| we have Audited the attached Balance sheet of Global Industries Ltd. as
at 31st March 2005 and also the Profit and Loss Account for the year
ended on that date annexed thereto. These financial statement are the
responsibility of the companys management. Our responsibility is to
express an opinion on these financial statement based on these
financial statements based on our audit.
we conducted our audit in accordance with auditing standard generally
accepted in India. Those standards requires that we plan and perform
the audit to obtain reasonable assurance about whether the financial
statement are free of material misstatement. An audit include
examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statement. 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 provided a reasonable basis for
our opinion.
As required by the Companis (Auditors Report) order, 2003 issued by
the Central Government of India in term of sub- section (4a) of section
227, we enclose in the annexure a statement on the matters specified in
paragraphs 4 and 5 of the said order.
Further to our comments in the Annexure reffered 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 account as required by law have
been kept by the company so far as appears from our examination of
those book.
iii ) The Balance sheet and profit and Loss Account dealt with by this
report are in agreement with the books of account .
iv) In our opinion, the Balance sheet and Profit and Loss Account dealt
and Cash Flow statement dealt with the accounting standards referred to
in sub-section (3C) of section 211 of the Companies Act 1956.
v ) During the year no interest has been providad on the balance Term
loans after adjustment of sale proceeds of auction of the project by
HSIDC and Working Capital Loans and interest amount to Rs. 81,08,710/-
during the year and if the same had been provided., the loss would have
increased by Rs. 81,08,710/-
vi) On the basis of written representation received from the director,
as on 31st March, 2005, and taken on record by the Board of Directors
no Director is disqualified as on 31st March, 2005 from being appointed
as a director in term 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 principle
generally accepted in India.
(a) in the case of the Balance sheet, of the state of affairs of the
company as at 31st March 2005 and
(b) in the case of Proft and loss Account, of the loss for the year
ended on that date.
(c) in the case of the cash Flow statement, of the Cash Flows for the
year ended on that date.
ANNEXURE TO THE AUDITORS REPORT OF GLOBAL INDUSTRIES LIMITED FOR THE
YEAR ENDED 31ST MARCH,2005
Referred to in Paragraph of our Report of even date)
1. In respect of fixed assets of the Company:-
(a) All the fixed assets have already been disposed off during the
previous years itself through auction by HSIDC invoking the provisions
of section 29 of the State Finance Act, 1951 and as such the company
does not any assets.
(b) Hence the Company is not having any fixed assets, the provisions of
clause 4 (i)(a) of the CompaniesAuditorsReport) Order 2003 is not
applicable to the Company.
(c) The Company has lost its status of going concern.
2. The Company is not carrying any activity of producing,manufacturing
or trading and also not holding any inventory during the year. Hence
the provisions of clause 4 (ii)(a).(b) and (c) of the
Companies(AuditorsReport) Order 2003 is not applicable.
3. During the year the company has not granted any loan secured or
unsecured to the companies.firms or other parties covered under section
301 of the Companies Act. 1956. Hence the provisions of clause
3(a).(b) and (c) of the Comparues(AuditorsReport)
Order 2003 arc not applicable.
However, the company has taken unsecured loans amounting to Rs.
31.27.184/- from Mr. R. P. Singh Director of the Company as on 31 st
March. 2()O5(frcc of intcrcst.Thc terms and conditions arc not
prejudicial to the Company.
(e) The rate of interest and terms & conditions arc not prima facia
prcjuudicial to the interest of the Company.
(f) The payment of principal & interest is not regular.
(g) The amount is overdue. As per information and explanations given to
us. the Company has taken reasonable steps for the the payment of
principal & interest.
4. In our opinion and according to the infomration and explanations
given to us. there are adequate internal control procedures,
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. During the course of the audit no major weakness has
been notice in the internal control system.
5.(a) According to information and explanation given to us. we are of
the opinion that the particulars of contracts or arrangements that need
to be entered into the register maintained under section 301 of the
Companies Act, 1956 have been so entered.
5(b). In our opinion and according to the information and explanations
given to us, no transactions have been made in pursuance of contracts
or arrangements entered in the register maintained under section 301 of
the Companies Ad 1956 and exceeding the value of rupees five lakhs w
respect of concerned parties during the year, because the Company is
not doing any activity of producing.manufacturing or trading.
6. The Company has not accepted any deposits within the meaning of
section 58 A of the Companies Act. 1956.
7. In our opinion, the company has an internal audit system
commensurate with the size and nature of its business.
8. The Govt. has not prescribed the Cost Audit under section 209
(l)(d) of the Companies Act 1956. Further, the Company is not
producing,manufacturing or trading.hencc cost records are not required
to be maintained under section 20% 1 )(d) of the Companies Act 1956.
9(a). According to the records of the Company, it is regular in
depositing with appropriate authorities undisputed stutory dues
including provident fund.lnvestor Education and Protection Fund.
Employees State Insurance, Income Tax, Sales Tax,Wealth Tax.Service
tax,Custom Duty, Excise Duty.Cess and other applicable statutory dues.
9(b) According to the information and explanations given to us, there
is no undisputed amounts payable in respect of Income Tax. Sales Tax.
Wealth Tax. Service Tax.Custom Duty, Excise Duty and Cess as al the
year end for a period more than six months from the date they become
payable.
9(c) According to the information and explanations given to us, there
are no dues of custom duty, wealth tax and cess, which have not been
deposited on account of any dispute.
10. In our opinion, accummulated losses of the Company are much more
than its net worth. The Company has incurred cash losses in the
financial year under report and in the immediately preceding financial
year.
11. The Company has defaulted in the repayment of dues to Banks or
Financial Institutions. Further. HSIDC have auctioned the entire
floriculture project of the Company in the financial year 2002-03 ,
invoking the provisions of section 29 of the State Financial
Corporation Act, 1951.
12. The Company has not granted loans and advances on the basis of
security by way of pledge of shares, debentures and olhcr securities.
13. The Company is not a chit fund. Nidhi or Mutual Benefit
Funds/Society. Therefore, the provisions of clause 4 (xiii) of llic
Companies(AuditorsRcporl) Order 2003 are not applicable lo the
Company.
14. The Company has not dealt or traded in shares.securites,
debentures and other investments during the year. However, it has
maintained proper records in respect of shares.securites, debentures
and other investments.
15. According to the information and explanations given to us, the
Company has not given any guarantee during the yearior loans taken by
others from Banks or Financial Institutions.
16. The Company has neither raised any term loan during the year nor
any unutilised amount was left on this account,as at the beginning of
the year. Therefore, the provisions of clause 4 (xvi) of the
Companies(Auditor1sReport) Order 2003 are not applicable to the
Company.
17. According to the information and explanations given to us. and on
an overall examination of the Balance Sheet of the Company, we report
that the fund raised on short term basis have not been used for long
term investments .
18. The Company has not made preferential allotment of equity shares to
parties and companies covered in the Register maintained under section
310 of the Companies Act. 1956. Therefore the provisions of clause 4
(xviii) of the Companies(AuditorsReport) Order 2003 are not applicable
to the Company.
19. No debentures were issued during the year. Hence the provisions
of clause 4 (xix) of the CompaniesAuditorsReport) Order 2003 are not
applicable to the Company.
20. The Company has not raised any money by public issue during the
year.Hence the provisions of clause 4 (xx) of the
Companics(AuditorsRcport) Order 2003 are not applicable to the
Company.
21 To the best of our know ledge and belief and according to the
information and explanations given to us., no fraud on or by the
company have been noticed or reported during the year
For S. S. Bhardwaj And Associates
Chartered Accountants
Place : New Delhi S. S. Sharma
Date : 11th August 2005 Partner | 