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Auditor Report of Cindrella Hotels Ltd.

Mar 31, 2015

We have audited the accompanying financial statements of Cindrella Hotels Limited ("the Company"), which comprise the Balance Sheet as at March 31, 2015, and the Statement of Profit and Loss and Cash Flow Statement for the year then ended, and a summary of significant accounting policies and other explanatory information.

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) read with the General Circular 15/2013 dated 13th September, 2013 of the Ministry of Corporate Affairs in respect of Section 133 of the Companies Act, 2013 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.

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 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 ac- counting policies used and the reasonableness of the accounting estimates made by 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 audit 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 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 March 31, 2015;

b) in the case of the Profit and Loss Account, of the profit/ loss for the year ended on that date; and

c) in the case of the Cash Flow Statement, of the cash flows for the year ended on that date.

1. As required by the Companies (Auditor's Report) Order, 2015 ("the Order") issued by the Central Government of India in exercise of the powers conferred by sub-section (11) of section 143 of the Companies Act, 2013 (18 of 2013 ) 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) 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) 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) 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".

(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 does not have any pending litigations which would impact 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 which were required to be transferred to the Investor Education and Protection Fund by the Company.

(i) (a) whether the company is maintaining proper records showing full particulars Ye slars, including quantitative details and situation of fixed assets;

(b) whether these fixed assets have been physically verified by the management at reasonable intervals; whet her any material discrepancies were noticed on such verification and if so, whether the same have been properly dealt with in the books of account;

(a) whether physical verification or inventory has been conducted at reason- Ye s (ii) able intervals by the management;

(b) are the procedures of physical verification of inventory followed by the Ye s management reasonable and adequate in relation to the size of the company and the nature of its business If not, the inadequacies in such procedures should be reported;

Yes, no material

(c) whether the company is maintaining proper record s of inventory and discrepancies whether any material discrepancies were noticed on physical verification and were notice on if so, whether the same have been properly dealt with in the books of ac- physical verification count;

(iii) whether the company has granted any loans, secured or unsecured to companies, firms or other parties covered in the register maintained under section 189 of the Companies Act. If so,

(a) whether receipt or the principal amount and interest are also regular No and

(b) if overdue amount is more than rupees one lakh, whether reason- able steps have been taken by the company for recovery of the principal and interest;

(iv) is there an adequate internal control system commensurate with the size of the company and the nature of its business, for the purchase of inventory and Ye s fixed assets and for the sale of goods and services. Whether there is a continuing failure to correct major weaknesses in internal control system. in case the company has accepted deposits, whether the directives issued by (v) the Reserve Bank of India and the provisions of sections 73 to 76 or any other relevant provisions of the Companies Act and the rules framed there Not under, where applicable, have been complied with? if not, the nature of Applicable contraventions should be stated; If an order has been passed by Company Law Board or National Company Law Tribunal or Reserve Bank of India or any court or any other tribunal, whether the same has been complied with or not?

(vi) where maintenance of cost records has been specified by the Central Government Not under sub-section (1) of section 148 of the Companies Act, whether Applicable such accounts and records have been made and maintained

(vii) (a) is the company regular in depositing undisputed statutory dues including provident fund, employees' state insurance, income-tax, sales-Lax, wealth tax, service tax, duty of customs, duty of excise, value added tax, cess and any Ye s other statutory dues with the appropriate authorities and if not, the extent of the arrears of outstanding statutory dues as at the last day of the financial

year concerned for a period of more than six months from the date they became payable, shall be indicated by the auditor

(b) in case dues of income tax or sales tax or wealth tax or service tax or duty of customs or duty of excise or value added tax or cess have not been Not deposited on account of any dispute, then the amounts involved and the Applicable forum where dispute is pending shall be mentioned. (A mere representation to the concerned Department shall not constitute a dispute).

(c) whether the amount required to be transferred to investor education

Not and protection fund in accordance with the relevant provisions of the Applicable Companies Act, 1956 ( 1 of 1956) and rules made there under has been transferred to such fund within time.

(viii) whether in case of a company which has been registered for a period not

Not less than five years, its accumulated losses at the end of the financial year Applicable are not less than fifty per cent of its net worth and whether it has incurred cash losses in such financial year and in the immediately preceding financial year; whether the company has defaulted in repayment of dues to a financial

(ix) No institution or bank or debenture holders? If yes, the period and amount of default to be reported;

whether the company has given any guarantee for loans taken by others

(x) No from bank or financial institutions, the terms and conditions whereof are prejudicial to the interest of the company;

whether term loans were applied for the purpose for which the loans were Ye s (xi) obtained;

(xii) whether any fraud on or by the company has been noticed or reported Ye s during the year; If yes, the nature and the amount involved is to be indicated.

AUDITORS' REPORT In terms of our separate Report of even date annexed hereto.

FOR AGARWAL MAHESH KUMAR & CO.

For & on Behalf of the Board

CHARTERED ACCOUNTANTS

For & on Behalf of the Board

[ CA PMRO.KP.R AI EGTAORRWAL ] (Sangita Devi Baid)

PLACE :: KOLKATA(CAMP) DIRECTOR

DATED :: 29.05.15 (Vivek Baid)

DIRECTOR


Mar 31, 2014

We have audited the accompanying financial statements of Cindrella Hotels Limited ("the Company"), which comprise the Balance Sheet as at March 31, 2014, and the Statement of Profit and Loss and Cash Flow Statement for the year then ended, and a summary of significant accounting policies and other explanatory information.

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) read with the General Circular 15/ 2013 dated 13th September, 2013 of the Ministry of Corporate Affairs in respect of Section 133 of the Companies Act, 2013 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.

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 disclosures in the financial statements. The procedures selected depend on the auditor''s judgment, including the assess- ment 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 prepa- ration and fair presentation of the financial statements in order to design audit procedures that are appropri- ate 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 accounting policies used and the reasonableness of the accounting estimates made by 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 audit 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 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 March 31, 2014;

b) in the case of the Profit and Loss Account, of the profit/ loss for the year ended on that date; and

c) in the case of the Cash Flow Statement, of the cash flows for the year ended on that date.

1. As required by the Companies (Auditor''s Report) Order, 2003 ("the Order") issued by the Central Government of India 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 purpose of our audit;

b) 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 books

c) the Balance Sheet, Statement of Profit and Loss, and Cash Flow Statement dealt with by this Report are in agreement with the books of account.

d) in our opinion, the Balance Sheet, Statement of Profit and Loss, and Cash Flow Statement comply with the Accounting Standards notified under the Act read with the General Circular 15/2013 dated 13th September, 2013 of the Ministry of Corporate Affairs in respect of Section 133 of the Companies Act, 2013.

e) on the basis of written representations received from the directors as on March 31, 2014, taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2014, from being appointed as a director in terms of section 274(1)(g) of the Act.

ANNEXURE-"A"

(To the Auditors Report)

As required by the Companies ( Auditor''s report) Order, 2003 ( as amended in 2005) issued by the Central Government in terms of Section 143 of the Companies Act, 2013 and on the basis of such checking of the books and records of the company as we consider appropriate and the information''s and explanations given to us in course of audit, we report that:

S.No Particulars Comment

(i) (a) whether the company is maintaining proper records showing full particulars, including Yes quantitative details and situation of fixed assets;

(b) whether these fixed assets have been physically verified by the management at Yes reasonable intervals; whether any material discrepancies were noticed on such verification and if so, whether the same have been properly dealt with in the books of account;

(c) if a substantial part of fixed assets have been disposed off during the year, whether No it has affected the going concern;

(ii) (a) whether physical verification of inventory has been conducted at reasonable intervals Yes by the management;

(b) are the procedures of physical verification of inventory followed by the management Yes reasonable and adequate in relation to the size of the company and the nature of its business.

If not, the inadequacies in such procedures Yes. No should be reported; material (c) whether the company is maintaining proper discrepancies records of inventory and whether any were noticed material discrepancies were noticed on on physical physical verification and if so, whether verification. the same have been properly dealt with in the books of account;

(iii) (a) has the company either granted or taken Yes. The any loans, secured or unsecured to/from Company has companies, firms or other parties covered taken unsecured in the register maintained under section loan from 301 of the Act. If so, give the number Cindrella of parties and amount involved in the Financial transactions. Services Ltd. to the tune of Rs. 25,65,424.00

(b) whether the rate of interest and other terms and conditions of loans given or No taken by the company, secured or unsecured, are prima facie prejudicial to the interest of the company; Yes

(c) whether payment of the principal amount and interest are also regular; Yes

(d) if overdue amount is more than one lakh, whether reasonable steps have been taken by Yes the company for recovery/payment of the principal and interest;

(iv) is there an adequate internal control procedure commensurate with the size of the company Yes and the nature of its business, for the purchase of inventory and fixed assets and for the sale of goods. Whether there is a continuing failure to correct major weaknesses in internal control;

(v) (a) whether transactions that need to be entered into a register in pursuance of section 301 Yes of the Act have been so entered;

(b) whether each of these transactions have been made at prices which are reasonable having Yes regard to the prevailing market prices at the relevant time;

(This information is required only in case of transactions exceeding the value of five lakh rupees in respect of any party and in any one financial year).

(vi) in case the company has accepted deposits from the public, whether the directives issued by Not Applicable the Reserve Bank of India and the provisions of sections 58A and 58AA of the Act and the rules framed there under, where applicable, have been complied with. If not, the nature of contraventions should be stated; If an order has been passed by Company Law Board whether the same has been complied with or not?

(vii) in the case of listed companies and/or other companies having a paid-up capital and reserves Yes exceeding Rs.50 lakhs as at the commencement of the financial year concerned, or having an average annual turnover exceeding five crore rupees for a period of three consecutive financial years immediately preceding the financial year concerned, whether the company has an internal audit system commensurate with its size and nature of its business;

(viii) where maintenance of cost records has been prescribed by the Central Government under clause (d) of sub-section (1) of section 209 of the Act, whether such accounts and records Not Applicable have been made and maintained;

(ix) (a) is the company regular in depositing undisputed statutory dues including Yes Provident Fund, Investor Education and Protection Fund, Employees'' State Insurance, Income-tax, Sales-tax, Wealth Tax, Custom Duty, Excise Duty, cess and any other statutory dues with the appropriate authorities and if not, the extent of the arrears of outstanding statutory dues as at the last day of the financial year concerned for a period of more than six months from the date they became payable, shall be indicated by the auditor.

(b) in case dues of sales tax/income tax/custom tax/wealth tax/excise duty/cess have not Not Applicable been deposited on account of any dispute, then the amounts involved and the forum where dispute is pending may please be mentioned.

(A mere representation to the Department shall not constitute the dispute).

(x) whether in case of a company which has been registered for a period not less than five No years, its accumulated losses at the end of the financial year are not less than fifty percent of its net worth and whether it has incurred cash losses in such financial year and in the financial year immediately preceding such financial year also;

(xi) whether the company has defaulted in repayment of dues to a financial institution or bank or Not Applicable debenture holders? If yes, the period and amount of default to be reported;

(xii) whether adequate documents and records are maintained in cases where the company has Not Applicable granted loans and advances on the basis of security by way of pledge of shares, debentures and other securities; If not, the deficiencies to be pointed out.

(xiii) whether the provisions of any special statute applicable to chit fund have been Not Applicable duly complied with? In respect of nidhi/ mutual benefit fund/societies;

(a) whether the net-owned funds to deposit liability ratio is more than 1:20 as Not Applicable on the date of balance sheet;

(b) whether the company has complied with the prudential norms on income Not Applicable recognition and provisioning against sub-standard/default/loss assets;

(c) whether the company has adequate procedures for appraisal of credit Not Applicable proposals/requests, assessment of credit needs and repayment capacity of the borrowers;

(d) whether the repayment schedule of various loans granted by the nidhi is Not Applicable based on the repayment capacity of the borrower and would be conducive to recovery of the loan amount;

(xiv) if the company is dealing or trading in shares, securities, debentures and other investments, whether proper records have been maintained of the transactions and contracts and whether Not Applicable timely entries have been made therein; also whether the shares, securities, debentures and other securities have been held by the company, in its own name except to the extent of the exemption, if any, granted under section 49 of the Act;

(xv) whether the company has given any guarantee for loans taken by others from bank or financial No institutions, the terms and conditions where of are prejudicial to the interest of the company;

(xvi) whether term loans were applied for the purpose for which the loans were obtained; Not Applicable

(xvii) whether the funds raised on short-term basis have been used for long term investment and vice versa; If yes, the nature and amount is to be indicated; No

(xviii) whether the company has made any preferential allotment of shares to parties and companies covered in the Register maintained under section 301 of the Act and if so whether the No price at which shares have been issued is prejudicial to the interest of the company;

(xix) whether securities have been created in respect of debentures issued? No

(xx) whether the management has disclosed on the end use of money raised by public issues and the Not Applicable same has been verified;

(xxi) whether any fraud on or by the company has been noticed or reported during the year; If yes, No the nature and the amount involved is to be indicated.

FOR AGARWAL MAHESH KUMAR & CO. CHARTERED ACCOUNTANTS PLACE :: KOLKATA (CAMP) DATED :: 29.05.14 [CA M.K. AGARWAL] PROPRIETOR


Mar 31, 2013

We have audited the accompanying financial statements of Cindrella Hotels Limited ("the Company"), which comprise the Balance Sheet as at March 31, 2013, and the Statement of Profit and Loss and Cash Flow Statement for the year then ended, and a summary of significant accounting policies and other explanatory information.

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 referred to in sub-section (3C) of section 211 of the Companies Act, 1956 ("the Act"). 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.

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 misstate- ment.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor''s judgment, including the assess- ment 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 prepa- ration and fair presentation of the financial statements in order to design audit procedures that are appropri- ate in the circumstances. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by 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 audit 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 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 March 31, 2013;

b) in the case of the Profit and Loss Account, of the profit/ loss for the year ended on that date; and

c) in the case of the Cash Flow Statement, of the cash flows for the year ended on that date.

1. As required by the Companies (Auditor''s Report) Order, 2003 ("the Order") issued by the Central Government of India in terms of sub-section (4A) of section 227 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 purpose of our audit;

b) 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 books

c) the Balance Sheet, Statement of Profit and Loss, and Cash Flow Statement dealt with by this Report are in agreement with the books of account.

d) in our opinion, the Balance Sheet, Statement of Profit and Loss, and Cash Flow Statement comply with the Accounting Standards referred to in subsection (3C) of section 211 of the Companies Act, 1956;

e) on the basis of written representations received from the directors as on March 31, 2013, and taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2013, from being appointed as a director in terms of clause (g) of sub-section (1) of section 274 of the Companies Act, 1956.

f) Since the Central Government has not issued any notification as to the rate at which the cess is to be paid under section 441A of the Companies Act, 1956 nor has it issued any Rules under the said section, prescribing the manner in which such cess is to be paid, no cess is due and payable by the Company.

As required by the Companies ( Auditor''s report) Order, 2003 ( as amended in 2005) issued by the Central Government in terms of Section 227 (4A) of the Companies Act, 1956 and on the basis of such checking of the books and records of the company as we consider appropriate and the information''s and explanations given to us in course of audit, we report that:

(i) (a) whether the company is maintaining proper records showing full particulars, including quantitative details and situation of fixed assets;

(b) whether these fixed assets have been physically verified by the management at reasonable intervals; whether any material discrepancies were noticed on such verification and if so, whether the same have been properly dealt with in the books of account;

(c) if a substantial part of fixed assets have been disposed off during the year, whether it has affected the going concern;

(ii) (a) whether physical verification of inventory has been conducted at reasonable intervals by the management;

(b) are the procedures of physical verification of inventory followed by the management reasonable and adequate in relation to the size of the company and the nature of its business. If not, the inadequacies in such procedures should be reported;

(c) whether the company is maintaining proper records ot inventory and whether any material discrepancies were noticed on physical verification and if so, whether the same have been properly dealt with in the books of account;

(in) (a) has the company either granted or taken any loans, secured or unsecured to/from companies, firms or other parties covered in the register maintained under section 301 of the Act. If so, give the number of parties and amount involved in the transactions.

(b) whether the rate of interest and other terms and conditions of loans given or taken by the company, secured or unsecured, are prima facie prejudicial to the interest of the company;

(c) whether payment of the principal amount and interest are also regular;

(d) if overdue amount is more than one lakh, whether reasonable steps have been taken by the company for recovery/payment of the principal and interest;

(iv) is there an adequate internal control procedure 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. Whether there is a continuing failure to correct major weaknesses in internal control;

(v) (a) whether transactions that need to be entered into a register in pursuance of section 301 of the Act have been so entered;

(b) whether each of these transactions have been made at prices which are reasonable having regard to the prevailing market prices at the relevant time;

(This information is required only in case of transactions exceeding the value of five lakh rupees in respect of any party and in any one financial year).

(vi) in case the company has accepted deposits from the public, whether the directives issued by the Reserve Bank of India and the provisions of sections 58A and 58AA of the Act and the rules framed there under, where applicable, have been complied with. If not, the nature of contraventions should be stated; If an order has been passed by Company Law Board whether the same has been complied with or not

(vii) in the case of listed companies and/or other companies having a paid-up capital and reserves exceeding Rs.50 lakhs as at the commencement of the financial year concerned, or having an average annual turnover exceeding five crore rupees for a period of three consecutive financial years immediately preceding the financial year concerned, whether the company has an internal audit system commensurate with its size and nature of its business;

(viii) where maintenance of cost records has been prescribed by the Central Government under clause (d) of sub-section (1) of section 209 of the Act, whether such accounts and records have been made and maintained;

(ix) (a) is the company regular in depositing undisputed statutory dues including Provident Fund, Investor Education and Protection Fund, Employees'' State Insurance, Income-tax, Sales-tax, Wealth Tax, Custom Duty, Excise Duty, cess and any other statutory dues with the appropriate authorities and if not, the extent of the arrears of outstanding statutory dues as at the last day of the financial year concerned for a period of more than six months from the date they became payable, shall be indicated by the auditor.

(b) in case dues of sales tax/income tax/custom tax/wealth tax/excise duty/cess have not been deposited on account of any dispute, then the amounts involved and the forum where dispute is pending may please be mentioned.

(A mere representation to the Department shall not constitute the dispute).

(x) whether in case of a company which has been registered for a period not less than five years, its accumulated losses at the end of the financial year are not less than fifty per cent of its net worth and whether it has incurred cash losses in such financial year and in the financial year immediately preceding such financial year also;

(xi) whether the company has defaulted in repayment of dues to a financial institution or bank or debenture holders If yes, the period and amount of default to be reported;

(xii) whether adequate documents and records are maintained in cases where the company has granted loans and advances on the basis of security by way of pledge of shares, debentures and other securities; If not, the deficiencies to be pointed out.

(xiii) whether the provisions of any special statute applicable to chit fund have been duly complied with In respect of nidhi/ mutual benefit fund/societies;

(a) whether the net-owned funds to deposit liability ratio is more than 1:20 as on the date of balance sheet;

(b) whether the company has complied with the prudential norms on income recognition and provisioning against sub-standard/default/loss assets;

(c) whether the company has adequate procedures for appraisal of credit proposals/ requests, assessment of credit needs and repayment capacity of the borrowers;

(d) whether the repayment schedule of various loans granted by the nidhi is based on the repayment capacity of the borrower and would be conducive to recovery of the loan amount;

(xiv) if the company is dealing or trading in shares, securities, debentures and other investments, whether proper records have been maintained of the transactions and contracts and whether timely entries have been made therein; also whether the shares, securities, debentures and other securities have been held by the company, in its own name except to the extent of the exemption, if any, granted under section 49 of the Act;

(xv) whether the company has given any guarantee for loans taken by others from bank or financial institutions, the terms and conditions whereof are prejudicial to the interest of the company;

(xvi) whether term loans were applied for the purpose for which the loans were obtained;

(xvii) whether the funds raised on short-term basis have been used for long term investment and vice versa; If yes, the nature and amount is to be indicated;

(xviii) whether the company has made any preferential allotment of shares to parties and companies covered in the Register maintained under section 301 of the Act and if so whether the price at which shares have been issued is prejudicial to the interest of the company;

(xix) whether securities have been created in respect of debentures issued

(xx) whether the management has disclosed on the end use of money raised by public issues and the same has been verified;

(xxi) whether any fraud on or by the company has been noticed or reported during the year; If yes, the nature and the amount involved is to be indicated.

FOR AGARWAL MAHESH KUMAR & CO.

CHARTERED ACCOUNTANTS

PLACE :: KOLKATA (CAMP)

DATED :: 31.05.13 CA M.K. AGARWAL

PROPRIETOR


Mar 31, 2010

We have audited the attached Balance Sheet of CINDRELLA HOTELS LIMITED KOLKATA as at 31st March, 2010 and the Profit & Loss Account for the year ended on that date annexed thereto. 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 re- quire 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.

As required by the Companies (Auditors Report) Order, 2003 (amended 2005) issued by the Central Government of India in terms of Section 227(4A) of the Companies Act, 1956 and on the basis of such checks as we considered appropriate and according to the information and explanations given to us we enclose in the Annexure, a Statement on the matters specified in paragraph 4 and 5 of the said order. We further report that in Annexure "A".

Further to our comments in the Annexure referred to above, we report that:

1. 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.

2. In our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our examinations of those books.

3. The Balance Sheet and Profit & Loss Account dealt with by this report are in agreement with books of account.

4. In our opinion, the Balance Sheet and Profit & Loss Account dealt with by this report comply with the Accounting Standards referred to in sub-section (3C) of Section 211 of the Companies Act, 1956.

5. On the basis of written representations received from the directors, as on 31st March, 2010 and taken on record by Board of Directors, we report that none of the directors is disqualified as on 31st March, 2010 from being appointed as director in terms of clause (g) of Sub-section (1) of Section 274 of the Companies Act, 1956.

6. In our opinion and to the best of our information and according to 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:

i) In case of Balance Sheet of the state of affairs of the Company as at 31st March, 2010; and ii) In case of Profit & Loss Account of the Profit of the Company for the year ended on that date.

ANNEXURE - "A"

(To the Auditors Report) Annexure referred to in paragraph (3) of our Report of even date

As required by the Companies (Auditors Report) Order, 2003 (as amended in 2005) issued by the Central Government in terms of Section 227(4A) of the Companies Act, 1956. and on the basis of such checking of the books and records of the company as we consider appropriate and the informations and explanations given to us during the course of audit, we report that :

I. In respect of Fixed Assets:

a. The Company has maintained proper records showing full particulars including quantitative details and situa- tion of Fixed Assets.

b. The fixed assets have been physically verified by the management in accordance with a phased programme of verification, which in our opinion is reasonable considering the size of the Company and nature of its business. No material discrepancies were noticed on such physical verification.

c. In our opinion and according to the information and explanations given to us the company has not made any substantial disposals during the year that would affect its going concern.

II. In respect of inventories:

a. As explained to us inventories i.e., crockeries, utensils, kitchen and other stores & consumables were physically verified during the year by the management at reasonable intervals.

b.In our opinions 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 opinions and according to the information and explanation given to us, the Company has maintained proper records of its inventories and no material discrepancies were noticed on physical verification.

III. a.The Company has granted loans, secured or unsecured to companies, firms or other parties covered in the registered maintained under section 301 of the Act to the tune of Rs. 27,17,625/-. There was no outstanding amount as on 31.03.2010

b. In our opinion, the rate of interest and other terms and conditions of loans given by the Company, secured or unsecured, are prima facie not prejudicial to the interest of the Company.

c. In our opinion, the principal amount and interest thereon was serviced on a regular basis.

d. In the case of loans where the overdue amount is more than rupees one lakh, reasonable steps have been taken by the Company for recovery of principal and interest.

e. The Company has not taken any loans, secured or unsecured to companies, firms or other parties covered in the registered maintained under section 301 of the Act.

f.As the Company has not taken any loan "the rate of interest and other terms and conditions of such loans taken by the Company, secured or unsecured, are not prima facie prejudicial to the interest of the Company". g.In our opinion, the payment of the principal amount and interest on was on a regular basis.

IV.In our opinion and according to the information and explanation 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. We have not observed any continuing failure to correct major weaknesses in internal control system.

V. a. According to the information and explanation given to us,we are of the opinion that the particulars of contracts or arrangements referred to in section 301 of the Companies Act, 1956 have been entered in the register required to be maintained under that section.

b. In our opinion and according to the information and explanations given to us the transactions made in pursuance of such contracts or arrangements have been made at prices which are reasonable having regard to the prevailing market prices at the relevant time.

VI. The Company has not accepted deposits from public and hence directives issued by the Reserve Bank of India and the provisions of Sec. 58A & 58AA or any other relevant provisions of the Companies Act,1956 and rules framed there under are not applicable for the year under Audit.

VII. In our opinion the company has an internal audit system commensurate with its size and nature of business.

VIII. As per our information, the Company is not required to maintain cost records as prescribed by the Central Govt. under section 209(1) (d) of the Companies Act, 1956.

IX. a. According to the records of the Company the Company has been regular in depositing with appropriate authorities, undisputed statutory dues including P.F., E.S.I., I.T., Sales Tax., Service Tax., and other statutory dues.

b. According to the information and explanations given to us, no undisputed amounts payable in respect of such statutory dues were outstanding as at 31st March, 2010 for a period of more than six month from the date they become payable.

c. According to the information and explanation given to us, there are no such statutory dues which have not been deposited on account of any dispute as at 31st March, 2010.

X. In our opinion, the accumulated losses of the Company are not more than fifty percent of its net worth. The Company has not incurred cash losses during the financial year covered by our audit and in immediately preced- ing financial year.

XI. In our opinion and according to the information and explanations given to us the company has not defaulted in re-payment of dues to any financial institution or banks or debentureholders.

XII. According to the information and explanation given to us the Company has not given any loans and ad- vances on the basis of Security by way of pledge of shares, debentures and other securities.

XIII. In our opinion, the Company is not chit fund or a Nidhi or a mutual benefit fund/society, therefore the provi- sions of clause 4(XIII) of the Companies (Auditors Report) Order, 2003 are not applicable to the Company.

XIV. To deal in Shares and Securities is not a primary objective of the Company. The Company has invested its surplus funds in Shares & Securities. The investments are in the name of the company, except some of those that are in the process of transfer.

XV. As per the information and explanation given to us the Company has not given any guarantee for loans taken by others from any bank or financial institution.

XVI. In our opinion and according to the explanations given to us the Company has not taken any fresh term loans during the year under review. The term loans obtained in earlier years have been applied for the purpose for which it was raised.

XVII. According to the information and explanation given to us the Company has not used any short terms funds for long term investment.

XVIII. During the year the Company has not made any preferential allotment of shares to parties and compa- nies covered in register maintained under section 301 of the Companies Act, 1956.

XIX. The Company has not issued any debentures and hence clause 4(XIX) of the Companies (Auditors Report) Order, 2003 is not applicable to the Company.

XX. During the year covered by our report the Company has not raised any money by the way of Public issue.

XXI. According to the information and explanation given to us no fraud on or by the Company has been noticed or reported during the course of our audit.

FOR AGARWAL MAHESH KUMAR & CO. CHARTERED ACCOUNTANTS

PLACE: KOKATA (CAMP) DATED: 29/05/10.

 
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