Globe International Carriers Ltd Jaipur
Report on Financial Statements
1.We have audited the accompanying financial statements of Globe International CarriersLtd (Formerly known as Globe International Carriers Private Limited) ("theCompany") which comprise the Balance Sheet as at March 31 2017 the Statement ofProfit and Loss and Cash Flow Statement for the year then ended and a summary ofsignificant accounting policies and other explanatory information.
MANAGEMENT'S RESPONSIBILITY FOR THE FINANCIAL STATEMENTS
2. 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 financial statements that give a true and fair view of thefinancial position financial performance and cash flows of the Company in accordance withthe accounting principles generally accepted in India including the Accounting Standardsspecified under Section 133 of the Act read with Rule 7 of the Companies (Accounts)Rules 2014. This responsibility also includes the maintenance of adequate accountingrecords in accordance with the provisions of the Act for safeguarding the assets of theCompany and for preventing and detecting the frauds and other irregularities; selectionand application of appropriate accounting policies; making judgments and estimates thatare reasonable and prudent; and design implementation and maintenance of adequateinternal financial controls that were operating effectively for ensuring the accuracy andcompleteness of the accounting records relevant to the preparation and presentation ofthe financial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.
3. Our responsibility is to express an opinion on these financial statements based onour audit. We have taken into account the provisions of the Act the accounting andauditing 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 inaccordance with the Standards on Auditing issued by the Institute of Chartered Accountantsof India and/or specified under section 143(10) of the Act. Those Standards require thatwe comply with ethical requirements and plan and perform the audit to obtain reasonableassurance about whether 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 but not for the purpose of expressing an opinion on the effectiveness ofthe Company's internal control. An audit also includes evaluating the appropriateness ofaccounting policies used and the reasonableness of the accounting estimates made by theCompany's management as well as evaluating the overall presentation of the financialstatements.
We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the financial statements.
4. In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid financial statements give the information required by the Actin the manner 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 atMarch 31 2017;
(b) In the case of the Statement of Profit and Loss of the profit of the Company forthe year ended on March 31 2017; and
(c) In the case of the Cash Flow Statement of the cash flows of the Company for theyear ended on March 31 2017.
REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS
5. As required by the Companies (Auditor's Report) Order 2016 ('the Order') asamended issued by the Central Government of India in terms of sub-section (11) of section143 of the Act we give in the Annexure A a statement on the matters specified inparagraphs 3 and 4 of the Order.
6. As required by Section 143(3) of the Act we report that:
a. we have sought and obtained all the information and explanations which to the bestof our knowledge 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 it appears from our examination of those books;
c. the Balance Sheet the Statement of Profit and Loss and the Cash Flow Statementdealt with by this Report are in agreement with the books of account;
d. in our opinion the aforesaid financial statements comply with Accounting Standardsnotified under Section 133 of the Act read with Rule 7 of the Companies (Accounts) Rules2014;
e. in our opinion there are no observations or comments on the financial transactionswhich may have an adverse effect on the functioning of the Company;
f. on the basis of the written representations received from the directors as on March31 2017 taken on record by the Board of Directors none of the director is disqualifiedas on March 31 2017 from being appointed as a director in terms of Section 164(2) of theAct;
g. 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 B"; 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) there are number of pending litigations on the Company's financial position in itsfinancial statements. The financial implication of such pending litigations on theCompany's financial position Rs. in its financial statements is 25085153/-. Thisfinancial implication of such pending litigation has been recognised as contingentliability in the financial statements of the period under consideration as the cases arenot finalised yet;
(ii) the Company has disclosed the impact of pending litigations on its financialposition in its financial statements- Refer to Note 31 to the financial statements;
(iii) the Company has made provision as required under the applicable law oraccounting standards for material foreseeable losses if any on long-term contractsincluding derivative contracts; and
(iv) there has not been any occasion in Company during the year under consideration totransfer any sums to the Investor Education and Protection Fund. The question of delay intransferring such sums does not arise;
(V) the Company has provided requisite disclosures in its financial statements as toholdings as well as dealings in Specified Bank Notes during the period from 8 November2016 to 30 December2016 and these are in accordance with the books of accounts maintainedby the Company.
|Sd/- || |
|(CA Akshita Mansaka) ||For Mansaka Ravi & Associates |
|M. No. 517180 ||Chartered Accountants |
|Partner ||FRN 015023C |
|Place: Jaipur || |
|Date: 27.05.2017 || |
ANNEXURES REFERRED IN THE AUDITOR'S REPORT ON THE ACCOUNTS OF GLOBE INTERNATIONALCARRIERS LTD FOR THE YEAR ENDING 31 MARCH 2017
Annexure A to the Auditor's Report
As required by the Companies (Auditor's report) Order 2016 issued by the CentralGovernment of India in terms of section 143(11) of the Companies Act 2013 we report that:-
(i) In respect of fixed assets :
(a) The Company is maintaining proper records showing full particulars includingquantitative details and situation of fixed assets based on available information. (b) Asexplained to us all the fixed assets have been physically verified by the management atthe end of every year which in our opinion is reasonable having regard to the size of theCompany and the nature of assets. As explained no material discrepancies were noticed onsuch physical verification.
(c) The Company does not hold any immovable property thus the paragraph 3(i)(c) isnot applicable on the Company.
(ii) In respect of its inventories: a) The Company is a service Company primarilyrendering transportation services. Accordingly it d o e s n o t h o l d physicalinventories except few items of stores and consumables. b) As explained to us theinventory has been physically verified by the management at regular intervals during theyear. In our opinion the frequency of verification is reasonable. There were no materialdiscrepancies noticed on physical verification of inventory as compared to the bookrecords.
(iii) The Company has granted unsecured loans to companies firms and other partiescovered in the register maintaine under section 189 of Companies Act 2013:
a) The Company has given adhoc loans to such parties and there are no terms andconditions on record for such loans. According to the information and explanations givento us the terms and conditions of the grant of such loans are not prejudicial to theCompany's interest except interest component.
b) According to the information and explanations given to us the schedule of repaymentof principal and payment of interest has not been stipulated.
c) As the schedule of repayment of principal and payment of interest has not beenstipulated there is no overdue amount. However as per the information and explanationsgiven to us the Company has taken reasonable steps for recovery of principal or interestif any from such parties.
(iv) In our opinion and according to the information and explanations given to us inrespect of loans investments guarantees and security the provisions of Section 185 and186 of the Companies Act 2013 have been complied with except loan to one party namelyM/s Govind Kripa Enclave LLP in which director of the Company is a partner amounting toRs. 4.38 Crores.
(v) According to the information and explanations given to us the Company has notaccepted any deposits from the public within the meaning of the directives issued by theReserve Bank of India and the provisions of section 73 to 76 or any relevant provisions ofthe Companies Act 2013 and the rules made there under.
(vi) In our opinion and according to the information and explanations given to us themaintenance of cost records has not been prescribed by the Central Government underSection 148(1) Act for any of the services rendered by the Company.
(vii) In respect of statutory dues:
(a) The Company is generally regular in depositing undisputed statutory dues includingProvident Fund Employees' State Insurance Income Tax Sales Tax Service Tax duty ofCustoms duty of excise Value Added Tax Cess and other statutory dues applicable to itwith the appropriate authoritiesexcept the TDS liability amounting to 18044/- which wasin arrears as at the end of the financial year for a period of more than six months fromthe date they became payable. However this liability has not been acknowledged as debt bythe Company upto the end of reporting period.
(b) According to the information and explanations given to us there are no dues ofIncome Tax or Sales Tax or Service Tax or duty of customs or duty of excise or ValueAdded Tax which have not been deposited on account of any dispute.
(viii) In our opinion and according to the information and explanation given to us theCompany has not defaulted in repayment of loans or borrowing to a financial institutionbanks Government or dues to debenture holders.
(ix) During the year Company has raised moneys by way of initial public offeramounting to Rs. 51696000 divided in to 2154000 equity shares of Rs. 24 per shareincluding share premium of Rs. 14 per share for the purpose of Working Capital Requirement. The Company has also taken term loans of Rs. 2489907from HDFC Bank for purchase ofvehicle. According to the information and explanations given to us such money have beenapplied for the purposes for which those were raised.
( x) According to the information and explanations given to us no material fraud bythe Company or on the Company by its officers or employees has been noticed or reportedduring the course of audit.
(xi) According to the information and explanations given to us the Company haspaid/provided for managerial remuneration in accordance with the requisite approvalsmandated by the provisions of section 197 read with Schedule V to the Act.
(xii) In our opinion and according to the information and explanations given to us theCompany is not a Nidhi company.
(xiii) 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 Act where applicable and details of suchtransactions have been disclosed in the Financial Statements as required by the applicableaccounting standards.
(xiv) 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 year under review.
(xv) 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 any non-cashtransactions with directors or persons connected with him.
(xvi) In our opinion and according to the information and explanations given to us theCompany is not required to be registered under section 45-1A of the Reserve Bank of IndiaAct 1934.
| ||For Mansaka Ravi & Associates |
| ||Chartered Accountants |
| ||FRN: 015023C |
| ||Sd/- |
| ||(CA Akshita Mansaka) |
|Place: Jaipur ||Partner |
|Date: 27.05.2017 ||M. No. 517180 |
ANNEXURE B TO THE AUDITOR'S REPORT
Report on the Internal Financial Controls under Clause (i) of sub-section 3 of Section143 of the Companies Act 2013 ('the Act')
We have audited the internal financial controls over financial reporting of GlobeInternational Carriers Limited ('the Company') as of 31 March 2017 in conjunction withour audit of the standalone financial statements of the Company for the year ended on thatdate.
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 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 the Company's policies the safeguarding of its assetsthe prevention and detection of frauds and errors the accuracy and completeness of theaccounting records and the timely preparation of reliable financial information asrequired under the Companies Act 2013.
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 issued by the ICAI anddeemed to be prescribed under Section 143(10) of the Companies Act 2013 to the extentapplicable to an audit of internal financial controls. Those Standards and the GuidanceNote require that we comply with ethical requirements and plan and perform the audit toobtain reasonable assurance about whether adequate internal financial controls overfinancial reporting was established and maintained and if such controls operatedeffectively in all material 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 financial statements whether due to fraud or 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 financial statements for external purposes in accordance with generallyaccepted accounting principles. A Company's internal financial control over financialreporting includes those policies and procedures that -
1) pertain to the maintenance of records that in reasonable detail accurately andfairly reflect the transactions and dispositions of the assets of the Company;
2) provide reasonable assurance that transactions are recorded as necessary to permitpreparation of financial statements in accordance with generally accepted accountingprinciples and that receipts and expenditures of the Company are being made only inaccordance with authorizations of the management and directors of the Company; and providereasonable assurance regarding prevention or timely detection of unauthorized acquisitionuse or disposition of the Company's assets that could have a material effect on thefinancial 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.
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 2017 based on the internal controlover financial reporting 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.
| ||For Mansaka Ravi & Associates |
| ||Chartered Accountants |
| ||FRN: 015023C |
| ||Sd/- |
| ||(CA Akshita Mansaka) |
|Place: Jaipur ||Partner |
|Date: 27.05.2017 ||M. No. 517180 |