To the members of Global Education Limited
Report on the Standalone Financial Statements
We have audited the accompanying standalone nancial statements of Global EducationLimited ("the Company") which comprise the balance sheet as at March 31 2019the statement of profit and loss and the cash flow statement for the year then ended anda summary of the significant accounting policies and other explanatory information.
In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid standalone nancial statements give the information required bythe Companies Act 2013 ("the Act") in the manner so required and give a trueand fair view inconformity with the accounting principles generally accepted in India ofthe state of a airs of the Company as at March 31 2019 its profit and its cash ows forthe year ended on that date.
Basis for opinion
We conducted our audit of the standalone nancial statements in accordance withStandards on Auditing specified under Section 143(10) of the Act. Our responsibilitiesunder those Standards are further described in the Auditor's Responsibilities for theAudit of the standalone nancial statements section of our report. We are independent ofthe Company in accordance with the Code of Ethics issued by The Institute of CharteredAccountants of India (ICAI) together with the ethical requirements that are relevant toour audit of the standalone nancial statements under the provisions of the Act and theRules there under and we have ful lled our other ethical responsibilities in accordancewith these requirements and the Code of Ethics. We believe that the audit evidence we haveobtained is su cient and appropriate to provide a basis for our audit opinion on thestandalone nancial statements.
Key Audit Matters
Key audit matters are those matters that in our professional judgment were of mostsigni cance in our audit of the standalone nancial statements of the current year. Thesematters were addressed in the context of our audit of the standalone nancial statements asa whole and in forming our opinion thereon and we do not provide a separate opinion onthese matters. We have determined the matters described below to be the key audit mattersto be communicated in our report.
|Sr. No. ||Key Audit Matter ||Auditor's Response |
|1. ||Recognition of Revenue measurement presentation and disclosure as per AS-9 "Revenue Recognition". ||Our procedures included but were not limited to the following: |
| ||(Refer Note 1(h) of Accounting Policy). ||? We performed walkthroughs to understand the key processes and identify key controls related Ind AS 9 "Revenue from operation" |
| || ||? On a sample basis we performed testing to verify physical deliveries of product in the year to ascertain transfer of control. |
| || ||? On a sample basis we performed the testing to verify that revenue from services are recognised when services are completed. |
| || ||? We performed revenue cut-o testing by reference to bill dates of sales recorded either side of the nancial year end had legally completed; and |
| || ||? Selected a sample of sales contracts and read analysed and identi ed the distinct performance obligations in these contracts. Based on our audit procedures we have concluded that revenue is appropriately recognized and that there was no evidence of management bias. |
Information Other than the Standalone Financial Statements and Auditor's Report Thereon
The Company's Board of Directors is responsible for the other information. The otherinformation comprises the information included in the Annual report but does not includethe standalone nancial statements and our auditor's report thereon. The Annual Report isexpected to be made available to us after the date of this Auditors' Report. Our opinionon the standalone nancial statements does not cover the other information and we do notexpress any form of assurance conclusion thereon. In connection with our audit of thestandalone nancial statements our responsibility is to read the other information and indoing so consider whether the other information is materially inconsistent with thestandalone nancial statements or our knowledge obtained in the audit or otherwise appearsto be materially misstated. If based on the work we have performed we conclude thatthere is a material misstatement of this other information; we are required to report thatfact. We have nothing to report in this regard.
Responsibilities of the Management and those charged with governance for the StandaloneFinancial Statements
The Company's Board of Directors is responsible for the matters stated in Section134(5) of the Act with respect to the preparation of these standalone nancial statementsthat give a true and fair view of the nancial position nancial performance and cash owsof the Company in accordance with the accounting principles generally accepted in Indiaincluding the Accounting Standards specified under Section 133 of the Act read withrelevant Rules issued thereunder.
This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding of 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 internalnancial controls that were operating the ectively for ensuring the accuracy andcompleteness of the accounting records relevant to the preparation and presentation ofthe standalone nancial statements that give a true and fair view and are free frommaterial misstatement whether due to fraud or error.
In preparing the standalone nancial statements management is responsible for assessingthe Company's ability to continue as a going concern disclosing as applicable mattersrelated to going concern and using the going concern basis of accounting unless managementeither intends to liquidate the Company or to cease operations or has no realisticalternative but to do so. Those Board of Directors are also responsible for overseeing theCompany's nancial reporting process.
Auditor's Responsibilities for the audit of the Standalone Financial Statements
Our objectives are to obtain reasonable assurance about whether the standalone nancialstatements as a whole are free from material misstatement whether due to fraud or errorand to issue an auditor's report that includes our opinion. Reasonable assurance is a highlevel of assurance but is not a guarantee that an audit conducted in accordance with theStandards on Auditing will always detect a material misstatement when it exists.Misstatements can arise from fraud or error and are considered material if individuallyor in the aggregate they could reasonably be expected to influence the economic decisionsof users taken on the basis of these standalone nancial statements.
As part of an audit in accordance with Standards on Auditing we exercise professionaljudgment and maintain professional skepticism throughout the audit. We also:
Identify and assess the risks of material misstatement of the standalone nancialstatements whether due to fraud or error design and perform audit procedures responsiveto those risks and obtain audit evidence that is su cient and appropriate to provide abasis for our opinion. The risk of not detecting a material misstatement resulting fromfraud is higher than for one resulting from error as fraud may involve collusionforgery intentional omissions misrepresentations or the override of internal control.
Obtain an understanding of internal control relevant to the audit in order to designaudit procedures that are appropriate in the circumstances. Under section 143(3)(i) of theAct we are also responsible for expressing our opinion on whether the company hasadequate internal nancial controls system in place and the operating the ectiveness ofsuch controls.
Evaluate the appropriateness of accounting policies used and the reasonableness ofaccounting estimates and related disclosures made by management.
Conclude on the appropriateness of management's use of the going concern basis ofaccounting and based on the audit evidence obtained whether a material uncertaintyexists related to events or conditions that may cast significant doubt on the Company'sability to continue as a going concern. If we conclude that a material uncertainty existswe are required to draw attention in our auditor's report to the related disclosures inthe standalone nancial statements or if such disclosures are inadequate to modify ouropinion. Our conclusions are based on the audit evidence obtained up to the date of ourauditor's report. However future events or conditions may cause the Company to cease tocontinue as a going concern.
Evaluate the overall presentation structure and content of the standalone nancialstatements including the disclosures and whether the standalone nancial statementsrepresent the underlying transactions and events in a manner that achieves fairpresentation.
We communicate with those charged with governance regarding among other matters theplanned scope and timing of the audit and significant audit ndings including anysignificant de ciencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have compliedwith relevant ethical requirements regarding independence and to communicate with themall relationships and other matters that may reasonably be thought to bear on ourindependence and where applicable related safeguards.
From the matters communicated with those charged with governance we determine thosematters that were of most signi cance in the audit of the standalone nancial statements ofthe current period and are therefore the key audit matters. We describe these matters inour auditor's report unless law or regulation precludes public disclosure about the matteror 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) Order 2016 ("the Order")issued by the Central Government of India in terms of section 143(11) of the Act we givein the Annexure A a statement on the matters specified in the paragraph 3 and 4 of theOrder.
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 other best ofour 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 ows statement dealtwith by this Report are in agreement with the books of account;
d) In our opinion the aforesaid standalone nancial statements comply with theAccounting Standards specified under Section 133 of the Act read with relevant Rulesissued there under;
e)On the basis of the written representations received from the directors as on March31 2019 taken on record by the Board of Directors none of the directors is disquali edas on March 31 2019 from being appointed as a director in terms of Section 164 (2) of theAct;
f) With respect to the adequacy of the internal nancial controls over nancial reportingof the Company and the operating the ectiveness of such controls refer to our separateReport in "Annexure B";
g) In our opinion and according to the information and explanations given to us themanagerial remuneration has been paid / provided by the Company in accordance with therequisite approvals mandated by the provision of section 197 read with Schedule V to theAct.; 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 does not have any pending litigations which would impact its nancialposition;
ii. The Company did not have any long-term contracts including derivative contracts forwhich there were any material foreseeable losses;
iii. There is no amount required to be transferred to the Investor Education andProtection Fund by the Company.
| ||For S.S. Kothari Mehta & Company |
| ||Chartered Accountants |
| ||Firm's Registration No. 000756N |
| ||AMIT GOEL |
|Place: Nagpur ||Partner |
|Date: May 29 2019 ||Membership No. 500607 |
Annexure - A to the Independent Auditor's Report to the members of Global EducationLimited dated May 29 2019.
Report on the matters specified in paragraph 3 of the Companies (Auditor's Report)Order 2016 ("the Order') issued by the Central Government of India in terms ofsection 143(11) of the Companies Act 2013 ("the Act") as referred to inparagraph 1 of 'Report on Other Legal and Regulatory Requirements' section.
I. (a) The Company has maintained proper records showing full particulars includingquantitative details and situation of xed assets.
(b) The xed assets have been physically veri ed by the management at reasonableintervals. No Material discrepancies were noticed on such veri cation.
(c) The Company does not have any immovable asset. Hence clause 3(i)(c) of the Orderis not applicable to the Company.
ii. The Management has conducted physical veri cation of inventory at reasonableintervals during the year and no material discrepancies were noticed on such physical verication.
iii. According to the information and explanations given to us and based on the auditprocedures conducted by us we are in the opinion that company has not granted any loanssecured or unsecured to companies rms Limited Liability Partnerships or other partiescovered in the register maintained under section 189 of the Companies Act 2013.Accordingly clauses 3(iii) (a) to (c) of the Order are not applicable.
iv. According to the information and explanations given to us there are no loansinvestments guarantees and securities granted in respect of which provisions of section185 and 186 of the Act are applicable. Hence clause 3(iv) of the Order is not applicableto the Company.
v. In our opinion and according to the information and explanations given to us theCompany has not accepted any deposits from the public within the meaning of directivesissued by the Reserve Bank of India and provisions of sections 73 to 76 or any otherrelevant provisions of the Act and the rules framed thereunder are not applicable.
vi. According to the information and explanations given to us the maintenance of costrecords under Section 148(1) of the Companies Act 2013 is not applicable to the company.
vii. (a) According to the information and explanations given to us and the records ofthe company examined by us in our opinion the Company is generally regular in depositingundisputed statutory dues in respect of provident fund employees' state insurance incometax Goods & service tax customs duty value added tax and other material statutorydues as applicable with the appropriate authorities. Further there were no undisputedamounts outstanding at the year-end for a period of more than six months from the datethey became payable as at March 31 2019.
(b) According to the information and explanations given to us and as per books andrecords examined by us there are no dues of sale tax or service tax or duty of custom orduty of excise and valued added tax that have not been deposited with the appropriateauthorities on account of any dispute.
viii. According to the information and explanations given to us and as per the booksand records examined by us the Company has not taken any loan from any nancialinstitution or Government. The Company does not have any outstanding debentures. Henceprovisions of clause 3 (viii) of the Order are not applicable to the Company.
ix. In our opinion and according to the information and explanations given to us theCompany has not raised any money by way of initial public offer / further public offer andmonies raised by way of term loans have been utilised for the purpose for which term loanswere raised.
x. In our opinion and according to the information and explanations given to us wereport that no fraud by the company or on the company by the Officers and employees of theCompany has been noticed or reported during the year.
xi. According to the information and explanations given by the management we are ofthe opinion that managerial remuneration has been paid / provided in accordance with therequisite approvals mandated by the provision of section 197 read with Schedule V to theAct.
xii. The Company is not a Nidhi company. Therefore the provisions of clause 3(xii) ofthe Order are not applicable to the Company.
xiii. According to the information and explanations given to us all transactions withthe related parties are in compliance with section 177 and 188 of the Act and the detailshave been disclosed in the nancial statements as required by the applicable accountingstandards.
xiv. As the company has not made any preferential allotment and private placement ofshares or fully & partly convertible debentures during the year under review therequirement of section 42 of the Act are not applicable.
xv. In our opinion and on the basis of information and explanations given to us theCompany has not entered into non-cash transactions with directors and persons connectedwith him as referred to in section 192 of Act.
xvi. In our opinion and on the basis of information and explanations given to us theCompany is not required to be registered under section 45-IA of the Reserve Bank of IndiaAct 1934.
For S S Kothari Mehta & Company
Firm's Registration No. 000756N
Membership No. 500607
Date: May 29 2019
Annexure - B to the Independent Auditor's Report to the Members of Global EducationLimited on its standalone nancial statements dated May 29 2019
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143 of the Act as referred to in paragraph 2(f) of 'Report on Other Legal and RegulatoryRequirements' section
We have audited the internal nancial controls over nancial reporting of the Company asof March 31 2019 in conjunction with our audit of the nancial statements of the Companyfor the year ended on that date.
Management's Responsibility for Internal Financial Controls
The Company's management is responsible for establishing and maintaining internalnancial controls based on "the internal control over nancial 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". These responsibilitiesinclude the design implementation and maintenance of adequate internal nancial controlsthat were operating the ectively for ensuring the orderly and the cient 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 nancial information asrequired under the Act.
Our responsibility is to express an opinion on the Company's internal nancial controlsover nancial reporting based on our audit.
We conducted our audit in accordance with the Guidance Note on Audit of InternalFinancial Controls Over Financial Reporting (the "Guidance Note") and theStandards on Auditing issued by ICAI and deemed to be prescribed under section 143(10) ofthe Act to the extent applicable to an audit of internal nancial controls bothapplicable to an audit of Internal Financial Controls and both issued by the Institute ofChartered Accountants of India. Those Standards and the Guidance Note require that wecomply with ethical requirements and plan and perform the audit to obtain reasonableassurance about whether adequate internal nancial controls over nancial reporting wasestablished and maintained and if such controls operated the ectively in all materialrespects.
Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal nancial controls system over nancial reporting and their operating theectiveness.
Our audit of internal nancial controls over nancial reporting included obtaining anunderstanding of internal nancial controls over nancial reporting assessing the risk thata material weakness exists and testing and evaluating the design and operating theectiveness of internal control based on the assessed risk. The procedures selected dependon the auditor's judgement including the assessment of the risks of material misstatementof the nancial statements whether due to fraud or error.
We believe that the audit evidence we have obtained is su cient and appropriate toprovide a basis for our audit opinion on the Company's internal nancial controls systemover nancial reporting.
Meaning of Internal Financial Controls over Financial Reporting
A company's internal nancial control over nancial reporting is a process designed toprovide reasonable assurance regarding the reliability of nancial reporting and thepreparation of standalone nancial statements for external purposes in accordance withgenerally accepted accounting principles. A company's internal nancial control overnancial reporting 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 standalone nancial statements in accordance with generally acceptedaccounting principles and that receipts and expenditures of the company are being madeonly in accordance with authorizations of management and directors of the company; and
c) provide reasonable assurance regarding prevention or timely detection ofunauthorized acquisition use or disposition of the company's assets that could have amaterial the ect on the standalone nancial statements.
Inherent Limitations of Internal Financial Controls over Financial Reporting
Because of the inherent limitations of internal nancial controls over nancialreporting including the possibility of collusion or improper management override ofcontrols material misstatements due tofferror or fraud may occur and not be detected.Also projections of any evaluation of the internal nancial controls over nancialreporting to future periods are subject to the risk that the internal nancial control overnancial reporting may become inadequate because of changes in conditions or that thedegree of compliance with the policies or procedures may deteriorate.
In our opinion the Company has in all material respects an adequate internal nancialcontrols system over nancial reporting and such internal nancial controls over nancialreporting were operating the ectively as at March 31 2019 based on "the internalcontrol over nancial reporting criteria established by the Company considering theessential components of internal control stated in the Guidance Note on Audit of InternalFinancial Controls Over Financial Reporting issued by the Institute of CharteredAccountants of India".
For S S Kothari Mehta & Company Chartered Accountants Firm's Registration No.000756N
Membership No. 500607
Date: May 29 2019