You are here » Home » Companies » Company Overview » Global Offshore Services Ltd

Global Offshore Services Ltd.

BSE: 501848 Sector: Infrastructure
NSE: GLOBOFFS ISIN Code: INE446C01013
BSE LIVE 10:27 | 15 Dec 34.00 0.20
(0.59%)
OPEN

32.60

HIGH

34.50

LOW

32.60

NSE 10:16 | 15 Dec 33.90 0.15
(0.44%)
OPEN

33.90

HIGH

34.70

LOW

33.20

OPEN 32.60
PREVIOUS CLOSE 33.80
VOLUME 641
52-Week high 93.05
52-Week low 30.00
P/E
Mkt Cap.(Rs cr) 84
Buy Price 33.35
Buy Qty 50.00
Sell Price 34.00
Sell Qty 29.00
OPEN 32.60
CLOSE 33.80
VOLUME 641
52-Week high 93.05
52-Week low 30.00
P/E
Mkt Cap.(Rs cr) 84
Buy Price 33.35
Buy Qty 50.00
Sell Price 34.00
Sell Qty 29.00

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 2017 the Statement of Profit and Loss Cash Flow Statement for the year endedand a summary of significant 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 these financialstatements that give a true and fair view of the financial position financial performanceand cash flow of the Company in accordance with the accounting principles generallyaccepted in India including the Accounting Standards specified under Section 133 of theCompanies Act 2013 read with rule 7 of the Companies (Accounts) Rules 2014. Thisresponsibility also includes maintenance of adequate accounting records in accordance withthe provisions of the Act for safeguarding the assets of the Company and for preventingand detecting frauds and other irregularities; selection and application of appropriateaccounting policies; making judgments and estimates that are reasonable and prudent anddesign implementation and maintenance of adequate internal financial controls that wereoperating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the financial statements thatgive a true and fair view and are free from material misstatement whether due to fraud orerror.

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.

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. 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.

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

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us the standalone financial statements give the information required by the Actin the manner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India

(i) In the case of the Balance Sheet of the state of affairs of the Company as atMarch 31 2017;

(ii) In the case of Statement of Profit & Loss of the "Loss" for theyear ended on that date ;

(iii) In the case of the cash flow statement of the cash flows for the year ended onthat date.

Emphasis of Matters

We draw attention to the following matters in the Notes to the financial statements:

Note 12 to the financial statements which shows the company has made investments inGarware Offshore International Services Pte. Ltd. (GOISPL) (wholly owned subsidiary) ofRs. 2273.58 lakhs and Global Offshore Services B.V. (GOSBV) of Rs.18183.57 lakhs. TheCompany accounts for these investments At Cost. As at the end of the year in the case ofGOISPL there is a negative net worth off INR 1086 lakhs. In case of GOSBV for the yearended there is an operating loss of Rs. 15462 lakhs. However the Net Worth of GOSBVremains positive at INR 22413 lakhs. No provision for diminution in the value of theseinvestments is made as the management believes that diminution is not permanent innature.

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 our opinion proper books of account as required by law have been kept by theCompany so far as appears from our examination of those books;

(c) The Balance Sheet Statement of Profit and Loss Cash Flow Statement dealt with bythis report are in agreement with the books of account;

(d) In our opinion the aforesaid financial statements comply with the accountingstandards specified under section 133 of the Companies Act 2013 read with rule 7 of theCompanies (Accounts) Rules 2014.

(e) On the basis of written representations received from the directors as on March 312017 and taken on record by the Board of Directors none of the directors is disqualifiedas on March 31 2017 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 be included in the Auditors' 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 :

a) The Company has disclosed the impact of pending litigations on its financialposition in its financial statements.

b) The Company does not have any long-term contracts including derivative contracts forwhich there could be any material foreseeable losses and hence the question of makingprovision for such losses does not arise.

c) There has been no delay in transferring the amounts required to be transferred tothe 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 2017 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 2017 we report that:

1. In respect of its Fixed Assets

a) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets on the basis of available information.

b) The Company has a regular program of physical verification of its fixed assets bywhich fixed assets are verified in a phased manner over a period. In accordance with thisprogram certain fixed assets were verified during the year and no material discrepancieswere noticed on such verification. In our opinion this periodicity of physicalverification is reasonable having regard to the size of the Company and the nature of itsassets.

c) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company the title deeds of immovable properties areheld in the name of the Company

2. In respect of its Inventories

a) As explained to us inventories have been physically verified by the management atregular intervals during the year.

b) In our opinion and according to the information & explanations given tous the procedures of physical verification of inventories followed by the management arereasonable and adequate in relation to the size of the Company and the nature of itsbusiness.

c) The Company has maintained proper records of inventories. As explained to us therewas no material discrepancies noticed on physical verification of inventory as compared tothe book records.

3. The Company has not granted any loans secured or unsecured to companies firmsLimited Liability Partnerships or other parties covered in the register maintained undersection 189 of the Companies Act 2013. Therefore the provisions of clause 3(iii)(a) to3(iii)(c) of the said Order are not applicable to the Company.

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.

7. a) According to the records of the Company the Company is generally regular indepositing the undisputed statutory dues including income-tax service tax and otherapplicable statutory dues with the appropriate authorities. According to the informationand explanations given to us no undisputed amounts payable in respect of income taxservice tax and other applicable statutory dues were in arrears as at 31st March 2017 fora period of more than six months from the date they became payable. As explained to usthe Company did not have any dues on account of provident fund employees' state insurancesales tax duty of customs duty of excise and value added tax cess.

b) The company had provided requisite disclosures in its financial statements as toholdings as well as dealings in Specified Bank Notes during the period from 8 November2016 to 30 December 2016 and these are in accordance with the books of accounts maintainedby the company

c) According to the information and explanation given to us there are no dues of salestax service tax custom duty excise duty which have not been deposited on account of anydispute. However according to information and explanations given to us the followingdues of income tax have not been deposited 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 20634358 FY 2011-2012 ITAT Mumbai
3) 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 defaultedin repayment of dues to a bank during the year. Following are the details of the defaultdays for the financial year 2016-17 in repayment of dues:

Name of the Bank Delay upto 90 Days Delay 91-180 Days Delay 181-365 Days Delay More than 365 Days
State Bank of India 1448.68 Lakhs 1339.14 Lakhs -- --

9. The Company did not raise any money by way of initial public offer or further publicoffer (including debt instruments) during the year. Accordingly paragraph 3 (ix) of theOrder is not applicable.

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 the information and explanations given to us theCompany is not a Nidhi Company. Accordingly paragraph 3(xii) of the Order is notapplicable

13. According to the information and explanations given to us and based on ourexamination of the records of the Company transactions with related parties are incompliance with Sections 177 and 188 of the Act where applicable and details of suchtransactions have been disclosed in the financial statements as required by the applicableaccounting 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 2017 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 2017 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 safeguarding ofits 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 the adequacy ofthe internal financial controls system over financial reporting and their operatingeffectiveness. Our audit of internal financial controls over financial reporting includedobtaining an understanding of internal financial controls over financial reportingassessing the risk that a material weakness exists and testing and evaluating the designand operating effectiveness of internal control based on the assessed risk. The proceduresselected depend on the auditor's judgment including the assessment of the risks ofmaterial 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 controls systemover financial reporting.

Meaning of Internal Financial Controls over Financial Reporting

A Company's internal financial control over financial reporting is a process designedto provide reasonable assurance regarding the reliability of financial reporting and thepreparation of financial statements for external purposes in accordance with generallyaccepted accounting principles. A Company's internal financial control over financialreporting 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 andexpenditure of the Company are being made only in accordance with authorizations ofmanagement and directors of the Company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorized 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 2017 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 2017 M.No.100976