To the Members of GLOBAL LAND MASTERS CORPORATION LIMITED
(formerly known as M/s Bhoomi Infrastructures Corporation Limited)
Report on the stand alone Financial Statements
We have audited the accompanying financial statements of GLOBAL LAND MASTERS CORPORATION LIMITED (formerly known as M/s Bhoomi Infrastructures Corporation Limited), which comprises the Balance Sheet as at March 31, 2019, the Statement of Profit & Loss and cashflow statement for the year then ended, and a summary of significant accounting policies and other explanatory information.
Managements Responsibility for the Financial Statements
The companys 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 & presentation of these financial statements, that give a true and fair view of the financial position, financial performance, changes in equity 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 control, 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 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.
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 disclosures in the financial statements. The procedures selected depend on the auditors 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 companys preparation of the financial statementsthat 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 accounting policies used and the reasonableness of the accounting estimates made by companys 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 audit opinion on the financial statements.
Opinion
In our opinion and to the best of our information and according to the explanations given to us, the financial statements give the information required by the Act in the manner so required and give true and fair view in conformity with the accounting principles generally accepted in India, of the State of Affairs of the Company as at 31.03.2018, its profit/loss, its changes in equity and its cash flows for the year ended on that date.
Emphasis on Matter
1. Financial statements indicates that the Company has accumulated losses and its net worth has been fully eroded. The Company has incurred net Loss of Rs. 114,924,671/-during the current year and previous years, and the Companys current liabilities exceeded its current assets as at the balance sheet date. These conditions indicate the existence of a material uncertainty that may cast significant doubt about the Companys ability to continue as a going concern. However, the financial statements of the company have been prepared on a going concern basis for the reasons stated in the Note 2.31 to the Financial Statements.
2. 1,775,000 Preference Shares for Rs. 17,750,000/-were due for redemption after 36 months. The duration has expired but the shares have not been redeemed yet.
3. Note 2.18 to the Financial Statements describes the liability on Long Term Borrowings, being Security Deposits for Flats. In the absence of any agreement, the actual liability is not ascertainable.
4. Note 2.22 to the Financial Statements describes the recoverability of Loans and Advances, there is no supporting document to show its certainty.
5. Unsecured Loans from persons other than directors are old outstanding loans which are subject to confirmation as complete details including addresses of such loanees are not available in most cases.
6. Note 2.15 to the financial statements describes the outstanding income tax demand of Rs. 1.83 crores which is unpaid. An appeal against the same is pending.
Report on Other Legal and Regulatory requirements
1. As required by the Companies (Auditors Report) Order, 2015(the Order) issued by the Central Government of India in terms of sub-section (11) of section 143 of the Companies Act, 2013 we give in the Annexure 1, a statement on the matters specified in paragraphs 3 and 4 of the Order, to the extent applicable.
2. As required by Section 143(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 purpose of our audit.
b) In our opinion, proper books of accounts 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 accounts.
d) In our opinion, the aforesaid 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 written representations received from directors as on 31 March, 2017 and taken on record by the Board of Directors, none of the directors is disqualified as on 31st March, 2017 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 Annexure 2.
g) With respect to the other matters to be included in the Auditors Report in accordance with Rule 11 of the Companies (Audit & Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us:
I. As given in Note on contingent liabilities, the company has disclosed the impact of pending litigations on its financial position.
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 required to be transferred to the Investor Education and Protection Fund by the Company.
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ForAmit K. Arora & Co. |
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Chartered Accountants |
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FRN 021372N |
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Sd/- |
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Amit Kumar Arora |
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Proprietor |
| Date:29.05.2019 |
M. No.-096831 |
| Place:Panchkula |
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Annexure 1 to the Auditors Report of even date to the members of M/s GLOBAL LAND MASTERS CORPORATION LIMITED (formerly known as M/s Bhoomi Infrastructures Corporation Limited) on the financial statements for the year ended 31.03.2019
On the basis of such checks as we considered appropriate and according to the information and Explanations given to us during the course of our audit, we report that:
(i) (a) The Company has maintained proper records showing full particulars, including quantitative details and situation of the fixed assets.
(b) During the year, fixed assets have been physically verified by the management as per the regular programme of verification which, in our opinion, is reasonable having regard to the size of the Company and the nature of its assets. As informed, no material discrepancies were noticed on such verification.
(c) Based on our audit procedures performed for the purpose of reporting the true and fair view of the financial statements and according to the information and explanations given by the management, title deeds of all the immovable properties are held in the name of the company.
(ii) As informed, the company does not have inventories. Accordingly, the provisions stated in paragraphs 3(ii)(a), 3(ii)(b) and 3(ii)(c) of the order are not applicable.
(iii) The Company has granted unsecured loans to companies covered in the register maintained under section 189 of the Act.
a. According to the information and explanations given to us and based on the audit procedures conducted by us, we are of the opinion that, the terms and conditions of the aforesaid loans granted by the Company, which are repayable on demand, are not prejudicial to the interest of the Company.
b. Since there is no stipulation as regards repayment of principal and interest, clause 3(iii)(b) is not applicable.
c. In respect of the aforesaid loans, there is no overdue amount of loans granted to companies listed in the register maintained under Section 189 of the Act.
(iv) In our opinion and according to the information and explanations given to us, the company has complied with the provisions of section 185 and 186 of Act, in respect of loans, investments, guarantees, and security to the extent applicable to it.
(v) As per information & explanation given by the management, the Company has not accepted any deposits from public within the meaning of the directives issued by the Reserve Bank of India, provisions of section 73 to 76 of Companies Act, 2013, any other relevant provisions of the Act and the relevant rules framed thereunder.
(vi) As informed to us, the company is not required to maintain cost records prescribed u/s 148(1) of the Companies Act, 2013.
(vii) (a) According to the information & explanation given to us and records of the company, undisputed statutory dues including Provident Fund, Investor Education and Protection Fund, Employees State Insurance, Income-tax, Sales-tax, Wealth Tax, Service Tax, Custom Duty, Excise Duty, cess to the extent applicable and any other statutory dues have generally been regularly deposited with the appropriate authorities. According to the information and explanations given to us there were no outstanding statutory dues as on 31st of March, 2019for a period of more than six months from the date they became payable payable except an outstanding income tax demand of Rs. 1.83 crores which is unpaid as the appeal against the said demand is pending before CIT(Appeals).
(b) According to the information and explanations given to us, there is no amounts payable in respect of income tax, wealth tax, service tax, sales tax, customs duty and excise duty which have not been deposited on account of any disputes except an income tax demand of Rs.1.83 crores which has not been deposited as there is an appeal pending before CIT(Appeals).
(c) The company has not declared any dividend so far, No amount is required to be transferred to Investor Education and Protection Fund.
(viii) 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, banks, Government or debenture holders as at the Balance Sheet date. Further, the company has not issued any debentures.
(ix) In our opinion, and according to the information and the explanation given to us, the company has not raised any moneys by way of public issue and money raised by way of term loans were applied for the purpose of which the loans were obtained.
(x) During the course of our examination of the books and records of the Company, carried out in accordance with the generally accepted auditing practices in India, and according to the information and explanation given to us, we have neither come across any instance of fraud by the Company or any fraud on the Company by its officers and employees, noticed or reported during the year, nor havewe been informed of any such instance by the management.
(xi) According to the information and explanation given to us, the managerial remuneration has been paid or provided in accordance with the requisite approvals mandated by the provisions of section 197read with Schedule V of the Companies Act, 2013.
(xii) In our opinion, and according to the information and explanations given to us, the company is not a Nidhi Company. Therefore, paragraph 3(xii) of the Order is not applicable to the Company.
(xiii) According to the information and explanation given to us, all the transactions entered into by the Company with the related parties are in compliance with Section 177 and 188 of act, where applicable and the details have been disclosed in the Financial Statements etc., as required by the applicable accounting standards.
(xiv) The Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year under review. Therefore, paragraph 3(xiv) of the Order is not applicable to the Company.
(xv) According to the information and explanation given to us, the Company has not entered into any non-cash transactions with directors or persons connected with him during the year.
(xvi) According to the information and explanation given to us, the Company is not required to be registered under Section 45-IA of the Reserve Bank of India Act, 1934.
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ForAmit K. Arora & Co. |
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Chartered Accountants |
|
FRN 021372N |
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Sd/- |
|
Amit Kumar Arora |
| Date:29.05.2019 |
Proprietor |
| Place:Panchkula |
M. No.-096831 |
Annexure 2 to the Auditors Report of even date to the members of M/s GLOBAL LAND MASTERS CORPORATION LIMITED (formerly known as M/s Bhoomi Infrastructures Corporation Limited). on the financial statements for the year ended 31.03.2019
[Referred to in paragraph 2(f) under Report on Other Legal and Regulatory Requirements in the Independent Auditors Report of even date to the members of M/s Global Land Masters Corporation Limited (formerly known as M/s Bhoomi Infrastructures Corporation limited) on the financial statements for the year ended March 31,2019]
Report on the Internal Financial Controls over Financial Reporting under Clause(i) of Sub-Section 3 of Section 143 of the Companies Act, 2013 (the Act)
We have audited the internal financial controls over financial reporting of Global Land Masters Corporation Limited (the Company) as of March 31, 2019in conjunction with our audit of the financial statements of the Company for the year ended on this date.
Managements Responsibility for Internal Financial Controls
The Companys 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 internal control stated in the Guidance Note of on Audit of Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India (ICAI). 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 companys policies, the safeguarding of its assets, the prevention and detection of fraud 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.
Auditors Responsibility
Our responsibility is to express an opinion on the Companys internal financial controls over financial reporting based on our audit. We conduct our audit in accordance with the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (the Guidance Note) and the Standards on Auditing specified under section 143(10) of the Act to the extent applicable to an audit of internal financial controls, both issued by the ICAI. 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 control system over financial controls 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 Auditors 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 Companys internal financial controls system over financial reporting.
Meaning of Internal Financial Controls Over Financial Reporting
A Companys internal financial controls 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 Companys internal financial controls over financial reporting includes those policies and procedures that (1) pertain to 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 authorizations of management and directors if the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the companys 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 internal financial controls over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies and procedures may deteriorate.
Opinion
In our opinion, the company has, in all material respects, an adequate internal financial control system over financial reporting and such internal financial controls over financial reporting were operating effectively as at March 31, 2018, based on the internal controls over financial reporting criteria established by the Company considering the essential components of internal controls stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the ICAI.
|
ForAmit K. Arora & Co. |
|
Chartered Accountants |
|
FRN 021372N |
|
Sd/- |
|
Amit Kumar Arora |
| Date:29.05.2019 |
Proprietor |
| Place : Panchkula |
M. No.-096831 |
+91-9892691696
