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Asian Oilfield Services Ltd.

BSE: 530355 Sector: Oil & Gas
NSE: N.A. ISIN Code: INE276G01015
BSE LIVE 11:50 | 20 Nov 191.10 -3.25
(-1.67%)
OPEN

192.00

HIGH

195.00

LOW

190.30

NSE 05:30 | 01 Jan Stock Is Not Traded.
OPEN 192.00
PREVIOUS CLOSE 194.35
VOLUME 7113
52-Week high 249.60
52-Week low 71.20
P/E 9555.00
Mkt Cap.(Rs cr) 563
Buy Price 191.10
Buy Qty 5.00
Sell Price 192.70
Sell Qty 9.00
OPEN 192.00
CLOSE 194.35
VOLUME 7113
52-Week high 249.60
52-Week low 71.20
P/E 9555.00
Mkt Cap.(Rs cr) 563
Buy Price 191.10
Buy Qty 5.00
Sell Price 192.70
Sell Qty 9.00

Asian Oilfield Services Ltd. (ASIANOILFIELD) - Auditors Report

Company auditors report

To the Members of Asian Oilfield Services Limited

Report on the Standalone Financial Statements

1. We have audited the accompanying standalone financial statements of Asian OilfieldServices Limited (‘the Company') which comprise the Balance Sheet as at 31 March2017 the Statement of Profit and Loss and the Cash Flow Statement for the year thenendedand a summary of the significant accounting policies and other explanatoryinformation.

Management's Responsibility for the Standalone Financial Statements

2. 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 Standardsprescribed under Section 133 of the Act read with Rule 7 of the Companies (Accounts)Rules 2014 (as amended). This responsibility also includes maintenance of adequateaccounting records in accordance with the provisions of the Act for safeguarding theassets of the Company and for preventing and detecting frauds and other irregularities;selection and application of appropriate accounting policies; making judgments andestimates that are reasonable and prudent; and design implementation and maintenance ofadequate internal financial controls that were operating effectively for ensuring theaccuracy and completeness of the accounting records relevant to the preparation andpresentation of the standalone financial statements that give a true and fair view and arefree from material misstatement whether due to fraud or error.

Auditor's Responsibility

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

4. 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.

5. 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 whetherthese standalone financial statements are free from material misstatement.

6. 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 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 controls 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. An audit also includes evaluating theappropriateness of the accounting policies used and the reasonableness of the accountingestimates made by the Company's Directors as well as evaluating the overall presentationof the financial statements.

7. We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our qualified audit opinion on these standalone financial statements.

Basis for Qualified Opinion

8. As stated in Note 40 to the accompanying standalone financial statements theCompany's trade receivables short-term loans and advances and long-term loans andadvances as at March 31 2017 include Rs.90.99 lacs Rs.104.05 lacs and Rs.108.71lacs (asat March 31 2016: Rs.601.18 lacs Rs.532.76 lacs and Rs.128.71 lacs respectively) beingconsidered good and recoverable by the management. However in the absence of sufficientappropriate evidence we are unable to comment upon the recoverability of the aforesaidtrade receivables short-term loans and advances and long- term loans and advances and theconsequential impact if any on the accompanying standalone financial statements. Ouraudit opinion on the standalone financial statements for the year ended March 31 2016 wasalso qualified in respect of this matter.

Qualified Opinion

9. In our opinion and to the best of our information and according to the explanationsgiven to us except 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 31 2017 and its profit and its cash flows for theyear ended on that date.

Emphasis of Matter

10. We draw attention to Note 28(b) to the accompanying standalone financial statementswhich describe the uncertainty related to outcome of legal case filed by the Company inrelation to liquidated damages/penalties 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 presentlyunascertainable no adjustments have been recorded in standalone financial statements. Ouropinion is not qualified in respect of these matters.

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 the Order.

12. Further to our comments in Annexure A as required by Section143(3) of the Act wereport that: a. We have sought and except for the possible effects of the mattersdescribed in the Basis for Qualified Opinion paragraph obtained all the information andexplanations which to the best of our knowledge and belief were necessary for the purposeof our audit; b. Except for the possible effects of the matter described in the Basis forQualified Opinion paragraphin our opinion proper books of account as required by lawhave been kept 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 with thebooks of account; d. Except for the possible effects of the matter described in the Basisfor Qualified Opinion paragraphin our opinion the aforesaid standalone financialstatements comply with the Accounting Standards prescribed under Section 133 of the Actread with Rule 7 of the Companies (Accounts) Rules 2014 (as amended); e. The matterdescribed in paragraph 8 under the Basis for Qualified Opinion paragraph and paragraph 10under the Emphasis of Matters in our opinion may have an adverse effect on thefunctioning of the Company; f. On the basis of the written representations received fromthe directors and taken on record by the Board of Directors none of the directors isdisqualified as on 31 March 2017 from being appointed as a director in terms ofSection164(2) of the Act; g. We have also audited the internal financial controls overfinancial reporting (IFCoFR) of the Company as on 31 March 2017 in conjunction with ouraudit of the standalone financial statements of the Company for the year ended on thatdate and our report dated 22 May 2017 as per Annexure B expressing our unqualified opinionon adequacy and operating effectiveness over financial reporting; h. With respect to theother matters to be included in the Auditor's Report in accordance with Rule

11 of the Companies (Audit and Auditors) Rules 2014 (as amended) in our opinion andto the best of our information and according to the explanations given to us: i. TheCompany as detailed in Note 28 to the standalone financial statements has disclosed theimpact of pending litigations on its standalone financial position; ii. The Company didnot have any long-term contracts including derivative contracts for which there were anymaterial foreseeable losses; iii. There were no amounts which were required to betransferred to the Investor Education and Protection Fund by the Company; iv. The Companyas detailed in Note 42 to the standalone financial statements has made requisitedisclosures in these standalone financial statements as to holdings as well as dealings inSpecified Bank Notes during the period from 8 November 2016 to 30 December 2016. Based onthe audit procedures performed and taking into consideration the information andexplanations given to us in our opinion these are in accordance with the books ofaccount maintained 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: 22 May 2017

Annexure A to the Independent Auditor's Report

Annexure A

Based on the audit procedures performed for the purpose of reporting a true and fairview on the financial statements of the Company and taking into consideration theinformation and explanations given to us and the books of account and other recordsexamined by us in the normal course of audit and to the best of our knowledge and beliefwe report that: (i) (a) The Company has maintained proper records showing fullparticulars including quantitative 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 (Rs.in lakhs) Amount paid under Protest ( Rs. in lakhs) 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 245.9 - Assessment year 2008-09 Income Tax Appellate Tribunal (ITAT)
Income Tax Act 1961 Disallowance of excess claim of depreciation under section 14A and 40A 74.0 - 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) TheCompany did not raise moneys by way of initial public offer or further public offer(including debt instruments) and did not have any term loans outstanding during the year.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 remunerationhas been paid and provided by the Company in accordance with the requisite approvalsmandated by the provisions of Section 197 of the Act read with Schedule 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 made private placement of shares. In respect ofthe same in our opinion the Company has complied with the requirement of Section 42 ofthe Act and the Rules framed thereunder. Further in our opinion the amounts so raisedhave been used for the purposes for which the funds were raised. During the year thecompany did not make preferential allotment of fully/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: 22 May 2017

Annexure B

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 31 March2017 we have audited the internal financial controls over financial reporting (IFCoFR) ofthe Company 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 theInstitute of Chartered Accountants of India (ICAI)and deemed to be prescribed undersection 143(10) of the Act to the extent applicable to an audit of IFCoFR and theGuidance Note on Audit of Internal Financial Controls Over Financial Reporting (the"Guidance Note") issued by the ICAI. Those Standards and the Guidance Noterequire that we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether adequate IFCoFR were established and maintained and ifsuch controls operated effectively in all material respects.

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 Internal Financial 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 detailaccurately 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 31 March 2017 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: 22 May 2017