Standalone Ind AS Financial Statements for the year ended 31st March 2023
To the Members of PS IT Infrastructure & Services Limited
Report on the Audit of the Standalone Ind AS Financial Statements
Opinion
We have audited the accompanying standalone financial statements of PS IT
Infrastructure & Services Limited ("the Company"), which comprise the
Balance Sheet as at March 31, 2023, the Statement of Profit and Loss (including Other
Comprehensive Income), the Statement of Changes in Equity, the Statement of Cash Flows and
notes to the standalone Ind AS financial statements, for the year ended on that date, and
a summary of the significant accounting policies and other explanatory information
(hereinafter referred to as "the standalone financial statements").
In our opinion and to the best of our information and according to the explanations
given to us, the aforesaid standalone financial statements give the information required
by the Companies Act, 2013 ("the Act") in the manner so required and give a true
and fair view in conformity with the Indian Accounting Standards prescribed under section
133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015, as
amended, ("Ind AS") and other accounting principles generally accepted in India,
of the state of affairs of the Company as at March 31, 2023, the profit and total
comprehensive income, changes in equity and its cash flows for the year ended on that
date.
Basis for opinion
We conducted our audit of the standalone Ind AS financial statements in accordance with
the Standards on Auditing specified under section 143(10) of the Act (SAs). Our
responsibilities under those Standards are further described in the Auditors
Responsibilities for the Audit of the Standalone Ind AS Financial Statements section of
our report. We are independent of the Company in accordance with the Code of Ethics issued
by the Institute of Chartered Accountants of India (ICAI) together with the independence
requirements that are relevant to our audit of the standalone financial statements under
the provisions of the Act and the Rules made thereunder, and we have fulfilled our other
ethical responsibilities in accordance with these requirements and the ICAIs Code of
Ethics. We believe that the audit evidence we have obtained is sufficient and appropriate
to provide a basis for our audit opinion on the standalone Ind AS financial statements.
Emphasis of Matters
We draw attention to Note 31 to the accompanying financial statements, which describe
managements assessment of uncertainty relating to the effects of the COVID-19 pandemic on
the Companys operations. Due to COVID-19 pandemic and the lockdown and other restrictions
imposed by the Government and local administration, the audit processes were carried out
based on the necessary records made available by the Management through digital medium.
Our opinion is not modified in respect of this matter.
Information Other than the Standalone Financial Statements and Auditors Report Thereon
The Companys Board of Directors is responsible for the preparation of the other
information. The other information comprises the information included in the Management
Discussion and Analysis, Boards Report including Annexures to Boards Report, Corporate
Governance and Shareholders Information, but does not include the standalone financial
statements and our auditors report thereon.
Our opinion on the standalone Ind AS financial statements does not cover the other
information and we do not express any form of assurance conclusion thereon.
In connection with our audit of the Ind AS standalone financial statements, our
responsibility is to read the other information and, in doing so, consider whether the
other information is materially inconsistent with the standalone Ind AS financial
statements or our knowledge obtained during the course of our audit or otherwise appears
to be materially misstated.
If, based on the work we have performed, we conclude that there is a material
misstatement of this other information; we are required to report that fact. We have
nothing to report in this regard.
Managements Responsibility for the Standalone Financial Statements
The Companys Board of Directors is responsible for the matters stated in section
134(5) of the Act with respect to the preparation of these standalone Ind AS financial
statements that give a true and fair view of the financial position, financial performance
including other comprehensive income, cash flows and changes in equity of the Company in
accordance with the accounting principles generally accepted in India, including the
Indian Accounting Standards (Ind AS) specified under section 133 of the Act read with the
Companies (Indian Accounting Standards) Rules, 2015, as amended. This responsibility also
includes maintenance of adequate accounting records in accordance with the provisions of
the Act for safeguarding of the assets of the Company and for preventing and detecting
frauds and other irregularities; selection and application of appropriate accounting
policies; making judgments and estimates that are reasonable and prudent; and the design,
implementation and maintenance of adequate internal financial controls, that were
operating effectively for ensuring the accuracy and completeness of the accounting
records, relevant to the preparation and presentation of the standalone Ind AS financial
statements that give a true and fair view and are free from material misstatement, whether
due to fraud or error.
In preparing the standalone Ind AS financial statements, management is responsible for
assessing the Companys ability to continue as a going concern, disclosing, as applicable,
matters related to going concern and using the going concern basis of accounting unless
management either intends to liquidate the Company or to cease operations, or has no
realistic alternative but to do so.
The Board of Directors are responsible for overseeing the Companys financial reporting
process.
Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most
significance in our audit of the financial statements of the current period. These matters
were addressed in the context of our audit of the financial statements as a whole, and in
forming our opinion thereon, and we do not provide a separate opinion on these matters.
Based on the circumstances and facts of the audit and entity, there arent key audit
matters to be communicated in our report.
Auditors Responsibilities for the Audit of the Standalone Financial Statements
Our objectives are to obtain reasonable assurance about whether the standalone Ind AS
financial statements as a whole are free from material misstatement, whether due to fraud
or error, and to issue an auditors report that includes our opinion. Reasonable assurance
is a high level of assurance, but is not a guarantee that an audit conducted in accordance
with SAs will always detect a material misstatement when it exists. Misstatements can
arise from fraud or error and are considered material if, individually or in the
aggregate, they could reasonably be expected to influence the economic decisions of 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 and
maintain professional skepticism throughout the audit. We also:
• Identify and assess the risks of material misstatement of the standalone
financial statements, whether due to fraud or error, design and perform audit procedures
responsive to those risks, and obtain audit evidence that is sufficient and appropriate to
provide a basis for our opinion. The risk of not detecting a material misstatement
resulting from fraud is higher than for one resulting from error, as fraud may involve
collusion, forgery, intentional omissions, misrepresentations, or the override of internal
controls.
• Obtain an understanding of internal financial controls relevant to the audit in
order to design audit procedures that are appropriate in the circumstances. Under section
143(3)0) of the Act, we are also responsible for expressing our opinion on whether the
Company has adequate internal financial controls system in place and the operating
effectiveness of such controls.
• Evaluate the appropriateness of accounting policies used and the reasonableness
of accounting estimates and related disclosures made by management.
• Conclude on the appropriateness of managements use of the going concern basis
of accounting and, based on the audit evidence obtained, whether a material uncertainty
exists related to events or conditions that may cast significant doubt on the Companys
ability to continue as a going concern. If we conclude that a material uncertainty exists,
we are required to draw attention in our auditors report to the related disclosures in
the standalone financial statements or, if such disclosures are inadequate, to modify our
opinion. Our conclusions are based on the audit evidence obtained up to the date of our
auditors However, future events or conditions may cause the Company to cease to continue
as a going concern.
• Evaluate the overall presentation, structure and content of the standalone
financial statements, including the disclosures, and whether the standalone financial
statements represent the underlying transactions and events in a manner that achieves fair
presentation.
• Obtain sufficient appropriate audit evidence regarding the financial information
of the Company to express an opinion on the standalone financial statements.
Materiality is the magnitude of misstatements in the standalone financial statements
that, individually or in aggregate, makes it probable that the economic decisions of a
reasonably knowledgeable user of the financial statements may be influenced. We consider
quantitative materiality and qualitative factors in (i) planning the scope of our audit
work and in evaluating the results of our work; and (ii) to evaluate the effect of any
identified misstatements in the financial statements.
We communicate with those charged with governance regarding, among other matters, the
planned scope and timing of the audit and significant audit findings, including any
significant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied
with relevant ethical requirements regarding independence, and to communicate with them
all relationships and other matters that may reasonably be thought to bear on our
independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those
matters that were of most significance in the audit of the standalone financial statements
of the current period and are therefore the key audit matters. We describe these matters
in our auditors report unless law or regulation precludes public disclosure about the
matter or when, in extremely rare circumstances, we determine that a matter should not be
communicated in our report because the adverse consequences of doing so would reasonably
be expected to outweigh the public interest benefits of such communication.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditors Report) Order, 2016 ("the Order"),
issued by the Central Government of India in terms of sub-section (11) of section 143 of
the Act, we give in the "Annexure A" a statement on the matters specified in
paragraphs 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 best
of 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 the
Company so far as it appears from our examination of those books.
c) The Balance Sheet, the Statement of Profit and Loss including Other Comprehensive
Income, Statement of Changes in Equity and the Statement of Cash Flow dealt with by this
Report are in agreement with the relevant books of account.
d) In our opinion, the aforesaid standalone financial statements comply with the Ind AS
specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts)
Rules, 2014.
e) On the basis of the written representations received from the directors as on March
31, 2023 taken on record by the Board of Directors, none of the directors is disqualified
as on March 31, 2023 from being appointed as a director in terms of Section 164 (2) of the
Act.
f) With respect to the adequacy of the internal financial controls over financial
reporting of the Company with reference to these standalone Ind AS financial statements
and the operating effectiveness of such controls, refer to our separate Report in
"Annexure 2" to this report;
g) With respect to the other matters to be included in the Auditors Report in
accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, as amended in
our opinion and to the best of our information and according to the explanations given to
us:
i. The Company does not have any pending litigation which would impact its financial
position in its financial statements, except as stated in the Note 31 of accompanying
financial statements;
ii. The Company did not have any long-term contracts including derivative contracts for
which there were any material foreseeable losses under the applicable law or accounting
standards;
iii. There were no amounts, which were required to be transferred to the Investor
Education and Protection Fund by the Company.
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For Mahato Prabir & Associates |
|
Chartered Accountants |
|
ICAI Registration No. 325966E |
|
S/d- |
| Place: Kolkata |
CA Prabir Mahato |
| Date: May 6, 2023 |
Partner |
|
M. No. 060238 |
Annexure "A" to the Independent Auditors Report
(Referred to in paragraph 1 under Report on Other Legal and Regulatory Requirements
section of our report to the Members of PS IT Infrastructure & Services Limited of
even date)
i. In respect of its fixed assets:
a) The Company has maintained proper records showing full particulars, including
quantitative details and situation of the fixed assets.
b) The Company has a program of verification to cover all the items of fixed assets in
a phased manner which, in our opinion, is reasonable having regard to the size of the
Company and the nature of its assets. Pursuant to the program, certain fixed assets were
physically verified by the management during the year. According to the information and
explanations given to us, no material discrepancies were noticed on such verification.
ii. The Company is primarily engaged in financing and investment in securities,
debentures and other products. Accordingly, it does not hold any inventories. Thus,
paragraph 3 (ii) of the Order is not applicable.
iii. According to the information and explanations given to us, the Company has not
granted any loans, secured or unsecured, to companies, firms, and limited liability
partnerships or other parties covered in the register maintained under section 189 of the
Companies Act. Accordingly, the provisions of clause 3(iii)(a), (b) and (c) of the Order
are not applicable to the Company.
iv. In our opinion and according to the information and explanations given to us, the
Company has not given loan to any director in accordance with the provisions of Section
185 of the Companies Act, 2013. The Company has not given any loans or guarantees and
being a Non-banking financial company, its investments are exempted under section 186(11)
(b), hence the Company has complied with the provisions of Section 185 and 186 of the Act,
as applicable.
v. In our opinion, and according to the information and explanations given to us, the
Company has not accepted deposits during the year and does not have any unclaimed deposits
as at March 31, 2023 and therefore, the provisions of the clause 3 (v) of the Order are
not applicable to the Company.
vi. As informed to us, the maintenance of cost records has not been specified by the
Central Government under section 148(1) of the Companies Act, 2013 for the business
activities carried out by the Company. Thus reporting under clause 3(vi) of the order is
not applicable to the Company.
vii. According to the information and explanations given to us, in respect of statutory
dues:
a) The Company has been regular in depositing undisputed statutory dues, including
Provident Fund, Employees State Insurance, Income-tax, Goods and Service Tax and other
material statutory dues applicable to it to the appropriate authorities. Considering the
nature of business that the Company is engaged in, Sales Tax, Custom Duty, Excise Duty and
Value Added Tax are not applicable to the Company, other than the followings -
| Name of the Statue |
Nature of Dues |
Disputed Amount |
Financial Year for which it relates |
Forum where dispute is pending |
| Income Tax Act, 1961 |
Income Tax, Section 147 |
26,61,12,608/- |
2012-13 |
CIT Appeal |
| Income Tax Act, 1961 |
Income Tax, Section 271(1) |
2,14,94,810/- |
2012-13 |
CIT Appeal |
| Income Tax Act, 1961 |
Income Tax Section 270A |
9,90,98,954/- |
2017-18 |
CIT Appeal |
| Income Tax Act, 1961 |
Income Tax |
7,62,32,350/- |
2017-18 |
CIT Appeal |
There were no undisputed amounts payable in respect of Provident Fund, Employees State
Insurance, Income-tax, Goods and Service Tax and other material statutory dues in arrears
as at March 31, 2023 for a period of more than six months from the date they became
payable.
b) There are no dues of Goods and Service Tax and Income-tax that has not been
deposited on account of disputes as on March 31, 2023.
viii. In our opinion and according to the information and explanations given to us, the
Company did not have any loans or borrowing from financial institution, bank, government
or dues to any debenture holders during the year. Accordingly, paragraph 3 (viii) of the
Order is not applicable to the Company.
ix. The Company has not raised moneys by way of initial public offer or further public
offer (including debt instruments) or term loans and hence reporting under clause 3 (ix)
of the Order is not applicable to the Company.
x. Based on the Audit procedures performed for the purpose of reporting the true and
fair view of financial statements and according to the information and explanations
provided to us, we report that no material fraud by the Company or on the Company by the
officers and employees of the Company has been noticed or reported during the year.
xi. According to the information and explanations given to us, the managerial
remuneration has been paid and provided in accordance with the requisite approvals
mandated by the provisions of Section 197, read with Schedule V of the Act.
xii. In our opinion, the Company is not a nidhi company. Therefore the provisions of
Clause 3(xii) of the order are not applicable to the Company and hence not commented upon.
xiii. According to the information and explanations given to us, transactions with
related parties are in compliances with section 177 and 188 of the Act where applicable
and details have been disclosed in the notes to the financial statements, as required by
the applicable accounting standards.
xiv. According to the information and explanations given to us, and on overall
examination of Balance Sheet, the Company has not made any Preferential Allotment or
private placement of Shares or fully or partly convertible debentures during the year and
hence, reporting requirements under clause 3(xiv) are not applicable to the Company, and
not commented upon.
xv. In our opinion and according to the information and explanations given to us,
during the year the Company has not entered into any non-cash transactions with its
Directors or persons connected to its directors and hence provisions of section 192 of the
Companies Act, 2013 are not applicable to the Company.
xvi. According to the information and explanations given to us and based on our
examination of the records of the Company, the Company is not required to be registered
under Section 45-IA of the Reserve Bank of India Act, 1934.
|
For Mahato Prabir & Associates |
|
Chartered Accountants |
|
ICAI Registration No. 325966E |
|
S/d- |
|
CA Prabir Mahato |
| Place: Kolkata |
Partner |
| Date: May 6, 2023 |
M. No. 060238 |
Annexure "B" to the Independent Auditors Report
(Referred to in paragraph 2(f) under Report on Other Legal and Regulatory
Requirements section of our report to the Members of PS IT Infrastructure & Services
Limited of even date)
Report on the Internal Financial Controls Over Financial Reporting under Clause (i) of
Sub-section 3 of Section 143 of the Companies Act, 2013 ("the Act")
We have audited the internal financial controls over financial reporting of PS IT
INFRASTRUCTURE & SERVICES LIMITED ("the Company") as of March 31, 2023 in
conjunction with our audit of the standalone financial statements of the Company for the
year ended on that date.
Opinion
We have audited the internal financial controls with reference to financial statements
of PS IT Infrastructure & Services Limited ("the Company") as of 31 March
2023 in conjunction with our audit of the financial statements of the Company for the year
ended on that date. In our opinion, the Company has, in all material respects, adequate
internal financial controls with reference to financial statements and such internal
financial controls were operating effectively as at 31 March 2023 based on the internal
financial controls with reference to financial statements criteria established by the
Company considering the essential components of internal control stated in the Guidance
Note on Audit of Internal Financial Controls Over Financial Reporting issued by the
Institute of Chartered Accountants of India (the "Guidance Note").
Managements Responsibility for Internal Financial Controls
The Companys Management is responsible for establishing and maintaining internal
financial controls based on the internal control over financial reporting criteria
established by the Company considering the essential components of internal control stated
in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting
issued by the Institute of Chartered Accountants of India. These responsibilities include
the design, implementation and maintenance of adequate internal financial controls that
were operating effectively for ensuring the orderly and efficient conduct of its business,
including adherence to the Companys policies, the safeguarding of its assets, the
prevention and detection of frauds and errors, the accuracy and completeness of the
accounting records, and the timely preparation of reliable financial information, as
required under the Companies Act, 2013.
Auditors Responsibility
Our responsibility is to express an opinion on the internal financial controls over
financial reporting of the Company based on our audit. We conducted our audit in
accordance with the Guidance Note on Audit of Internal Financial Controls Over Financial
Reporting (the "Guidance Note") issued by the Institute of Chartered Accountants
of India and the Standards on Auditing prescribed under Section 143(10) of the Companies
Act, 2013, to the extent applicable to an audit of internal financial controls. Those
Standards and the Guidance Note require that we comply with ethical requirements and plan
and perform the audit to obtain reasonable assurance about whether adequate internal
financial controls over financial reporting was established and maintained and if such
controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of
the internal financial controls system over financial reporting and their operating
effectiveness. Our audit of internal financial controls over financial reporting included
obtaining an understanding of internal financial controls over financial reporting,
assessing the risk that a material weakness exists, and testing and evaluating the design
and operating effectiveness of internal control based on the assessed risk. The procedures
selected depend on the auditors judgement, including the assessment of the risks of
material misstatement of the financial statements, whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to
provide a basis for our audit opinion on the internal financial controls system over
financial reporting of the Company.
Meaning of Internal Financial Controls with reference to Standalone Ind AS financial
statements
A Companys internal financial control with reference to these standalone Ind AS
financial statements is a process designed to provide reasonable assurance regarding the
reliability of financial reporting and the preparation of financial statements for
external purposes in accordance with generally accepted accounting principles. A Companys
internal financial control with reference to financial statements includes those policies
and procedures that (1) pertain to the maintenance of records that, in reasonable detail,
accurately and fairly reflect the transactions and dispositions of the assets of the
Company; (2) provide reasonable assurance that transactions are recorded as necessary to
permit preparation of standalone Ind AS financial statements in accordance with generally
accepted accounting principles, and that receipts and expenditures of the Company are
being made only in accordance with authorizations of management and directors of the
Company; and (3) provide reasonable assurance regarding prevention or timely detection of
unauthorized acquisition, use, or disposition of the Companys assets that could have a
material effect on the standalone Ind AS financial statements.
Inherent Limitations of Internal Financial Controls with reference to Standalone Ind AS
financial statements
Because of the inherent limitations of internal financial controls over financial
reporting, including the possibility of collusion or improper management override of
controls, material misstatements due to error or fraud may occur and not be detected.
Also, projections of any evaluation of the internal financial controls over financial
reporting to future periods are subject to the risk that the internal financial control
over financial reporting may become inadequate because of changes in conditions, or that
the degree of compliance with the policies or procedures may deteriorate.
|
For Mahato Prabir & Associates |
|
Chartered Accountants |
|
ICAI Registration No. 325966E |
|
S/d- |
|
CA Prabir Mahato |
| Place: Kolkata |
Partner |
| Date: May 6, 2023 |
M. No. 060238 |
+91-9892691696
