To the Members of
Asian Oilfield Services Limited
Report on the Standalone Financial Statements
We have audited the accompanying standalone financial statements of ASIAN OILFIELDSERVICES LIMITED ("the Company") which comprise the Balance Sheet as at 31stMarch 2015 the Statement of Profit and Loss the Cash Flow Statement and a summary ofthe significant accounting policies and other explanatory information for the year thenended.
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 Rows of the Company in accordance with theaccounting principles generally accepted in India including the Accounting Standardsspecified under Section 133 of the Act read with Rule 7 of the Companies (Accounts)Rules 2014. This responsibility also includes maintenance of adequate accounting recordsin accordance with the provisions of the Act for safeguarding the assets of the Companyand for preventing and detecting frauds and other irregularities; selection andapplication of appropriate accounting policies; making judgments and estimates that arereasonable and prudent; and design implementation and maintenance of adequate internalfinancial controls that were operating effectively forensuring the accuracy andcompleteness of the accounting records relevant to the preparation and presentation ofthe financial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.
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 accountingand auditing standards and matters which are required to be included in the audit reportunder the provisions of the Act and the Rules made thereunder.
We conducted our audit in accordance with the Standards on Auditing specified underSection 143(10) of the Act. Those Standards require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetherthe financial statements are free from material misstatement.
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 of thefinancial statements whether due to fraud or error. In making those risk assessments theauditor considers internal financial control relevant to the Company's preparation of thefinancial statements that give a true and fair view in order to design audit proceduresthat are appropriate in the circumstances but not for the purpose of expressing anopinion on whether the Company has in place an adequate internal financial control systemover financial reporting and the operating effectiveness of such controls. An audit alsoincludes evaluating the appropriateness of the accounting policies used and thereasonableness of the accounting estimates made by the Company's Directors as well asevaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our qualified audit opinion on the standalone financial statements.
Basis For Qualified Opinion
The Company's trade receivables short term loans & advances and long term loans& advances as at 31st March 2015 include Rs. 313. 53 Lacs Rs. 993. 99 Lacs and Rs.95. 70 Lacs respectively which are due for a period exceeding one year. Based on theinformation and explanations given to us we are of the opinion that these are doubtful ofrecovery whereas the management is of the view that these are recoverable. We are unableto comment on the recoverability of these trade receivables short term loans &advances and long term loans & advances as at 31st March 2015 and on their consequentimpact on the loss for the year ended 31st March 2015 on the balances of the tradereceivables short term loans & advances long term loans & advances andshareholder's funds as at 31st March 2015.
In ouropinion and to the best of our information and according to the explanationsgiven to us except for the effects of the matter described in the Basis for QualifiedOpinion paragraph above the aforesaid standalone financial statements give theinformation required by the Act in the manner so required and give a true and fair view inconformity with the accounting principles generally accepted in India of the state ofaffairs of the Company as at 31st March 2015 and its loss and its cash Rows for the yearended on that date.
Emphasis of Matter
We draw attention to note 20 to the financial statements regarding managerialremuneration of Rs. 83. 30 Lacs paid by the Company to their whole time director whichexceeds the limits as per the provisions of Schedule V of the Companies' Act 2013without the approval of the Central Government by Rs. 41. 31 lacs. The Company is in theprocess of obtaining the required approval of the Central Government as at the date ofthe financial statements.
Ouropinion is not modified in respect of this matter.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor's Report) Order 2015 ("the Order")issued by the Central Government in terms of Section 143(11) of the Act we give in theAnnexure a statement on the matters specified in paragraphs 3 and 4 of the Order.
2. 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 ouraudit.
b. Except for the effects of the matter described in the Basis for Qualified Opinionparagraph above in our opinion proper books of account as required by law have been keptby the Company 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. Except for the effects of the matter described in the Basis for Qualified Opinionparagraph above in our opinion the aforesaid standalone financial statements complywiththe Accounting Standards specified underSection 133ofthe Act read with Rule 7 of theCompanies (Accounts) Rules 2014.
e. The matter described in the Basis for Qualified Opinion and Emphasis of Matterparagraphs above in our opinion mayhave an adverse effect on the functioning of theCompany.
f. On the basis of the written representations received from the directors as on 31stMarch 2015 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2015 from being appointed as a director in terms of Section164 (2) of the Act.
g. The qualification relating to the maintenance of accounts and other mattersconnected therewith are as stated in the Basis for Qualified Opinion paragraph above.
h. With respect to the other matters to be included in the Auditor's Report inaccordance withRule 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 Company has disclosed the impact of pending litigations on its financialposition in its financial statements - Refer note 23 to the financial statements
ii. The Company did not have any long-term contracts including derivative contracts forwhich 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.
Annexure to the Independent Auditors' Report
(Referred to in paragraph 1 under 'Report on Other Legal and Regulatory Requirements'section of our report of even date)
(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 explanation given to us no material discrepancies were noticed on suchverification.
(ii) Inrespect of its inventories:
(a) As explained to us the inventories were physically verified during the year by theManagement at reasonable intervals.
(b) In our opinion and according to the information and explanations given to us theprocedures of physical verification of inventories followed by the Management werereasonable and adequate in relation to the size of the Company and the nature of itsbusiness.
(c) In our opinion and according to the information and explanations given to us theCompany has maintained proper records of its inventories and no material discrepancieswere noticed on physical verification.
(iii) The Company has not grantedany loans secured or unsecured to companies firmsor other parties covered in the Register maintained under Section 189 of the CompaniesAct 2013.
(iv) In our opinion and according to the information and explanations given to usthere is an adequate internal control system commensurate with the size of the Company andthe nature of its business for the purchases of inventory and fixed assets and for thesale of goods and services and during the course of our audit we have not observed anymajor weaknesses in such internal control system.
(v) According to the information and explanations given to us the Company has notaccepted any deposit during the year and there were no unclaimed deposits at the year end.
(vi) To the best of our knowledge and according to the information and explanationsgiven to us the Central Government has not prescribed the maintenance of cost records forthe Company's class of business.
(vii) 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 and Sales Tax Service Tax Customs Duty ExciseDuty and other material statutory dues applicable to it with the appropriate authoritiesexcept for some delays which have been paid along with interest.
(b) There were no undisputed amounts payable in respect of Provident Fund Income-taxSales Tax Service Tax Customs Duty Excise Duty and other material statutory dues inarrears asat31st March 2015 for a period of more than six months from the date theybecame payable.
(c) There are no statutory dues which have not been deposited as on31st March 2015 onaccount of disputes.
(d) There are no amounts that are due to be transferred to the Investor Education andProtection Fund in accordance with the relevant provisions of the CompaniesAct 1956 (1 of1956)andRules made thereunder.
(viii) The accumulated losses of the Company as at the end of the financial year aremore than fifty percent of its net worth and the Company has incurred cash losses duringthe financial year covered by our audit and in the immediately preceding financialyear.
(ix) In our opinion and according to the information and explanations given to us theCompany has not defaulted in repayment of dues to banks and financial institution. TheCompany has not issued any debentures.
(x) According to the information and explanations given to us the Company has notgiven guarantees for loans taken by others from banks and financial institutions.
(xi) In our opinion and according to the information and explanations given to us theCompany has not obtained any term loans during the year.
(xii) 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 has been noticedor reported during the year.
| ||For Deloitte Haskins & Sells |
| ||Chartered Accountants |
| ||(Firm's Registration No. 117364W) |
| ||GauravJ Shah |
|Place: Mumbai ||Partner |
|Date: May 30 2015 ||(Membership No. 35701) |