Globus Corporation Ltd.
|BSE: 531904||Sector: Metals & Mining|
|NSE: KARUNACAB||ISIN Code: INE774B01028|
|BSE 00:00 | 11 Mar||Globus Corporation Ltd|
|NSE 05:30 | 01 Jan||Globus Corporation Ltd|
|BSE: 531904||Sector: Metals & Mining|
|NSE: KARUNACAB||ISIN Code: INE774B01028|
|BSE 00:00 | 11 Mar||Globus Corporation Ltd|
|NSE 05:30 | 01 Jan||Globus Corporation Ltd|
TO THE MEMBERS OF GLOBUS CORPOORATION LIMITED.
Report on the Audit of Financial Statements:
We have audited the accompanying financial statements of GLOBUS CORPOORATION LIMITED("the Company") which comprise the Balance Sheet as at 31st March2019 the Statement of Profit and Loss and the Cash Flow Statement for the year thenended and notes to the financial statement including a summary of the significantaccounting policies and other explanatory information.
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 theCompanies Act 2013 ("Act") in the manner so required and give a true and fairview in conformity with the accounting principles generally accepted in India of thestate of affairs of the Company as at 31stMarch 2019 and its profit and itsCash Flows for the year ended on that date.
Basis for Opinion
We conducted our audit in accordance with the Standards of Auditing (SAs) specifiedunder Section 143 (10) of the Act. Our responsibilities under those SAs are furtherdescribed in the Auditor's Responsibilities for the Audit of the Financial Statementssection of our report. We are independent of the Company in accordance with the Code ofEthics issued by the Institute of Chartered Accountants of India together with the ethicalrequirements that are relevant to our audit of the financial statements under theprovisions of the Act and the Rules thereunder and we have fulfilled our other ethicalresponsibilities in accordance with these requirements and the Code of Ethics. We believethat the audit evidence we have obtained is sufficient and appropriate to provide a basisfor our opinion.
Material Uncertainty relating to Going Concern
We draw attention to Note 1-4 of the Key audit matters which indicates that virtualuncertainty exists regarding future income and various pending suits against the company.These events or conditions indicate that a material uncertainty exists that may castsignificant doubt on the company's ability to continue as a going concern. Our opinion isnot modified in respect of this matter
Key Audit Matters
Key audit matters are those matters that in our professional judgment were of mostsignificance in our audit of the financial statements of the current period. These matterswere addressed in the context of our audit of the financial statements as a whole and informing our opinion thereon and we do not provide a separate opinion on these matters.
The Company's management and Board of Directors are responsible for the otherinformation. The other information comprises of Management Reports such as Board's ReportManagement Discussion and Analysis but does not include the financial statements and ourAuditor's Report thereon. Our opinion on the financial statements does not cover the otherinformation and we do not express any form of assurance conclusion thereon. If based onthe work we have performed on the other information that we obtained prior to the date ofthis Auditor's Report we conclude that there is a material misstatement of this otherinformation we are required to report that fact. We have nothing to report in thisregard.
Management's Responsibility for the Financial Statements:
The Company's management and Board of Directors is responsible for the matters statedin Section 134(5) of the Companies Act 2013 ("the Act") with respect to thepreparation of these financial statements that give a true and fair view of the state ofaffairs its profit and cash flows of the Company in accordance with the accountingprinciples generally accepted in India including the Accounting Standards specified underSection 133 of the Act. This responsibility also includes maintenance of adequateaccounting records in accordance with the provisions of the Act for safeguarding of theassets of the Company and for preventing and detecting frauds and other irregularities;selection and application of appropriate accounting policies; making judgments andestimates that are reasonable and prudent; and design implementation and maintenance ofadequate internal financial controls that were operating effectively for ensuring theaccuracy and completeness of the accounting records relevant to the preparation andpresentation of the financial statements that give a true and fair view and are free frommaterial misstatement whether due to fraud or error. In preparing the financialstatements management and Board of Directors are responsible for assessing the Company'sability to continue as going concern disclosing as applicable matters related to goingconcern and using the going concern basis of accounting unless management either intendsto liquidate the Company or to cease operations or has no realistic alternative but to doso.
The Board of Directors is also responsible for overseeing the Company's financialreporting process
Auditor's Responsibility for the audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether that financialstatements 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 SAswill always detect a material misstatement when it exists. Misstatements can arise fromfraud or error and are considered material if individually or in the aggregate theycould reasonably be expected to influence the economic decision of the users taken on thebasis of theses financial statements.
As part of an audit in accordance with SAs we exercise professional judgment andmaintain professional skepticism throughout the audit. We also:
Identify and assess the risks of material misstatement of the financialstatements whether due to fraud or error design and perform audit procedures responsiveto those risks and obtain audit evidence that is sufficient 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 omission misrepresentations or the override of internal control.
Obtain an understanding of internal control relevant to the audit in order todesign audit procedures that are appropriate in circumstances. Under Section 143 (3) (i)of the Act we are also responsible for expressing our opinion on whether the Company hasadequate internal financial control with reference to financial statements in place andthe operating effectiveness of such controls.
Evaluate the appropriateness of accounting policies used and reasonableness ofaccounting estimates and related disclosure made by management.
Conclude on 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 disclosure areinadequate to modify our opinion. Our conclusions are based on the audit evidenceobtained up to the date of Auditor's Report. However future events or conditions maycause the Company to cease to continue as a going concern.
Evaluate the overall presentations structure and content of the financialstatements including the disclosure and whether the financial statements represent theunderlying transactions and events in a manner that achieves fair presentation. Wecommunicate with those charged with governance regarding among other matters the plannedscope and timing of the audit and significant audit findings including any significantdeficiencies in internal control that we identify during our audit. We also provide thosecharged with governance with a statement that we have complied with relevant ethicalrequirements regarding independence and to communicate with them all relationships andother matters that may reasonably be through to bear on our independence and whereapplicable related safeguards. From the matters communicated with those charged withgovernance we determine those matters that were of most significance in the audit of thefinancial statements of the current period and are therefore the key audit matters. Wedescribe these matters in our Auditor's Report unless law or regulation precludes publicdisclosure about the matter or when in extremely rare circumstances we determine that amatter should not be communicated in our report because the adverse consequences of doingso should reasonably be expected to outweigh the public interest benefits of suchcommunication.
Report on Other Legal and Regulatory Requirements:
1. As required by the Companies (Auditors Report) Order 2016 ("the order")issued by the Central Government of India in terms of sub-section (11) of section 143 ofthe Companies Act 2013 we give in the ''Annexure A'' a statement on the mattersspecified in paragraphs 3 and 4 of the order to the extent applicable 2. (A) As requiredby 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 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) and the statement of the Cash Flows dealt with by this Report are in agreementwith the books of account.
(d) In our opinion the aforesaid financial statements comply with the AccountingStandards specified under Section 133 of the Act read with Rule 7 of the Companies(Accounts) Rules 2014.
(e) On the basis of the written representations received from the directors as on 31stMarch 2019 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2019 from being appointed as a director in terms of Section164 (2) of the Act.
(f) With respect to the adequacy of the Internal Financial controls with reference tofinancial statements of the company and the operating effectiveness of such controlsrefer to our separate report in ''Annexure B''. (B) With respect to the othermatters to be included in the Auditor's Report in accordance with Rule 11 of the Companies(Audit and Auditors) Rules 2014 in our opinion and to the best of our information andaccording to the explanations given to us:
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 forwhich there were any material foreseeable losses
iii. There has been no delay in transferring amounts required to be transferred tothe Investor Education and Protection Fund by the Company.
ANNEXURE - A TO INDEPENDENT AUDITORS' REPORT
With reference to the Annexure referred to in paragraph 1 under the headingReport on Other Legal & Regulatory Requirement' of the Independent Auditor'sreport to the members of Globus Corpooration Limited on the financial statements for theyear ended March 31 2019 we report that:
(i) The Company does not have any Fixed Assets and hence the clause (i) is notapplicable.
(ii) The Company does not have any Inventories and hence the clause (ii) is notapplicable.
(iii) The Company has not granted any loans secured or unsecured to companies firmsLimited Liability Partnership or other parties covered in the Register maintained underSection 189 of the Companies Act 2013 and hence clause (iii) is not applicable.
(iv) In view of clause (iii) above our opinion on whether the company has compliedwith the provisions of section 185 and I86 of the Companies Act 2013 in respect of loansinvestments guarantees and security is not applicable
(v) The company has not accepted deposits from the public within the meaning ofsections 73 to 76 or anyother relevant provisions of the Companies Act 2013 and the rulesframed there under Hence the clause
(v) of the Order is not applicable to the company. (vi) To the best of our knowledgeand according to the information and explanations given to us the central government hasnot prescribed the maintenance of cost records under Section 148(1) of the Companies Act2013 for any services rendered by the Company.
(vii) (a) The company has generally been regular in depositing undisputed statutorydues including provident fund employees' state insurance income-tax sales-tax servicetax duty of customs duty of excise GST value added tax cess and any other statutorydues with the appropriate authorities.
According to the information and explanations given to us there were disputed amountspayable in respect of the aforesaid dues as at 31 March 2019 for a period of more than sixmonths from the date they became payable and details of the same are as under:
(i) In our opinion and according to the information and explanations given by themanagement the Company had defaulted in payment of outstanding dues of Rs. 2.76 Crs asinterest and penalty to the bank which is treated as a contingent liability (Refer Notesto Accounts). The Company has not issued any debentures and hence default or otherwise onpayments to debenture holders is not applicable.
(ii) According to the information and explanations given to us the Company has notraised moneys by way of initial public offer or further public offer (including debtinstruments) and term loans during the year
(iii) Based upon the audit procedures performed and the information and explanationsgiven by the management we report that no fraud by the Company or on the company by itsofficers or employees has been noticed or reported during the year.
(iv) Based upon the audit procedures performed and the information and explanationsgiven to us the Company has not paid any Managerial Remuneration for the Financial Year2018-19 as laid down by the provisions of section 197 and other applicable provisions ofthe Companies Act 2013 if any.
(v) In our opinion the Company is not a Nidhi Company. Therefore the provisions ofclause 4 (xii) of the Order are not applicable to the Company.
(vi) In our opinion all transactions with the related parties are in compliance withsection 177 and 188 of Companies Act 2013 and the details have been disclosed in theFinancial Statements as required by the applicable accounting standards.
(vii) Based upon the audit procedures performed and the information and explanationsgiven to us the company has not made any preferential allotment or private placement ofshares or fully or partly convertible debentures during the year under review.Accordingly the provisions of clause 3 (xiv) of the Order are not applicable.
(i) Based upon the audit procedures performed and the information and explanationsgiven to us the company has not entered into any non-cash transactions with directors orpersons connected with them. Accordingly the provisions of clause 3 (xv) of the Order arenot applicable.
In our opinion the company is not required to be registered under section 45-IA of theReserve Bank of India Act 1934 and accordingly the provisions of clause 3 (xvi) of theorder are not applicable to the company
"A NNEXURE B" TO THE INDEPENDENT AUDITORS' REPORT OF EVEN DATE ON THEFNAN I CIAL STATEMENTS OF GLOBUS CORPOORATION LMITED
Report on the Internal Financal Controls und i er Clause (i) of Sub-section 3 ofSection 143 of the Companies Act. 2013 ("the Act")
We have audited the internal financial controls over financial eporting of GlobusCorpooration Limited ('the Company') as of March 31 2019 in conjunction with our audit ofthe financial statements of the Company for the year ended on that date. In our opinionthe Company has in all material respects adequate internal financial controls withreference to financial statements and such internal financial controls were operatingeffectively as at 31 March 2019 based on the internal financial controls with referenceto financial statements criteria established by the Company considering the essentialcomponents of internal control stated in the Guidance Note on Audit of Internal FinancialControls Over Financial Repoting issu r ed by the Institute of Chartered Accountants ofIndia ( the' Guidance Note' ) . .
Management's Responsibility for Internal Financial Controls.
The Company's management and the Board of Directors are responsible for establishingand maintaining internal financial controls based on the internal financial control withreference to financial reporting criteria established by the Company considering theessential components of internal control stated in the Guidance Note. Theseresponsibilities include the design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring t!1e orderly and efficientconduct of its business including adherence to company's polices the safeguarding of itsassets the prevention and detection of frauds and errors the accuracy and completenessof the accounting records and the timely preparation of reliable financial informationas required under the Companies Act 2013 (hereinafter e r ferred to as' the Act').
Our responsibility is to express an opinion on the Company's internal financialcontrols with reference to financial statements based on our audit. We conducted our auditin accordance with the Guidance Note on Audit of Internal Financial Controls OverFinancial Reporting (the 'Guidance Note') and the Standards on Auditing issued by ICAIand deemed to be prescribed under section 143(10) of the Companies Act 2013 to theextent applicable to an audit of internal financial controls with reference to financialstatements both applicable to an audit of Internal Financial Contr o ls and both issuedby the Institute of Chartered Accountants of India. Those Standards and the Guidance Noterequire that 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 aboutthe adequacy of the internal financial controls system over financial reporting and theiroperating effectiveness. Our audit of internal financial controls with refee r nce tofinancial statements included obtaining an understanding of internal financial controlsassessing the risk that a material weakness exists and testing and evaluating the designand oper at ing effectiveness of internal control based on the assessed is r k. Theprocedues selected depe r nd on the Auditor's judgment including the assessment of therisks of material 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 with Reference to Financial Statements
A company's internal financial control with reference to financial statements is aprocess designed to provide reasonable assurance regarding the reliability of financialreporting and the preparation of financial statements for external purposes in accordancewith generally accepted accounting principles. A company's internal financial control withreference to financial statements includes those policies and procedures that (1) pertainto the maintenance of records that in reasonable detail accurately and fairly reflectthe transactions 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 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 mateialr effe ct on the financial statements.
Inherent Limitations of Internal Financial Controls with Reference to FinancialStatements
Because of the inherent limitations of internal financial controls with reference tofinancial statements including the possibility of collusion or improper managementoverride of controls material misstatements due to error or fraud may occur and not bedetected. Also projections of any evaluation of the internal financial controls withrespect to financial statements to future periods are subject to the risk that theinternal financial control with reference to financial statement may become inadequatebecause of changes in conditions or that the degree of compliance with the policies orprocedures may deteriorate.