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Auditor Report of Speciality Restaurants Ltd.

Mar 31, 2015

We have audited the accompanying financial statements of SpECIALITY RESTAURANTS LIMITED ("the Company"), which comprise the Balance Sheet as at 31st March, 2015, the Statement of Profit and Loss, the Cash Flow Statement for the year then ended, and a summary of the significant accounting policies and other explanatory information. Management''s Responsibility for the financial Statements The Company''s Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 ("the Act") with respect to 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 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 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 thereunder.

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 financial statements.

Opinion

In our opinion and to the best of our information and according to the explanations given to us, the aforesaid financial statements give the information required by the 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 31st 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 in terms of Section 143(11) of the Act, 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 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 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 its financial statements - Refer Note 23 to the 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 were no amounts which were required to be transferred to the Investor Education and Protection Fund by the Company.

Annexure to the Independent Auditors'' Report

(Referred to in paragraph 1 under ''Report on Other Legal and Regulatory Requirements'' section of our report of even date)

Having regard to the nature of the Company''s business/activities/ results during the year, clauses (v), (vi) and (x) of the Order are not applicable to the Company.

1. In respect of its fixed assets:

a) The Company has maintained proper records showing full particulars, including quantitative details and situation of the fixed assets. b) The Company has a program of verification of fixed assets to cover all the items in a phased manner over a period of three years which, in our opinion, is reasonable having regard to the size of the Company and the nature of its assets. Pursuant to the program, certain fixed assets were physically verified by the Management during the year. According to the information and explanations given to us, no material discrepancies were noticed on physical verification.

2. In respect of its inventories:

a) As explained to us, inventories were physically verified during the year by the Management at reasonable intervals.

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

3. The Company had granted unsecured loan to a company covered in the register maintained under section 189 of the Act.

a) In respect of above loan, the recovery of principal and interest amount has not fallen due as on 31st March 2015.

b) The loan is repayable after 31st March, 2016, as such the question of overdue repayment does not arise.

4. In our opinion and according to the information and explanations given to us, having regard to the explanations that some of the items purchased are of special nature and suitable alternative sources are not readily available for obtaining comparable quotations, there is an adequate internal control system commensurate with the size of the Company and the nature of its business with regard to purchases of inventory and fixed assets and for the sale of goods and services. During the course of our audit, we have not observed any major weakness in such internal control system.

5. According to the information and explanations given to us, in respect of statutory dues:

a) The Company has generally been regular in depositing undisputed statutory dues, including Provident Fund, Employees State Insurance, Income-Tax, Sales tax, Wealth-tax, Service tax, Customs duty, Value Added Tax, Cess and any other statutory dues applicable to it with the appropriate authorities.

b) There were no undisputed amount payable in respect of Provident Fund, Employees State Insurance, Income- Tax, Sales tax, Wealth-tax, Service tax, Customs duty, Value Added Tax, Cess and any other material statutory dues in arrears as at 31st March, 2015 for a period of more than six months from the date they became payable.

c) As at 31st March, 2015 the following are the particulars of dues on account of Income-tax, Sales Tax, and Value Added Tax that have not been deposited on account of any dispute:

(Rs. in Millions)

Name of the Nature of Amount Period to Forum where the Statute dues which dispute is the relates amount pending

Income Tax Income Tax 6.45 2009-10 Commissioner Act, 1961 2.08 2010-11 Commissioner

1.55 2010-11 Income-tax Appellate Tribunal

0.92 2011-12 Commissioner

Bombay Sales Sales Tax 0.11 1999-00 Sales tax tax Act, 1959 Appellate Tribunal

Tamil Nadu Value VAT Act 2006 Added 9.93 2006-09 Appellate Deputy Tax Commissioner

Central Sales Tax Sales Tax 1.96 2008-10 Joint Act 1956 Commissioner of Sales Tax (Appeal)

Maharashtra Value Value Added Tax Added 1.16 2008-10 Deputy 2002 Tax Commissioner of Sales Tax

Andhra Value 0.88 From April Pradesh Added 2012 to Appellate Deputy VAT Act Tax September Commissioner 2005 2013

d) There were no amounts which were required to be transferred to the Investor Education and Protection Fund by the Company in accordance with the relevant provisions of the Companies Act, 1956 and rules made thereunder.

6. The Company does not have accumulated losses at the end of the financial year and the Company has not incurred cash losses during the financial year covered by our audit and in the immediately preceding financial year.

7. In our opinion and according to the information and explanations given to us, the Company has not defaulted in repayment of dues to banks. There are no borrowings from financial institutions and debenture holders.

8. In our opinion and according to the information and explanations given to us, the term loans have been applied by the Company during the year for the purposes for which they were obtained.

9. To the best of our knowledge and according to the information and explanations given to us, no fraud by the Company and no material fraud on the Company has been noticed or reported during the year.

For Deloitte Haskins & Sells LLP Chartered Accountants (Firm''s Registration No. 117366W/W-100018)

Rakesh N. Sharma Partner Mumbai, 27th May, 2015 (Membership No. 102042)


Mar 31, 2014

We have audited the accompanying financial statements of Speciality Restaurants limiTed ("the Company"), which comprise the Balance Sheet as at 31st March, 2014, the Statement of profit and Loss and the Cash Flow Statement for the year then ended, and a summary of the significant accountng policies and other explanatory informaton.

Management''s responsibility for the financial statements

The Company''s Management is responsible for the preparaton of these financial statements that give a true and fair view of the financial positon, financial performance and cash flows of the Company in accordance with the Accountng Standards notfed under the Companies Act, 1956 ("the Act") (which contnue to be applicable in respect of Secton 133 of the Companies Act, 2013 in terms of General Circular 15/2013 dated 13th September, 2013 of the Ministry of Corporate Afairs) and in accordance with the accountng principles generally accepted in India. This responsibility includes the design, implementaton and maintenance of internal control relevant to the preparaton and presentaton of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

Auditors'' 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 Auditng issued by the Insttute 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 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 control relevant to the Company''s preparaton and fair presentaton 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 efectveness of the Company''s internal control. An audit also includes evaluatng the appropriateness of the accountng policies used and the reasonableness of the accountng estmates made by the Management, as well as evaluatng the overall presentaton of the financial statements.

We believe that the audit evidence we have obtained is sufcient and appropriate to provide a basis for our audit opinion.

Opinion

In our opinion and to the best of our informaton and according to the explanatons given to us, the aforesaid financial statements give the informaton required by the Act in the manner so required and give a true and fair view in conformity with the accountng principles generally accepted in India:

(a) In the case of the Balance Sheet, of the state of afairs of the Company as at 31st March, 2014;

(b) In the case of the Statement of profit and Loss, of the profit of the Company for the year ended on that date; and

(c) In the case of the Cash Flow Statement, of the cash flows of the Company 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 the Central Government in terms of Secton 227(4A) of the Act, we give in the Annexure a statement on the maters specified in paragraphs 4 and 5 of the Order.

2. As required by Secton 227(3) of the Act, we report that:

(a) We have obtained all the informaton and explanatons 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 examinaton 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 Balance Sheet, the Statement of profit and Loss, and the Cash Flow Statement comply with the Accountng Standards notfed under the Act (which contnue to be applicable in respect of Secton 133 of the Companies Act, 2013 in terms of General Circular 15/2013 dated 13th September, 2013 of the Ministry of Corporate Afairs).

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

Annexure to the independent auditors'' report (Referred to in paragraph 1 under ''Report on Other Legal and Regulatory Requirements'' secton of our report of even date)

1.Having regard to the nature of the Company''s business/actvites/ results during the year, clauses (iii), (vi), (viii), (x), (xii), (xiii), (xiv), (xv), (xviii) and (xix) of CARO are not applicable to the Company.

2. In respect of its fixed assets:

a) The Company has maintained proper records showing full partculars, including quanttatve details and situaton of fixed assets.

b) Some of the fixed assets were physically verifed during the year by the management in accordance with a programme of verification, which in our opinion provides for physical verification of all fixed assets at reasonable intervals. According to the informaton and explanatons given to us, no material discrepancies were notced on such verification.

c) The fixed assets disposed of during the year, in our opinion, do not consttute a substantal part of the fixed assets of the Company and such disposal has, in our opinion, not afected the going concern status of the Company.

3. In respect of its inventories:

a) As explained to us, inventories were physically verifed during the year by the Management at reasonable intervals.

b) In our opinion and according to the informaton and explanatons given to us, the procedures of physical verification of inventories followed by the Management were reasonable and adequate in relaton to the size of the Company and the nature of its business.

c) In our opinion and according to the informaton and explanatons given to us, the Company has maintained proper records of its inventories and no material discrepancies were notced on physical verification.

4. In our opinion and according to the informaton and explanatons given to us, having regard to the explanatons that some of the items purchased are of special nature and suitable alternatve sources are not readily available for obtaining comparable quotatons, there is an adequate internal control system commensurate with the size of the Company and the nature of its business with regard to purchases of inventory and fixed assets and for the sale of goods and services. During the course of our audit, we have not observed any major weakness in such internal control system.

5. In respect of contracts or arrangements entered in the Register maintained in pursuance of secton 301 of the Companies Act, 1956, to the best of our knowledge and belief and according to the informaton and explanatons given to us:

a) The partculars of contracts or arrangements referred to in secton 301 that needed to be entered in the Register, maintained under the said Secton have been so entered.

b) Where each of such transacton is in excess of Rs 5 lakhs in respect of any party, the transactons have been made at prices which are prima facie reasonable having regard to the prevailing market prices at the relevant tme.

6. In our opinion, the internal audit functon carried out during the year a by firm of Chartered Accountants appointed by the Management has been commensurate with the size of the Company and the nature of its business.

7. According to the informaton and explanatons given to us, in respect of statutory dues:

a) The Company has generally been regular in depositng undisputed statutory dues, including Provident Fund, Employee State Insurance, Income tax, VAT, Wealth-tax, Service tax, Customs duty, Cess and any other material statutory dues applicable to it with the appropriate authorites.

b) There were no undisputed amounts payable in respect of Provident Fund, Employee State Insurance, Income tax, VAT, Wealth Tax, Service Tax, Customs Duty, Cess and other material statutory dues in arrears as at 31st March, 2014 for a period of more than six months from the date they became payable.

c) Details of dues of Income Tax and VAT which have not been deposited as on 31st March, 2014 on account of disputes are given below:

(Rupees in Million)

Name of the Statute Nature of Dues Amount Period to which the Forum where the dispute is amount relates pending

Income Tax Act, 1961 Income Tax 9.45 2009-10 Commissioner

5.48 2011-12 Commissioner

Bombay Sales tax Act, 1959 Sales Tax 0.10 1999-00 Sales tax Appellate Tribunal

8. In our opinion and according to the informaton and explanatons given to us, the Company has not defaulted in the repayment of dues to banks. There are no dues to financial insttutons and debenture holders.

9. In our opinion and according to the informaton and explanatons given to us, the term loans have been applied by the Company during the year for the purposes for which they were obtained.

10. In our opinion and according to the informaton and explanatons given to us, and on an overall examinaton of the Balance Sheet of the Company, we report that funds raised on short-term basis have, prima facie, not been used during the year for long-term investment.

11. The Management has disclosed the end use of money raised by public issue in the notes to the financial statements and we have verifed the same.

12. To the best of our knowledge and belief and according to the informaton and explanatons given to us, no material fraud on or by the Company has been notced or reported during the year.

For Deloite Haskins & Sells LLP

Chartered Accountants

(Firm''s Registraton No. 117366W/W-100018)

Porus B. Pardiwalla

Partner MUMBAI, Dated : 28th May, 2014 (Membership No. 40005)


Mar 31, 2013

Report on the Financial Statements

We have audited the accompanying financial statements of SPECIALITY RESTAURANTSLIMITED ("the Company"), which comprise the Balance Sheet as at 31st March 2013, the Statement of Profit and Loss and the Cash Flow Statement for the year then ended, and a summary of the significant accounting policies and other explanatory information. Management''s Responsibility for the Financial Statements

The Company''s 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 Section 211(3C) of the Companies Act, 1956 ("the Act")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.

Auditors'' 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 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 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 the accounting policies used and the reasonableness of the accounting estimates made by the 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 explanations given to us, the aforesaid 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 31st March, 2013;

(b) in the case of the Statement of Profit and Loss, of the profit of the Company for the year ended on that date; and

(c) in the case of the Cash Flow Statement, of the cash flows of the Company 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 the Central Government 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 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 Balance Sheet, the Statement of Profit and Loss, and the Cash Flow Statement comply with the Accounting Standards referred to in Section 211(3C) of the Act.

(e) On the basis of the written representations received from the directors as on 31st March, 2013 taken on record by the Board of Directors, none of the directors is disqualified as on 31st March, 2013 from being appointed as a director in terms of Section 274(1)(g) of the Act.

Annexure to the Independent Auditors'' Report

(Referred to in paragraph 1 under ''Report on Other Legal and Regulatory Requirements'' section of our report of even date)

1 Having regard to the nature of the Company''s business/activities/results during the year, clauses (vi), (viii), (x), (xii), (xiii), (xiv), (xv), (xviii) and (xix) of CARO are not applicable to the Company.

2 In respect of its fixed assets:

a) The Company has maintained proper records showing full particulars, including quantitative details and situationof fixed assets.

b) Some of the fixed assets were physically verified during the year by the Management in accordance with a programme of verification, which in our opinion provides for physical verification of all the fixed assets at reasonable intervals. According to the information and explanations given to us, no material discrepancies were noticed on such verification.

c) The fixed assets disposed off during the year, in our opinion, do not constitute a substantial part of the fixed assets of the Company and such disposal has, in our opinion, not affected the going concern status of the Company.

3. In respect of its inventories:

a) As explained to us, inventories were physically verified during the year by the Management at reasonable intervals.

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

4. In respect of 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, according to the information and explanations given to us:

(a) At the year-end, the outstanding balance is Nil and the maximum amount involved during the year was Rs.23,265,461/- (number of parties -2). The Company has not granted any loans during the current year.

(b) The rate of interest and other terms and conditions of such loans are, in our opinion, prima facie not prejudicial to the interests of the Company.

(c) The receipts of principal amounts and interest have been regular/as per stipulations.

(d) There are no overdue amounts in excess of Rs. 1 lakh outstanding as at the year-end.

In respect of loans, secured or unsecured, taken by the Company from companies, firms or other parties covered in the Register maintained under Section 301 of the Companies Act, 1956, according to the information and explanations given to us:

(a) At the year-end, the outstanding balance is Nil and the maximum amount involved during the year was Rs.55,817,546/-(number of parties - 5). The Company has not taken any loan during the year.

(b) The rate of interest and other terms and conditions of such loans are, in our opinion, prima facie not prejudicial to the interests of the Company.

(c) The payments of principal amounts and interest in respect of such loans are regular/as per stipulations.

5. In our opinion and according to the information and explanations given to us, having regard to the explanations that some of the items purchased are of special nature and suitable alternative sources are not readily available for obtaining comparable quotations,there is an adequate internal control system commensurate with the size of the Company and the nature of its business with regard to purchases of inventory and fixed assets and for the sale of goods and services. During the course of our audit, we have not observed any major weakness in such internal controlsystem.

6. In respect of contracts or arrangements entered in the Register maintained in pursuance of section 301 of the Companies Act, 1956, to the best of our knowledge and belief and according to the information and explanations given to us:

a) The particulars of contracts or arrangements referred to in 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.

7. In our opinion, the internal audit functions carried out during the year by firms of Chartered Accountants appointed by the Management have been commensurate with the size of the Company and the nature of its business.

8. According to the information and explanations given to us, in respect of statutory dues:

a) The Company has generally been regular in depositing undisputed statutory dues, including Provident Fund, Employee State Insurance, Incometax, VAT, Wealth-tax, Service tax, Customs duty, Cess, and any other material statutory dues applicable to it with the appropriate authorities.

b) There were no undisputed amounts payable in respect of Provident Fund, Employee State Insurance, Income tax, VAT, Wealth Tax, Service Tax, Customs Duty, Cess and other material statutory dues in arrears as at 31 March 2013 for a period of more than six months from the date they became payable.

c) Details of dues of Income Tax and VAT which have not been deposited as on 31st March 2013 on account of disputes are given below:-

(Rs. In Millions) Name of the Statute Nature of dues Amount Period to which Forum where the the amount relates dispute is pending

Income Tax Act, 1961 Income Tax 18.45 2009-10 Deputy Commissioner

2.86 2010-11 and 2011-12 Commissioner

Bombay Sales tax Act, 1959 Sales Tax 0.10 1999-00 Sales tax Appellate Tribunal

Tamil Nadu VAT Act 2006 1.46 2006-07 Assistant Commissioner

6.90 2007-08 Assistant Commissioner

8.81 2008-09 Assistant Commissioner

9. In our opinion and according to the information and explanations given to us, the Company has not defaulted in the repayment of dues to banks. There are no dues to financial institutions and debenture holders.

10. In our opinion and according to the information and explanations given to us, the term loans have been applied by the Company during the year for the purposes for which they were obtained.

11. In our opinion and according to the information and explanations given to us, and on an overall examination of the Balance Sheet of the Company, we report that funds raised on short-term basis have, prima facie , not been used during the year for long-term investment.

12. The Management has disclosed the end use of money raised by public issue in the notes to the financial statements and we have verified the same.

13. To the best of our knowledge and belief and according to the information and explanations given to us, no material fraud on or by the Company has been noticed or reported during the year.

For Deloitte Haskins & Sells

Chartered Accountants

(Firm Registration No. : 117366W)

P. B. Pardiwalla

Partner

Mumbai, dated: 29 May 2013 (Membership No. 40005)


Mar 31, 2012

1. We have audited the attached Balance Sheet of SPECIALITY RESTAURANTS LIMITED ("the Company") as at 31 March 2012, the Statement of Profit and Loss and the Cash Flow Statement for the year ended on that date, both 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.

2. We conducted our audit in accordance with the 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 misstatements. An audit includes examining, on a test basis, evidence supporting the amounts and the disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates 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.

3. 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, we enclose in the Annexure a statement on the matters specified in paragraphs 4 and 5 of the said Order.

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 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 Balance Sheet, the Statement of Profit and Loss and the 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) In our opinion and to the best of our information and according to the explanations given to us, the 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 the case of the Balance Sheet, of the state of affairs of the Company as at 31 March 2012;

(ii) in the case of the Statement of Profit and Loss, of the profit of the Company for the year ended on that date; and

(iii) in the case of the Cash Flow statement, of the cash flows of the Company for the year ended on that date.

5. On the basis of written representations received from the Directors as on 31 March 2012 and taken on record by the Board of Directors, we report that none of the directors is disqualified as on 31 March 2012 from being appointed as a director in terms of Section 274(1)(g) of the Companies Act, 1956.

ANNEXURE TO THE AUDITORS' REPORT (Referred to in paragraph 3 of our report of even date)

(i) Having regard to the nature of the Company's business/activities/result, clauses (ic), (vi),(viii),(x),(xii),(xiii),(xiv), (xv),(xviii),(xix) and (xx) of CARO are not applicable.

(ii) In respect of its fixed assets:

(a) The Company has maintained proper records showing full particulars, including quantitative details and situation of the fixed assets.

(b) Some of the fixed assets were physically verified during the year by the management in accordance with a program of verification which in our opinion, provides for physical verification of all the fixed assets at reasonable intervals. According to the information and explanations given to us, no material discrepancies were noticed on such verification.

(iii) In respect of its inventory:

(a) As explained to us, the inventories were physically verified during the year by the Management at reasonable intervals.

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

(iv) In respect of loans, secured or unsecured, granted by the Company to companies, firms or other parties covered in the Register under Section 301 of the Companies Act, 1956, according to the information and explanations given to us:

(a) At the year-end, the outstanding balances of such loans aggregated to Rs.23,077,198/- (number of parties - 2), and the maximum amount involved during the year was Rs.25,716,661/- (number of parties - 2). The Company has not granted any such loans during the year.

(b) The rate of interest and other terms and conditions of the loans are, prima facie in our opinion, not prejudicial to the interests of the Company.

(c) The receipts of principal amounts and interest have been regular/as per stipulations.

(d) There are no overdue amounts in excess of Rs. 1 lakh outstanding at the year-end.

In respect of loans, secured or unsecured, taken by the Company from companies, firms or other parties covered in the Register maintained under Section 301 of the Companies Act, 1956, according to the information and explanations given to us:

(a) At the year-end, the outstanding balance of such loans is Rs. 55,817,546 (number of parties - 6) and the maximum amount involved during the year was Rs. 58,669,398/- (number of parties - 7). The Company had not taken any such loan during the year.

(b) The rate of interest and other terms and conditions of the loans are, prima facie in our opinion, not prejudicial to the interests of the Company.

(c) The payments of principal amounts and interest in respect of such loans are regular/as per stipulations.

(v) In our opinion and according to the information and explanations given to us, having regard to the explanations that some of the items purchased are of special nature and suitable alternative sources are not readily available for obtaining comparable quotations, there is an adequate internal control system commensurate with the size of the Company and the nature of its business with regard to purchases of inventory and fixed assets and the sale of goods and services. During the course of our audit, we have not observed any major weakness in such internal control system.

(vi) In respect of contracts or arrangements entered in the Register maintained in pursuance of Section 301 of the Companies Act, 1956, to the best of our knowledge and belief and according to the information and explanations given to us:

(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 (excluding loans reported under paragraph iv above) 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.

(vii) The Company has an internal audit system, which was present throughout the year. The company is taking steps to further enhance the robustness of the system.

(viii) According to the information and explanations given to us in respect of statutory dues including Provident Fund, Employees State Insurance, Income-Tax, VAT, Service Tax, Wealth Tax, Customs Duty, Cess and other material statutory dues:

(a) The Company has generally been regular in depositing undisputed dues, applicable to it, with the appropriate authorities.

(b) There were no undisputed amounts payable in arrears as at 31 March 2012 for a period of more than six months from the date they became payable.

(c) There are no amounts payable, on account of any dispute, that have not been deposited as at 31 March 2012.

(ix) In our opinion and according to the information and explanations given to us, the Company has not defaulted in the repayment of dues to banks.

(x) In our opinion and according to the information and explanations given to us, the term loans have been applied for the purposes for which they were obtained.

(xi) In our opinion and according to the information and explanations given to us and on an overall examination of the Balance Sheet, we report that funds raised on short-term basis have not been used during the year for long- term investment.

(xii) To the best of our knowledge and according to the information and explanations given to us, no fraud by the Company and no fraud on the Company has been noticed or reported during the year.

For DELOITTE HASKINS & SELLS

Chartered Accountants

(Registration No. : 117366W)

P. B. Pardiwalla

Partner

Mumbai, 1st August, 2012. Membership No. 40005

 
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