Mar 31, 2018
We have audited the accompanying standalone ind AS financial statements of Globus Spirits Limited (âthe Companyâ), which comprise the Balance Sheet as at March 31, 2018, and 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 ended, and a summary of the significant accounting policies and other explanatory information.
Managementâs Responsibility for the Standalone Ind AS Financial Statements
The Companyâs Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 (âthe Actâ) with respect to the preparation of these standalone Ind AS financial statements that give a true and fair view of the financial position, financial performance including other comprehensive income, cash flows and changes in equity of the Company in accordance with the Indian Accounting Standards (Ind AS) prescribed under section 133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015, as amended, and other accounting principles generally accepted in India.
This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the standalone Ind AS financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
Auditorâs Responsibility
Our responsibility is to express an opinion on these standalone Ind AS financial statements based on our audit.
In conducting our audit, we have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made thereunder and the Order issued under section 143(11) of the Act.
We conducted our audit of the standalone Ind AS financial statements in accordance with the Standards on Auditing specified under Section 143(10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the standalone Ind AS financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the standalone Ind AS financial statements. The procedures selected depend on the auditorâs judgment, including the assessment of the risks of material misstatement of the standalone Ind AS financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Companyâs preparation of the standalone Ind AS financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Companyâs Directors, as well as evaluating the overall presentation of the standalone Ind AS financial statements.
We believe that the audit evidence obtained by us is sufficient and appropriate to 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 explanations given to us, the aforesaid standalone Ind AS financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the Ind AS and other accounting principles generally accepted in India, of the state of affairs of the Company as at March 31, 2018, and its profit, total comprehensive income, its cash flows and the changes in equity for the year ended on that date.
Emphasis of Matter
We draw attention to Note 2 of the standalone Ind AS financial statements, which describes the status of operations upon grant of permission for manufacture and sale of Extra Neutral Alcohol (ENA) under the Bihar Prohibition and Excise Act, 2016, in respect of one of the manufacturing plant located in Bihar.
Our opinion is not modified in respect of this matter.
Report on Other Legal and Regulatory Requirements
1. As required by Section 143(3) of the Act, based on our audit we report that:
a) We have sought and obtained all the information and explanations which to the best of 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 the Company so far as it appears from our examination of those books.
c) The Balance Sheet, the Statement of Profit and Loss including Other Comprehensive Income, the Cash Flow Statement and Statement of Changes in Equity dealt with by this Report are in agreement with the books of account.
d) In our opinion, the aforesaid standalone Ind AS financial statements comply with the Indian Accounting Standards prescribed under section 133 of the Act.
e) On the basis of the written representations received from the directors of the Company as on March 31, 2018 taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2018 from being appointed as a director in terms of Section 164(2) of the Act.
f) With respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate Report in âAnnexure Aâ. Our report expresses an unmodified opinion on the adequacy and operating effectiveness of the Companyâs internal financial controls over financial reporting.
g) With respect to the other matters to be included in the Auditorâs Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, as amended, in our opinion and 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 financial position in its standalone Ind AS financial statements. Refer note 32 to the standalone Ind AS financial statements.
ii. The Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses.
iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company.
2. As required by the Companies (Auditorâs Report) Order, 2016 (âthe Orderâ) issued by the Central Government in terms of Section 143(11) of the Act, we give in âAnnexure Bâa statement on the matters specified in paragraphs 3 and 4 of the Order.
ANNEXURE âAâ TO THE INDEPENDENT AUDITORâS REPORT
(Referred to in paragraph 1(f) under âReport on Other Legal and Regulatory Requirementsâ section of our report of even date)
Report on the Internal Financial Controls Over Financial Reporting under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 (âthe Actâ)
We have audited the internal financial controls over financial reporting of Globus Spirits Limited (âthe Companyâ) as of March 31, 2018 in conjunction with our audit of the standalone Ind AS financial statements of the Company for the year ended on that date.
Managementâs Responsibility for Internal Financial Controls
The Companyâs management is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India (the âGuidance Noteâ). These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to Companyâs policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013.
Auditorâs Responsibility
Our responsibility is to express an opinion on the Companyâs internal financial controls over financial reporting of the Company based on our audit. We conducted our audit in accordance with the Guidance Note and the Standards on Auditing prescribed under Section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditorâs judgement, including the assessment of the risks 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 to provide a basis for our audit opinion on the Companyâs internal financial controls system over financial reporting.
Meaning of Internal Financial Controls Over Financial Reporting
A companyâs internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A companyâs internal financial control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company;
(2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorisations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorised acquisition, use, or disposition of the companyâs 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 financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the 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 given to us the Company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at March 31, 2018, based on the criteria for internal financial control over financial reporting established by the Company considering the essential components of internal control stated in the Guidance Note.
ANNEXURE âBâ TO THE INDEPENDENT AUDITORâS REPORT
(Referred to in paragraph 2 underâReport on Other Legal and Regulatory Requirementsâ section of our report of even date)
(i) In respect of the Companyâs fixed assets:
(a) The Company has maintained records showing particulars, including situation of fixed assets, however, certain particulars are in the process of being updated.
(b) The fixed assets were physically verified during the year by the Management in accordance with a regular programme of verification which, in our opinion, provides for physical verification of the fixed assets at reasonable intervals. According to the information and explanations given to us, no material discrepancies were noticed on such verification.
(c) According to the information and explanations given to us and the records examined by us and based on the examination of the registered sale deed/ Ikrarnama/ Shapathpatra provided to us, we report that, the title deeds, comprising all the immovable properties of land, are held in the name of the Company as at the balance sheet date. Immovable properties of land whose title deeds have been pledged as security for loans are held in the name of the Company based on the confirmations directly received by us from lenders.
(ii) As explained to us, the inventories were physically verified during the year by the Management at reasonable intervals, except in case of inventories lying with third parties, where confirmations has been obtained from third parties in respect of such inventories, and no material discrepancies were noticed on physical verification.
(iii) According to the information and explanations given to us, the Company has granted loans, secured or unsecured, to companies, firms, Limited Liability Partnerships or other parties covered in the Register maintained under Section 189 of the Companies Act, 2013. In respect of which:
(a) The terms and conditions of the grant of such loans amounting to Rs. 229.34 lacs given to a subsidiary are, in our opinion, prima facie, not prejudicial to the Companyâs interest.
(b) According to the information and explanations given to us, the above loans are receivable on demand, which as informed to us, have not been recalled by the Company. In the absence of any stipulated schedule of repayment of principal and payment of interest, we are unable to comment on the regularity of the repayments or receipts of principal amounts and interest.
(c) According to the information and explanations given to us, the above loans are receivable on demand, which as informed to us, have not been recalled by the Company. Accordingly, there is no overdue amount remaining outstanding as at the balance sheet date.
(iv) In our opinion and according to the information and explanations given to us, the Company has complied with the provisions of Sections 185 and 186 of the Companies Act, 2013 in respect of grant of loans, making investments and providing guarantees and securities, as applicable.
(v) According to the information and explanations given to us, the Company has not accepted any deposit under Sections 73 to 76 or any other relevant provisions of the Companies Act, 2013 and the Companies (Acceptance of Deposits) Rules, 2014, as amended.
(vi) The maintenance of cost records has been specified by the Central Government under section 148(1) of the Companies Act, 2013. We have broadly reviewed the cost records maintained by the Company pursuant to the Companies (Cost Records and Audit) Rules, 2014, as amended prescribed by the Central Government under sub-section (1) of Section 148 of the Companies Act, 2013, and are of the opinion that, prima facie, the prescribed cost records have been made and maintained We have, however, not made a detailed examination of the cost records with a view to determine whether they are accurate or complete.
(vii) According to the information and explanations given to us, in respect of statutory dues:
(a) The Company has generally been regular in depositing undisputed statutory dues, including Provident Fund, Employeesâ State Insurance, Income-tax, Sales Tax, Service Tax, Goods and Service Tax, Customs Duty, Excise Duty, Value Added Tax, cess and other material statutory dues applicable to it to the appropriate authorities.
(b) There were no undisputed amounts payable in respect of Provident Fund, Employeesâ State Insurance, Income-tax, Sales Tax, Service Tax, Goods and Service Tax, Customs Duty, Excise Duty, Value Added Tax, Cess and other material statutory dues in arrears as at March 31, 2018 for a period of more than six months from the date they became payable.
(c) Details of dues of Income-tax. Sales tax and Excise Duty which have not been deposited as at March 31, 2018 on account of disputes are given below:
Name of Statute |
Nature of Dues |
Forum where Dispute is Pending |
Period to which the Amount Relates (Financial Year) |
Amount Involved (Rs. In Lacs) * |
Excise Laws |
Excise Duty |
High Court |
1995-96, 2004-10 |
197.39 |
Appellate authority up to Commissionersâ level |
1996-97 |
11.11 |
||
Sales Tax Laws |
Sales tax |
High Court |
2010-11 |
120.55 |
Income Tax Act, 1961 |
Income tax |
Appellate authority upto Commissionersâ level |
2012-13, 2013-14 |
3.59 |
* Amount as per demand orders including interest and penalty wherever indicated in the Order. No amount has been paid under protest.
The following matter, which has been excluded from the table above, has been decided in favour of the Company but the department has preferred appeals at higher levels. The details are given below:
Name of the Statute |
Nature of Dues |
Forum where Dispute is Pending |
Period to which the Amount Relates |
Amount Involved (Rs.)* |
Sales Tax Laws |
Sales tax |
High Court |
2004 -05 to 2005-06 2007-08 to 2009-10 |
32,468,426 |
âAmount as per demand orders including interest wherever indicated in the Order.
There were no dues of Service Tax, Customs Duty and Value Added Tax which have not been deposited as at March 31, 2018 on account of disputes.
(viii) In our opinion and according to the information and explanations given to us, the Company has not defaulted in the repayment of loans or borrowings to financial institutions and banks. The Company has not taken any loan or borrowing from government and has not issued any debentures.
(ix) In our opinion and according to the information and explanations given to us, money raised by way of term loans have been applied by the Company during the year for the purposes for which they were raised other than temporary deployment pending application of proceeds. The Company has not raised moneys by way of initial public offer (including debt instruments) during the year.
(x) To the best of our knowledge and according to the information and explanations given to us, no fraud by the Company and no material fraud on the Company by its officers or employees has been noticed or reported during the year.
(xi) In our opinion and according to the information and explanations given to us, the Company has paid managerial remuneration in accordance with the requisite approvals mandated by the provisions of section 197 read with Schedule V to the Companies Act, 2013.
(xii) The Company is not a Nidhi Company and hence reporting under clause (xii) of the CARO 2016 Order is not applicable.
(xiii) In our opinion and according to the information and explanations given to us the Company is in compliance with Section 177 and 188 of the Companies Act, 2013, where applicable, for all transactions with the related parties and the details of related party transactions have been disclosed in the financial statements as required by the applicable accounting standards.
(xiv) During the year the Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures and hence reporting under clause (xiv) of CARO 2016 is not applicable to the Company.
(xv) In our opinion and according to the information and explanations given to us, during the year the Company has not entered into any non-cash transactions with its directors or directors of its holding, subsidiary or associate company or persons connected with them and hence provisions of section 192 of the Companies Act, 2013 are not applicable.
(xvi) The Company is not required to be registered under section 45-IA of the Reserve Bank of India Act, 1934.
For Deloitte Haskins & Sells
Chartered Accountants
(Firmâs Registration No. 015125N)
Vijay Agarwal
(Partner)
(Membership No. 094468)
Washington, D.C., May 21, 2018
Mar 31, 2016
Independent Auditors'' Report
Report on the Standalone Financial Statements
To The Members of GLOBUS SPIRITS LIMITED
We have audited the accompanying standalone financial statements of GLOBUS SPIRITS LIMITED ("the Company"), which comprise the Balance Sheet as at 31st March, 2016, the Statement of Profit and Loss and the Cash Flow Statement for the year then ended, and a summary of the significant accounting policies and other explanatory information for the year then ended.
Management''s Responsibility for the Standalone Financial Statements
The Company''s Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 ("the Act") with respect to the preparation of these standalone financial statements that give a true and fair view of the financial position, financial performance and cash flows of the Company in accordance with the accounting principles generally accepted in India, including the Accounting Standards prescribed under section 133 of the Act, as applicable.
This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
Auditor''s Responsibility
Our responsibility is to express an opinion on these standalone financial statements based on our audit.
We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made there under and the Order under section 143 (11) of the Act.
We conducted our audit of the standalone financial statements in accordance with the Standards on Auditing specified under Section 143(10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the financial statements. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Company''s preparation of the financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Company''s Directors, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our qualified audit opinion on the standalone financial statements.
Basis for Qualified Opinion
1. Attention is invited to Note 11 to the Standalone Financial Statements which states that as on March 31, 2016, Fixed Assets include Intangible Assets aggregating to Rs. 1,443.30 Lacs (March 31, 2015 - Rs.2,164.95 Lacs) under the head "Knowhow and New Brand Development" representing intangibles internally generated by the Company through expenditure on advertisement and promotional expenses. Such recognition is not in accordance with Accounting Standard - 26 "Intangible Assets". Flad the Company complied with requirements of AS-26, Fixed Assets as at March 31,2016 would have been lower by'' 1,443.30 Lacs (March 31, 2015 - Rs.2,164.95 Lacs), Depreciation and amortization expense for the year would be lower by Rs.721.65 Lacs, Net profit after taxes for the year and Reserves and Surplus would be lower by'' 943.80 Lacs.
2. Attention is invited to Note 11 of the Standalone Financial Statements in respect of Plant & Machinery having Net book value of Rs.3,278. 63 Lacs (Gross Book Value - Rs.5,580.40 Lacs) that are currently unutilized for over 3 years as on the balance sheet date, for which the management is evaluating alternative use and is of the view that no impairment is considered necessary at this stage. In absence of impairment assessment, we are unable to comment on recoverability of carrying value of such assets and consequent adjustment that may be required upon such assessment.
Qualified Opinion
In our opinion and to the best of our information and according to the explanations given to us, except for the effects of the matter described in sub-paragraph (1) and possible effects of the matter described in sub-paragraph
(2) of the Basis for Qualified Opinion paragraph above, the aforesaid standalone financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Company as at 31 st March, 2016, and its profit and its cash flows 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 and, except for the matter described in sub-paragraph (2) brought out in the Basis for Qualified Opinion paragraph above, obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit.
b) In our opinion, except for the effects of the matter described in sub-paragraph (1) and possible effects of the matter described in sub-paragraph (2) in the Basis for Qualified Opinion paragraph above, proper books of account as required by law have been kept by the Company 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 Statement dealt with by this Report are in agreement with the books of account.
d) In our opinion, except for the effects of the matter described in sub-paragraph (1) and possible effects of the matter described in sub-paragraph (2) in the Basis for Qualified Opinion paragraph above, the aforesaid standalone financial statements comply with the Accounting Standards prescribed under section 133 of the Act, as applicable.
e) On the basis of the written representations received from the directors as on March 31, 2016 taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2016 from being appointed as a director in terms of Section 164 (2) of the Act.
f) The qualification relating to the maintenance of accounts and other matters connected therewith are as stated in the Basis for Qualified Opinion paragraph above.
g) With respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate Report in "Annexure A". Our report expresses a qualified opinion on the operating effectiveness of the Company''s internal financial controls over financial reporting.
h) With respect to the other matters 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 and according to the explanations given to us:
1. The Company has disclosed the impact of pending litigations on its financial position in its financial statements-Refer Note 26.1 to the standalone financial statements;
ii. The Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses - Refer Note 26.1 to the standalone financial statements.
iii. There were no amounts which were required to be transferred to the Investor Education and Protection Fund by the Company. Refer Note 8 to the standalone financial statements.
2. As required by the Companies (Auditor''s Report) Order, 2016 (''the Order") issued by the Central Government in terms of Section 143(11) of the Act, we give in "Annexure B" a statement on the matters specified in paragraphs 3 and 4 of the Order.
ANNEXURE TO THE INDEPENDENT AUDITORS''REPORT
(Referred to in paragraph 2 under ''Report on Other Legal and Regulatory Requirements'' section of our report of even date)
(i) In respect of the Company''s fixed assets:
(a) The Company has maintained records showing particulars, including situation of fixed assets, however, certain particulars are in the process of being updated. For the assets acquired during the year, such particulars have been maintained.
(b) The fixed assets were physically verified during the year by the Management in accordance with a regular programme of verification which, in our opinion, provides for physical verification of the fixed assets at reasonable intervals. According to the information and explanation given to us, the Company is in process of reconciling the same with fixed assets register, accordingly discrepancies, if any, has not been identified on such verification.
(c) According to the information and explanations given to us and the records examined by us and based on the examination of the registered sale deed/ Ikrarnama/ Shapathpatra provided to us, we report that, the title deeds, comprising all the immovable properties of land, are held in the name of the Company as at the balance sheet date. Immovable properties of land whose title deeds have been pledged as security for loans are held in the name of the Company based on the confirmations directly received by us from lenders. In respect of immovable properties of land that have been taken on perpetual lease and disclosed as fixed asset in the financial statements, the lease agreements are in the name of the Company, where the Company is the lessee in the agreement.
(ii) As explained to us, the inventories were physically verified during the year by the Management at reasonable intervals, except in case of inventories lying with third parties, where confirmations has been obtained from third parties in respect of such inventories, and no material discrepancies were noticed on physical verification.
(iii) According to the information and explanations given to us, the Company has granted loans, secured or unsecured, to companies, firms, Limited Liability Partnerships or other parties covered in the Register maintained under Section 189 of the Companies Act, 2013. In respect of which:
a) The terms and conditions of the grant of such loans amounting to Rs.322.11 lacs given to a wholly owned subsidiary are, in our opinion, prima facie, not prejudicial to the Company''s interest.
(b) According to the information and explanation given to us, the above loans are receivable on demand, which as informed to us, have not been recalled by the Company. In the absence of any stipulated schedule of repayment of principal and payment of interest, we are unable to comment on the regularity of the repayments or receipts of principal amounts and interest.
(c) According to the information and explanation given to us, the above loans are receivable on demand, which as informed to us, have not been recalled by the Company. Accordingly there is no overdue amount remaining outstanding as at the balance sheet date.
(iv) In our opinion and according to the information and explanations given to us, the Company has complied with the provisions of Sections 185 and 186 of the Companies Act, 2013 in respect of grant of loans, making investments and providing guarantees and securities, as applicable.
(v) According to the information and explanations given to us, the Company has not accepted any deposit under Sections 73 to 76 or any other relevant provisions of the Companies Act, 2013 and the Companies (Acceptance of Deposits) Rules, 2014, as amended.
(vi) The maintenance of cost records has been specified by the Central Government under section 148(1) of the Companies Act, 2013. We have broadly reviewed the cost records maintained by the Company pursuant to the Companies (Cost Records and Audit) Rules, 2014, as amended prescribed by the Central Government under sub-section (1) of Section 148 of the Companies Act, 2013, and are of the opinion that, prima facie, the prescribed cost records have been made and maintained We have, however, not made a detailed examination of the cost records with a view to determine whether they are accurate or complete.
(vii) According to the information and explanations given to us, in respect of statutory dues:
(a) The Company has been regular in depositing undisputed statutory dues, including Provident Fund, Employees'' State Insurance, Sales Tax, Customs Duty, Cess and other material statutory dues applicable to it and generally been regular in depositing Income-tax, Service Tax, Excise Duty and Value Added Tax with the appropriate authorities.
(b) There were no undisputed amounts payable in respect of Provident Fund, Employees'' State Insurance, Income-tax, Sales Tax, Service Tax, Customs Duty, Excise Duty, Value Added Tax, Cess and other material statutory dues in arrears as at March 31,2016 for a period of more than six months from the date they became payable.
(C) Details of dues of Income-tax. Sales tax and Excise Duty which have not been deposited as at March 31, 2016 on account of disputes are given below:
Name of Statute |
Nature of Dues |
Forum where Dispute is Pending |
Forum where Dispute is Pending Period to which the Amount Relates (Financial Year) |
Amount Involved '' * |
Excise Laws |
Excise Duty |
High Court |
1995-96, 2004-10 |
19,739,456 |
|
|
Appellate authority up to Commissioners'' level |
1996-97 |
1,111,279 |
Sales Tax Laws |
Sales tax |
High Court |
2010-11 |
12,054,561 |
Income Tax Act, 1961 |
Income tax |
Appellate authority up to Commissioners'' level |
2012-13 |
195,000 |
* Amount as per demand orders including interest and penalty wherever indicated in the Order.
The following matters, which have been excluded from the table above, have been decided in favour of the Company but the department has preferred appeals at higher levels. The details are given below:
Name of Statute |
Nature of Dues |
Forum where Dispute is Pending |
Forum where Dispute is Pending Period to which the Amount Relates |
Amount Involved '' * |
Sales Tax Laws |
Sales tax |
High Court |
2004 -05 to 2005-06 2007-08 to 2009-10 |
77,100,339 |
âAmount as per demand orders including interest and penalty wherever indicated in the Order.
There were no dues of Service Tax, Customs Duty and Value Added Tax which have not been deposited as at March 31, 2016 on account of disputes.
(viii) In our opinion and according to the information and explanations given to us, the Company has not defaulted in the repayment of loans or borrowings to financial institutions, banks and government and dues to debenture holders.
(ix) In our opinion and according to the information and explanations given to us, money raised by way of term loans have been applied by the Company during the year for the purposes for which they were raised other than temporary deployment pending application of proceeds. The Company has not raised moneys by way of initial public offer (including debt instruments) during the year.
(x) To the best of our knowledge and according to the information and explanations given to us, no fraud by the Company and no material fraud on the Company by its officers or employees has been noticed or reported during the year.
(xi) In our opinion and according to the information and explanations given to us, the Company has paid managerial remuneration in accordance with the requisite approvals mandated by the provisions of section 197 read with Schedule V to the Companies Act, 2013.
(xii) The Company is not a Nidhi Company and hence reporting under clause (xii) of the CARO 2016 Order is not applicable.
(xiii) In our opinion and according to the information and explanations given to us the Company is in compliance with Section 177 and 188 of the Companies Act, 2013, where applicable, for all transactions with the related parties and the details of related party transactions have been disclosed in the financial statements etc. as required by the applicable accounting standards.
(xiv) During the year the Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures and hence reporting under clause (xiv) of CARO 2016 is not applicable to the Company.
(xv) In our opinion and according to the information and explanations given to us, during the year the Company has not entered into any non-cash transactions with its directors or directors of its holding, subsidiary or associate company or persons connected with them and hence provisions of section 192 of the Companies Act, 2013 are not applicable.
(xvi) The Company is not required to be registered under section 45-IA of the Reserve Bank of India Act, 1934.
For DELOITTE HASKINS & SELLS
Chartered Accountants
(Firm Registration No. 015125N)
Sd/-
VIJAY AGARWAL
Partner
Gurgaon, May 27,2016 (Membership No. 094468)
Mar 31, 2015
We have audited the accompanying standalone financial statements of
GLOBUS SPIRITS LIMITED ("the Company"), which comprise the Balance
Sheet as at 31st March, 2015, the Statement of Profit and Loss, the
Cash Flow Statement, and a summary of the significant accounting
policies and other explanatory information for the year then ended.
Management's Responsibility for the Standalone Financial Statements
The Company's Board of Directors is responsible for the matters stated
in Section 134(5) of the Companies Act, 2013 ("the Act") with respect
to the preparation of these standalone financial statements that give a
true and fair view of the financial position, financial performance and
cash flows of the Company in accordance with the accounting principles
generally accepted in India, including the Accounting Standards
specified under Section 133 of the Act, read with Rule 7 of the
Companies (Accounts) Rules, 2014. This responsibility also includes
maintenance of adequate accounting records in accordance with the
provisions of the Act for safeguarding the assets of the Company and
for preventing and detecting frauds and other irregularities; selection
and application of appropriate accounting policies; making judgments
and estimates that are reasonable and prudent; and design,
implementation and maintenance of adequate internal financial controls,
that were operating effectively for ensuring the accuracy and
completeness of the accounting records, relevant to the preparation and
presentation of the financial statements that give a true and fair view
and are free from material misstatement, whether due to fraud or error.
Auditors' Responsibility
Our responsibility is to express an opinion on these standalone
financial statements based on our audit.
We have taken into account the provisions of the Act, the accounting
and auditing standards and matters which are required to be included in
the audit report under the provisions of the Act and the Rules made
thereunder.
We conducted our audit in accordance with the Standards on Auditing
specified under Section 143(10) of the Act. Those Standards require
that we comply with ethical requirements and plan and perform the audit
to obtain reasonable assurance about whether the financial statements
are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and the disclosures in the financial statements. The
procedures selected depend on the auditor's judgment, including the
assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal financial control relevant
to the Company's preparation of the financial statements that give a
true and fair view in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing
an opinion on whether the Company has in place an adequate internal
financial control system over financial reporting and the operating
effectiveness of such controls. An audit also includes evaluating the
appropriateness of the accounting policies used and the reasonableness
of the accounting estimates made by the Company's Directors, as well as
evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our qualified audit opinion on the
standalone financial statements.
Basis for Qualified Opinion
As on March 31, 2015, Fixed Assets include Intangible Assets
aggregating to Rs. 2,164.95 Lacs (March 31, 2014 Â Rs. 2,886.60 Lacs)
under the head "Knowhow and New Brand Development" representing
intangibles internally generated by the Company through expenditure on
advertisement and promotional expenses. Such recognition is not in
accordance with Accounting Standard  26 "Intangible Assets". Had the
Company complied with requirements of AS-26, Fixed Assets as at March
31, 2015 would have been lower by Rs. 2,164.95 Lacs (March 31, 2014 Â
Rs. 2,886.60 Lacs), Depreciation and amortisation expense for the year
would be lower by Rs. 721.65 Lacs, Net profit after taxes for the year
would be converted into net losses after tax of Rs. 709.00 Lacs and
Reserves and Surplus would be lower by Rs. 1,415.70 Lacs.
Qualified Opinion
In our opinion and to the best of our information and according to the
explanations given to us, except for the effects of the matter
described in the Basis for Qualified Opinion paragraph above, the
aforesaid standalone financial statements give the information required
by the Act in the manner so required and give a true and fair view in
conformity with the accounting principles generally accepted in India,
of the state of affairs of the Company as at 31st March, 2015, and its
profit and its cash flows for the year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor's Report) Order, 2015 ("the
Order") issued by the Central Government in terms of Section 143(11) of
the Act, we give in the Annexure a statement on the matters specified
in paragraphs 3 and 4 of the Order.
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 to the best of our knowledge and belief were necessary for the
purposes of our audit.
(b) Except for the effects of the matter described in the Basis for
Qualified Opinion paragraph above, in our opinion, proper books of
account as required by law have been kept by the Company 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 Statement dealt with by this Report are in agreement with the
books of account.
(d) Except for the effects of the matter described in the Basis for
Qualified Opinion paragraph above, in our opinion, the aforesaid
standalone financial statements comply with the Accounting Standards
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 31st March, 2015 taken on record by the Board of
Directors, none of the directors is disqualified as on 31st March, 2015
from being appointed as a director in terms of Section 164 (2) of the
Act.
(f) The qualification relating to the maintenance of accounts and other
matters connected therewith are as stated in the Basis for Qualified
Opinion paragraph above.
(g) With respect to the other matters 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 and
according to the explanations given to us:
i. The Company has disclosed the impact of pending litigations on its
financial position in its financial statements - Refer Note 26.1 to the
financial statements;
ii. The Company did not have any long-term contracts including
derivative contracts for which there were any material foreseeable
losses.
iii. There were no amounts which were required to be transferred to the
Investor Education and Protection Fund by the Company.
ANNEXURE TO THE INDEPENDENT AUDITORS' REPORT
(Referred to in paragraph 1 under 'Report on Other Legal and Regulatory
Requirements' section of our report of even date)
Having regard to the nature of the Company's business / activities /
results during the year, clauses (v) and (x) of paragraph 3 of the
Order are not applicable to the Company.
(i) In respect of the Company's fixed assets:
(a) The Company has maintained records showing particulars, including
situation of fixed assets, however, with respect to quantitative
details the same is in process of being updated. For the assets
acquired during the year, such particulars have been maintained.
(b) The fixed assets were physically verified during the year by the
Management in accordance with a regular programme of verification
which, in our opinion, provides for physical verification of the fixed
assets at reasonable intervals. According to the information and
explanation given to us, the Company is in process of reconciling the
same with fixed assets register, accordingly discrepancies, if any, has
not been identified on such verification.
(ii) In respect of the Company's inventories:
(a) As explained to us, the inventories were physically verified during
the year by the Management at reasonable intervals except in case of
inventories lying with third parties, where confirmations has been
obtained from third parties in respect of such inventories.
(b) In our opinion and according to the information and explanation
given to us, the procedures of physical verification of inventories
followed by the Management were reasonable and adequate in relation to
the size of the Company and the nature of its business.
(c) In our opinion and according to the information and explanations
given to us, the Company has maintained proper records of its
inventories and no material discrepancies were noticed on physical
verification.
(iii) According to the information and explanations given to us, the
Company has granted loans, secured or unsecured, to companies, firms or
other parties covered in the Register maintained under Section 189 of
the Companies Act, 2013. In respect of such loans:
(a) The Company has granted loan amounting to Rs. 31.14 lacs to a
wholly owned subsidiary during the year. At the year- end, the
outstanding balances of such loans granted was Rs. 31.14 lacs and the
maximum amount involved during the year was Rs. 31.14 lacs.
(b) According to the information and explanation given to us, the above
loans are receivable on demand, which as informed to us, have not been
recalled by the Company. Accordingly para 3(iii)(b) of the Order is
not applicable.
(iv) In our opinion and according to the information and explanations
given to us, there is an adequate internal control system commensurate
with the size of the Company and the nature of its business for the
purchase of inventory and fixed assets and for the sale of goods and
services. However, for purchase of fixed assets certain controls need
to be strengthened and the weakness is a continuing failure to correct
major weaknesses in such internal control system.
(v) We have broadly reviewed the cost records maintained by the Company
pursuant to the Companies (Cost Records and Audit) Rules, 2014, as
amended prescribed by the Central Government under sub-section (1) of
Section 148 of the Companies Act, 2013, and are of the opinion that,
prima facie, the prescribed cost records have been made and maintained.
We have, however, not made a detailed examination of the cost records
with a view to determine whether they are accurate or complete.
(vi) According to the information and explanations given to us, in
respect of statutory dues:
(a) The Company has generally been regular in depositing undisputed
statutory dues, including Provident Fund, Employees' State Insurance,
Income-tax, Sales Tax, Wealth Tax, Service Tax, Customs Duty, Excise
Duty, Value Added Tax, Cess and other material statutory dues
applicable to it with the appropriate authorities.
(b) There were no undisputed amounts payable in respect of Provident
Fund, Employees' State Insurance, Income-tax, Sales Tax, Wealth Tax,
Service Tax, Customs Duty, Excise Duty, Value Added Tax, Cess and other
material statutory dues in arrears as at March 31, 2015 for a period of
more than six months from the date they became payable.
(c) Details of dues of Income-tax and Excise Duty which have not been
deposited as at March 31, 2015 on account of disputes are given below:
Name of Nature of Forum where Dispute is
Statute Dues Pending
Central Excise Excise Duty High Court
Laws
Appellate authority upto
Commissioners' level
Income Tax Income tax Appellate authority upto
Act, 1961 Commissioners' level
Name of Statute Period to which Amount Involved (Rs.*)
the Amount Relates
Central Excise Laws 1995-96, 19,739,456
2004-10
1996-97 1,111,279
Income Tax Act, 1961 2010-11 636,239
2011-12 20,907,840
* Amount as per demand orders including interest and penalty wherever
indicated in the Order.
The following matters, which have been excluded from the table above,
have been decided in favour of the Company but the department has
preferred appeals at higher levels. The details are given below:
Name of Nature of Forum where Dispute is
Statute Dues Pending
Sales Tax Sales tax High Court
Laws
Name of Statute Period to which Amount Involved (Rs.*)
the Amount Relates
Sales Tax Laws 2004 Â 07 77,100,339
*Amount as per demand orders including interest and penalty wherever
indicated in the Order.
There were no dues of Sales Tax, Wealth Tax, Service Tax, Customs Duty,
Value Added Tax and Cess which have not been deposited as at March 31,
2015 on account of disputes.
(d) There are no amounts that are due to be transferred to the Investor
Education and Protection Fund in accordance with the relevant
provisions of the Companies Act, 1956 (1 of 1956) and Rules made
thereunder.
(vii) After considering the effect of our audit qualification reported
in the Basis of Qualified Opinion of our Audit Report, The Company does
not have accumulated losses. The Company has not incurred cash losses
during the financial year covered by our audit and in the immediately
preceding financial year.
(viii) In our opinion and according to the information and explanations
given to us, the Company has not defaulted in repayment of dues to a
financial institution; however, during the year there are delays in
repayment of dues to banks for a maximum period of 22 days with a
maximum amount involved was Rs. 5,079,961. There was no defaults at the
year end. The Company has not issued any debentures.
(ix) In our opinion and according to the information and explanations
given to us, the term loans have been applied by the Company during the
year for the purposes for which they were obtained, other than
temporary deployment pending application.
(x) To the best of our knowledge and belief and according to the
information and explanations given to us, no fraud by the Company and
no material fraud on the Company has been noticed or reported during
the year.
For DELOITTE HASKINS & SELLS
Chartered Accountants
(Firm Registration No. 015125N)
Sd/-
VIJAY AGARWAL
Partner
New Delhi, May 20, 2015 (Membership No. 094468)
Mar 31, 2014
We have audited the accompanying financial statements of GLOBUS SPIRITS
LIMITED ("the Company") which comprise the Balance Sheet as at 31st
March, 2014, the Statement of Profit and Loss and the Cash Flow
Statement for the year then ended, and a summary of the significant
accounting policies and other explanatory information.
Management''s Responsibility for the Financial Statements
The Company''s Management is responsible for the preparation of these
financial statements that give a true and fair view of the financial
position, financial performance and cash flows of the Company in
accordance with the Accounting Standards notified under the Companies
Act, 1956 ("the Act") (which continue to be applicable in respect of
Section 133 of the Companies Act, 2013 in terms of General Circular
15/2013 dated 13th September, 2013 of the Ministry of Corporate
Affairs) and in accordance with the accounting principles generally
accepted in India. This responsibility includes the design,
implementation and maintenance of internal control relevant to the
preparation and presentation of the financial statements that give a
true and fair view and are free from material misstatement, whether due
to fraud or error.
Auditors'' Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and the disclosures in the financial statements. The
procedures selected depend on the auditor''s judgment, including the
assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal control relevant to the
Company''s preparation and fair presentation of the financial statements
in order to design audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the Company''s internal control. An audit also includes
evaluating the appropriateness of the accounting policies used and the
reasonableness of the accounting estimates made by the Management, as
well as evaluating the overall presentation of the financial
statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our qualified audit opinion.
Basis for Qualified Opinion
As on March 31, 2014, Fixed Assets include Intangible Assets
aggregating to Rs.2,886.60 Lacs (March 31, 2013 Â Rs.3,608.25
Lacs) under the head "Knowhow and New Brand Development" representing
intangibles internally generated by the Company through expenditure on
advertisement and promotional expenses. Such recognition is not in
accordance with Accounting Standard  26 "Intangible Assets". Had the
Company complied with requirements of AS-26, Fixed Assets as at March
31, 2014 would have been lower by Rs.2,886.60 Lacs (March 31, 2013 Â
Rs.3,608.25 Lacs), Depreciation and amortisation expense for the year
would be lower by Rs.721.65 Lacs, Net profit after taxes for the year
would be converted into net losses after tax of Rs.1,477.82 Lacs and
Reserves and Surplus would be lower by Rs.1,905.45 Lacs.
Qualified Opinion
In our opinion and to the best of our information and according to the
explanations given to us, except for the effects of the matter
described in the Basis for Qualified Opinion paragraph above, the
aforesaid financial statements give the information required by the Act
in the manner so required and give a true and fair view in conformity
with the accounting principles generally accepted in India:
(a) in the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2014;
(b) in the case of the Statement of Profit and Loss, of the profit of
the Company for the year ended on that date and
(c) in the case of the Cash Flow Statement, of the cash flows of the
Company for the year ended on that date.
Emphasis of Matter
Attention is invited to note no. 26, which describes that the Company
has paid remuneration of Rs.73.90 Lacs to the Relatives of Directors
without special resolution in General Meeting during the current year
and previous years, including Rs.2.59 Lacs paid without obtaining the
approval of the Central Government, which is not in line with
provisions of Section 314 of the Companies Act, 1956. The Company has
initiated the process for recovering the same and accordingly the
balance has been shown as recoverable as on March 31, 2014.
Our opinion is not qualified in respect of this matter.
Other Matters
The financial statements of the Company for the year ended 31st March,
2013, were audited by another auditor who expressed an unmodified
opinion on those statements on 20th May, 2013.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2003 ("the
Order") issued by the Central Government in terms of Section 227(4A) of
the Act, we give in the Annexure a statement on the matters specified
in paragraphs 4 and 5 of the Order.
2. As required by Section 227(3) of the Act, we report that:
(a) We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purposes of our
audit.
(b) Except for the effects of the matter described in the Basis for
Qualified Opinion paragraph above, in our opinion, proper books of
account as required by law have been kept by the Company 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 Statement dealt with by this Report are in agreement with the
books of account.
(d) Except for the effects of the matter described in the Basis for
Qualified Opinion paragraph above, in our opinion, the Balance Sheet,
Statement of Profit and Loss and Cash Flow Statement comply with the
Accounting Standards notified under the Act (which continue to be
applicable in respect of Section 133 of the Companies Act, 2013 in
terms of General Circular 15/2013 dated 13th September, 2013 of the
Ministry of Corporate Affairs).
(e) On the basis of written representations received from the directors
as on 31st March, 2014 taken on record by the Board of Directors, none
of the directors is disqualified as on 31st March, 2014 from being
appointed as a director in terms of Section 274(1)(g) of the Act.
ANNEXURE TO THE INDEPENDENT AUDITORS'' REPORT
(Referred to in paragraph 1 under ''Report on Other Legal and Regulatory
Requirements'' section of our report of even date)
"Having regard to the nature of the Company''s business / activities /
results during the year, clauses (vi), (xii), (xiii), (xiv), (xv),
(xviii), (xix) and (xx) of paragraph 4 of the Order are not applicable
to the Company."
(i) In respect of its fixed assets:
(a) The Company has maintained records showing particulars, including
situation of fixed assets, however, with respect to quantitative
details of the same is in process of being updated. For the assets
acquired during the year, such particulars have been maintained.
(b) The fixed assets were physically verified during the year by the
Management, in accordance with a regular programme of verification
which, in our opinion,
provides for physical verification of all the fixed assets at
reasonable intervals. According to the information and explanation
given to us, the Company is in process of reconciling the same with
fixed assets register, accordingly discrepancies, if any, has not been
identified on such verification.
(c) The fixed assets disposed off during the year, in our opinion, do
not constitute a substantial part of the fixed assets of the Company
and such disposal has, in our opinion, not affected the going concern
status of the Company.
(ii) In respect of its inventories:
(a) As explained to us, the inventories were physically verified during
the year by the Management at reasonable intervals.
(b) In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventories
followed by the Management were reasonable and adequate in relation to
the size of the Company and the nature of its business.
(c) In our opinion and according to the information and explanations
given to us, the Company has maintained proper records of its
inventories and no material discrepancies were noticed on physical
verification.
(iii) During the year, the Company has neither granted nor taken any
loans, secured or unsecured, to/from companies, firms or other parties
covered in the Register maintained under Section 301 of the Companies
Act, 1956.
Loan of Rs.1,765,976, unsecured, taken during earlier years from a party
is outstanding at the year end; the maximum amount outstanding during
the year is Rs.1,765,976.
The rate of interest and other terms and conditions of such loans are,
in our opinion, prima facie not prejudicial to the interest of the
Company.
With respect of repayments, no terms has been stipulated, however,
party has not demanded for repayment.
(iv) In our opinion and according to the information and explanations
given to us, there is an adequate internal control system commensurate
with the size of the Company and the nature of its business for the
purchase of inventory and fixed assets and for the sale of goods and
services. However, for purchase of fixed assets certain controls need
to be strengthened. Being first year of audit, no major weakness
reported by earlier auditor, there is no continuing failure to correct
major weaknesses in such internal control system.
(v) To the best of our knowledge and belief and according to the
information and explanations given to us, there are no contracts or
arrangements that needed to be entered in the Register maintained in
pursuance of Section 301 of the Companies Act, 1956.
(vi) In our opinion, the internal audit functions carried out during
the year by a firm of Chartered Accountants appointed by the Management
has been commensurate with the size of the Company and the nature of
its business.
(vii) We have broadly reviewed the cost records maintained by the
Company pursuant to the Companies (Cost Accounting Records) Rules, 2011
and The Cost Accounting Records (Fertilizer Industry) Rules, 2011
prescribed by the Central Government under Section 209(1)(d) of the
Companies Act, 1956 and are of the opinion that, prima facie, the
prescribed cost records have been made and maintained. We have,
however, not made a detailed examination of the cost records with a
view to determine whether they are accurate or complete.
(viii) According to the information and explanations given to us, in
respect of statutory dues:
(a) The Company has generally been regular in depositing undisputed
statutory dues including Sales Tax, Customs Duty, Excise Duty, Wealth
Tax and other material statutory dues applicable to it with the s. The
appropriate authorities. The Company is not regular in depositing
undisputed statutory dues including Provident Fund, Employees'' State
Insurance, Income- tax and Service Tax. The provision of Investor
Education and Protection Fund and Cess are not applicable to the
Company.
(b) There were no undisputed amounts payable in respect of Provident
Fund, Investor Education and Protection Fund, Employees'' State
Insurance, Income-tax, Sales Tax, Wealth Tax, Service Tax, Customs
Duty, Excise Duty, Cess and other material statutory dues in arrears as
at March 31, 2014 for a period of more than six months from the date
they became payable.
(c) Details of dues of Income-tax, Sales Tax, Wealth Tax, Service Tax,
Customs Duty, Excise Duty and Cess which have not been deposited as on
March 31, 2014 on account of disputes are given below:
Name of Statute Nature of Dues Forum where Dispute is
Pending
Central Excise Laws Excise Duty High Court
Appellate authority
upto Commissioners''
level
Income Tax Act, 1961 Income tax CIT (Appeals)
Name of Statute Period to which the Amount Involved
Amount Relates (Rs.) *
Central Excise Laws 1995-96, 2004-10 19,739,456
1996-97 1,111,279
Income Tax Act, 1961 2010-11 636,239
2011-12 20,907,840
* Amount as per demand orders including interest and penalty wherever
indicated in the Order.
The following matters, which have been excluded from the table above,
have been decided in favour of the Company but the department has
preferred appeals at higher levels. The details are given below:
Name of Statute Nature of Forum where Dispute Period to which the
Dues is Pending Amount Relates
Sales Tax Laws Sales tax High Court 2004 - 07
Name of Statute Amount Involved (Rs.) *
Sales Tax Laws 77,100,339
* Amount as per demand orders including interest and penalty wherever
indicated in the Order.
(ix) The Company does not have accumulated losses at the end of the
financial year and has not incurred cash losses during the financial
year covered by our audit and in the immediately preceding financial
year.
(x) In our opinion and according to the information and explanations
given to us, the Company has not defaulted in the repayment of dues to
financial institutions; however, during the year there are defaults in
the repayment of dues to banks for a maximum period of 67 days with the
maximum amount in default was Rs.6,250,000. There was no such default as
at the year end. The Company has not issued any debentures.
(xi) In our opinion and according to the information and explanations
given to us, the term loans have been applied by the Company, during
the year, for the purposes for which they were obtained, other than
temporary deployment pending application.
(xii) In our opinion and according to the information and explanations
given to us, and on an overall examination of the Balance Sheet of the
Company, we report that funds raised on short-term basis have, prima
facie, been used during the year for to finance capital expenditure of
Rs.4,634.64 Lacs.
(xiii) To the best of our knowledge and according to the information
and explanations given to us, no fraud by the Company and no material
fraud on the Company has been noticed or reported during the year.
For DELOITTE HASKINS & SELLS
Chartered Accountants
Sd/-
New Delhi Vijay Agarwal
May 29, 2014 (Partner)
(Membership No. 094468)
Mar 31, 2011
We have audited the attached Balance Sheet of M/s. GLOBUS SPIRITS
LIMITED as at 31st March 2011 and also the Profit & Loss Account for
the year ended on that date annexed thereto and Cash Flow Statement for
the year ended on that date. Since the scheme of arrangement provided
for demerger of demerged undertaking of Associated Distilleries Limited
into Globus Spirits Limited and consequent issue of equity shares by
Globus Spirits Limited to the shareholders of Associated Distilleries
Limited, pursuant to Sections 391 to 394 and other relevant provisions
of the Companies Act, 1956, has been approved by the Hon'ble High Court
of Delhi w.e.f. Appointed Date 01st April 2010 vide dated 24.08.2011 &
accordingly the scheme has been given effect while preparing these
Financial Statements. These Financial Statement are the responsibility
of the Company's management. Our responsibility is to express an
opinion on Financial Statements based on our Audit.
We conducted our Audit in accordance with Auditing Standards generally
accepted in India. Those standards require that we plan and perform
the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An Audit includes
examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements. An Audit also includes
assessing the accounting principles used and significant estimates made
by management as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
1. As required by the Companies (Auditor's Report) order, 2003 issued
by the Central Government of India in terms of sub-section (4A) of
section 227 of the Companies Act, 1956, and according to information
and explanation given to us during the course of audit and on the basis
of such checks as we consider appropriate, we enclose in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the said
order, to the extent applicable.
2. Further to our comments in the annexure referred to above, we
report that:
(i) We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purpose of our
audit.
(ii) In our opinion, proper books of accounts as required by law have
been kept by the company, so far as appears from our examination of
those books.
(iii) The Balance Sheet, Profit & Loss Account and Cash Flow Statement
dealt with by this report are in agreement with the books of accounts.
(iv) These Financial Statements as on 31st March 2011 are prepared on
the basis of Audited Balance Sheet, Profit & Loss A/c, Cash Flow
Statement & Notes to Accounts as on 31st March, 2011 of Globus Spirits
Limited (signed on 16th May, 2011) and Associated Distilleries Limited
(signed on 16th May, 2011).
(v) In our opinion, the Balance Sheet, Profit & Loss Account and cash
flow statement dealt with by this report comply with the accounting
standards referred to in sub-section (3C) of section 211 of the
Companies Act, 1956.
(vi) On the basis of the written representation received from the
directors as on 31/03/2011, and taken on record by the Board of
Directors, we report that none of the directors is disqualified as on
31/03/2011 from being appointed as a director in terms of clause (g) of
sub-section (1) of section 274 of the Companies Act, 1956.
(vii) In our opinion and to the best of our information and according
to the explanations given to us, the said accounts give the information
required by the companies act, 1956, in the manner so required and give
a true and fair view in conformity with the accounting principles
generally accepted in India:
(a) In the case of the Balance Sheet, of the state of affairs of the
company as at 31st
(b)In the h cas1e 11 of Profit & Loss Account, of the Profit for the
year ended on that date and;
(c) In the case of Cash Flow Statement of the cash flow of the company
for the year ended
ANNEXURE TO THE AUDITOR'S REPORT
(Referred to in Paragraph 3 of our Report of even date of accounts of
Globus Spirits Limited, for the year ended 31st March 2011)
i) (a) The Company has maintained reasonable proper records showing
particulars including quantitative details and situation of fixed
assets.
(b) As explained to us, these fixed assets have been physically
verified by the management during the year at reasonable intervals and
no material discrepancies were noticed.
(c) According to information and explanation given to us, since the
company has not disposed off a substantial part of the fixed assets
during the period, paragraph 4(1) (c) of the companies (Auditor's
Report) order, 2003 is not applicable.
ii. (a) The inventory has been physically verified during the year by
the management. In our opinion, the frequency of verification is
reasonable.
(b) The procedures of physical verification of inventory followed by
the management are reasonable and adequate in relation to the size of
the Company and the nature of its business.
(c) The Company is maintaining proper records of inventory,
Discrepancies noticed on verification between physical stocks and the
book records were not material.
iii. In our opinion and according to the information and explanations
give to us, the Company has not granted or taken unsecured loan to and
from parties covered in the register maintained under section 301 of
the Act.
iv. In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the Company and the nature of its
business with regard to purchases of inventory and fixed assets and for
the sale of goods. During the course of our audit we have not observed
any continuing failure to correct major weakness in internal controls.
v. No transactions have been entered during the year in the register
maintained in pursuance of section 301 of the Companies Act, 1956 and
based on the audit procedures applied by us and according to the
information & explanation given to us, we have not come across any
transactions that need to be entered into the register maintained in
pursuance of section 301 of the Companies Act,1956. Accordingly sub
clause (b) is not applicable.
vi. In our opinion and according to the information & explanations
given to us, the company has not accepted any deposit from public
during the year under the provisions of section 58A, 58AA or any other
relevant provisions of the companies Act 1956 and the companies
(Acceptance of Deposit) Rules, 1975.
vii. In our opinion and according to the information and explanation
given to us, the company has an internal audit system commensurate with
the size and nature of its business.
viii. According to the information and explanation given to us the
company has maintained cost records prescribed by the Central
Government under clause(d) of sub section (1) of the section 209 of the
Act.
ix. (a) The company is regular in depositing with appropriate
authorities undisputed statutory dues including the Provident Fund,
Investor Education Protection Fund, Employees State Insurance, Income
Tax, Sales Tax, Cess and any other statutory dues applicable to it.
(b) According to the information and explanation given to us no
undisputed amount payable in respect of Income Tax, Sales Tax and Cess
were in arrears as at 31st March 2011 for a period of more than six
months from the date they became payable.
(c) According to the information and explanation given to us no there
are no dues of Sales Tax, Income Tax and Cess which have not been
deposited on account of any dispute.
x. The company does not have accumulated losses as at 31st March 2011.
The company has not incurred cash losses during the year covered by our
audit and the immediately preceding financial year.
xi. In our opinion and according to the information and explanation
given to us, the company has not defaulted in repayment of dues to a
financial institution or bank and or debenture holders.
xii. In our opinion and according to the information and explanation
given to us, the company has not granted any loan and advances on the
basis of security by way of pledge of shares, debentures and others
securities.
xiii. In our opinion and according to the information and explanation
given to us, the company is not a Chit Fund or a Nidhi Mutual Benefit
Fund/ Society therefore the provisions of clause 4 (xiii) of the
Companies (Auditors' Report) Order, 2003 are not applicable to the
company.
xiv In our opinion, the company is not dealing in or trading in shares,
securities, debentures and other investments. Accordingly the
provisions of clause 4 (xiv) of the Companies (Auditors' Report) Order,
2003 are not applicable to the company.
xv In our opinion & according to the information and explanation given
by the management to us, the company has not given any guarantee for
loan taken by others from bank or financial institutions, accordingly
the provisions of clause 4 (xv) of the Companies (Auditors' Report)
Order, 2003 are not applicable to the company.
xvi. In our opinion & according to the information and explanation
given by the management to us, on an overall basis, the term loan have
been applied for the purpose for which they were raised.
xvii. According to the information and explanation given to us the
funds raised on short term basis have not been utilized for long term
investment.
xviii. According to the information and explanations given to us,
during the year the company has not made any preferential allotment of
shares to the parties and companies covered
intheregistermaintainedunder section 301 of the Act.
xix. The company has not issued any debentures during the year and
therefore clause (xix) of paragraph4oftheorderis not applicable to the
company for the current year.
xx. According to the information and explanations given to us, the
company has not raised money by public issue.
xxi. According to the information and explanations given to us, no
fraud on or by the company has been noticed orreported during the
period.
For B. M. Chatrath & Co.,
Chartered Accountants
Sd/-
UMESH C. PANDEY
Place : New Delhi Partner
Dated :03rd October, 2011 M. No. 55252
Mar 31, 2010
We have audited the attached Balance Sheet of M/s. GLOBUS SPIRITS
LIMITED as at 31 st March 2010 and also the Profit & Loss Account for
the year ended on that date annexed thereto and Cash Flow Statement for
the year ended on that date. These Financial Statements are the
responsibility of the Companys management. Our responsibility is to
express an opinion on these Financial Statements based on our Audit.
We conducted our Audit in accordance with Auditing Standards generally
accepted in India. Those standards require that we plan and perform
the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An Audit includes
examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements. An Audit also includes
assessing the accounting principles used and significant estimates made
by management as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
1. As required by the Companies (Auditors Report) order, 2003 issued
by the Central Government of India in terms of sub-section (4A) of
section 227 of the Companies Act, 1956, and according to information
and explanation given to us during the course of audit and on the basis
of such checks as we consider appropriate, we enclose in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the said
order, to the extent applicable.
2. The company has been charging depreciation on pro rata basis under
written down value method at the rates prescribed in schedule XIV of
the Companies Act till the FY 2008-09. From 1 st April 2009, the
management of the company has decided to change the method of charging
depreciation to Straight line method as in its opinion it would result
in more appropriate presentation of financial statements. The change of
method has resulted in charging of excess depreciation of
Rs.11,66,76,618/-till the start of this FY and has been written back in
the profit and loss account and profit for the financial year 2009-10
has been overstated by the same amount.
3. Further to our comments in the annexure referred to above, we
report that:
(i) We have obtained all the information and explanations, which to the
best of our knowledgeand belief were necessary for the purpose of our
audit.
(ii) In ouropinion, proper books of accounts as required by law have
been kept by the company, so far as appears from our examination of
those books.
(iii)The Balance Sheet, Profit & Loss Account and Cash Flow Statement
dealt with by thisreport are in agreement with the books of accounts.
(iv) In our opinion, the Balance Sheet, Profit & Loss Account and cash
flow statement dealt with by this report comply with the accounting
standards referred to in sub-section (3C) ofsection 211 of the
Companies Act, 1956.
(v) On the basis of the written representationreceived from the
directors as on 31/03/2010,and taken on record by the Board of
Directors, we report that none of the directors isdisqualified as on
31/03/2010 from being appointed as a director in terms of clause (g)of
sub-section (1) of section 274 of the Companies Act, 1956.
(vi) In ouropinion and to the best of our information and according to
the explanations given tous, the said accounts give the information
required by the companies act, 1956, in themanner 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 at 31st March 2010;
(b) In the case of Profits Loss Account, of the Profit for the year
ended on that date and;
(c) In the case of Cash Flow Statement of the cash flow of the company
for the year ended on that date.
ANNEXURE TO THE AUDITORS REPORT
(Referred to in Paragraph 3 of our Report of even date of accounts of
Globus Spirits Limited, for the year ended 31st March 2010)
i) (a) The Company has maintained reasonable proper records showing
particulars including quantitative details and situation of fixed
assets.
(b) As explained to us, these fixed assets have been physically
verified by the management during the year at reasonable intervals and
no material discrepancies were noticed.
(c) According to information and explanation given to us, since the
company has not disposed off a substantial part of the fixed assets
during the period, paragraph 4(1) (c) of the companies (Auditors
Report) order,2003 is not applicable.
ii. (a) The inventory has been physically verified during the year by
the management. In our opinion, the frequency of verification is
reasonable.
(b) The procedures of physical verification of inventory followed by
the management are reasonable and adequate in relation to the size of
the Company and the nature of its business.
(c) The Company is maintaining proper records of inventory,
Discrepancies noticed on verification between physical stocks and the
book records were not material.
iii. In our opinion and according to the information and explanations
give to us, the Company has not granted or taken unsecured loan to and
from parties covered in the register maintained under section 301 of
the Act.
iv. In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the Company and the nature of its
business with regard to purchases of inventory and fixed assets and for
the sale of goods. During the course of our audit we have not observed
any continuing failure to correct major weakness in internal controls.
v. No transactions have been entered during the year in the registered
maintained in pursuance of section 301 of the Companies Act, 1956 and
based on the audit procedures applied by us and according to the
information & explanation given to us, we have not come across any
transactions that need to be entered into the register maintained in
pursuance of section 301 of the Companies Act, 1956. Accordingly sub
clause (b) is not applicable.
vi. In our opinion and according to the information & explanations
given to us, the company has not accepted any deposit from public
during the year under the provisions of section 58A, 58AAor any other
relevant provisions of the companies Act 1956 and the companies
(Acceptance of Deposit) Rules, 1975.
vii. In our opinion and according to the information and explanation
given to us, the company has an internal audit system commensurate with
the size and nature of its business.
viii. According to the information and explanation given to us the
company has maintained cost records prescribed by the Central
Government under clause (d) of sub section (1) of the section 209 of
the Act.
ix. (a) The company is regular in depositing with appropriate
authorities undisputed statutory dues including the Provident Fund,
Investor Education Protection Fund, Employees State Insurance, Income
Tax, Sales Tax, Cess and any other statutory dues applicable to it
except income tax of Rs.1,50,00,000/- has been paid till date out of
the total Income Tax provision of Rs.6,20,00,000/- for the year ending
31 st March 2010 and in case of any delayed payment the company has
paid proper interest thereon.
(b) According to the information and explanation given to us no
undisputed amount payable in respect of Income Tax, Sales Tax and Cess
were in arrears as at 31 st March 2010 for a period of more than six
months from the date they became payable.
(c) According to the information and explanation given to us no there
are no dues of Sales Tax, Income Tax and Cess which have not been
deposited on account of any dispute.
x. The company does not have accumulated losses as at 31st March 2010.
Thecompany has not incurred cash losses during the year covered by our
audit and the immediately preceding financial year. xi. In our
opinion and according to the information and explanation given to us,
thecompany has not defaulted in repayment of dues to a financial
institution or bankand or debenture holders.
xii. In our opinion andaccording to the information and explanation
given to us, thecompany has not granted any loan and advances on the
basis of security by wayof pledge of shares, debentures and others
securities. xiii. In our opinion and according to the information and
explanation given to us, thecompany is not a Chit Fund or a Nidhi
Mutual Benefit Fund/ Society therefore theprovisions of clause 4
(xiii)of the Companies (Auditors Report) Order, 2003 are not
applicable to the company.
xiv. In our opinion, the company is notdealing in or trading in shares,
securities debentures and other investments. Accordingly the provisions
of clause 4
(xiv) ofthe Companies (Auditors Report) Order, 2003 are
not applicable to the company.
xv. In our opinion & according to the information and explanation given
by the management to us, the company has not given any guarantee for
loan taken by others from bank or financial institutions, accordingly
the provisions of clause 4 (xv) of the Companies (Auditors Report)
Order, 2003 are not applicable to the company.
xvi. In our opinion & according to the information and explanation
given by themanagement to us, on an overall basis, the term loan have
been applied for thepurpose for which they were raised.
xvii. According to the information and explanation given to us the
funds raised onshort term basis have not been utilized for long term
investment.
xviii. According to the information and explanations given to us,
during the year thecompany has not made any preferential allotment of
shares to the parties andcompanies covered in the register maintained
under section 301 of the Act.
xix. The company has not issued any debentures during the year and
therefore clause
(xix) of paragraph 4 of the order is not applicable to the company for
the current year.
xx. According to the information and explanations given to us, the
company has raised Rs.75crores through its initial public issue of
75,00,000 equity shares of Rs.10/- each issued at a premium of Rs.90/-
per equity share for the purpose of expansion & modernization of its
existing distilleries. And the said amount is being utilized for the
aforesaid purpose.
xxi. According to the information and explanations given to us, no
fraud on or by the company has been noticed or reported during the
period.
For B. M. Chatrath & Co.,
Chartered Accountants
Sd/-
UMESH C. PANDEY
Partner
M.No.55252
Place : New Delhi
Dated: 15th May, 2010