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Globe International Carriers Ltd.

BSE: 538385 Sector: Others
NSE: GICL ISIN Code: INE947T01014
BSE 05:30 | 01 Jan Globe International Carriers Ltd
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Globe International Carriers Ltd. (GICL) - Auditors Report

Company auditors report

To

The Members

Globe International Carriers Ltd Jaipur

Report on Standalone Financial Statements

1. We have audited the accompanying Standalone financial statements of GlobeInternational Carriers Ltd (Formerly known as Globe International Carriers PrivateLimited) ("the Company") which comprise the Standalone Balance Sheet asat March 31 2018 the Standalone Statement of Profit and Loss and Standalone Cash FlowStatement for the year ended and a summary of significant accounting policies andother explanatory information.

MANAGEMENT'S RESPONSIBILITY FOR THE STANDALONE 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 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 the maintenance ofadequate accounting records in accordance with the provisions of the Act for safeguardingthe assets of the Company and for preventing and detecting the 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 Standalone financial statements that give a true andfair view and are free from material misstatement whether due to fraud or error.

AUDITORS' RESPONSIBILITY

3. Our responsibility is to express an opinion on these Standalone financial statementsbased on our audit. We have taken into account the provisions of the Act the accountingand auditing standards and matters which are required to be included in the Audit Reportunder the provisions of the Act and the Rules made there under. 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 standalone financial statements are free from materialmisstatement.

An audit involves performing procedures to obtain audit evidence about the amounts anddisclosures in the standalone financial statements. The procedures selected depend on theauditor's judgment including the assessment of the risks of material misstatement of thefinancial statements whether due to fraud or error. In making those risk assessments theauditor considers internal control relevant to the Company's preparation and fairpresentation of the financial statements in order to design audit procedures that areappropriate in the circumstances but not for the purpose of expressing an opinion on theeffectiveness of the Company's internal control. An audit also includes evaluating theappropriateness of accounting policies used and the reasonableness of the accountingestimates made by the Company's management as well as evaluating the overall presentationof the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the standalone financial statements.

UNQUALIFIED OPINION

4. In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid Standalone financial statements give the information requiredby the Act in the manner so required and give a true and fair view in conformity with theaccounting principles generally accepted in India:

(a) In the case of the Standalone Balance Sheet of the state of affairs of the Companyas at March 31 2018;

(b) In the case of the Standalone Statement of Profit and Loss of the profit of theCompany for the year ended on March 31 2018; and

(c) In the case of the Standalone Cash Flow Statement of the cash flows of the Companyfor the year ended on March 31 2018.

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 standalone financial statements comply with AccountingStandards notified under Section 133 of the Act read with Rule 7 of the Companies(Accounts) Rules 2014;

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 onMarch31 2018 taken on record by the Board of Directors none of the director isdisqualified as on March 31 2018 from being appointed as a director in terms of Section164(2) of the Act;

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 itsStandalone financial statements. The financial implication of such pending litigations onthe Company's financial position in its standalone financial statements is `27085153/-.This financial 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 Standalone financial statements- Refer to Note 30 to the Standalonefinancial 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;

For Mansaka Ravi & Associates
Chartered Accountants
FRN 015023C
Sd/-
(CA Akshita Mansaka)
Place: Jaipur Partner
Date: 28.05.2018 M. No. 517180

ANNEXURES REFERRED IN THE AUDITOR'S REPORT ON THE STANDALONE ACCOUNTS OF GLOBEINTERNATIONAL CARRIERS LTD FOR THE YEAR ENDING 31 MARCH 2018

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 reportthat:

(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) As explained to us all the fixed assets have been physically verified by themanagement at the end of every year which in our opinion is reasonable having regard tothe size of the Company and the nature of assets. As explained no material discrepancieswere noticed on such 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 primarily rendering transportation services.Accordingly it does not hold physical inventories except few items of stores andconsumables.

b) As explained to us the inventory has been physically verified by the management atregular intervals during the year. In our opinion the frequency of verification isreasonable. There were no material discrepancies noticed on physical verification ofinventory as compared to the book records.

(iii) The Company has granted unsecured loans to companies firms and other partiescovered in the register maintained 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.

(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 Goods and Service Tax Cess and other statutorydues applicable to it with the appropriate authorities except the TDS liability amountingto Rs. 18044/- which was in arrears as at the end of the financial year or a period ofmore than six months from the date they became payable. However this liability has notbeen acknowledged as debt by the 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 Goods and Service 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 institutionsbanks Government or dues to debenture holders.

(ix) In our opinion and according to the information and explanations given to us theCompany has not raised moneys by way of initial public offer or further public offer(including debt instruments. In our opinion and according to information and explanationgiven to us the term loans have been applied for the purpose for which they were raised.

(x) 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 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 Standalone Financial Statements as required by theapplicable accounting 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: 28.05.2018 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 Act2013 ('the Act')

We have audited the internal financial controls over financial reporting of GlobeInternational Carriers Limited ('the Company') as of 31 March 2018 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 Act2013.

Auditor's 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 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 judgment 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

3) provide reasonable assurance regarding prevention or timely detection ofunauthorized acquisition use or disposition of the Company's assets that could have amaterial 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 2018 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: 28.05.2018 M. No. 517180