDITOR'S REPORT

(Referred to in Paragraph 2 under "Report on other legal and regulatoryrequirements" of our report of even date)

1. In respect of its Property Plant and Equipment:

a. The Company has maintained proper records showing full particulars includingquantitative details and situation of Property Plant and Equipment on the basis ofavailable information.

b. As explained to us all the Property Plant and Equipment have been physicallyverified by the management in a phased periodical manner which in our opinion isreasonable having regard to the size of the Company and nature of its assets. No materialdiscrepancies were noticed on such physical verification.

c. According to the information and explanations given to us and the title deeds/leasedeeds and other records examined by us the title deeds / lease deeds in respect of allthe immovable properties of land which are freehold immovable properties of land thathave been taken on lease and disclosed as fixed assets in the financial statement andbuildings are held in the Company's name or in the Company's erstwhile name as at thebalance sheet date.

2. As explained to us physical verification of the inventories have been conducted atreasonable intervals by the management which in our opinion is reasonable having regardto the size of the Company and nature of its inventories. No material discrepancies werenoticed on such physical verification.

The Company has applied for the business of providing Non-Banking Financial Servicesand consequently does not hold any inventory.

3. The Company has not granted any loans secured or unsecured to companies firmslimited liability partnerships or other parties covered in the register maintained underSection 189 of the Act. Consequently the requirement of clause (iii) (a) to clause (iii)(c) of paragraph 3 of the Order is not applicable to the Company.

4. The Company has not directly or indirectly advanced loan to the persons coveredunder section 185 of the Act or given guarantees or securities in connection with the loantaken by such persons. The Company has not made any investments or given any loan or anyguarantee or security in connection with the loan to any person or body corporate coveredunder Section 186 of the Act during the year and has complied with the provisions ofSection 186 of the Act in respect of investments loans guarantee or securityoutstanding at the year end.

5. According to the information and explanations given to us the Company has notaccepted any deposits nor has any unclaimed deposit within the meaning of the provisionsof Sections 73 to 76 or any other relevant provision of the Act and the rules framedthereunder. Therefor the provisions of Clause (v) of paragraph 3 of the Order are notapplicable to the Company.

6. Reporting under clause 3(vi) of the Order is not applicable as the Company'sbusiness activities are not covered by the Companies (Cost Records and Audit) Rules 2014.

7. In respect of Statutory dues :

(a) According to the records of the company undisputed statutory dues includingprovident fund employees’ state insurance income tax goods and sales tax servicetax duty of customs duty of excise value added tax cess and any other statutory dueshave been regularly deposited with appropriate authorities. According to the informationand explanations given to us undisputed amounts payable in respect of the aforesaid duesoutstanding as at March 31 2019 for a period of more than six months from the date theybecame payable .

(b) According to the information and explanations given to us the status of disputeddues payable in respect of income tax sales tax service tax duty of customs duty ofexcise value added tax as on 31st March2019 is as follows:

Nature of Statue Nature of Dues Forum where Dispute is pending Period to which the amount relates Amount
Finance Act 1994 Service Tax Appellate

Tribunal

F.Y. 2004-05 to F.Y. 2008-09 22904559
Custom Act 1962 Custom

Duty

Commisioner of Central Excise Chennai F.Y. 2006-07 21540551
Central excise Act 1944 Excise

Duty

Commisioner of Central Excise Chennai F.Y. 2006-07 3626553
Finance Act 1994 Service Tax Appellate

Tribunal

F.Y. 2009-10 5045046
Finance Act 1994 Service Tax Appellate

Tribunal

F.Y. 2010-11 2913810
Finance Act 1994 Service Tax Appellate

Tribunal

F.Y. 2011-12 596410
Foreign Trade (Development and Regulation) Act 1992 Export/

Import

Duty

Director General Foreign Trade F.Y. 2001-02 to F.Y. 2003-04 950074

8. In our opinion and according to the information and explanation given to usthecompany has not defaulted in the repayment of loans or borrowings to financialinstitutionsbanks and government. The company has not issued any debentures.

9. The Company has not raised money by way of initial public offer (including debtinstruments) or term loan and hence clause (ix) of paragraph 3 of the Order is notapplicable to the Company.

10. Based on the audit procedures performed for the purpose of reporting the true andfair view of the financial statements and as per information and explanations given to usno fraud by the Company is noticed or reported during the year nor have we been informedof any such instance by the Management.

11. In our opinion and according to the information and explanations given to usmanagerial remuneration has been paid or provided in accordance with the requisiteapprovals mandated by the provisions of the Section 197 read with Schedule V to the Act.

12. In our opinion and according to the information and explanations given to us thecompany is not a nidhi company. Therefore the provisions of clause (xii) of paragraph 3of the Order are not applicable to the Company.

13. In our opinion and according to the information and explanations given to us thecompany is in compliance with section 188 and 177 of the Companies Act2013whereapplicablefor all transactions with the related parties and the details of related partytransactions have been disclosed in the standalone Ind AS financial statements etc. asrequired by the applicable accounting standards.

14. In our opinion and according to the information and explanations given to us theCompany has not made any preferential allotment or private placement of shares or fully orpartly convertible debentures during the year and hence clause (xiv) of paragraph 3 of theOrder is not applicable to the Company.

15. In our opinion and according to the information and explanations given to us theCompany has not entered into any non-cash transaction with the Directors or Personsconnected with them and covered under Section 192 of the Act. Hence clause (xv) ofparagraph 3 of the Order is not applicable to the Company.

16. To the best of our knowledge and as explained the Company is required to beregistered under Section 45-IA of the Reserve Bank of India Act 1934 and the Company hasapplied to Registeration with RBI and the same is pending.

For Vinod K Mehta & Co.
Chartered Accountants
(Firm Registration No. : 111508W)
Divyesh V Mehta
Mumbai Partner
Date: 24.05.2019 Membership No.:044293

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