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Auditor Report of Sagar Tourist Resorts Ltd.

Mar 31, 2014

Report on the Financial Statements

We have audited the accompanying financial statements of M/S Sagar Tourist Resorts Limited, ("the company") which comprise the Balance Sheet as at 31st March, 2014, and the Statement of Profit and Loss and the cash flow statement for the year then ended annexed thereto, and a summary of significant accounting policies and other explanatory information.

Management Responsibility for the Financial Statements

Management is responsible for the preparation of these financial statements that give a true and fair view of financial position, financial performance 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"). The responsibility includes the design, implementation and maintenance of internal control relevant to the preparation of financial statements that give a true and fair view and are free from material misstatements, 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 misstatements.

Audit involves performing procedure to obtain audit evidence about the amounts and disclosure in the financial statements. The procedure selected depends upon auditor''s judgement, including the assessment of the risk of material misstatements of the financial statements, whether due to fraud or error. In making those risk assessment, the auditor considers internal control relevant to the Company''s preparation and fair presentation of the financial statements in order to designs audit procedure that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of financial statements.

We believe that 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 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 case of the Balance Sheet, of the state of affairs of the Companies as at 31/03/2014;

(b) in cases of Profit and Loss Account, of the Loss for the year ended on that date;

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor''s Report) Order, 2003 ("the order") issued by Central Government of India in terms of sub-section (4A) of section 227 of the Act, We give in the Annexure a statements 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 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 examinations of those books;

c. The Balance Sheet, Statement of Profit and Loss 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 comply with the Accounting Standards referred to in sub-section (3C) of section 211 of the Companies Act, 1956;

e. On the basis of written representations received from the directors as on 31/3/2014, and taken on record by the board of directors, none of the directors is disqualified as on 31.03.2014 from being appointed as a director in terms of clause (g) of sub-section (1) of section 274 of the Companies Act, 1956.

ANNEXURE I TO THE AUDITOR''S REPORT

(Referred to in paragraph 3 of report of even date)

1. i) The Company is maintaining proper records showing full particulars, including quantitative details and situation of Fixed Assets.

ii) Fixed assets are physically verified by the management at regular intervals as per the regular programme of verification which, in our opinion, is reasonable having regard to the size of the Company and the nature of its assets. According to the information and explanations given to us, no material discrepancies were noticed on such verification.

iii) There was no substantial disposal of fixed assets during the year.

2. i) The Management has conducted physical verification of inventory at reasonable intervals.

ii) 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.

iii) The Company is maintaining proper records of inventory and no material discrepancies were noticed on physical verification.

3. i) As informed, the Company has not granted any loan, secured or unsecured to companies, firms or other parties covered in the register maintained under Section 301 of the Companies Act, 1956. Accordingly clause (iii)(b) to (iii)(d) of Paragraph 4 of the Order are not applicable to the company for the current year

ii) The Company has taken an unsecured loan of Rs. 1,50,000.00 form M/s Sagar Lila Finvest India Pvt. Ltd during the year under consideration and Rs. 56,926/- from Sagar Arts Pvt. Ltd. unsecured loans amounting to Rs.5,00,43,321.38 were taken in years prior to financial year ending on March 31, 2014 which are outstanding as on the date of Balance Sheet from companies,firm and other parties covered in the register maintained under Section 301 of the Act. The details are as under:-

I) M/s Sagar Entertainment Limited Rs.2,66,24,356.25

II) Late Sh. Ramanand Sagar (Ex-Chairman) Rs.12,90,326.98

III) M/s Gayatri Films and Music (P) Ltd. Rs.2,17,20,000.00

IV) M/s Sagar Global Venture Pvt Ltd Rs.l,19,848.75

V) M/s Sagar Art Corporation Rs.36,239.40

VI) Sagar Arts Pvt. Ltd Rs. 2,52,550.00

iii) In our opinion, the terms and conditions of loans taken are not prima facie prejudicial to the interest of the Company.

iv) We are informed by the management that no interest was payable on the loans and no principal amount was due for repayment during the year.

4. There are no transactions made for purchase or sale of goods or services exceeding the value of five lakh rupees in respect of any party listed in the register maintained under section 301 of the Companies Act,1956.

5. In our opinion and according to the information and explanations 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. During the course of our audit, no major weakness has been noticed in the internal control systems in respect of these areas.

6. Based upon the audit procedures applied by us and according to the information and explanations provided by the management, we are of the opinion that there are no contracts or arrangements that need to be entered into the register maintained under Section 301 of the Companies Act, 1956. Accordingly, clause (v)(b) of para 4 of the Order is not applicable to the company for the current year.

7. In our opinion and as per explanations give to us the Company has not accepted any deposit as mentioned in the provisions of Section 58A, 58AA or any other relevant provisions of the Companies Act, 1956 and rules framed there under. We are informed by the management that no order has been passed by the Company Law Board, National Company Law Tribunal or Reserve Bank of India or any Court or any other Tribunal under Section 58A and 58AA of the Companies Act, 1956.

8. In our opinion, the Company has an internal audit system commensurate with the size and nature of its business.

9 |In our opinion and the best of our knowledge and belief the Company is not required to maintain cost records under clause(d) of sub section (1) of Section 209 of the Companies Act, 1956.

10. i) According to the records of the Company, the Company is occasionally irregular in depositing statutory dues which include Sales Tax, Luxury Tax, Services Tax, and Provident Fund. Service Tax amounting to Rs 3,814.71/- was due for payment for more than 6 Months as on 31.03.2014.

ii) According to information and explanations given to us, dues outstanding to Sales Tax, Income Tax, Custom Duty, Wealth Tax, excise Duty or Cess etc are not on account of any dispute with the concerned statutory authority.

11. The Company has accumulated loss of more than 50% of net worth. During the financial year ending 31.03.2014 the company incurred the cash losses amounting to Rs. 13,49,174/-, however the company did not incur cash losses in the financial year ending 31.03.2013.

12. The Company has not defaulted in repayment of dues to financial institution or banks.

13. According to the information and explanations given to us and based on the documents and records produced to us, the Company has not granted loans and advances on the basis of security by way of pledge of shares, debentures and other securities.

14. In our opinion and according to the information and explanations given to us, the nature of activities of the Company does not attract any special statute applicable to chit fund and nidhi/mutual benefit funds/societies.

15. In our opinion and as per explanations given by the management the company has not dealt in shares, securities or debentures and other investments.

16. According to the information and explanations given to us, the Company has not given any guarantee for loans taken by associates from bank or financial institution.

17. The loans were applied for the purpose for which the loans were obtained.

18. In our opinion and to the best of our knowledge and belief no funds raised on short term basis have been used for long term investment

19. The Company has not made any preferential allotment of shares to parties or companies covered in the register maintained under section 301 of the Companies Act, 1956.

20. No shares were forfeited by the company during the financial year ending 31st March 2014. However, forfeiture of 700 forfeited shares was annulled during the current year.

21. The company did not have any outstanding debentures during the year.

22. The Company has not raised any money through a public issue during the year.

23. 3ased on the audit procedures performed and information and explanations given we report that no fraud on or by the Company has been noticed or reported during the course of audit.

For Rajeev Singhi & Co., (Chartered Accountants)

Dated: 29/05/2014 (Rajeev Singhi, Prop.) Place : Mumbai M.No. 81892


Mar 31, 2010

1) We have audited the attached Balance Sheet of M/s Sagar Tourist Resorts Limited as at 31st March 2010 and also the Profit and Loss Account and the cash flow statement 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.

2) We conducted our audit in accordance with the generally accepted auditing standards. 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 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.

3) As required by the Companies (Auditors Report) Order 2003, (read with Companies (Auditors Report) (Amendment) Order 2004) issued by the Central Government of India in terms of Section 227 (4A) of the Companies Act, 1956, we enclose in the Annexure hereto a statement on the matters specified in paragraphs 4 and 5 of the said Order to the extent applicable.

4) Further to our comments in the Annexure referred to in paragraph 3 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 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 appears from our examination of those books;

(c) The balance Sheet, Profit and Loss Account and Cash Flow Statement dealt with by this report are in agreement with the books of account;

(d) In our opinion, the Balance Sheet, Profit and Loss Account and Cash Flow Statement dealt with by this report comply with the Accounting Standards referred to in Section 211(3C) of the Companies Act, 1956.

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

(f) In our opinion and to the best of our information and according to the explanations given to us the said accounts read together with the notes thereon given 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 so far as it relates to the Balance Sheet, of the state of affairs of the Company as at 31s March 2010. (ii) in so far as it relates to the Profit and Loss Account, of the loss for the year ended on that date, and (iii) In the case of Cash Flow Statement, of the Cash Flows for the year ended on that date.

ANNEXURE TO THE AUDITORS REPORT

1) i) The Company is maintaining proper records showing full particulars, including quantitative details and situation of Fixed Assets.

ii) Fixed assets are physically verified by the management at regular intervals as per the regular programme of verification which, in our opinion, is reasonable having regard to the size of the Company and the nature of its assets. According to the information and explanations given to us, no material discrepancies were noticed on such verification.

iii) There was no substantial disposal of fixed assests during the year.

2) i) The Management has conducted physical verification of inventory at reasonable intervals.

ii) 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.

iii) The Company is maintaining proper records of inventory and no material discrepancies were noticed on physical verification.

3) i) As informed, the Company has not granted any loan, secured or unsecured to companies, firms or other parties covered in the register maintained under Section 301 of the Companies Act, 1956. Accordingly clause (iii)(b) to (iii)(d) of Paragraph 4 of the Order are not applicable to the company for the current year.

ii) The Company has not taken unsecured loans during the year under consideration and unsecured loans amounting to Rs.4,77,71,506.98 were taken in years prior to financial year ending on March 31, 2010 which are outstanding as on the date of Balance Sheet from companies, firm and other parties covered in the register maintained under Section 301 of the Act. The details are as under: -

I) M/s Sagar Entertainment Limited Rs.2,49,05,000.00

II) Late Sh. Ramanand Sagar (Ex-Chairman) Rs. 12,90,326.98

III) M/s Sagarlila Finvest (India) P. Ltd Rs. 76,180.00

IV) M/s Gayatri Films and Music (P) Ltd. Rs.2,15,00,000.00

iii) In our opinion, the terms and conditions of loans taken are not prima facie prejudicial to the interest of the Company.

iv) We are informed by the management that no interest was payable on the loans and no principal amount was due for repayment during the year.

4. In our opinion and according to the information and explanations 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. During the course of our audit, no major weakness has been noticed in the internal control systems in respect of these areas.

5. Based upon the audit procedures applied by us and according to the information and explanations provided by the management, we are of the opinion that contracts or arrangements that need to be entered into the register maintained under Section 301 of the Companies Act, 1956 have been entered in the register.

6. In our opinion and as per explanations give to us the Company has not accepted any deposit as mentioned in the provisions of Section 58A, 58AA or any other relevant provisions of the Companies Act, 1956 and rules framed there under. We are informed by the management that no order has been passed by the Company Law Board,

National Company Law Tribunal or Reserve Bank of India or any Court or any other Tribunal under Section 58A and 58AA of the Companies Act, 1956.

7. In our opinion, the Company has an internal audit system commensurate with the size and nature of its business.

8. In our opinion and the best of our knowledge and belief the Company is not required to maintain cost records under clause(d) of sub section (1) of Section 209 of the Companies Act, 1956.

9. i) According to the records of the Company, the Company is regular in depositing undisputed statutory dues including Provident Fund, Investor Education and Protection Fund, Employees state Insurance, Income Tax, Sales Tax, Wealth Tax Services Tax, Customs Duty, Excise Duty, Cess and other statutory dues applicable to the company.

ii) According to information and explanations given to us, there are no dues outstanding to Sales Tax, Income Tax, Custom Duty, Wealth Tax, excise Duty or Cess on account of any dispute.

10. The Company has accumulated losses of more than 50% of net worth. It has not incurred cash losses in the financial year ending 31s March 2010 and in the financial year ending 31s March 2009.

11. The Company has not defaulted in repayment of dues to financial institution or banks.

12. According to the information and explanations given to us and based on the documents and records produced to us, the Company has not granted loans and advances on the basis of security by way of pledge of shares, debentures and other securities.

13. In our opinion and according to the information and explanations given to us, the nature of activities of the Company does not attract any special statute applicable to chit fund and nidhi/mutual benefit funds/societies.

14. In our opinion and as per explanations given by the management the company has not dealt in shares, securities or debentures and other investments.

15. According to the information and explanations given to us, the Company has not given any guarantee for loans taken by associates from bank or financial institution.

16. The loans were applied for the purpose for which the loans were obtained.

17. In our opinion and to the best of our knowledge and belief no funds raised on short term basis have been used for long term investment.

18. The Company has not made any preferential allotment of shares to parties or companies covered in the register maintained under section 301 of the Companies Act, 1956.

19. The company did not have any out standing debentures during the year.

20. The Company has not raised any money through a public issue during the year.

21. Based on the audit procedures performed and information and explanations given we report that no fraud on or by the Company has been noticed or reported during the course of audit.

For RAJEEV SINGHI & CO.,

CHARTERED ACCOUNTANTS

RAJEEV SINGHI

Place: Chandigarh (Proprietor)

Dated: 29th May 2010 Membership No. 81892









 
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