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Asian Oilfield Services Ltd.

BSE: 530355 Sector: Oil & Gas
NSE: N.A. ISIN Code: INE276G01015
BSE LIVE 15:12 | 21 Jul 190.00 3.25
(1.74%)
OPEN

186.85

HIGH

194.30

LOW

183.05

NSE 05:30 | 01 Jan Stock Is Not Traded.
OPEN 186.85
PREVIOUS CLOSE 186.75
VOLUME 27678
52-Week high 249.60
52-Week low 49.10
P/E
Mkt Cap.(Rs cr) 495
Buy Price 190.00
Buy Qty 113.00
Sell Price 190.65
Sell Qty 10.00
OPEN 186.85
CLOSE 186.75
VOLUME 27678
52-Week high 249.60
52-Week low 49.10
P/E
Mkt Cap.(Rs cr) 495
Buy Price 190.00
Buy Qty 113.00
Sell Price 190.65
Sell Qty 10.00

Asian Oilfield Services Ltd. (ASIANOILFIELD) - Auditors Report

Company auditors report

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 March31 2016 the Statement of Profit and Loss the Cash Flow Statement for the year thenended and a summary of the significant accounting policies and other explanatoryinformation.

Management's Responsibility for the Standalone Financial Statements

1. 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 flows 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) Rules2014 (as amended). This responsibility also includes maintenance of adequate accountingrecords in accordance with the provisions of the Act; safeguarding the assets of theCompany; 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 for ensuring 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.

Auditor's Responsibility

2. Our responsibility is to express an opinion on these standalone financial statementsbased on our audit.

3. We have taken into account the provisions of the Act the accounting and auditingstandards and matters which are required to be included in the audit report under theprovisions of the Act and the Rules made thereunder.

4. 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 standalone financial statements are free from material misstatement.

5. An audit involves performing procedures to obtain audit evidence about the amountsand the disclosures in the financial statements. The procedures selected depend on theauditor's judgment including the I assessment of the risks of material misstatement of Ithe financial statements whether due to fraud or error. In making those risk assessmentsthe auditor considers internal financial controls relevant to the Company's preparation ofthe financial statements that give a true and fair view in order to design auditprocedures that are appropriate in the circumstances.

An audit also includes evaluating the appropriateness of the accounting policies usedand the reasonableness of the accounting estimates made by the Company's Directors aswell as evaluating the overall presentation of the financial statements.

6. 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

7. As stated in Note 38 to the accompanying standalone financial statements theCompany's trade receivables short-term loans and advances and long-term loans andadvances as at March 31 2016 include H60.12 million H53.28 million and H12.87 millionrespectively (as at March 31 2015: H35.65 million H102.11 million and H18.12 millionrespectively) being considered good and recoverable by the management. However in theabsence of sufficient appropriate evidence we are unable to comment upon therecoverability of the aforesaid trade receivables short-term loans and advances and long-term loans and advances and the consequential impact if any on the accompanyingstandalone financial statements. The predecessor auditor's report on the financialstatements for the year ended March 31 2015 was also qualified in respect of this matter.

Qualified Opinion

8. In our opinion and to the best of our information and according to the explanationsgiven to usexcept for the possible effects of the matter described in the Basis forQualified Opinion paragraphthe 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 March 312016 and its loss and its cash flows for the yearended on that date.

Emphasis of Matter

9. We draw attention to Note 25(b) to the accompanying standalone financial statementswhich describes the uncertainty related to outcome of legal case filed by the Company inrelation to liquidated damages/penaities claimed by a customer after serving a show causenotice for termination of contract. These matters are pending litigation with DistrictCourt Jorhat. Pending the final outcome of the aforesaid matters which is presentlyunascertainabie no adjustments have been recorded in standalone financial statements. Ouropinion is not qualified in respect of these matters.

Other Matter

10. The audit of the standalone financial statements for the previous year ended March31 2015 included in the standalone financial statements was carried out and reported byDeloitte Haskins & Sells vide their qualified audit report dated May 30 2015 whoseaudit report has been furnished to us and which have been reiied upon by us for thepurpose of our audit of the standalone financial statements. Our opinion is not qualifiedin respect of this matter.

Report on Other Legal and Regulatory Requirements

11. As required by the Companies (Auditor's Report) Order 2016 ("the Order")issued by the Central Government of India in terms of Section 143(11) of the Act we givein the Annexure A a statement on the matters specified in paragraphs 3 and 4 of theOrder. 12. Further to our comments in Annexure A as required by Section143(3) of the Actwe report that:

a. we have sought and except for the possible effects of the matter described in theBasis for Qualified Opinion paragraph obtained all the information and explanations whichto the best of our knowledge and belief were necessary for the purpose of our audit;

b. except for the possible effects of the matter described in the Basis for QualifiedOpinion paragraphin our opinion proper books of account as required by law have beenkept by the Company so far as it appears from our examination of those books;

c. the standalone financial statements dealt with by this report are in agreement withthe books of account;

d. except for the possible effects of the matter described in the Basis for QualifiedOpinion paragraph in our opinion the aforesaid standalone financial statements complywith the Accounting Standards specified under Section 133 of the Act read with Rule 7 ofthe Companies (Accounts) Rules 2014 (as amended);

e. the matter described in paragraph 7 under the Basis for Qualified Opinion paragraphand paragraph 9 under the Emphasis of Matters paragraph in our opinion may have anadverse effect on the functioning of the Company;

f. on the basis of the written representations received from the directors and taken onrecord by the Board of Directors none of the directors is disqualified as on March312016 from being appointed as a director in terms of Section164(2) of the Act;

g. we have also audited the internal financial controls over financial reporting(IFCoFR) of the Company as of March 312016 in conjunction with our audit of thestandalone financial statements of the Company for the year ended on that date and ourreport dated June 13 2016 as per Annexure B expressing our unqualified opinion onadequacy and operating effectiveness over financial reporting;

h. 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 in our opinionand to the best of our information and according to the explanations given to us:

i. as detailed in Note 25 to the standalone financial statements the Company hasdisclosed the impact of pending litigations on its standalone financial position;

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.

For Walker Chandiok & Co LLP

Chartered Accountants

Firm's Registration No.: 001076N/N500013

per Anamitra Das

Partner

Membership No.:062191

Place: Gurgaon

Date: June 13 2016

Annexure A to the Independent Auditor's Report of even date to the members of Asianoilfield Services Limited on the financial statements for the year ended March 31 2016Based on the audit procedures performed for the purpose of reporting a true and fair viewon the financial statements of the Company and taking into consideration the informationand explanations given to us and the books of account and other records examined by us inthe normal course of audit and to the best of our knowledge and belief we report that:

(i) (a) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.

(b) All fixed assets have not been physically verified by the management during theyear however there is a regular program of verification once in three years which inour opinion is reasonable having regard to the size of the Company and the nature of itsassets. No material discrepancies were noticed on such verification.

(c) The title deeds of all the immovable properties which are included under the head'fixed assets' are held in the name of the Company.

(ii) In our opinion the management has conducted physical verification of inventory atreasonable intervals during the year and no material discrepancies between physicalinventory and book records were noticed on physical verification.

(iii) The Company has not granted any loan secured or unsecured to companies firmsLimited Liability Partnerships (LLPs) or other parties covered in the register maintainedunder Section 189 of the Act. Accordingly the provisions of clauses 3(iii)(a) 3(iii)(b)and 3(iii)(c) of the Order are not applicable.

(iv) In our opinionthe Company has not entered into any transaction covered underSections 185 and 186 of the Act. Accordingly the provisions of clause 3(iv) of the Orderare not applicable.

(v) In our opinion the Company has not accepted any deposits within the meaning ofSections 73 to 76 of the Act and the Companies (Acceptance of Deposits) Rules 2014 (asamended). Accordingly the provisions of clause 3(v) of the Order are not applicable.

(vi) The Central Government has not specified maintenance of cost records undersub-section (1) of Section 148 of the Act in respect of Company's services. Accordinglythe provisions of clause 3(vi) of the Order are not applicable.

(vii) (a) Undisputed statutory dues including provident fund employees' stateinsurance income-tax sales-tax service tax duty of custom duty of excise value addedtax cess and other material statutory dues as applicable have not been regularlydeposited to the appropriate authorities and there have been significant delays in a largenumber of cases. Further no undisputed amounts payable in respect thereof wereoutstanding at the year-end for a period of more than six months from the date they becomepayable.

(b) The dues outstanding in respect of income-tax sales-tax service tax duty ofcustoms duty of excise and value added tax on account of any dispute are as follows:Statement of Disputed Dues

Name of the statute Nature of dues Amount (H in million) Amount paid under Protest (H in million) Period to which the amount relates Forum where dispute is pending
Income Tax Act 1961 Disallowance in respect of wrong claim of depreciation and income treated as business income instead of capital gain 24.59 Assessment Year 2008-09 Income Tax Appellate Tribunal (ITAT)
Income Tax Act 1961 Disallowance of excess claim of depreciation and under section 14A and 36(1)va 3.13 Assessment Year 2009-10 Income Tax Appellate Tribunal (ITAT)
Income Tax Act 1961 Disallowance of excess claim of depreciation and under section 14A and 40A 7.40 Assessment Year 2010-11 Income Tax Appellate Tribunal (ITAT) and CIT(A)

(viii) The Company has not defaulted in repayment of loans or borrowings to any bankduring the year. The Company has no loans or borrowings payable to a financial institutionor Government and did not have any outstanding debentures during the year.

(ix) The Company did not raise moneys by way of initial public offer or further publicoffer (including debt instruments) and did not have any term loans outstanding during theyear. Accordingly the provisions of clause 3(ix) of the Order are not applicable.

(x) No fraud by the Company or on the Company by its officers or employees has beennoticed or reported during the period covered by our audit.

(xi) Managerial remuneration has been paid by the Company in accordance with therequisite approvals mandated by the provisions of Section 197 of the Act read withSchedule V to the Act.

(xii) In our opinion the Company is not a Nidhi Company. Accordingly provisions ofclause 3(xii) of the Order are not applicable.

(xiii) In our opinion all transactions with the related parties are in compliance withSections 177 and 188 of Act where applicable and the requisite details have beendisclosed in the financial statements etc. as required by the applicable accountingstandards.

(xiv) During the year the Company has not made any preferential allotment or privateplacement of shares or fully or partly convertible debentures.

(xv) In our opinionthe Company has not entered into any non-cash transactions with thedirectors or persons connected with them covered under Section 192 of the Act.

(xvi) The Company is not required to be registered under Section 45-IA of the ReserveBank of India Act 1934.

For Walker Chandiok & Co LLP

Chartered Accountants

Firm's Registration No.: 001076N/N500013

per Anamitra Das

Partner

Membership No.: 062191

Place: Gurgaon

Date: June 13 2016

Independent Auditor's report on the Internal Financial Controls under Clause (i) ofSub-section 3 of Section 143 of the Companies Act 2013 ("the Act")

1. In conjunction with our audit of the standalone financial statements of AsianOilfield Services Limited ("the Company") as of and for the year ended March 312016 we have audited the internal financial controls over financial reporting (IFCoFR) ofthe Company of as of that date.

Management's Responsibility for Internal Financial Controls

2. The Company's Board of Directors is responsible for establishing and maintaininginternal financial controls based on the internal control over financial reportingcriteria established by the Company considering the essential components of internalcontrol stated in the Guidance Note on Audit of Internal Financial Controls over FinancialReporting(the "Guidance Note") issued by the Institute of Chartered Accountantsof India ('ICAI'). These responsibilities include the designimplementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the orderly and efficient conduct of the Company's business including adherenceto Company s policies the safeguarding of its assets the prevention and detection offrauds and errors the accuracy and completeness of the accounting records and the timelypreparation of reliable financial information as required under the Act.

Auditors' Responsibility

3. Our responsibility is to express an opinion on the Company's IFCoFR based on ouraudit. We conducted our audit in accordance with the Standards on Auditing issued by theICAI and deemed to be prescribed under section 143(10) of the Act to the extentapplicable to an audit of IFCoFR and the Guidance Note issued by the ICAI. ThoseStandards and the Guidance Note require that we comply with ethical requirements and planand perform the audit to obtain reasonable assurance about whether adequate IFCoFR wereestablished and maintained and if such controls operated effectively in all materialrespects.

4. Our audit involves performing procedures to obtain audit evidence about the adequacyof the IFCoFR and their operating effectiveness. Our audit of IFCoFR included obtaining anunderstanding of IFCoFR assessing the risk that a material weakness exists and testingand evaluating the design and operating effectiveness of internal control based on theassessed risk. The procedures selected depend on the auditor's judgement including theassessment of the risks of material misstatement of the financial statements whether dueto fraud or error.

5. We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Company's IFCoFR. Meaning of InternalFinancial Controls over Financial Reporting

6. A Company's IFCoFR is a process designed to provide reasonable assurance regardingthe reliability of financial reporting and the preparation of financial statements forexternal purposes in accordance with generally accepted accounting principles. A Company'sIFCoFR 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 authorisations ofmanagement and directors of the Company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorised 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

7. Because of the inherent limitations of IFCoFR including the possibility ofcollusion or improper management override of controls material misstatements due to erroror fraud may occur and not be detected. Also projections of any evaluation of the IFCoFRto future periods are subject to the risk that IFCoFR may become inadequate because ofchanges in conditions or that the degree of compliance with the policies or proceduresmay deteriorate.

Opinion

8. In our opinion the Company has in all material respects adequate internalfinancial controls over financial reporting and such internal financial controls overfinancial reporting were operating effectively as at March 31 2016 based on the internalcontrol over financial reporting criteria established by the Company considering theessential components of internal control stated in the Guidance Note issued by the ICAI.

For Walker Chandiok & Co LLP

Chartered Accountants

Firm's Registration No.: 001076N/N500013

per Anamitra Das

Partner

Membership No.:062191

Place: Gurgaon

Date: June 13 2016