To the Members of
BLS International Services Limited
Report on the Audit of the Standalone Financial Statements
We have audited the accompanying standalone financial statements of BLSInternational Services Limited ("the Company") which comprise the Balance Sheetas at March 31 2019 the Statement of Profit and Loss (including other comprehensiveincome) the Statement of Changes in Equity and the Statement of Cash Flows for the yearthen ended and notes to the financial statements including a summary of the significantaccounting policies and other explanatory information (hereinafter referred to as"the standalone financial statements").
In our opinion and to the best of our information and according to theexplanations given to us the aforesaid standalone required by the Companies Act 2013("the Act") in the manner so required and give a true and fair view inconformity with the Indian Accounting Standards prescribed under section 133 of the Actread with the Companies (Indian Accounting Standards) Rules2015 as amended ("IndAS") and other accounting principles generally accepted in India of the state ofaffairs of the Company as at March 31 2019 the profit and total comprehensive incomechanges in equity and its cash flows for the year ended on that date.
Basis for Opinion
We conducted our audit of the standalone financial statements inaccordance with the Standards on
Auditing (SAs) specified under section 143(10) of the
Act. Our responsibilities under those Standards are further describedin the Auditor's Responsibilities for the Audit of the Standalone FinancialStatements section of our report. We are independent of the Company in accordance with theCode of Ethics issued by the Institute of Chartered Accountants of India (ICAI) togetherwith the ethical requirements that are relevant to our audit of the Standalone financialstatements under the provisions of the Act and the Rules made thereunder and we havefulfilled our other ethical responsibilities in accordance with these requirements and theICAI's Code of Ethics. We believe that the audit evidence we have obtained issufficient and appropriate to provide a basis for our audit opinion on the standalonefinancial statements. statements give the information
Key Audit Matter
Key audit matters are those matters that in our professional judgmentwere of most significance in our audit of the standalone financial statements of thecurrent period. These matters were addressed in the context of our audit of the standalonefinancial statements as a whole and in forming our opinion thereon and we do not providea separate opinion on these matters. We have determined the matters described below to bethe key audit matters to be communicated in our report.
|Key Audit Matter ||Auditor's Response |
|Accuracy of recognition measurement presentation and disclosures of revenue in view of adoption of Ind AS-115 "Revenue from Contracts with Customers" in place of Ind AS-18 "Revenue" ||Principal Audit Procedures |
| || We have performed walkthrough process to understand the adequacy of design and internal controls relating to implementation of the new revenue accounting standard. |
| || Understanding the policies and procedures applied to revenue recognition as well as compliance thereof including an analysis of the effectiveness of controls related to revenue recognition processes employed by the Company. |
|The application of the new revenue accounting standard establishes a comprehensive framework for determining whether how much and when revenue is recognized. || We have reviewed the revenue recognition policy applied by the Company to ensure its compliance with Ind-AS 115 requirements. |
|This involves certain key judgments relating to identification of distinct performance obligation determination of transaction price of identifiedperformance obligation the appropriateness of the basis used to measure revenue recognized over a period. Additionally the standard mandates robust disclosures in respect of revenue and periods over which the remaining performance obligation will be satisfied subsequent to the balance sheet date. || |
| ||We have reviewed the changes made to IT system to reflect the changes required in revenue recognition as per the new accounting standard. |
| || We have performed the detailed analysis on revenue streams by selecting samples for the existing contracts with customers and considered revenue recognition policy in respect of those revenue streams. |
| || We have performed a detailed testing on transactions ensuring revenues were recognized in the correct accounting period. We also tested journal entries recognized in revenue focusing on unusual or irregular transactions. |
| || We have reviewed the appropriateness of the disclosures provided under the new revenue standard and assessed the completeness and mathematical accuracy of the relevant disclosures. |
Information Other than the Standalone Financial Statements andAuditor's Report Thereon
The Company's Board of Directors is responsible for thepreparation of the other information. The other information comprises the informationincluded in the Management Discussion & Analysis Board's Report includingAnnexures to Board's Report Business Responsibility Report Corporate Governance andShareholder's Information but does not include the standalone financial statementsand our auditor's report thereon. The above information is expected to be madeavailable to us after the date of auditor's report.
Our opinion on the standalone financial statements does not cover theother information and we will not express any form of assurance or conclusion thereon.
In connection with our audit of the standalone financial statementsour responsibility is to read the other information identified above when it becomesavailable and in doing so consider whether the other information is materiallyinconsistent with the standalone financial statements or our knowledge obtained during thecourse of our audit or otherwise appears to be materially misstated.
When we read the other information identified above
If we conclude that there is a material misstatement therein we arerequired to communicate the matter to those charged with governance.
Responsibilities of Management and Those Charged with Governance forthe Standalone Financial Statements
The Company's Board of Directors is responsible for the mattersstated in section 134(5) of the Act with respect to the preparation of these standalonefinancial statements that give a true and fair view of the financial position financialperformance total comprehensive income changes in equity and cash flows of the
Company in accordance with Ind AS and other accounting principlesgenerally accepted in India. 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.
In preparing the standalone financial statements the management isresponsible for assessing the Company's ability to continue as a going concerndisclosing as applicable matters related to going concern and using the going concernbasis of accounting unless the management either intends to liquidate the Company or tocease operations or has no realistic alternative but to do so.
The Board of Directors are also responsible for overseeing theCompany's financial reporting process.
Auditor's Responsibilities for the Audit of the StandaloneFinancial Statements
Our objectives are to obtain reasonable assurance about whether theStandalone Financial statements as a whole are free from material misstatement whetherdue to fraud or error and to issue an auditor's report that includes our opinion.Reasonable assurance is a high level of assurance but is not a guarantee that an auditconducted in accordance with SAs will always detect a material misstatement when itexists. Misstatements can arise from fraud or error and are considered material ifindividually or in the aggregate they could reasonably be expected to influence theeconomic decisions of users taken on the basis of these standalone financial statements.
As part of an audit in accordance with SAs we exercise professionaljudgment and maintain professional skepticism throughout the audit. We also:
Identify and assess the risks of material misstatement of thestandalone financial statements whether due to fraud or error design and perform auditprocedures responsive to those risks and obtain audit evidence that is sufficient andappropriate to provide a basis for our opinion. The risk of not detecting a materialmisstatement resulting from fraud is higher than for one resulting from error as fraudmay involve collusion forgery intentional omissions misrepresentations or the overrideof internal control.
Obtain an understanding of internal financial controls relevant to theaudit in order to design audit procedures that are appropriate in the circumstances. Undersection 143(3)(i) of the Act we are also responsible for expressing our opinion onwhether the Company has adequate internal financial controls system in place and theoperating effectiveness of such controls.
Evaluate the appropriateness of accounting policies used and thereasonableness of accounting estimates and related disclosures made by management.
Conclude on the appropriateness of management's use of thegoing concern basis of accounting and based on the audit evidence obtained whether amaterial uncertainty exists related to events or conditions that may cast significantdoubt on the
Company's ability to continue as a going concern. If we concludethat a material uncertainty exists we are required to draw attention in ourauditor's report to the related disclosures in the standalone financial statementsor if such disclosures are inadequate to modify our opinion. Our conclusions are basedon the audit evidence obtained up to the date of our auditor's report. Howeverfuture events or conditions may cause the Company to cease to continue as a going concern.
Evaluate the overall presentation structure and content of thestandalone financial statements including the disclosures and whether the standalonefinancial statements represent the underlying transactions and events in a manner thatachieves fair presentation.
Materiality is the magnitude of misstatements in the standalonefinancial statements that individually or in aggregate makes it probable that theeconomic decisions of a reasonably knowledgeable user of the financial statements may beinfluenced. We consider quantitative materiality and qualitative factors in (i) planningthe scope of our audit work and in evaluating the results of our work; and (ii) toevaluate the effect of any identifiedmisstatements in the financial statements.
We communicate with those charged with governance regarding amongother matters the planned scope and timing of the audit and significant audit findingsincluding any significant deficiencies in internal control that we identify during ouraudit.
We also provide those charged with governance with a statement that wehave complied with relevant ethical requirements regarding independence and tocommunicate with them all relationships and other matters that may reasonably be thoughtto bear on our independence and where applicable related safeguards. From the matterscommunicated with those charged with governance we determine those matters that were ofmost significance in the audit of the standalone financial statements of the currentperiod and are therefore the key audit matters. We describe these matters in ourauditor's report unless law or regulation precludes public disclosure about thematter or when in extremely rare circumstances we determine that a matter should not becommunicated in our report because the adverse consequences of doing so would reasonablybe expected to outweigh the public interest benefits of such communication.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor's Report) Order2016("the Order") issued by the Central
Government of India in terms of section 143 (11) of the Act we give inthe "Annexure A" a statement on the matters specified in paragraphs 3 and 4 ofthe Order.
2. As required by Section 143(3) of the Act based on our audit wereport that:
a) We have sought and obtained all the information and explanationswhich to the best of our knowledge and belief were necessary for the purposes of ouraudit. 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 including OtherComprehensive Income Statement of Changes in Equity and the Statement of Cash Flow dealtwith by this Report are in agreement with the relevant books of account.
d) In our opinion the aforesaid standalone financial statements complywith the Ind AS specified under Section 133 of the Act read with Rule 7 of the Companies(Accounts) Rules 2014.
e) On the basis of the written representations received from thedirectors as on March 31 2019 taken on record by the Board of Directors none of thedirectors is disqualified as on March
31 2019 from being appointed as a director in terms of Section 164 (2)of the Act.
f) With respect to the adequacy of the internal financial controls overfinancial reporting of the
Company and the operating effectiveness of such controls refer to ourseparate Repor tin" Annexure
B". Our report expresses an unmodified opinion on the adequacy andoperating effectiveness of the Company's internal financial controls over financialreporting. g) With respect to the other matters to be included in the Auditor'sReport in accordance with the requirements of section 197(16) of the Act as amended: Inour opinion and to the best of our information and according to the explanations given tous the remuneration paid by the Company to its directors during the year is in accordancewith the provisions of section 197 of the Act. h) With respect to the other matters to beincluded in the Auditor's Report in accordance with Rule 11 of the Companies (Auditand Auditors) Rules
2014 as amended in our opinion and to the best of our information andaccording to the explanations given to us:
i. The Company does not have any pending litigations which would impactits standalone financial statements. ii. The Company does not have any long-term contractsincluding derivative contracts for which there were any material foreseeable losses. iii.There has been no delay in transferring amounts required to be transferred to theInvestor Education and Protection Fund by the Company.
For S S Kothari Mehta & Company
Firm's Registration Number: 000756N
Membership Number: 098336
Place: New Delhi
Date: May 27 2019
Annexure A' to the Independent Auditor's Report
(Referred to in paragraph 1 under Report on Other Legal andRegulatory Requirements' section of our report to the Members of BLS InternationalServices Limited of even date) i. In respect of the Company's fixed assets:
(a) The Company has maintained proper records of property plant andequipment. Necessary updations with respect to situation thereof is under progress.
(b) The fixed assets have been physically verified by the managementaccording to the programme of periodical verification in phased manner which in ouropinion is reasonable having regard to the size of the Company and the nature of itsfixed information and explanations given to us no material discrepancies were noticed onsuch verification.
(c) According to the information and explanations given to us and onthe basis of our examination of records of the Company the company does not have anyimmovable property. ii. The company is a service company. Accordingly it does not holdany physical inventories. Thus paragraph 3(ii) of the order is not applicable to thecompany iii. According to the records and information and explanation made available tous the Company has granted loans to the companies covered in the register maintainedunder section 189 of the Act;
(a) The terms and conditions of the grant of such loans are in ouropinion prima facie not prejudicial to the Company's interest.
(b) In respect of aforesaid receivable receipts of principals as wellas interest accrued thereon are as per stipulated terms and conditions.
(c) There are no amount in respect of principal and interest which areoverdue for more than ninety days. iv. In our opinion and according to the informationexplanations and representations given to us the Company has complied with the provisionsof sections 185 and 186 of the Act in respect of grant of loan making investments andproviding guarantees and securities as applicable. v. The Company has not accepted anydeposits from public.
vi. The maintenance of cost records has not been specified by theCentral Government under section 148(1) of the Act 2013 for the business activitiescarried out by the Company. Thus reporting under clause 3(vi) of the order is notapplicable to the Company. vii. (a) According to the information and explanations given tous and on the basis of examination of the records of the Company the Company hasgenerally been regular in depositing undisputed statutory dues including provident assets.According to the fund employees' state insurance income tax goods and service taxcess and any other material statutory dues with the appropriate authorities to the extentapplicable and further there were no undisputed statutory dues payable for a period ofmore than six months from the date they become payable as at March 31 2019.
(b) According to the records and information and explanations given tous there are no dues in respect of income tax service tax goods and service tax thathave not been deposited on account of any dispute. viii. In our opinion on the basis ofaudit procedures and according to the information and explanations given to us theCompany has not defaulted in repayment of loan or borrowing to any banks and financialinstitution as at the balance sheet date.
As per information and explanation given to us the company had nottaken any loan or borrowings from the government. Further the company had not issued anydebentures. ix. According to the information and explanations given to us the Company hasnot raised money by way of initial public offer or further public offer (including debtinstruments) during the year. The term loans have been applied for the purposes for whichthey were raised. x. Based on the audit procedures performed and on the basis ofinformation and explanations provided by the management no instance of fraud by the
Company or on the Company by its officers or employees has been noticedor reported during the year.
xi. In our opinion and according to the information and explanationsgiven to us the managerial remuneration has been paid/ provided in accordance with therequisite approvals mandated by the provisions of section 197 read with schedule V to theAct. xii. The Company is not a Nidhi Company and hence reporting under clause 3(xii) ofthe Order is not applicable to the Company. xiii. In our opinion and according to theinformation and explanations given to us the Company is in compliance with section 177and 188 of the Act where applicable for all transactions with the related parties and thedetails of related parties transactions have been disclosed in the standalone financialstatements as required by the applicable Accounting standards. xiv. According to theinformation and explanations given to us and based on our examination of the records theCompany has not made any preferential allotment or private placement of shares during theyear.
xv. According to the information and explanations given to us and basedon our examination of the records of the Company the Company has not entered intonon-cash transactions with directors or persons connected with him. Accordingly paragraph3(xv) of the Order is not applicable. xvi.The Company is not required to be registeredunder Section 45-IA of the Reserve Bank of India Act 1934 as the provisions of thesection is not applicable to the Company.
For S S Kothari Mehta & Company
Chartered Accountants Firm's Registration Number: 000756N
Partner Membership Number: 098336
Place: New Delhi
Date: May 27 2019
Annexure "B" to the Independent Auditor's Report
(Referred to in paragraph 2(f) under Report on Other Legal andRegulatory Requirements' section of our report to the Members of BLS InternationalServices Limited of even date)
Report on the Internal Financial Controls With Reference to FinancialsStatements Clause (i) of Sub-section 3 of Section 143 of the Companies Act 2013("the Act")
We have audited the internal financial controls with reference tofinancial statements of BLS International
Services Limited ("the Company") as of March 31 2019 inconjunction with our audit of the standalone financial statements of the Company for theyear ended on that date.
Management's Responsibility for Internal Financial Controls
The Board of Directors of the Company is responsible for establishingand maintaining internal financial controls based on the internal control with referenceto financial statements criteria established by the Company considering the essentialcomponents of internal control stated in the Guidance Note on Audit of Internal FinancialControls over Financial Reporting issued by the Institute of Chartered Accountants ofIndia. These responsibilities include the design implementation and maintenance ofadequate internal financial controls that were operating effectively for ensuring theorderly and efficient conduct of its business including adherence to respectiveCompany'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..
Our responsibility is to express an opinion on the internal financialcontrols with reference to financial statements of the Company based on our audit. Weconducted our audit in accordance with the Guidance Note on Audit of Internal FinancialControls Over Financial Reporting (the "Guidance Note") issued by the Instituteof Chartered Accountants of India and the Standards on Auditing prescribed under Section
143(10) of the Act to the extent applicable to an audit of internalfinancial controls. Those Standards and the Guidance Note require that we comply withethical requirements and plan and perform the audit to obtain reasonable assurance aboutwhether adequate internal financial controls with reference to financial statements wasestablished and maintained and if such controls operated effectively in all materialrespects.
Our audit involves performing procedures to obtain audit evidence aboutthe adequacy of the internal financial controls system with reference to financialstatements and their operating effectiveness. Our audit of internal financial controlswith reference to financial statements included obtaining an understanding of internalfinancial controls with reference to financial statements assessing the risk that amaterial weakness exists and testing and evaluating the design and operatingeffectiveness of internal control based on the assessed risk. The procedures selecteddepend on the auditor's judgment including the assessment of the risks of materialmisstatement of the financial statements whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our audit opinion on the internal financial controlssystem with reference to financial statements of the Company.
Meaning of Internal Financial
Controls with reference to financial statements
A Company's internal financial control with reference to financialstatements is a process designed to provide reasonable assurance regarding the reliabilityof financial reporting and the preparation of financial statements for external purposesin accordance with generally accepted accounting principles. A Company's internalfinancial control with reference to financial statements includes those policies andprocedures that (1) pertain to the maintenance of records that in reasonable detailaccurately and fairly reflect the transactions and dispositions of the assets of theCompany; (2) provide reasonable assurance that transactions are recorded as necessary topermit preparation of financial statements in accordance with generally acceptedaccounting principles and that receipts and expenditures of the Company are being madeonly in accordance with authorisations of management and directors of the Company; and (3)provide reasonable assurance regarding prevention or timely detection of unauthorisedacquisition use or disposition of the Company's assets that could have a materialeffect on the financial statements.
Inherent Limitations of Internal Financial Controls with reference tofinancial statements
Because of the inherent limitations of internal financial controls withreference to financial statements including the possibility of collusion or impropermanagement override of controls material misstatements due to error or fraud may occurand not be detected. Also projections of any evaluation of the internal financialcontrols with reference to financial statements to future periods are subject to the riskthat the internal financial control with reference to financial statements may becomeinadequate because of changes in conditions or that the degree of compliance with thepolicies or procedures may deteriorate.
In our opinion to the best of our information and according to theexplanations given to us the Company has in all material respects an adequate internalfinancial controls system with reference to financial statements and such internalfinancial controls with reference to financial statements were operating effectively as atMarch 31 2019 based on the internal control with reference to financial statementscriteria established by the Company considering the essential components of internalcontrol stated in the Guidance Note on Audit of Internal Financial Controls Over FinancialReporting issued by the Institute of Chartered Accountants of India.
For S S Kothari Mehta & Company
Firm's Registration Number: 000756N
Membership Number: 098336
Place: New Delhi
Date: May 27 2019