To The Members of
Galactico Corporate Services Limited
REPORT ON THE STANDALONE FINANCIAL STATEMENTS
We have audited the accompanying financial statements of Galactico CorporateServices Limited ("the Company") which comprise the Balance Sheet as at March31 2019 and the Statement of Profit and Loss and Cash Flow Statement for the yearthen ended and a summary of significant accounting policies and other explanatoryinformation.
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 ("the Act") with respect to the preparationand presentation of these standalone financial statements that give a true and fair viewof the financial position financial performance and cash flows of the Company inaccordance with the accounting principles generally accepted in India including theAccounting Standards specified under Section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014. This responsibility also includes maintenance ofadequate accounting records in accordance with the provisions of the Act for safeguardingthe assets of the Company and for preventing and detecting frauds and otherirregularities; selection and application of appropriate accounting policies; makingjudgments and estimates that are reasonable and prudent; and design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the accuracy and completeness of the accounting records relevant to thepreparation and presentation of the financial statements that give a true and fair viewand are free from material misstatement 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 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 control relevant to the Company's preparation and fair presentation ofthe financial statements in order to design audit procedures that are appropriate in thecircumstances. An audit also includes evaluating the appropriateness of accountingpolicies used and the reasonableness of the accounting estimates made by management aswell as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion.
In our opinion and to the best of our information and according to the explanationsgiven to us the financial statements give the information required by the Act in themanner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India:
a. in the case of the Balance Sheet of the state of affairs of the Company as at March31 2019;
b. in the case of the Profit and Loss Account of the profit for the year ended on thatdate; and
c. in the case of the Cash Flow Statement of the cash flows for the year ended on thatdate.
REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS
1. As required by the Companies (Auditor's 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 the 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 obtained all the information and explanations 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 those books;
c. the Balance Sheet Statement of Profit and Loss and Cash Flow Statement dealt withby this Report are in agreement with the books of account;
d. in our opinion the Balance Sheet Statement of Profit and Loss and Cash FlowStatement comply with the Accounting Standards specified under Section 133 of the Actread with Rule 7 of the Companies (Accounts) Rules 2014;
e. on the basis of written representations received from the directors as on March 312019 and taken on record by the Board of Directors none of the directors is disqualifiedas on March 31 2.019 from being appointed as a director in terms of Section 164 (2) ofthe Act;
f. With respect to adequacy of the internal financial controls over financial reportingof the Company and the operating effectiveness of such controls refer our separate Reportin Annexure - B.
g. In our opinion and to the best of our information and according to the explanationsgiven to us we report as under with respect to other matters to be included in theAuditor's Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules2014:
(i) The Company does not have any pending litigations which would impact its financialposition
(ii) The Company did not have any long-term contracts including derivative contracts;as such the question of commenting on any material foreseeable losses thereon does notarise.
(iii) There has not been an occasion in case of the Company during the year underreport to transfer any sums to the Investor Education and Protection Fund. The question ofdelay in transferring such sums does not arise.
For A. S. Bedmutha & Co.
Membership No: 144801
Date: June 29 2.019
Annexure to the Auditors' Report
The Annexure referred to in our report to the members of Galactico CorporateServices Limited ('the Company') on Standalone Financial Statements for the year ended31st March 2019. We report that:
1) In respect of fixed assets:
(a) The Company is maintaining proper record to show full particulars includingquantitative details and situation of all fixed assets on the basis of availableinformation.
(b) We are informed that the company has a regular programme of physical verificationof its fixed assets by which fixed assets are verified in a phased manner over a period ofthree years. In accordance with this programme certain fixed assets were verified duringthe period and no material discrepancies were noticed on such verification. In ouropinion this periodicity of physical verification is reasonable having regard to size ofthe Company and the nature of its assets.
(c) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company the tile deeds of immovable properties are heldin the name of the Company.
2) In respect of its inventories: As explained to us the company is into servicesector and does not hold any inventories.
3) According to the information and explanation given to us the Company has notgranted any loans to the companies firms Limited Liability Partnerships or other partiescovered in register maintained under section 189 of the companies act 2013. Accordinglyparagraph 3(iii) of the order is not applicable.
4) According to the information and explanation given to us the Company has grantedadvances against Immovable Property to Relative of Key Management Personnel of the Companycovered in register maintained under section 189 of the companies act 2013.
In our opinion and according to the information and explanations given to us theCompany has complied with the provisions of Sectionl85 and 186 of the Act with respect tothe loans and investments made.
5) According to the information and explanation given to us the Company has notaccepted any deposits from the public and accordingly paragraph 3(v) of the Order is notapplicable.
6) As informed to us the Central Government has not prescribed maintenance of the costrecords under section 148(1) of the Companies Act 2013.
7) (a) According to the information and explanations given to us and the records of thecompany examined by us the company is generally regular in depositing with appropriateauthorities undisputed statutory dues including Provident Fund employee's stateinsurance income tax service tax sales tax tax deducted at source cess and othermaterial statutory dues applicable to it there are no such outstanding statutory arrearsas at 31st March 2019 for a period of more than six months from the date they becomespayable.
According to the information and explanations given to us and the record of the companyexamined by us there were no statutory dues which have not been deposited on account ofany dispute pending.
(b) According to the records of the company examined by us and information andexplanations given to us the company has not defaulted in repayment of dues to anyfinancial institutions or bank as at the balance sheet date. And Company does not have anyloans or borrowings from government or debenture holders during the period.
8) The Company did not raise any money by way of initial public offer or future publicoffer (including debt instruments) and term loans during the period. Accordinglyparagraph 3(ix) of the Order is not applicable.
9) 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.
10) According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has paid or provided for managerialremuneration in accordance with the requisite approvals mandated by the provisions ofSection 197 read with Schedule V to the Act.
11) 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.
12) 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.
13) 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 period.
14) 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 him. Accordingly paragraph 3(xv) ofthe Order is not applicable.
15) The Company is not required to be registered under section 45-IA of the ReserveBank of India Act 1934.
For A. S. Bedmutha & Co.
Membership No: 144801
Date: June 29 2019
Annexure B to Independent Auditors' Report
Referred to in paragraph 2(f) of the Independent Auditors' Report of even date to themembers of Galactico Corporate Services Limited on the financial statement for the yearended 31 March 2019
Report on the internal financial controls under clause (i) of sub-section 3 of section143 of Act
1. We have audited the internal financial controls over financial reporting ofGalactico Corporate Services Limited ('the Company') as of 31 March 2019 in conjunctionwith our audit of the financial statement of the Company for the year ended on that date.
Management's responsibility for internal financial controls
2. 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). These responsibilitiesinclude the design implementation and maintenance of adequate internal financial controlsthat were operating effectively for ensuring the orderly and efficient conduct of itsbusiness including adherence to Company's policies the safeguarding of its assets theprevention and detection of frauds and errors the accuracy and completeness of theaccounting records and the timely preparation of reliable financial information asrequired under the Act.
3. 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 deemed to be prescribed under section143(10) of the Act to the extent applicable to an audit of internal financial controlsboth applicable to an audit an internal financial controls and both issued by the ICAI.Those Standards and the Guidance Note require that we comply with ethical requirements andplan and perform the audit to obtain reasonable assurance about whether adequate internalfinancial controls over financial reporting was established and maintained and if suchcontrols operated effectively in all material respects.
4. Our audit involves performing procedures to obtain audit evidence about the adequacyof the 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 statement whether due to fraud or error.
5. 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 controls over financial reporting
6. 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 statement 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 expenditures 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
7. 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 change in conditions or thatthe degree of compliance with the policies or procedures may deteriorate.
8. 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 2019 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 A. S. Bedmutha & Co.
Membership No: 144801
Date: June 29 2019