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PSP Projects Ltd.

BSE: 540544 Sector: Infrastructure
NSE: PSPPROJECT ISIN Code: INE488V01015
BSE 13:33 | 22 Mar 464.00 -2.60
(-0.56%)
OPEN

489.90

HIGH

489.90

LOW

457.80

NSE 13:24 | 22 Mar 458.30 -9.15
(-1.96%)
OPEN

468.30

HIGH

472.95

LOW

457.10

OPEN 489.90
PREVIOUS CLOSE 466.60
VOLUME 5081
52-Week high 596.00
52-Week low 358.70
P/E 20.10
Mkt Cap.(Rs cr) 1,670
Buy Price 462.55
Buy Qty 30.00
Sell Price 463.95
Sell Qty 26.00
OPEN 489.90
CLOSE 466.60
VOLUME 5081
52-Week high 596.00
52-Week low 358.70
P/E 20.10
Mkt Cap.(Rs cr) 1,670
Buy Price 462.55
Buy Qty 30.00
Sell Price 463.95
Sell Qty 26.00

PSP Projects Ltd. (PSPPROJECT) - Auditors Report

Company auditors report

To

The Members of

PSP Projects Limited

Report on the Standalone Financial Statements

We have audited the accompanying standalone Ind AS financial statements of PSP ProjectsLimited (‘the Company') which comprise the Balance Sheet as at March 31 2018 theStatement of Profit and Loss (including other Comprehensive Income) the Cash FlowStatement and the Statement of Changes in Equity for the year then ended and a summary ofsignificant accounting policies and other explanatory information (herein after referredto as ‘standalone Ind AS financial statements').

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 preparationand presentation of these standalone Ind AS financial statements that give a true and fairview of the financial position financial performance including other comprehensiveincome cash flows and changes in equity of the Company in accordance with the accountingprinciples generally accepted in India including the Indian Accounting Standards (Ind AS)prescribed under Section 133 of the Act read with Companies (Indian Accounting Standard)Rules 2015 as amended and other accounting policies generally accepted in India.

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 standalone IndAS financial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.

Auditor's Responsibility

Our responsibility is to express an opinion on these standalone Ind AS financialstatements based on our audit.

In conducting our audit we have taken into account the provisions of the Act theaccounting and auditing standards and matters which are required to be included in theaudit report under the provisions of the Act and the Rules made there under.

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. Those Standardsrequire that we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether the standalone Ind AS financial statements are freefrom material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the standalone Ind AS financial statements. 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.In making those risk assessments the auditor considers internal financial controlrelevant to the Company's preparation of the standalone Ind AS financial statements thatgive a true and fair view in order to design audit procedures that are appropriate in thecircumstances. An audit also includes evaluating the appropriateness of the accountingpolicies used and the reasonableness of the accounting estimates made by the Company'sDirectors as well as evaluating the overall presentation of the standalone Ind ASfinancial statements.

We believe that the audit evidence we have obtained by us is sufficient and appropriateto provide a basis for our audit opinion on the standalone Ind AS financial statements.

Opinion

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 Act in the manner so required and give a true and fair view in conformitywith the accounting principles generally accepted in India including Ind AS of the stateof affairs of the Company as at March 31 2018 and its profit total comprehensiveincome its cash flows and the changes in equity for the year ended on that date.

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 in terms of section 143 (11) of the Act we give in theAnnexure A a statement on the matters specified in the paragraph 3 and 4 of the order.

2. As required by Section 143 (3) of the Act based on our audit 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 the Cash Flow Statement andthe Statement of Changes in equity dealt with by this Report are in agreement with thebooks of account;

(d) in our opinion the aforesaid standalone Ind AS financial statements comply withthe Indian Accounting Standards prescribed under Section 133 of the Act.

(e) on the basis of the written representations received from the directors as on March31 2018 taken on record by the Board of Directors none of the directors is disqualifiedas on March 31 2018 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 B; Our report expresses an unmodified opinion on the adequacyand operating effectiveness of the Company's internal financial controls over financialreporting.

(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 information and according to the explanations given tous:

(i) The Company do not have any pending litigations which would impact its financialposition.

(ii) The Company did not have any long-term contracts including derivative contractsfor which there were any material foreseeable losses;

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

For Prakash B. Sheth & Co
Chartered Accountants
Firm Registration No.: 108069W
Prakash B. Sheth
Place: Ahmedabad (Proprietor)
Date: May 10 2018 Membership No.: 036831

ANNEXURE A TO INDEPENDENT AUDITORS' REPORT

(Referred to in paragraph 1 under "Report on Other Legal and RegulatoryRequirements" section of our report the members of PSP Projects Limited of even date)i. (a) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.

(b) The Company has a program of verification to cover all the items of fixed assets ina phased manner which in our opinion is reasonable having regard to the size of theCompany and the nature of its assets. Pursuant to the program portion of the fixed assetswere physically verified by the Management during the year. According to information andexplanation given to us no material discrepancies were noticed on such verification.

(c) According to the information and explanations given by the management the titledeeds of land and building included in fixed assets are mortgaged with the consortiumformed by State Bank of India. As per confirmation from the bank and the informationprovided to us by the management the title deeds are held in the name of the Company.

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. According to the information and explanations given to us the company has grantedunsecured loan to a wholly owned foreign subsidiary company covered in the registermaintained u/s 189 of the Companies Act 2013 in respect of which:

(a) The terms and conditions of the loans granted are prima facie not prejudicial tothe 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 is no overdue amount remaining outstanding as at the year end.

iv. 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 Act in respect ofgrant of loans making investments and providing guarantees and securities as applicable.

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 goods andservice tax provident fund employees' state insurance income tax service tax duty ofcustoms duty of excise cess and other material statutory dues as applicable thoughthere has been a slight delay in few cases with the appropriate authorities. Further Noundisputed amount payable in respect thereof were outstanding at the period end for theperiod of more than six 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 March 31 2018which have been not been deposited on account of disputes are as under:

Name of Statue Nature of the Dues Rs 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 matter pending for final personal hearing.
Central Board of Excise & Customs Service Tax 97.39 2008-09 Appeal is filed in tribunal matter pending for final personal hearing.
Central Board of Excise & Customs Excise 0.70 2014-15 Appeal is filed in tribunal matter pending for final personal hearing.

 

Name of Statue Nature of the Dues Rs in Lakhs Period to which amount relates
Central Board of Excise & Customs Excise 14.84 2014-15 & 2015-16 Forum where dispute is pending Appeal is filed in tribunal matter pending for final personal hearing.
Central Board of Excise & Customs Excise 1.74 2015-16 Appeal is filed in tribunal matter pending for final personal hearing.
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 Company raised money by way of initial public offer of equityshares during the year. The Company has used the money raised by way of initial publicoffer of equity shares and term loans during the year for the purpose for which they wereraised.

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 Companies Act 2013. Thedetails of such related party transactions have been disclosed in the Standalone FinancialStatements as required by the applicable accounting standard.

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 to its directors and hence provisions of section 192 ofthe Companies Act 2013 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
Firm Registration No.: 108069W
Prakash B. Sheth
Place: Ahmedabad (Proprietor)
Date: May 10 2018 Membership No.: 036831

ANNEXURE - B

TO INDEPENDENT AUDITOR'S REPORT

(Referred to in paragraph 2(f ) under "Report on Other Legal and RegulatoryRequirements" section of our report the members of PSP Projects Limited 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 PSPProjects Limited (‘the Company') as of March 31 2018 in conjunction with our auditof the standalone Ind AS financial statements of the Company for the year ended on thatdate.

Management's Responsibility for Internal Financial Controls

The Board of Director of the Company is responsible for establishing and maintaininginternal financial controls based on the internal control over financial reportingcriteria established by the Companyconsideringtheessentialcomponentsofinternalcontrolstatedinthe Guidance Note on Audit ofInternal Financial Controls over Financial Reporting issued by the Institute of CharteredAccountants of India (‘ICAI'). These responsibilities include the designimplementation and maintenance of adequate internal financial controls that were operatingeffectively for ensuring the orderly and efficient conduct of its business thesafeguarding of its assets the prevention and detection of frauds and errors theaccuracy and completeness of the accounting records and the timely preparation ofreliable financial information as required 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") and the Standards on Auditing prescribed under section143(10) of the Act to the extent applicable to an audit of internal financial controlsboth applicable to an audit of Internal Financial Controls. Those Standards and theGuidance Note require that we comply with ethical requirements and plan and perform theaudit to obtain reasonable assurance about whether adequate internal financial controlsover financial reporting was established and maintained and if such controls operatedeffectively 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 judgment 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 controls systemover financial reporting.

Meaning of Internal Financial Controls over Financial Reporting

A company's internal financial control over financial reporting is a process designedto provide reasonable assurance regarding the reliability of financial reporting and thepreparation of financial statements for external purposes in accordance with generallyaccepted accounting principles. A company's internal financial control over financialreporting includes those policies and procedures that (1) pertain to the maintenance ofrecords that in reasonable detail accurately and fairly reflect the transactions anddispositions of the assets of the company; (2) provide reasonable assurance thattransactions are recorded as necessary to permit preparation of financial statements inaccordance with generally accepted accounting principles and that receipts andexpenditures 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

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 formation and according to explanations given to us theCompany has in all material respects an adequate internal financial controls system overfinancial reporting and such internal financial controls over financial reporting wereoperating effectively as at March 31 2018 based on the internal control over financialreporting criteria established by the Company considering the essential components ofinternal control stated in the Guidance Note on Audit of Internal Financial Controls OverFinancial Reporting issued by the Institute of Chartered Accountants of India.

For Prakash B. Sheth & Co
Chartered Accountants
Firm Registration No.: 108069W
Prakash B. Sheth
Place: Ahmedabad (Proprietor)
Date: May 10 2018 Membership No.: 036831