The Members of GLOBUS CORPORATION LIMITED
We have audited the attached Balance Sheet of GLOBUS CORPOORATION LIMITED as at31 March 2016 the Profit & Loss Account of the Company for the period ended on thatdate the cash flow statement for the year ended on that date a summary of significantaccounting policies and other explanatory information annexed thereto.
Management's Responsibility for the Financial Statements
The Management is responsible for the preparation of these financial statements thatgive a true and fair view of the financial position financial performance and cash flowsof the Company in accordance with the Accounting Standards referred to in sub-section (3C)of section 211 of the Companies Act 1956 ('the Act') read with the General Circular15/2013 dated 13 September 2013 of the Ministry of Corporate Affairs in respect of Section133 of the Companies Act 2013. This responsibility includes the design implementationand maintenance of internal control relevant to the preparation and presentation of thefinancial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error
Our responsibility is to express an opinion on these financial statements based on ouraudit. We conducted our audit in accordance with the Standards on Auditing issued by theInstitute of Chartered Accountants of India. Those Standards require that we comply withethical requirements and plan and perform the audit to obtain reasonable assurance aboutwhether the financial statements are free from material misstatement.
An audit includes examining on a test basis evidence supporting 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 control relevant to the Company's preparation and fair presentation ofthe financial statements in order to design audit procedures that are appropriate in thecircumstances but not for the purpose of expressing an opinion on the effectiveness ofthe entity's internal control. An audit also includes evaluating the appropriateness ofaccounting policies used and the reasonableness of the accounting estimates made bymanagement as well as evaluating the overall presentation of the financial statements. Webelieve that our audit provides a reasonable basis for our opinion.
1. As required by the Companies (Auditors' Report) Order 2003 as amended by theCompanies (Auditors' Report) Order 2004 (together 'the order') issued by the CentralGovernment of India in terms of Section 227(4A) of the Companies Act 1956 we enclose inthe Annexure a statement on the matters specified in paragraph 4 & 5 of the saidOrder.
2. Further to our comments in the Annexure referred below we report that:
a) We have obtained all the information and explanation which to the best of ourknowledge 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 such books maintained at the HeadOffice and at the Factory.
c) The Balance Sheet Profit and Loss Account and Cash Flow Statement dealt with bythis report are in agreement with the books of account maintained at the Head Office andat the Factory.
d) In our opinion the Balance Sheet Profit & Loss Account and Cash Flow Statementdealt with by this report comply with the applicable accounting standards referred insection 211 (3C) of the Companies Act 1956.
e) On the basis of written representation received from the directors as on 31 March2015 and taken on record by the Board of Directors of the company we report that none ofthe directors is disqualified from being appointed as a Director in terms of clause (g) ofsub section (1) of section 274 of the Companies Act 1956.
In our opinion & to the best of our information & according to the explanationsgiven to us except and subject to our qualification as given in notes (scheduled 17)under clause no.2 (Part B) the said accounts together with the other notes thereon andattached thereto give the information required by the Companies Act 1956 in the mannerso required and give a true & fair view in conformity with the accounting principlesgenerally accepted in India:
i) In the case of the Balance Sheet of the State of affairs of the Company as at 31March 2016 ii) In the case of the Profit & Loss Account of the Company for theperiod ended on that date; and iii) In the case of the Cash Flow Statement of the cashflows for the year ended on that date
| ||For Sandip V. Doshi & Co |
| ||Chartered Accountants |
| ||Sd/- |
|Place: Mumbai ||(Sandip V. Doshi) |
|Date :24 May 2016 ||Proprietor |
| ||Membership No. 048949 |
ANNEXURE TO THE AUDITOR'S REPORT
(Referred to in paragraph 1 of our Report of even date to the Members of GlobusCorpooration Limited.)
(i) In Respect Of Fixed Assets:
(a) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets except for some of the networkequipments taken over in the Scheme of Arrangement where the records are maintained forgroup of similar assets and not for each individual asset. The fixed assets register doesnot contain item-wise depreciation and accumulated depreciation.
(b) All fixed assets have not been physically verified by the management during theyear but there is a regular programme of verification. As informed no materialdiscrepancies were noticed on such verification. In our opinion the frequency of thephysical verification of the network equipment needs to be improved further having regardto the size of the Company and the nature of its assets.
(c) Fixed assets disposed off during the year were not substantial and therefore donot affect the going concern assumption.
(ii) In Respect Of Its Inventory:
(a) The management has conducted physical verification of inventory at year end.
(b) The procedures of physical verification of inventory followed by the management arereasonable and adequate in relation to the size of the Company and the nature of itsbusiness.
(c) The Company is maintaining proper records of inventory and no materialdiscrepancies were noticed on physical verification.
(iii) (a) As informed the Company has not granted any loans secured or unsecured tocompanies firms or other parties covered in the register maintained under Section 301 ofthe Companies Act 1956 ('the Act').Accordingly the provisions of Clause 4 (iii) (b) (c)and (d) of the Companies (Auditors Report) Order 2003 (as amended) are not applicable tothe Company.
(b) The Company has taken loan from director covered in the register maintained underSection 301 of the Act. The maximum amount involved during the year was Rs.7049206/- andthe year- end balance of loans taken from such party was Rs. 7049206/-.
(c) In our opinion and according to the information and explanations given to us therate of interest and other terms and conditions for such loans are not prima facieprejudicial to the interest of the Company.
(d) In our opinion and according to the information and explanations given to us thereis an adequate internal control system commensurate with the size of the Company and thenature of its business for the purchase of inventory and fixed assets sale of goods andadvertising and carriage services. During the course of our audit no major weakness hasbeen noticed in the internal control system in respect of these areas. However theinternal control system for the sale of services for analogue subscription is inadequatesince the Company does not have written agreements with customers in some cases which arean industry issue as per management.
(iv) According to the information and explanations provided by the management we areof the opinion that the particulars of contracts or arrangements referred to in Section301 of the Act that need to be entered into the register maintained under Section 301 havebeen so entered.
(v) The Company has not accepted any deposits or Fixed Deposits from the public withthe meaning of Section 58A of the Companies Act 1956 and rules made there under.
(vi) Cost record not applicable as there is no activities.
(vii) (a) Undisputed statutory dues including provident fund investor education andprotection fund or employees. state insurance are paid by the company in time incometax sales tax have not generally been regularly deposited with the appropriateauthorities though the delays in deposit have not been serious.
(b) According to the information and explanations given to us undisputed dues inrespect of provident fund investor education and protection fund employees. stateinsurance income tax wealth tax service tax sales tax customs duty cess and otherstatutory dues which were outstanding at the year end for a period of more than sixmonths from the date they became payable are as follows:
|Name of the Statue ||Nature of Dues ||Amount in Rs. Details of Payment |
|Maharashtra Sales Tax ||Sales Tax ||as reported in notes on accounts. |
|Income Tax ||Income Tax ||as reported in notes on accounts. |
(c) In our opinion the accumulated losses at the end of the financial year are morethan 50% (fifty percent) of its net worth.
(viii) Based on our audit procedures and as per the information and explanations givenby the management we are of the opinion that the Company has defaulted in repayment ofdues to banks including interest payments as per rescheduled dates in a few cases. TheCompany has not issued any debentures.
(ix) As explained to us the Company has a regular procedure for the determination ofunserviceable damaged stores raw materials and finished goods. Adequate provisions havebeen made in the accounts for the loss arising on the items so determined.
(x) According to the information and explanations given to us and based on thedocuments and records produced to us the Company has not granted loans and advances onthe basis of security by way of pledge of shares debentures and other securities.
(xi) In our opinion the Company is not a chit fund or a nidhi / mutual benefitfund/society. Therefore the provisions of Clause 4(xiii) of the Companies (AuditorsReport) Order 2003 (as.amended) are not applicable to the Company.
(xii) According to the information and explanations given to us the Company has notgiven any guarantee for loans taken by others from bank or financial institutions.
(xiii) The Company has not made any preferential allotment of shares to parties orcompanies covered in the register maintained under Section 301 of the Act.
(xiv) The Company has not raised money by public issues during the year.
(xv) Based upon the audit procedures performed for the purpose of reporting the trueand fair view of the financial statements and as per the information and explanationsgiven by the management we report that no fraud on or by the Company has been noticed orreported during the course of our audit.
| ||For Sandip V. Doshi & Co |
| ||Chartered Accountants |
| ||Sd/- |
|Place : Mumbai ||(Sandip V. Doshi) |
|Date : 24 May 2016 ||Proprietor |
| ||Membership No. 048949 |