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Global Vectra Helicorp Ltd.

BSE: 532773 Sector: Services
NSE: GLOBALVECT ISIN Code: INE792H01019
BSE LIVE 15:41 | 18 Aug 132.95 -3.10
(-2.28%)
OPEN

134.20

HIGH

136.75

LOW

132.30

NSE 15:59 | 18 Aug 133.15 -3.05
(-2.24%)
OPEN

135.00

HIGH

136.50

LOW

131.50

OPEN 134.20
PREVIOUS CLOSE 136.05
VOLUME 11034
52-Week high 183.00
52-Week low 62.40
P/E 8.39
Mkt Cap.(Rs cr) 186
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 134.20
CLOSE 136.05
VOLUME 11034
52-Week high 183.00
52-Week low 62.40
P/E 8.39
Mkt Cap.(Rs cr) 186
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Global Vectra Helicorp Ltd. (GLOBALVECT) - Auditors Report

Company auditors report

To the Members of Global Vectra Helicorp Limited

Report on the Financial Statements

We have audited the accompanying financial statements of Global Vectra Helicorp Limited("the Company") which comprise the Balance Sheet as at 31 March 2016 theStatement of Profit and Loss and the Cash Flow Statement for the year then ended and asummary of the significant accounting policies and other explanatory information.

Management's Responsibility for the Financial Statements

The Company's Board of Directors is responsible for the matters stated in Section134(5) of the Companies Act 2013 (Rsthe ActRs) with respect to the preparation andpresentation of these 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)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 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

Our responsibility is to express an opinion on these financial statements based on ouraudit.

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.

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 the 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 anddisclosures in the financial statements. The procedures selected depend on the auditor'sjudgment including the assessment of the risks of material misstatement of the financialstatements whether due to fraud or error. In making those risk assessments the auditorconsiders 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 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 financial statements.

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid 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 of the state of affairs of the Company as at 31March 2016 and its profit and its cash flows for the year ended on that date.

Emphasis of Matter

We draw attention to note 34 to the Company's financial statements which more fullyexplains that the Company had received an order from the Office of the Commissioner ofCustoms (Preventive) confirming the demand for differential duty of customs along withpenalty aggregating Rs 262195030 (2015: Rs 262195030). No provision has been made bythe Company for the same nor the interest due thereon as at 31 March 2016 as themanagement believes based on a recent decision from Customs Excise and Service TaxAppellate Tribunal (CESTAT) West Zonal Bench in favour of the Company on a similar matterand an opinion from an external legal expert that the demand will be set aside by ahigher appellate authority. Our opinion is not qualified in respect of this matter.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor's Report) Order 2016 (Rsthe OrderRs)issued by the Central Government of India in terms of sub-section (11) of Section 143 ofthe Act we give in the Annexure A a statement on the matters specified in paragraphs 3and 4 of the Order to the extent applicable.

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 our audit;

b. In our opinion proper books of account as required by law have been kept by theCompany 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. In our opinion the aforesaid financial statements comply with the AccountingStandards specified under Section 133 of the Act read with Rule 7 of the Companies(Accounts) Rules 2014;

e. The matter described under the Emphasis of Matter paragraph above in our opinionmay have an adverse effect on the functioning of the Company;

f. On the basis of the written representations received from the directors as on 31March 2016 and taken on record by the Board of Directors none of the directors isdisqualified as on 31 March 2016 from being appointed as a director in terms of Section164(2) of the Act;

g. 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

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. the Company has disclosed the impact of pending litigations on its financialposition in its financial statements - Refer Note 26(b) and Note 34 to the financialstatements;

ii. the Company did not have any long-term contracts including derivative contracts forwhich there were any material foreseeable losses; and

iii. there were no amounts which were required to be transferred to the InvestorEducation and Protection Fund by the Company.

For B S R & Co. LLP
Chartered Accountants
Firm's Registration No: 101248W/ W-100022
Vijay Mathur
Mumbai Partner
25 May 2016 Membership No: 046476

ANNEXURE A TO THE INDEPENDENT AUDITORS' REPORT - 31 MARCH 2016

(Referred to in our report of even date)

(i) (a) The Company has maintained proper records

showing full particulars including quantitative details and situation of fixed assets.

(b) The Company has a regular programme of physical verification of its fixed assets bywhich all fixed assets are verified in a phased manner over a period of two years. In ouropinion this periodicity of physical verification is reasonable having regard to the sizeof the Company and the nature of its assets. In accordance with this programme theCompany has physically verified certain fixed assets during the year and no materialdiscrepancies were noticed on such verification.

(c) In our opinion and according to information and explanations given to us and on thebasis of our examination of the records of the Company the title deeds of immovableproperties are held in the name of the Company.

(ii) The inventory has been physically verified by the management at reasonableintervals during the year. In our opinion the frequency of such verification isreasonable. The discrepancies noticed on verification between the physical stocks and thebook records were not material.

(iii) 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 (Rsthe ActRs). Accordingly paragraph 3 (iii) ofthe Order is not applicable to the Company.

(iv) In our opinion and according to the information and explanations given to us theCompany has not given any loan made any investment given any guarantee or provided anysecurity under Section 185 and 186 of the Act. Accordingly paragraph 3 (iv) of the Orderis not applicable to the Company.

(v) The Company has not accepted any deposits from the public.

(vi) 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.

(vii) (a) According to the information and explanations given to us and on the basis ofour examination of the records of the Company amounts deducted/accrued in the books ofaccount in respect of undisputed statutory dues of Provident Fund Employees' StateInsurance Sales Tax Wealth Tax Duty of Customs and any other material statutory dueshave been regularly deposited during the year by the Company with the appropriateauthorities. According to the information and explanations given to us and on the basis ofour examination of the records of the Company amounts deducted/accrued in the books ofaccount in respect of undisputed statutory dues of Income Tax and Service tax have notbeen regularly deposited during the year by the Company with the appropriate authoritiesand there have been significant delays in several cases. As explained to us theCompany did not have any dues on account of Value added tax Duty of Excise and Cess.

According to the information and explanations given to us no undisputed amountspayable in respect of Provident Fund Employees' State Insurance Sales Tax Wealth TaxDuty of Customs Income Tax and other material statutory dues were in arrears as at 31March 2016 for a period of more than six months from the date they became payable exceptfor the following undisputed dues of Service Tax which have not been deposited by theCompany and were in arrears as at 31 March 2016 for a period of more than six months fromthe date they became payable:

Name of Statute Nature of dues Amount

(Rs)

Period to which the

amount

relates

Due

dates

Date of payment
The Finance Act 1994 Service tax 6556587 2012-13 Various Not yet paid
The Finance Act 1994 Service tax 8969848 2013-14 Various Not yet paid
The Finance Act 1994 Service tax 2632462 2014-15 Various Not yet paid
The Finance Act 1994 Service tax 6048110 2015-16 Various Not yet paid

(b) According to the information and explanations given to us there are no dues ofIncome Tax Sales Tax and Wealth Tax which have not been deposited with the appropriateauthorities on account of any dispute. The following dues of Customs Duty and Service Taxhave not been deposited by the Company on account of disputes:

Name of the Statute Nature of the Dues Amount (Rs) Period to which the amount relates Forum where dispute is pending
Customs Act 1962 Customs duty *212195030 2007-2008 CESTAT Appeals)
Penalty 50000000 2007-2008 CESTAT(Appeals)
Finance Act 1994 Service tax **90264239 16.05.2008 to 31.03.2010 CESTAT (Appeals)
Interest 115956343 16.05.2008 to 31.03.2016 CESTAT (Appeals)
Finance Act 1994 Service tax 21857285 October 2007 to March 2011 CESTAT (Appeals)
Penalty 21857285 October 2007 to March 2011 CESTAT (Appeals)
Finance Act 1994 Service tax 43986566 April 2011 to March 2012 CESTAT (Appeals)
Penalty 45812439 April 2011 to March 2012 CESTAT (Appeals)
Finance Act 1994 Service tax 3496124 April 2011 to December 2013 Commissioner

(Appeals)

Penalty 3501124 April 2011 to December 2013 Commissioner

(Appeals)

*includes amount aggregating Rs 53826044 paid as duty under protest during the yearended 31 March 2010

**includes amount aggregating Rs 55923575 paid as duty under protest during the yearended 31 March 2016

(viii) In our opinion and according to the information and explanations given to usthe Company has not defaulted in repayment of dues to financial institutions or banks. TheCompany does not have any loans or borrowings from government or dues to debenture holdersduring the year.

(ix) The Company did not raise any money by way of initial public offer or furtherpublic offer (including debt instruments) during the year. In our opinion and according tothe information and explanations given to us the term loans taken by the Company havebeen applied for the purpose for which they are raised.

(x) According to the information and explanations given to us no fraud by the Companyor on the Company by its officers or employees has been noticed or reported during thecourse of our audit.

(xi) 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.

(xii) 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 to the Company.

(xiii) According to the information and explanations given to us and based on ourexamination of the records of the Company transactions with the 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.

(xiv) According to the information and explanations give 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. Accordingly paragraph 3 (xiv) of the Order is not applicable to the Company.

(xv) 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 any non-cashtransactions with directors or persons connected with him. Accordingly paragraph 3(xv) ofthe Order is not applicable to the Company.

(xvi) According to the information and explanations given to us the Company is notrequired to be registered under Section 45-IA of the Reserve Bank of India Act 1934.Accordingly paragraph 3(xvi) of the Order is not applicable to the Company.

For B S R & Co. LLP
Chartered Accountants
Firm's Registration No: 101248W/ W-100022
Vijay Mathur
Mumbai Partner
25 May 2016 Membership No: 046476

ANNEXURE B TO THE INDEPENDENT AUDITORS' REPORT OF EVEN DATE ON THE FINANCIAL STATEMENTSOF THE COMPANY - 31 MARCH 2016

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 GlobalVectra Helicorp Limited ("the Company") as of 31 March 2016 in conjunction withour 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 deemed tobe 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 judgement 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:

(a) pertain to the maintenance of records that in reasonable detail accurately andfairly reflect the transactions and dispositions of the assets of the company;

(b) provide reasonable assurance that transactions are recorded as necessary to permitpreparation of financial statements in accordance with generally accepted accountingprinciples and that receipts and expenditures of the company are being made only inaccordance with authorisations of management and directors of the company; and

(c) provide reasonable assurance regarding prevention or timely detection ofunauthorised acquisition use or disposition of the company's assets that could have amaterial 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 Institute of CharteredAccountants of India.

For B S R & Co. LLP
Chartered Accountants
Firm's Registration No: 101248W/ W-100022
Vijay Mathur
Mumbai Partner
25 May 2016 Membership No: 046476