We have audited the accompanying Standalone financial statements of GLOBALSPACE
TECHNOLOGIES LIMITED (“the Company”), which comprise the Balance Sheet as at March 31,
2025, 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, 2025, 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 in accordance with the Standards on Auditing (SAS) specified under section
143(10) of the Companies Act, 2013, as amended ("the Act"). Our responsibilities under those
Standards are further described in the "Auditor's Responsibilities for the Audit of the Standalone
Financial Results" 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 together with the ethical
requirements that are relevant to our audit of the financial statements under the provisions of the Act
and the Rules thereunder, and we have fulfilled our other ethical responsibilities in accordance with
these requirements and the Code of Ethics. We believe that the audit evidence obtained by us 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 Matter
|
Revenue Recognition: Revenue from IT Services & Trading IT Product
Refer to the accounting policies in the financial statements.
Significant Accounting Policy 2.3 - Revenue Recognition and Note 2.3 to the financial statements -
Revenue from Operations
|
|
Key audit matter
|
How the matter was addressed in our audit
|
|
Revenue from IT Services & Trading
are the most significant account balance
in the statement of profit and loss.
We have identified revenue from
management fees as a key audit matter
since -
- There are No inherent risks in
computation of Revenue from IT
Services & Trading due to system
taken input of key contractual terms
and computation of applicable,
which could result in no errors.
- Revenue from IT Services &
Trading are accounted for on
accrual basis in accordance with the
Various Services Provided to the
Vendor as per the respective
Agreement.
|
Our audit procedures included the following:
Testing of design and operating effectiveness of controls:
• Understood and evaluated the design and
implementation of management controls and other key
controls relating to recognition of Revenue from IT
Services & Trading.
• Test checked the operating effectiveness of
management controls, and other key controls over
recognition of Revenue from IT Services & Trading.
• Involved our information technology (“IT”) specialists
to test general information technology controls of the
systems used for computation and recording of
management fees. Further, tested IT controls with
respect to input and changes of Services & Trading
Revenue rates and logic of computation.
Substantive tests
• Evaluated recognition of revenue in respect of Revenue
from IT Services & Trading based on the requirements
of Ind AS 115.
• Test checked Revenue from IT Services & Trading rates
were approved by authorized personnel.
• Test checked key inputs into the IT systems back to
source documents, and re-performed on a sample basis.
• Test checked the Revenue from IT Services & Trading
invoices and reconciled with the accounting records.
• Test checked the receipts of Revenue from IT Services
& Trading income in the bank statements.
• Obtained and read the quarterly concurrent auditor
reports on daily net assets value computation of the
Revenue from IT Services & Trading.
Evaluated the adequacy of disclosures relating to the
Revenue from IT Services & Trading in the financial
statements.
|
|
Delay in payment of Statutory Liability During the Year:
|
|
During the year under Audit, we have
observed that the Company is not
regular in depositing Statutory liabilities
with in due date.
|
Irregularities are persisting during the year under audit and
we had advised the company to regularize the same.
|
|
Weak Internal Control & Missing Aut
|
it Trail:
|
|
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.
|
The company has to implement the Audit Trail though out
the year and also has to improve the Internal Control
System.
|
|
Evaluation of tax positions and litigations (See note 2(o) & 37 to the standalone financial
statements)
|
|
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.
|
• 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:
• testing the design, implementation and
opera ? ng effectiveness of the Company's key
controls over identifying uncertain tax
positions and maters involving
litigations/disputes.
• obtaining details of tax positions and tax
litigations for the year and as at 31 March 2025
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.
|
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
Dhruv Shah
Partner
Membership Number 223609
Place: Mumbai
Date: 23rd May 2025
UDIN: 25223609BMIBQN9428
|