Mar 31, 2018
INDEPENDENT AUDITORâS REPORT
To the Members of JINDAL HOTELS LIMITED
Report on the Indian Accounting Standard (Ind AS) Financial Statements
We have audited the accompanying Ind AS Financial statements of JINDAL HOTELS LIMITED (âthe Companyâ), which comprise the Balance Sheet as at March 31, 2018, the Statement of Profit and Loss (including other comprehensive income), the Statement of Cash Flows and the Statement of Changes in Equity for the year ended and a summary of the significant accounting policies and other explanatory information (herein after referred to as âInd AS Financial Statementsâ).
Managementâs Responsibility for the Ind AS Financial Statements
The Companyâs Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 (âthe Actâ) with respect to the preparation of these Ind AS financial statements that give a true and fair view of the financial position, financial performance including other comprehensive income, cash flows and changes in equity of the Company in accordance with the Indian Accounting Standards (Ind AS) prescribed under section 133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015, as amended, and other accounting principles generally accepted in India.
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 Ind AS financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
Auditorâs Responsibility
Our responsibility is to express an opinion on these Ind AS financial statements based on our audit. In conducting 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 thereunder and the Order issued under section 143(11) of the Act.
We conducted our audit of the Ind AS financial statements 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 Ind AS financial statements is free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the Ind AS financial statements. The procedures selected depend on the auditorâs judgment, including the assessment of the risks of material misstatement of the Ind AS financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Companyâs preparation of the Ind AS financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Companyâs Directors, as well as evaluating the overall presentation of the Ind AS financial statements.
We believe that the audit evidence obtained by us is sufficient and appropriate to provide a basis for our audit opinion on the Ind AS financial statements.
Opinion
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid Ind AS 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 including the Ind AS, of the state of affairs (financial position) of the Company as at March 31, 2018, and its profit (financial performance including other comprehensive income), its cash flows and the changes in equity for the year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditorâs Report) Order, 2016 (âthe Orderâ) issued by the Central Government of India in terms of Section 143(11) of the Act, we give in the âAnnexure Aâ, 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 including Other Comprehensive Income, the Statement of Cash Flows and the Statement of Changes in Equity dealt with by this Report are in agreement with the books of account;
(d) in our opinion, the aforesaid Ind AS financial statements comply with the Indian Accounting Standards prescribed under Section 133 of the Act read with relevant rule issued thereunder;
(e) on the basis of the written representations received from the directors of the company as on March 31, 2018 taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2018 from being appointed as a director in terms of Section 164 (2) of the Act;
(f) In our opinion, 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 âAnnexure Bâ;and
(g) with respect to the other matters to be included in the Auditorâs Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, as amended, in our opinion and to the best of our information and according to the explanations given to us:
i. The Company has disclosed the impact of pending litigations on its financial position in its Ind AS financial statements- Refer Note 36 to the Ind AS financial statements.
ii. The Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses.
iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company during the year ended March 31, 2018.
Referred to in Para 1 âReport on Other Legal and Regulatory Requirementsâ in our Independent Auditorâs Report to the members of the Company on the Ind AS Financial Statements for the year ended March 31, 2018.
On the basis of such checks as considered appropriate and in terms of the information and explanations given to us, we state as under:
I. (a) The Company has maintained proper records showing full particulars, including quantitative details and situation of property, plant and equipment;
(b) As informed to us, the company has regular programme of physical verification of its fixed assets by which the fixed assets are verified in phased manner over a period of time. In accordance with this programme, certain fixed assets were verified during the year and no material discrepancies were noticed on such verification. In our opinion, this periodicity of physical verification is reasonable having regard to the size of the company and the nature of its assets;
(c) According to the information and explanations given to us and on the basis of our examination of the records of the Company, we report that, the title deeds of immovable properties are held in the name of the Company;
II. As per the information and explanations given to us, Physical verification of inventory has been conducted at reasonable intervals by the management and No material discrepancies were noticed on physical verification;
III. According to the information and explanations given to us, the Company has not granted any secured or unsecured loans to Companies, Firms, Limited Liability Partnership or any other parties covered in the register maintained under section 189 of the Companies Act, 2013. Therefore the requirements of sub-clause (a), (b) and (c) of clause (iii) are not applicable to the Company.
IV. In our opinion and according to the information provided to us, there are no loans to directors including entities in which they are interested in respect of which provision of section 185 are applicable and hence not commented upon. Further, in our opinion and according to information and explanation given to us, provision of section 186 in respect of loans and advances given and investment made have been complied with by the Company. There are no guarantees and securities given in respect of which provision of section 186 of the Act are applicable and hence not commented upon;
V. In our opinion and as explained to us, the Company has not accepted any deposits during the year and therefore, the provisions of sections 73 to 76 or any other relevant provisions of the Companies Act, 2013 and the rules framed thereunder are not applicable to the company;
VI. The Central Government has not prescribed the maintenance of cost records under section 148(1) of the Companies Act, 2013 for any services rendered by the company;
VII. According to the information and explanations given to us, in respect of statutory dues:
a) According to the information and explanation given to us and on the basis of our examination of the records of the Company, the Company is generally regular in depositing undisputed statutory dues including Provident Fund, Employeesâ State Insurance, Income Tax, Sales-Tax, Service Tax, Goods and Service Tax, Customs Duty, Excise Duty, Value Added Tax, Cess and any other statutory dues and there are no undisputed statutory dues outstanding as at 31st March 2018, for a period of more than six months from the date they became payable;
b) According to the information and explanations given to us and the records examined by us, there are following disputed dues of service tax, that have not been deposited on account of dispute;
Name of the statute |
Nature of dues |
Amounts (?) |
Period to which the amounts relates |
Forum where dispute is pending |
Service Tax |
Service Tax, Interest and penalty |
Demand of Rs, 167.05 Lakh to be reduced by amount paid Rs, 12.53 Lakh |
April 2009 to March 2014 |
CESTAT, Ahmedabad |
VIII. Based on our audit procedure and according to the information and explanation given by the management, we are of the opinion that the company has not defaulted in repayment of dues to financial institutions or banks, Government or dues to debenture holders;
IX. According to the information and explanations given to us, no moneys were raised by way of initial public offer or further public offer (including debt instruments) and the term loans were applied for the purpose for which the loan were obtained during the year;
X. During the course of our examination of the books of account and records of the company, carried out in accordance with the generally accepted auditing practices in India and according to the information and explanations given to us, we have neither came across any incidence of fraud on or by the company noticed or reported during the year, nor we have been informed of any such case by the management;
XI. In our opinion and according to the information and explanations given to us, the Company has paid/provided managerial remuneration in accordance with the requisite approvals mandated by the provisions of section 197 read with Schedule V to the Act;
XII. In our opinion and according to the information and explanation given to us, the Company is not a Nidhi company. Accordingly, this clause of the Order is not applicable;
XIII. In our opinion and according to the information and explanations given to us, the Company is in compliance with Section 177 and 188 of the Companies Act, 2013 where applicable, for all transactions with the related parties and the details of related party transactions have been disclosed in the Ind AS financial statements as required by the applicable accounting standards;
XIV. According to the information and explanations given to us and based on our examination of the records of the Company, the company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year under review;
XV. According to the information and explanation given to us and based on our examination of the records, the Company has not entered into non-cash transactions with the directors or persons connected with him. Hence, the provisions of Section 192 of the Act are not applicable;
XVI. The Company is not required to be registered under section 45-IA of the Reserve Bank of India Act, 1934.
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 (âthe Actâ)
We have audited the internal financial controls over financial reporting of JINDAL HOTELS LIMITED (âthe Companyâ) as of March 31, 2018 in conjunction with our audit of the Ind AS financial statements of the Company for the year ended on that date.
Managementâs Responsibility for Internal Financial Controls
The Board of Directors of the Company 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 of internal control stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued by the Institute of Chartered Accountants of India. 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 companyâs policies, the safeguarding of its assets, the prevention and detection of frauds 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.
Auditorsâ Responsibility
Our responsibility is to express an opinion on the Companyâs internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls over Financial Reporting (the âGuidance Noteâ) and the Standards on Auditing issued by ICAI and deemed to be prescribed under section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls, both applicable to an audit of Internal Financial Controls and, both issued by the Institute of Chartered Accountants of India. 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 controls system over financial reporting 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 auditorâs judgment, including the assessment of the risks of material misstatement of the Ind AS 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 Companyâs internal financial controls system over financial reporting.
Meaning of Internal Financial Controls over Financial Reporting
A companyâs internal financial control 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 companyâs internal financial control over financial reporting includes those policies and procedures that
1) pertain to the 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 of the company; and
3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the companyâs 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 the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Opinion
In our opinion, to the best of our information and according to the explanations given to us, the Company has, in all material respects, , an internal financial controls with reference to financial statements of the company and such internal financial controls over financial reporting were operating effectively as at 31st March 2018, based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India.
For MODI & JOSHI
Chartered Accountants
FRN : 135442W
Mitul Modi
Place : Vadodara Partner
Date : 29.05.2018 Membership No. 154342
Mar 31, 2015
We have audited the accompanying standalone financial statements of
Jindal Hotels Limited ('the Company'), which comprise the balance sheet
as at 31 March 2015, the statement of profit and loss and the cash flow
statement for the year then ended, and a summary of significant
accounting policies and other explanatory information.
Management's Responsibility for the Standalone Financial Statements
The Company's 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 and presentation of these standalone 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 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 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.
Auditor's Responsibility
Our responsibility is to express an opinion on these standalone
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 the 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 financial control relevant
to the Company's preparation of the financial statements that 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 controls system over financial reporting and the operating
effectiveness of such controls. An audit also includes evaluating the
appropriateness of the accounting policies used and the reasonableness
of the accounting estimates made by the Company's 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 standalone
financial statement.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid standalone 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, of the state of affairs of the Company as
at 31 March 2015 and its profit and its cash flows for the year ended
on that date. Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor's Report) Order, 2015 ("the
Order") issued by the Central Government of India in terms of
sub-section (11) of section 143 of the Act, we give in the Annexure a
statement on the matters specified in the paragraph 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 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 31 March 2015 taken on record by the Board of
Directors, none of the directors is disqualified as on 31 March 2015
from being appointed as a director in terms of Section 164 (2) of the
Act; and
(f) 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 has disclosed the impact of pending litigations on its
financial position in the financial Statement (Refer Note 24 (ii) (N)
of financial statements) ;
ii. The Company has not made any Long Term contract including
derivative contracts, hence, it is not required to make provision for
material foreseeable losses.
iii. There has been no delay in transferring amounts, required to be
transferred, to the Investor Education and Protection Fund by the
Company.
The Annexure referred to in our Independent Auditors' Report to the
members of the Company on the standalone financial statements for the
year ended 31 March 2015, we report that:
(i) In respect of its Fixed Assets
(a) The Company has maintained proper records showing full particulars,
including quantitative details and situation of fixed assets;
(b) As explained to us all the Fixed Assets have been physically
verified by the Management according to a phased program designed to
cover all the items over a period of three years, which in our opinion,
is reasonable, having regard to the size of the Company and nature of
its assets. No material discrepancies were noticed on such
verification.
(ii) Inventory
(a) As explained to us, the inventory have been physically verified
during the year by the management;
(b) The procedures of physical verification of inventory followed by
the management are reasonable and adequate in relation to the size of
the company and the nature of its business.
(c) The Company is maintaining proper records of inventory. The
discrepancy noticed on physical verification of inventory have been
properly dealt with in the books of accounts.
(iii) According to the information and explanations given to us, there
are no loans(secured or unsecured) granted by the Company to companies,
firms or other parties covered in the register maintained under section
189 of The Companies Act,2013. Hence, para,3(iii)(a) and (b) of the
Order is not applicable.
(iv) In our opinion and according to the information and explanations
given to us, there are adequate internal control systems 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 &
services. During the course of our audit we have not observed any
continuing failure to correct major weaknesses in Internal Control.
(v) The Company has not invited the deposits from members. However
Company has accepted interest free unsecured loan from directors of the
company during the year under review.
(vi) The Central Government has not prescribed maintenance of cost
records u/s 148 (1) (d) of the Companies Act, 2013 for the Company's
products and activities.
(vii) Statutory and other dues:
(a) According to the information and explanations given to us and based
on the records examined by us, the Company has been regular in
depositing 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, Value
Added Tax, Cess, Luxury Tax and any other statutory dues with the
appropriate authorities during the year. There is no undisputed amounts
of such statutory dues payable as at 31.03.2015 for a period of more
than six months from the date they become payable.
(b) According to the information and explanation given to us, there are
no dues of Sale Tax, Income Tax, Customs Duty, Wealth Tax, Excise Duty,
Service Tax, Value Added Tax and Cess, which have not been deposited on
account of any dispute.
(c) According to the information and explanations given to us the
amounts which were required to be transferred to the Investor Education
and Protection Fund in accordance with the relevant provisions of the
Companies Act, 1956 (1 of 1956) and rules there under has been
transferred to such fund within time.
(viii) The Company does not have any accumulated losses as at the end
of the financial year and has not incurred cash losses during the
Financial Year covered by our audit and in the immediately preceding
financial year.
(ix) Based on our Audit procedure and on the information and
explanation given by the management, we are of the opinion that, the
Company has not defaulted in repayment of dues to a financial
institution or bank;
(x) There is no guarantee given by the Company for loans taken by
others from bank and financial institutions;
(xi) The Company has applied amount of term loans for the purpose for
which the term loan was obtained;
(xii) To the best of our knowledge and belief and according to the
explanations given to us, no material fraud on or by the company has
been noticed or reported during the course of our Audit.
For V. Shah & Associates,
Chartered Accountants,
F. R. N. 109816 W
Place : Baroda V.R.Shah
Date : 26.05.2015 (Proprietor)
Membership No. FCA 034994
Mar 31, 2014
We have audited the accompanying financial statements of Jindal 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 ended on above date, and a summary of significant
accounting policies and other explanatory information.
Management''s Responsibility for the Financial Statements
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 of India (''the Act) read with the
General Circular 15/2013 dated September 13, 2013 of the Ministry of
Corporate Affairs in respect of Section 133 of the Companies Act,
2013. 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.
Auditor''s Responsibility
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 judgement, 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, not for the purpose of expressing an opinion on the
effectiveness of the entity''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.
Opinion
In our opinion and to the best of our information and according to the
explanation given to us, the financial statement 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 Statement of Profit and Loss, of the profit 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.
Report on Other Legal and Regulatory Requirements
I. As required by section 227(3) of the Comapanies Act, 1956, 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 dealt with by this report comply with the
Accounting Standards referred to in sub-section (3C) of section 211 of
the Companies Act, 1956 read with the General Circular 15/ 2013 dated
September 13, 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, and 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 clause (g) of
subsection (1) of section 274 of the Companies Act, 1956;
II. As required by the Companies (Auditor''s Report) Order, 2003, as
amended by the Companies (Auditor''s Report) (Amendment) Order, 2004,
issued by the Central Government of India in terms of sub-section (4A)
of section 227 of the Act (hereinafter referred to as the
"Order"), and on the basis of such checks of the books and records
of the company as we considered appropriate and according to the
information and explanation given to us, we give in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the Order.
1. In respect of its Fixed Assets
(a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets;
(b) As explained to us all the Fixed Assets have been physically
verified by the Management in a phased periodical manner, which in our
opinion, is reasonable, having regard to the size of the Company and
nature of its assets. No material discrepancies were noticed on such
verification.
(c) In our opinion and according to the information and explanation
given to us, no substantial part of fixed assets have been disposed
off during the year and therefore, does not affect the going concern
assumption.
2. Inventory
(a) As explained to us, the inventory have been physically verified
during the year by the management;
(b) The procedures of physical verification of inventory followed by
the management are reasonable and adequate in relation to the size of
the company and the nature of its business.
(c) The Company is maintaining proper records of inventory. The
discrepancy noticed on physical verification of inventory have been
properly dealt with in the books of accounts.
3.(a) According to the information and explanations given to us, there
are no loans(secured or unsecured) granted by the Company to
companies, firms or other parties covered in the register maintained
under section 301 of The Companies Act,1956.
(b) The Company has
taken Interest free unsecured loans (in the nature of Deposits) from
sixteen parties (P.Y. Sixteen parties) covered in the Register
maintained u/s 301 of The Companies Act, 1956. The maximum amount
involved during the year was Rs. 1080.46 Lacs, (P.Y. Rs. 409.22
lacs) and the year end balance of unsecured loans taken from such
parties was Rs. 1025.25 lacs (P.Y. Rs. 390.00 lacs).
(c) We are further informed that these unsecured loans are not prima
facie prejudicial to the interest of the Company as the same are
interest free and stated to be on long term basis. There is no overdue
amount of such unsecured loans.
4. In our opinion and according to the information and explanations
given to us, there are adequate internal control systems 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 &
services. During the course of our audit we have not observed any
continuing failure to correct major weaknesses in Internal Control.
5. In respect of transactions entered in the register maintained in
pursuance of section 301 of the Companies Act, 1956:
(a) The particulars of contracts or arrangements referred to Section
301 that needed to be entered in the Register maintained under the
said Section have been so entered.
(b) Where each of such transaction is in excess of Rs. 5 lakhs in
respect of any party, the transactions have been made at prices which
are prima facie reasonable having regard to the prevailing market
prices at the relevant time.
6. The Company has not invited the deposits from public. However
Company has accepted interest free deposits during the year under
review and complied with the provision of the Companies (Acceptance of
Deposits) Rules, 1975 and Section 58A & 58AA of The Companies Act,
1956.
7. In our opinion, the company has an internal audit system
commensurate with its size and nature of its business;
8. The Central Government has not prescribed maintenance of cost
records u/s 209 (1) (d) of the Companies Act, 1956 for the Company''s
products and activities.
9. Statutory and other dues:
(a) According to the information and explanations given to us and
based on the records examined by us, the Company has been 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, Luxury Tax, Excise
Duty, Service Tax, Cess and any other statutory dues with the
appropriate authorities during the year.
(b) According to the information and explanations given to us, no
undisputed amounts payable in respect of Sales Tax, Income Tax, Wealth
Tax, Customs Duty, Luxury Tax, Service Tax, Excise Duty as at
31.03.2014 for a period of more than six months from the date they
become payable.
(c) According to the information and explanation given to us, there
are no dues of Sale Tax, Income Tax, Customs Duty, Wealth Tax, Excise
Duty, Service Tax and Cess, which have not been deposited on account
of any dispute.
10. The Company does not have any accumulated losses as at the end of
the financial year. The Company has not incurred cash losses during
the Financial Year covered by our audit and in the immediately
preceeding financial year.
11. Based on our Audit procedure and on the information and
explanation given by the management, we are of the opinion that, the
Company has not defaulted in repayment of dues to a financial
institution or bank;
12. The Company has not granted loans and advances on the basis of
security by way of pledge of shares, debentures and other securities;
13. The company is not a chit fund or a Nidhi / Mutual Benefit Fund /
Society. Therefore the provision of any special statute of Chit Fund /
Nidhi etc. are not applicable to the Company;
14. The Company is not dealing or trading in shares, Mutual Fund and
other investments. Accordingly the provisions of clause 4(xiv) of the
Companies (Auditor''s Report) Order, 2003 are not applicable to the
company;
15. There is no guarantee given by the Company for loans taken by
others from bank and financial institutions;
16. The Company has applied amount of term loans for the purpose for
which the term loan was obtained;
17. According to the cash flow statement and other records examined by
us and the information and explanations given to us, on an overall
basis, funds raised on short-term basis have, prima facie, have not
been used during the year for long term investment (fixed assets,
etc.,)
18. The Company has not made preferential allotment of shares to
parties and companies covered in the register maintained under section
301 of the Companies Act, 1956 during the year under review.
19. The Company has not issued any debentures during the year;
20. The Company has not raised any money by way of public issues
during the year.
21. To the best of our knowledge and belief and according to the
explanations given to us, no fraud on or by the company was noticed or
reported during the year; nor we have been informed of any such case
by the Management.
For V. Shah & Associates
Chartered Accountants
F. R. N. 109816 W
Place: Vadodara
V.R.Shah
Date: 27.05.2014 Proprietor
Membership No. 034994
Mar 31, 2012
I. We have audited the attached Balance Sheet of JINDAL HOTELS LTD., as
at 31st March 2012, the Statement of Profit & Loss Account and the Cash
Flow Statement for the year ended on that date, all annexed thereto.
These financial statements are the responsibility of the Company's
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 require 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 estimate made
by the Management as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
Further to our comments in the paragraph referred to above, 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 maintained by the company so far as appears from our examinations
of those books.
c. The company's Balance Sheet, Statement of Profit & Loss and Cash
Flow Statement dealt with by the report are in agreement with the books
of account.
d. In our opinion the Balance Sheet, Statement of Profit & Loss and
Cash Flow Statement comply with the Accounting Standards referred to in
sub-section (3C) of section 211 of the Companies Act, 1956.
e. In our opinion and to the best our information and according to the
explanations given to us, they said accounts read with the notes thereon
give the information required by the Companies Act, 1956 in the manner
so required and give a true and fair view:-
i. In case of Balance Sheet, of the state of affairs of the company as
on 31st March, 2012,and
ii. In case of Statement of Profit & Loss Account, of the profit of
the company for the year ended on that date.
iii. In the case of the Cash Flow Statement, of the Cash Flow for the
year ended on that date.
f. On the basis of the written representation from the Directors and
taken on record by the Board of Directors, none of the Director is
disqualified as on 31st March, 2012 from being appointed as a Director
in terms of under section 274 (1)(g) of the Companies Act, 1956.
II As required by the Companies (Auditor's Report) Order, 2003,
issued by the Central Government of India in terms of Section 227 (4A)
of the Companies Act, 1956, and on the basis of such examination of the
books and records of the company as we considered appropriate and the
information & explanations given to us during the course of the Audit,
we report as under:
1. In respect of its Fixed Assets:
(a) The Company has maintained proper records showing full particulars,
including quantitative details and situation of fixed assets; ,
(b) As explained to us all the Fixed Assets have been physically
verified by the Management in a phased periodical manner, which in our
opinion, is reasonable, having regard to the size of the Company and
nature of its assets. No material discrepancies were noticed on such
verification.
(c) No substantial parts of fixed assets have been disposed off during
the year. The going concern status of the company is not affected.
2. Inventory:
(a) The inventory have been physically verified during the year by the
management;
(b) The procedures of physical verification of inventory followed by
the management are reasonable and adequate in relation to the size of
the company and the nature of its business.
(c) The Company is maintaining proper records of inventory. The
discrepancy noticed on physical verification of inventory have been
properly dealt within the books of accounts.
3. (a) According to the information and explanations given to us,
there are no loans(secured or unsecured) granted by the Company to
companies, firms or other parties covered in the register maintained
under section 301 of The Companies Act, 1956.
(b) The Company has taken Interest Free unsecured loans (in the nature
of Deposits) from Fifteen parties (P.Y. Sixteen parties) covered in the
Register maintained u/s 301 of The Companies Act, 1956. The maximum
amount involved during the year was Rs. 567.79 Lacs, (P. Y. Rs.583.80
lacs) and the yearend balance of unsecured loans taken from such
parties was Rs. 133.86 lacs (P.Y. Rs. 131.89 lacs).
(c) We are further informed that these unsecured loans are not prima
facie prejudicial to the interest of the Company as the same are
interest free and stated to be on long term basis. There is no overdue
amount of such unsecured loans.
4. In our opinion and according to the information and explanations
given to us, there are adequate internal control systems 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 &
services. During the course of our audit we have not observed any
continuing failure to correct major weaknesses in Internal Control.
5. In respect of transactions entered in the register maintained in
pursuance of section 301 of the Companies Act, 1956:
(a) The particulars of contracts or arrangements referred to Section
301 that needed to be entered in the Register maintained under the said
Section have been so entered.
(b) Where each of such transaction is in excess of Rs. 5 lakhs in
respect of any party, the transactions have been made at prices which
are prima facie reasonable having regard to the prevailing market
prices at the relevant time.
6. The Company has not invited the deposits from public. However
Company has accepted interest free deposits during the year under
review and complied with the provision of the Companies (Acceptance of
Deposits) Rules, 1975 and Section 58A & 58AA of The Companies Act,
1956.
7. In our opinion, the company has an internal audit system
commensurate with its size and nature of its business;
8. The Central Government has not prescribed maintenance of cost
records u/s 209 (1) (d) of the Companies Act, 1956 for the Company's
products and activities.
9. Statutory and other dues:
(a) According to the information and explanations given to us and based
on the records examined by us, the Company has been 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, Luxury Tax, Excise
Duty, Service Tax, Cess and any other statutory dues with the
appropriate authorities during the year.
(b) According to the information and explanations given to us, no
undisputed amounts payable in respect of Sales Tax, Income Tax, Wealth
Tax, Customs Duty, Luxury Tax, Service Tax, Excise Duty as at
31.03.2012 for a period of more than six months from the date they
become payable.
(c) According to the information and explanation given to us, there are
no dues of Sale Tax, Income Tax, Customs Duty, Wealth Tax, Excise Duty,
Service Tax and Cess, which have not been deposited on account of any
dispute.
10. The Company does not have any accumulated losses as at the end of
the financial year. The Company has not incurred cash losses during the
Financial Year covered by our audit and in the immediately preceding
financial year.
11. The Company has not defaulted in repayment of dues to a financial
institution or bank;
12. The Company has not granted loans and advances on the basis of
security by way of pledge of shares, debentures and other securities;
13. The company is not a chit fund or a Nidhi / Mutual Benefit Fund /
Society. Therefore the provision of any special statute of Chit Fund /
Nidhi etc. are not applicable to the Company;
14. The Company is not dealing or trading in shares, securities,
debentures and other investments. Accordingly the provisions of clause
4(xiv) of the Companies (Auditor's Report) Order, 2003 are not
applicable to the company;
15. There is no guarantee given by the Company for loans taken by
others from bank and financial institutions;
16. The Company has applied amount of term loans for the purpose for
which the term loan was obtained;
17. According to the cash flow statement and other records examined by
us and the information and explanations given to us, on an overall
basis, funds raised on short-term basis have, prima facie, not been
used during the year for long term investment (fixed assets, etc.,)
18. The Company has not made preferential allotment of shares to
parties and companies covered in the register maintained under section
301 of the Companies Act, 1956 during the year under review.
19. The Company has not issued any debentures during the year;
20. The Company has not raised any money by way of public issues
during the year.
21. To the best of our knowledge and belief and according to the
explanations given to us, no fraud on or by the company was noticed or
reported during the year;
For V. Shah & Associates
Chartered Accountants
F. R. N. 109816 W
Place: Vadodara V.R.Shah
Date: 17.07.2012 Proprietor
Membership No. 034994
Mar 31, 2010
I. We have audited the attached Balance Sheet of JINDAL HOTELS LTD.,
as at 31st March 2010, the Profit & Loss Account and the Cash Flow
Statement for the year ended on that date, all 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 require 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 estimate made by the Management as well as
evaluating the over all financial statement presentation. We believe
that our audit provides a reasonable basis for our opinion.
Further to our comments in the paragraph referred to above, 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 maintained by the company so far as appears from our examinations
of those books.
c. The companys Balance Sheet and Profit & Loss Account and Cash Flow
Statement dealt with by the report are in agreement with the books of
account.
d. In our opinion the Profit & Loss Account and Balance Sheet and Cash
Flow Statement comply with the Accounting Standards referred to in
sub-section (3C) of section 211 of the Companies Act, 1956.
e. In our opinion and to the best our information and according to the
explanations given to us, the said accounts read with the notes thereon
give the information required by the Companies Act, 1956 in the manner
so required and give a true and fair view:- i. In case of Balance
Sheet, of the state of affairs of the company as on 31st March,
2010,and
ii. In case of Profit & Loss Account, of the profit of the company for
the year ended on that date. iii. In the case of the Cash Flow
Statement, of the Cash Flow for the year ended on that date.
f. On the basis of the written representation from the Directors and
taken on record by the Board of Directors, none of the Director is
disqualified as on 31st March, 2010 from being appointed as a Director
in terms of under section 274 (1)(g) of the Companies Act, 1956.
II. As required by the Companies (Auditors Report) Order, 2003,
issued by the Central Government of India in terms of Section 227 (4A)
of the Companies Act, 1956, and on the basis of such examination of the
books and records of the company as we considered appropriate and the
information & explanations given to us during the course of the Audit
we, report as under:
1. In respect of its Fixed Assets:
(a) The Company has maintained proper records showing full particulars,
including quantitative details and situation of fixed assets;
(b) As explained to us all the Fixed Assets have been physically
verified by the Management in a phased periodical manner, which in our
opinion, is reasonable, having regard to the size of the Company and
nature of its assets. No material discrepancies were noticed on such
verification.
(c) No substantial part of fixed assets have been disposed off during
the year. The going concern status of the company is not affected.
2. Inventory :
(a) The inventory have been physically verified during the year by the
management;
(b) The procedures of physical verification of inventory followed by
the management are reasonable and adequate in relation to the size of
the company and the nature of its business.
(c) The Company is maintaining proper records of inventory. The
discrepancy noticed on physical verification of inventory have been
properly dealt within the books of accounts
3. (a) According to the information and explanations given to us,
there are no loans(secured or unsecured) granted by the
Company to companies, firms or other parties covered in the register
maintained under section 301 of The Companies Act,1956.
(b) The Company has taken Interest Free unsecured loans (in the nature
of Deposits) from Twenty one parties covered in the Register maintained
u/s 301 of The Companies Act, 1956. The maximum amount involved during
the year was Rs. 421.24 lacs (P.Y. Rs. 425.83 lacs) and the yearend balance
of Loan taken from such parties was Rs. 130.74 lacs (P.Y. Rs. 277.87 lacs).
(c) We are further informed that these unsecured loans are not prima
facie prejudicial to the interest of the Company as the same are
interest free and stated to be on long term basis. There is no overdue
amount of such unsecured loans.
4. In our opinion and according to the information and explanations
given to us, there are 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 &
services. During the course of our audit we have not observed any
continuing failure to correct major weaknesses in Internal Control.
5. In respect of transactions entered in the register maintained in
pursuance of section 301 of the Companies Act, 1956:
(a) The particulars of contracts or arrangements referred to Section
301 that needed to be entered in the Register maintained under the said
Section have been so entered.
(b) Where each of such transaction is in excess of Rs. 5 lakhs in respect
of any party, the transactions have been made at prices which are prima
facie reasonable having regard to the prevailing market prices at the
relevant time.
6. The Company has not invited the deposits from public. However
Company has accepted interest free deposits during the year under
review and complied with the provision of the Companies (Acceptance of
Deposits) Rules, 1975 and Section 58A & 58AA of The Companies Act,
1956.
7. In our opinion, the company has an internal audit system
commensurate with its size and nature of its business;
8. The Central Government has not prescribed maintenance of cost
records u/s 209 (1) (d) of the Companies Act, 1956 for the Companys
products and activities.
9. Statutory and other dues:
(a) According to the information and explanations given to us and based
on the records examined by us, the Company has been 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, Luxury Tax, Excise Duty, Service
Tax, cess and any other statutory dues with the appropriate authorities
during the year.
(b) According to the information and explanations given to us, no
undisputed amounts payable in respect of Sales Tax, Income Tax, Wealth
Tax, Customs Duty, Luxury Tax, Service Tax, Excise Duty as at
31.03.2010 for a period of more than six months from the date they
become payable.
(c) According to the information and explanation given to us, there are
no dues of sale tax, income tax, customs duty, wealth tax, excise duty
Service Tax and cess which have not been deposited on account of any
dispute.
10. The Company does not have any accumulated losses as at the end of
the financial year. The Company has not incurred cash losses during the
Financial Year covered by our audit and in the immediately preceding
financial year.
11. The Company has not defaulted in repayment of dues to a financial
institution or bank;
12. The Company has not granted loans and advances on the basis of
security by way of pledge of shares, debentures and other securities;
13. The company is not a Chit Fund or a Nidhi / Mutual Benefit Fund /
Society. Therefore the provision of any special statute of Chit Fund /
Nidhi etc. are not applicable to the Company;
14. The Company is not dealing or trading in shares, securities,
debentures and other investments. Accordingly the provisions of clause
4(xiv) of the Companies (Auditors Report) Order, 2003 are not
applicable to the company;
15. There is no guarantee given by the Company for loans taken by
others from bank and financial institutions;
16. The Company has applied amount of term loans for the purpose for
which the term loan was obtained;
17. According to the cash flow statement and other records examined by
us and the information and explanations given to us, on an overall
basis, funds raised on short-term basis have, prima facie, not been
used during the year for long term investment (fixed assets, etc.,)
18. According to the information and explanation given to us, the
Company has made Preferential Allotment of 2,34,270 Equity Shares of Rs.
10/- each at a premium of Rs. 10/- per Equity Share, total amounting to Rs.
46.85 lacs to the parties covered under in the Register maintained U/S
301 of the Companies Act, 1956. The issues of the above referred Equity
Shares are not prejudicial to the interest of the Company, as the issue
price has been determined in accordance with the provision of the SEBI
(DIP) Guidelines, 2000.
19. The Company has not issued any debentures during the year;
20. The Company has not raised any money by way of public issues
during the year. However, Company has made Preferential allotment of
11,75,540 Equity shares of Rs. 10/- each, at premium of Rs. 10/- each,
total amounting to Rs. 235.11 lacs. The Management has disclosed the end
use of the money vide Note No. 25 of schedule 20 of the Annual Accounts
for the year ended 31.03.2010.
21. To the best of our knowledge and belief and according to the
explanations given to us, no fraud on or by the company was noticed or
reported during the year;
For V. Shah & Associates
Chartered Accountants
Firm Registration No. 109816 W
Place : Vadodara V.R.Shah
Date : 20.07.2010 Proprietor
Membership No. 034994