We have audited the accompanying financial statements of GLOBALSPACE TECHNOLOGIES LIMITED ("the Company"), which comprise the Balance Sheet as at March 31, 2024, the Statement of Profit and Loss (including other comprehensive Income), the statement of Cash Flow and the statement of Changes in Equity for the year then ended and a summary of the significant accounting policies and notes to financial statement and other explanatory information (herein after referred to as "financial statements").
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid financial statements give the information required by the Companies Act, 2013 ("the Act") in the manner so required and give a true and fair view in conformity with the Indian Accounting Standards prescribed under section 133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015, as amended, ("Ind AS") and other accounting principles generally accepted in India, of the state of affairs of the Company as at March 31, 2024, and its profit and total comprehensive income, changes in equity and its cash flows for the year ended on that date.
Basis for Opinion
We conducted our audit of the financial statements in accordance with the Standards on Auditing specified under section 143(10) of the Act (SAs). Our responsibilities under those Standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statements section of our report. We are independent of the Company in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India (ICAI) together with the independence requirements that are relevant to our audit of the standalone financial statements under the provisions of the Act and the Rules made thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the ICAI's Code of Ethics. 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.
Key Audit Matters:
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the financial statements of the current period. These matters were addressed in the context of our audit of the financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.
Description of Key Audit Matters
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Key audit matter
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How the matter was addressed in our audit
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Company has raised the Equity Capital through Right Issue
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During the year the Company has issued and allotted 2,29,13,202 shares through Right issue. The Net issue Proceeding through such issue is 2749.58 lacs.
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Additional Fund raised via the Right issue used for Repayment of Loans & Additional Working Capital Requirements.
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Change in Revenue of Holing company than 25% compared to previous year
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Revenue for the financial year has increased from Rs. 1926.85 lakhs to Rs. 2,904.80 lakhs. The change in revenue is upwards by approximately 51%. Compared to previous financial year.
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• In view of the significance of the ma er we applied the following audit procedures in this area, among others to obtain sufficient appropriate audit evidence:
• evaluating the design, implementation and opera ng effectiveness of internal controls relating to computing of revenue and accounting of sales
• obtaining an understanding and justification from the designated management personnel for reasons for such considerable increase in the revenue.
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Old Sales are reversal under exceptional item
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During the Year, the Company has reversed the old Sales which was booked in the previous year amounted to Rs. 385.66 Lacs.
The Impact of the same has been given in the books of Accounts under exceptional item in Statement of Profit & Loss Account.
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• In view of the significance of the matter we applied the following audit procedures in this area, among others to obtain sufficient appropriate audit evidence:
• evaluating the design, implementation and operating effectiveness of internal controls relating to computing of revenue and accounting of sales.
• obtaining an understanding and justification from the designated management personnel for reasons for reversing such major sales invoices.
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Delay in payment of Statutory Liability During the Year:
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During the year under Audit, we have observed that the Company is not regular in depositing Statutory liabilities with in due date.
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Irregularities are persisting during the year under audit and we had advised the company to regularize the same.
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Weak Internal Control & Missing Audit Trail:
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The company has a weak Internal Control system in relation to the size of the organization. There was notice lack of trail in the system and Audit trail feature are not enable during the year under rule 11(g) of the Companies rules, 2014.
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The company has to implement the Audit Trail though out the year and also has to improve the Internal Control System.
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Evaluation of tax positions and litigations (See note 2(o) & 37 to the standalone financial statements)
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Refer to Note 2(o) to the standalone financial statements -"Contingent Liabilites" and Note 37 to the standalone financial statements - "Commitments and contingencies"
The Company was issued a GST summons by the GST department on 05.03.2021, to appear in person before the GST Superintendent officer and tender oral evidence and details as required. Further, there is no official notice or communication issued by the GST department thereafter.
During the year the Sales Tax ma er and Income Tax matters pertaining to FY 2013-14 and FY 2014-15, respectively which were disputed are closed And there is Income Tax intimation with tax demand for FY 2020-21.
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• In view of the significance of the matter we applied the following audit procedures in this area, among others to obtain sufficient appropriate audit evidence:
• testing the design, implementation and operating effectiveness of the Company's key controls over identifying uncertain tax positions and maters involving liti'gati'ons/disputes.
• obtaining details of tax positions and tax litigations for the year and as at 31 March 2023 and holding discussions with designated management personnel.
• assessing and analyzing select key correspondences with tax authorities and inspecting external legal opinions obtained by management for key uncertain tax positions/ and tax litigations.
• evaluating underlying evidence and documentation to determine whether the information provides a basis for amounts reserved / not reserved in the books of account.
• in respect of tax positions and litigations, assessing the computation of provisions and consequent impact on related accounting and disclosures in the standalone financial statements.
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Information Other than the Financial Statements and Auditor's Report Thereon
The Company's Board of Directors is responsible for the preparation of the other information. The other information comprises the information included in the Management Discussion and Analysis, Board's Report including Annexures to Board's Report, Business Responsibility Report, Corporate Governance and Shareholder's Information, but does not include the financial statements and our auditor's report thereon.
Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained during the course of our audit or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this other information; we are required to report that fact. We have nothing to report in this regard.
Management's Responsibility for the Financial Statements
The Company's Board of Directors is responsible for the matters stated in section 134(5) of the Act with respect to the preparation of these financial statements that give a true and fair view of the financial position, financial performance, total comprehensive income, changes in equity and cash flows of the Company in accordance with the accounting principles generally accepted in India including the Indian Accounting Standards (Ind AS) prescribed under Section 133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015, as amended.
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.
In preparing the financial statements, management is responsible for assessing the Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so. The Board of Directors are also responsible for overseeing the Company's financial reporting process.
Auditor's Responsibility for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with SAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these standalone financial statements.
A further description of our responsibilities for the audit of the financial statements is included in "Appendix I" of this auditor's report.
For BANSILAL SHAH & CO Chartered Accountants FRN.No: 000384W
DHRUVSHAH Partner
Membership No. : 223609 Place: Mumbai Date: 30th May, 2024 UDIN : 24223609BKEZMJ7828
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