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Global Offshore Services Ltd.

BSE: 501848 Sector: Infrastructure
NSE: GLOBOFFS ISIN Code: INE446C01013
BSE LIVE 15:40 | 18 Aug 35.45 -2.00
(-5.34%)
OPEN

37.45

HIGH

37.45

LOW

34.75

NSE 15:57 | 18 Aug 35.75 -1.70
(-4.54%)
OPEN

37.20

HIGH

37.20

LOW

34.20

OPEN 37.45
PREVIOUS CLOSE 37.45
VOLUME 14559
52-Week high 167.00
52-Week low 30.00
P/E
Mkt Cap.(Rs cr) 88
Buy Price 35.45
Buy Qty 5.00
Sell Price 0.00
Sell Qty 0.00
OPEN 37.45
CLOSE 37.45
VOLUME 14559
52-Week high 167.00
52-Week low 30.00
P/E
Mkt Cap.(Rs cr) 88
Buy Price 35.45
Buy Qty 5.00
Sell Price 0.00
Sell Qty 0.00

Global Offshore Services Ltd. (GLOBOFFS) - Auditors Report

Company auditors report

TO THE MEMBERS OF M/S. GLOBAL OFFSHORE SERVICES LIMITED.

Report on the Financial Statements

We have audited the accompanying financial statements of M/S GLOBAL OFFSHORESERVICES LIMITED ("the Company") which comprise the Balance Sheet as atMarch 31 2016 and the Statement of Profit for the year ended and a summary ofsignificant accounting policies and other explanatory information.

Management’s Responsibility for the Standalone Financial Statements

The Company’s Board of Directors is responsible for the preparation of thesefinancial statements that give a true and fair view of the financial position financialperformance and cash flow of the Company in accordance with the accounting principlesgenerally accepted in India including the Accounting Standards specified under Section133 of the Companies Act 2013 read with rule 7 of the Companies(Accounts) Rules 2014.This responsibility also includes maintenance of adequate accounting records in accordancewith the provisions of the Act for safeguarding the assets of the Company and forpreventing 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 financialstatements that give a true and fair view and are free from material misstatement whetherdue to fraud or error.

Auditors’ Responsibility

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 accounting and auditingstandards and matters which are required to be included in the audit report under theprovisions of the Act and the Rules made there under.

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid standalone financial statements give the information requiredby the Act in the manner so required and give a true and fair view in conformity with theaccounting principles generally accepted in India.

(i) In the case of the Balance Sheet of the state of affairs of the Company as atMarch 31 2016; (ii) In the case of Statement of Profit & Loss of the"profit" for the year ended on that date; (iii) In the case of the cash flowstatement of the cash flows for the year ended on that date.

Report on Other Legal and Regulatory Requirements

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 ofthe Act we give in the Annexure A statement on the matters specified in paragraphs 3 and4 of the Order.

As required under provisions of section 143(3) of the Companies Act 2013 we reportthat:

(a) We have sought and obtained all the information and explanation which to the bestof our knowledge and belief were necessary for the purpose of our audit; (b) In ouropinion proper books of account as required by law have been kept by the Company so faras appears from our examination of those books; (c) The Balance Sheet Statement of Profitand Loss dealt with by this report are in agreement with the books of account; (d) In ouropinion the aforesaid financial statements comply with the accounting standards specifiedunder section 133 of the Companies Act 2013 read with rule 7 of the Companies( Accounts) Rules 2014.

(e) On the basis of written representations received from the directors as on March 312016 and taken on record by the Board of Directors none of the directors is disqualifiedas on March 31 2016 from being appointed as a director in terms of sub-section (2) ofsection 164 of the Act.

(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’; and (g) with respect to the other matters to beincluded in the Auditors’ Report in accordance with Rule 11 of the Companies (Auditand Auditors) Rules 2014 in our opinion and to the best of our information and accordingto the explanations given to us: a) The Company has disclosed the impact of pendinglitigations on its financial position in its financial statements. b) The Company does nothave any long-term contracts including derivative contracts for which there could be anymaterial foreseeable losses and hence the question of making provision for such lossesdoes not arise. c) There has been no delay in transferring the amounts required to betransferred to the Investor Education and Protection Fund by the Company.

For RAMAN S. SHAH & ASSOCIATES
Chartered Accountants
Firm Reg. No. 119891W
SANTOSH A. SANKHE
PLACE : Mumbai Partner
DATE : 30th May 2016 M.No.100976

ANNEXURE A TO INDEPENDENT AUDITORS’ REPORT

REFERRED TO IN PARAGRAPH OF OUR REPORT OF EVEN DATE

The Annexure referred to in our Independent Auditors’ Report to the members of theCompany on the financial statements for the year ended 31 March 2016 we report that:

1. In respect of its Fixed Assets a) The Company has maintained properrecords showing full particulars including quantitative details and situation of fixedassets on the basis of available information. b) The Company has a regular program ofphysical verification of its fixed assets by which fixed assets are verified in a phasedmanner over a period. In accordance with this program certain fixed assets were verifiedduring the year and no material discrepancies were noticed on such verification. In ouropinion this periodicity of physical verification is reasonable having regard to the sizeof the Company and the nature of its assets. c) According to the information andexplanations given to us and on the basis of our examination of the records of theCompany the title deeds of immovable properties are held in the name of the Company

2. In respect of its Inventories a) As explained to us inventories havebeen physically verified by the management at regular intervals during the year. b) In ouropinion and according to the information & explanations given to us the procedures ofphysical verification of inventories followed by the management are reasonable andadequate in relation to the size of the Company and the nature of its business. c) TheCompany has maintained proper records of inventories. As explained to us there was nomaterial discrepancies noticed on physical verification of inventory as compared to thebook records.

3. The Company has granted loans to one subsidiary Company covered in the registermaintained under Section 189 of the Companies Act2013 (‘the Act’). a) In ouropinion the rate of interest and other terms and conditions on which the loans had beengranted to the bodies corporate listed in the register maintained under Section 189 of theAct were not prima facie prejudicial to the interest of the Company. b) In the case ofthe loans granted to the bodies corporate listed in the register maintained under Section189 of the Act the borrowers have been regular in the payment of the principal andinterest as stipulated. c) There are no overdue amounts in respect of the loan granted toa body corporate listed in the register maintained under Section 189 of the Act.

4. 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 with respectto the loans and investments made.

5. The Company has not accepted any deposits from the public.

6. The Central Government has not prescribed the maintenance of cost records undersection 148(1) of the Act for any of the services rendered by the Company. a) Accordingto the records of the Company the Company is generally regular in depositing theundisputed statutory dues including income-tax service tax and other applicable statutorydues with the appropriate authorities. According to the information and explanations givento us no undisputed amounts payable in respect of income tax service tax and otherapplicable statutory dues were in arrears as at 31st March 2016 for a period of more thansix months from the date they became payable. As explained to us the Company did not haveany dues on account of provident fund employees’ state insurance sales tax duty ofcustoms duty of excise and value added tax cess. b) According to the information andexplanation given to us there are no dues of sales tax service tax custom duty exciseduty which have not been deposited on account of any dispute. However according toinformation and explanations given to us the following dues of income tax have not beendeposited by the Company on account of disputes.

Sr. No. Name of the Statue Nature of Dues Amount (in Rs.) Period to which the amount relates Forum where dispute is pending
1) Income Tax Act 1961 Income Tax 2691230 FY 2010-2011 ITAT Mumbai
2) Income Tax Act 1961 Income Tax 273390 FY 2012-2013 CIT Appeals

8. According to the information and explanation given to us the Company has notdefaulted in repayment of dues to a financial institution or bank.

9. The term loans raised by the Company during the year have been applied for thepurpose for which they were obtained.

10. According to the information and explanations given to us no material fraud by theCompany or on the Company by its officers or employees has been noticed or reported duringthe course of our audit.

11. According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has paid / provided for managerialremuneration in accordance with the requisite approvals mandated by the provisions ofSection 197 read with Schedule V to the Act. 12. In our opinion and according to theinformation and explanations given to us the Company is not a nidhi Company. Accordinglyparagraph 3(xii) of the Order is not applicable 13. According to the information andexplanations given to us and based on our examination of the records of the Companytransactions with related parties are in compliance with Sections 177 and 188 of the Actwhere applicable and details of such transactions have been disclosed in the financialstatements as required by the applicable accounting standards.

14. According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has not made any preferentialallotment or private placement of shares or fully or partly convertible debentures duringthe year.

15. According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has not entered into non-cashtransactions with directors or persons connected with them. Accordingly paragraph 3(xv)of the Order is not applicable.

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

For RAMAN S. SHAH & ASSOCIATES
Chartered Accountants
Firm Reg. No. 119891W
SANTOSH A. SANKHE
PLACE : Mumbai Partner
DATE : 30th May 2016 M.No.100976

ANNEXURE - B TO THE AUDITORS’ REPORT

Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143 of the Companies Act 2013 ("the Act")

We have audited the internal financial controls over financial reporting of GLOBALOFFSHORE SERVICES LIMITED ("the Company") as of 31 March 2016 in conjunctionwith our audit of the financial statements of the Company for the year ended on that date.

Management’s Responsibility for Internal Financial Controls

The Company’s management is responsible for establishing and maintaining internalfinancial controls based on the internal control over financial reporting criteriaestablished by the Company considering the essential components of internal control statedin the Guidance Note on Audit of Internal Financial Controls over Financial Reportingissued by the Institute of Chartered Accountants of India (‘ICAI’). Theseresponsibilities include the design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the orderly and efficientconduct of its business including adherence to Company’s policies the safeguardingof its assets the prevention and detection of frauds and errors the accuracy andcompleteness of the accounting records and the timely preparation of reliable financialinformation as required under the Act.

Auditors’ 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 issued by ICAI and deemedto be prescribed under section 143(10) of the Act to the extent applicable to an audit ofinternal financial controls both applicable to an audit of Internal Financial Controlsand both issued by the ICAI. Those Standards and the Guidance Note require that we complywith ethical requirements and plan and perform the audit to obtain reasonable assuranceabout whether adequate internal financial controls over financial reporting wasestablished and maintained and if such controls operated effectively in all materialrespects. Our audit involves performing procedures to obtain audit evidence about theadequacy of the internal financial controls system over financial reporting and theiroperating effectiveness. Our audit of internal financial controls over financial reportingincluded obtaining an understanding of internal financial controls over financialreporting assessing the risk that a material weakness exists and testing and evaluatingthe design and operating effectiveness of internal control based on the assessed risk. Theprocedures selected depend on the auditor’s judgment including the assessment of therisks 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 toprovide a basis for our audit opinion on the Company’s internal financial controlssystem over financial reporting.

Meaning of Internal Financial Controls over Financial Reporting

A Company’s internal financial control over financial reporting is a processdesigned to provide reasonable assurance regarding the reliability of financial reportingand the preparation of financial statements for external purposes in accordance withgenerally accepted accounting principles. A Company’s internal financial control overfinancial reporting includes those policies and procedures that (1) pertain to themaintenance of records that in reasonable detail accurately and fairly reflect thetransactions and dispositions of the assets of the Company; (2) provide reasonableassurance that transactions are recorded as necessary to permit preparation of financialstatements in accordance with generally accepted accounting principles and that receiptsand expenditure 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

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 the Company has in all material respects an adequate internalfinancial controls system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at 31 March 2016 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note on Audit ofInternal Financial Controls Over Financial Reporting issued by the ICAI.

For RAMAN S. SHAH & ASSOCIATES
Chartered Accountants
Firm Reg. No. 119891W
SANTOSH A. SANKHE
PLACE : Mumbai Partner
DATE : 30th May 2016 M.No.100976