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Globe Commercials Ltd.

BSE: 540266 Sector: Others
NSE: N.A. ISIN Code: INE804Q01013
BSE 00:00 | 13 Sep Globe Commercials Ltd
NSE 05:30 | 01 Jan Globe Commercials Ltd
OPEN 7.40
PREVIOUS CLOSE 7.40
VOLUME 215
52-Week high 21.30
52-Week low 6.70
P/E
Mkt Cap.(Rs cr) 2
Buy Price 7.05
Buy Qty 2190.00
Sell Price 7.05
Sell Qty 2920.00
OPEN 7.40
CLOSE 7.40
VOLUME 215
52-Week high 21.30
52-Week low 6.70
P/E
Mkt Cap.(Rs cr) 2
Buy Price 7.05
Buy Qty 2190.00
Sell Price 7.05
Sell Qty 2920.00

Globe Commercials Ltd. (GLOBECOMMERCIAL) - Auditors Report

Company auditors report

To the Members of Globe Commercial Ltd

Report on the Standalone Ind AS Financial Statements

We have audited the accompanying Standalone Ind AS Financial Statements of GlobeCommercial Ltd ("the Company") which comprise of the Balance Sheet as atMarch 31 2019 the Statement of Profit and Loss (including Other Comprehensive Income)the Cash Flow Statement and the Statement of Changes in Equity for the year then endedand a summary of significant accounting policies and other explanatory information("the Standalone Ind AS Financial Statements").

Management's Responsibility for the Standalone Ind AS 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 preparation ofthese Standalone Ind AS Financial Statements that give a true and fair view of thefinancial position financial performance (including other comprehensive income) cashflows and changes in equity of the Company in accordance with the accounting principlesgenerally accepted in India including Indian Accounting Standards specified under Section133 of the Act read with the Companies (Indian Accounting Standards) Rules 2015 asamended.

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 internalfinancial controls that were operating effectively for ensuring the accuracy andcompleteness of the accounting records relevant to the preparation and presentation ofthe Standalone Ind AS Financial Statements that give a true and fair view and are freefrom material misstatement whether due to fraud or error.

Auditors' Responsibility

Our responsibility is to express an opinion on these Standalone Ind AS FinancialStatements based on our audit.

We have taken into account the provisions of the Act the Indian Accounting Standardsand Auditing standards and matters which are required to be included in the audit reportunder the provisions of the Act and the Rules made thereunder.

We conducted our audit of the Standalone Ind AS Financial Statements in accordance withthe Standards on Auditing as specified under Section 143(10) of the Act. Those Standardsrequire that we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether the Standalone Ind AS Financial Statements are freefrom material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the Standalone Ind AS Financial Statements. The procedures selecteddepend on the auditors' judgement including the assessment of the risks of materialmisstatement of the Standalone Ind AS Financial Statements whether due to fraud or error.In making those risk assessments the auditor considers internal financial controlrelevant to the Company's preparation of the Standalone

Ind AS Financial Statements that give a true and fair view in order to design auditprocedures that are appropriate in the circumstances. An audit also includes evaluatingthe appropriateness of the accounting policies used and the reasonableness of theaccounting estimates made by the Company's Directors as well as evaluating the overallpresentation of the Standalone Ind AS Financial Statements.

We believe that the audit evidence that we have obtained is sufficient and appropriateto provide a basis for our audit opinion on the Standalone Ind AS Financial Statements.

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid Standalone Ind AS Financial Statements give the informationrequired by the Act in the manner so required and give a true and fair view in conformitywith the accounting principles generally accepted in India including Ind AS of the stateof affairs of the Company as at March 31 2019 and its profit total comprehensiveincome its cash flows and the changes in equity for the year ended on that date.

Report on Other Legal and Regulatory Requirements

1. As required by Section 143(3) of the Act we report that: a. We have sought andobtained all the information and explanations which to the best of our knowledge andbelief 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 (including Other ComprehensiveIncome) the Cash Flow Statement and Statement of Changes in Equity dealt with by thisreport are in agreement with the books of account;

d. In our opinion the aforesaid Standalone Ind AS Financial Statements comply with theInd AS specified under Section 133 of the Act read with relevant rules issued thereunder;

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 disqualifiedas 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 financial controls over financialreporting of the Company and the operating effectiveness of such controls refer to ourseparate report in "Annexure A";

g. 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 Standalone Ind AS financial statements - Refer Note 34 of the StandaloneInd AS Financial Statements;

ii. The Company did not have any long-term contracts including derivative contracts forwhich there were any material foreseeable losses as required under the applicable law oraccounting standards;

iii. There were no amounts which were required to be transferred to the InvestorEducation and Protection Fund by the Company during the year ended March 31 2019.

iv. The disclosures regarding details of specified bank notes held and transactedduring 8 November 2016 to 30 December 2016 have not been made since the requirement doesnot pertain to financial year ended 31 March 2019

2. 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 "Annexure B" a statement on the matters specified in the paragraphs 3 and 4of the Order.

For M/s. Shyam C. Agrawal & Co.

Chartered Accountant

Sd/-

Shyam Agrawal

Proprietor

Membership No – 031774

FRN: 110243W

Place: Mumbai

Date: August 14 2019

ANNEXURE A TO THE INDEPENDENT AUDITORS' REPORT

Referred to in paragraph 1.f under the heading of "Report on Other Legal andRegulatory Requirements" of our Independent Auditors' Report of even date on theStandalone Ind AS Financial Statements for the year ended March 31 2019

Report on the Internal Financial Controls under Section 143(3)(i) of the Companies Act2013 ("the Act")

We have audited the internal financial controls over financial reporting of GLOBECOMMERCIAL LTD ("the Company") as of March 31 2019 in conjunction with ouraudit of the Standalone Ind AS Financial Statements of the Company for the year ended onthat 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 Reporting (the"Guidance Note") issued by the Institute of Chartered Accountants of India("ICAI"). These responsibilities include the design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the orderly and efficient conduct of its business including adherence tocompany's policies the safeguarding of its assets the prevention and detection of fraudsand errors the accuracy and completeness of the accounting records and the timelypreparation of reliable financial information as required underthe Companies Act 2013.

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 and the Standards on Auditing issued by ICAI and deemed to beprescribed under Section 143(10) of the Companies Act 2013 to the extent applicable toan audit of internal financial controls. Those Standards and the Guidance Note requirethat we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether adequate internal financial controls over financialreporting was established and maintained and if such controls operated effectively in allmaterial respects.

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 Standalone Ind AS Financial Statements whether due to fraudor 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 Standalone Ind AS Financial Statements for external purposes in accordancewith generally 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 expenditure of the company are beingmade only in accordance with authorisations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorised 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

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 to the best of our information and according to the explanations givento us the Company has in all material respects an adequate internal financial controlssystem over financial reporting and such internal financial controls over financialreporting were operating effectively as at March 31 2019 based on the internal controlover financial reporting criteria established by the Company considering the essentialcomponents of internal control stated in the Guidance Note.

For M/s. Shyam C. Agrawal & Co.
Chartered Accountant
Shyam Agrawal
Proprietor
Membership No – 031774 Place: Mumbai
FRN: 110243W Date: August 14 2019

ANNEXURE B TO THE INDEPENDENT AUDITORS' REPORT

Referred to in paragraph 2 under the heading of "Report on Other Legal andRegulatory Requirements" of our Independent Auditors' Report of even date on theStandalone Ind AS Financial Statements for the year ended March 31 2019

Report on the Companies (Auditors' Report) Order 2016 issued in terms of Section143(11) of the Companies Act 2013("the Act") of GLOBE COMMERCIAL LTD ("theCompany")

i. a. The Company has maintained proper records showing full particulars includingquantitative details and situation of Property Plant and Equipment (PPE). b. The PPE havebeen physically verified by the management according to a phased programme designed tocover all the PPE over a period of three years which in our opinion provides forphysical verification of all the items of PPE at reasonable intervals. Pursuant to theprogramme a material portion of the items of PPE have been verified by the managementduring the year and no material discrepancies were noticed on such verification. c.According to the information and explanations given to us and on the basis of ourexamination of the records of the Company the title deeds of immovable properties asincluded in Note 2 to the Ind AS Financial Statements are held in the name of theCompany.

ii. Inventories other than stocks-in-transit have been physically verified by themanagement during the year. For stocks-in-transit at the year-end the necessarydocumentary evidences for physical verification have been obtained. In our opinion thefrequency of such verification is reasonable and no material discrepancies were noticed onsuch physical verification.

iii. The Company has not granted any loans secured or unsecured to companies firmslimited liabilities partnerships or other parties covered in the register maintained underSection 189 of the Act. Therefore reporting requirements as per the provisions of Clause3(iii) [(a) to (c)] of the Order are not applicable to the Company.

iv. In our opinion and according to the information and explanations given to us theCompany has complied with the provisions of Sections185 and 186 of the Act with respectto the loans and investments made. The Company has not given any guarantee or provided anysecurity in connection with a loan to any person or other body corporate and accordinglythe question of commenting on compliance with the provisions in respect thereof does notarise.

v. In our opinion and according to the information and explanations given to us theCompany has not accepted any deposit from the public. Accordingly paragraph 3 (v) of theOrder to comment on whether the Company has complied with the directives issued by theReserve Bank of India and the provisions of Sections 73 to 76 or any otherrelevantprovisions of the Act and rules framed thereunder is not applicable.

vi. We have broadly reviewed the books of accounts maintained by the Company pursuantto the

Companies (Cost Records and Audit) Rules 2014 as specified by the Central Governmentfor maintenance of cost records under Section 148(1) of the Act in respect of cementmanufactured by the Company and are of the opinion that prima facie theprescribed accounts and records have been made and maintained. However we have not made adetailed examination of the said accounts and records with a view to determine whetherthey are accurate or complete.

vii. a. According to the information and explanations given to us and on the basis ofthe books and records examined by us the Company has been regular in depositingundisputed statutory dues including Provident Fund Income-tax Goods and Services TaxService Tax Duty of Customs Duty of Excise Value Added Tax Cess and other statutorydues as applicable to it with the appropriate authorities. b. According to the informationand explanations given to us as also on the basis of the books and records examined byus the Company has not defaulted in the repayment of dues to banks.The Company has nottaken any loan or borrowing from financial institutions or Government and has not issuedany debentureduring the year.

viii. According to the information and explanations given to us and on the basis of thebooks and records examined by us the Company has not raised any money by way of initialpublic offer or further public offer (including debt instruments) during the year.Accordingly paragraph 3 (ix) of the Order in respect thereof is not applicable. Moneysraised by way of term loans were applied for the purposes for which those are raised. ix.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 year in the course of our audit. x. According to the information and explanations giveto us and based on our examination of the records of the Company the Company has paid /provided for managerial remuneration during the financial year 2017-18 in accordance withthe requisite approvals mandated by the provisions of Section 197 read with Schedule V tothe Act. xi. The Company is not a Nidhi company. Accordingly paragraph 3(xii) of theOrder is not applicable to the Company. xii. According to the information and explanationsgiven to us and based on our examination of the records of the Company transactions withthe related parties are in compliance with Sections 177 and 188 of the Act whereapplicable and the details of such transactions have been disclosed in the standalone IndAS financial statements as required by the applicable accounting standards. xiv.Accordingto the information and explanations given to us and on the basis of the books and recordsexamined by us the Company has not made any preferential allotment or private placementof shares or fully or partly convertible debentures during the year under review.Accordingly reporting under paragraph 3(xiv) of the Order is not applicable. xv.According to the information and explanations given to us and based on our examination ofthe records the Company has not entered into non-cash transactions with directors orpersons connected with him. Accordingly paragraph 3(xv) of the Order is not applicable.xvi.The Company is not required to be registered under Section 45-IA of the Reserve Bankof India Act 1934. Accordingly paragraph 3(xvi) of the Order is not applicable to theCompany.

For M/s. Shyam C. Agrawal & Co.

Chartered Accountant

Sd/-

Shyam Agrawal

Proprietor

Membership No – 031774

FRN: 110243W

Place: Mumbai

Date: August 14 2019