Mar 31, 2010
We have audited the attached BALANCE SHEET of ROYAL ROSORT & HOTELS LTD
as at 31.03.2010, the Profit & Loss Account for the period ended on
that date 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 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.
(1) (a) As required by the Companies (Auditor's Report) Order, 2003
issued by the Central Government of India in terms of sub-section (4 A)
of section 227 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.
(2) Further to our comments in the Annexure referred to above, we
report that:-
(a) We have obtained all the information and explanation 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 kept by the company so far as appears from our examination of such
books.
(c) The Balance Sheet and the Profit and Loss Account dealt with by
this report are in agreement with the books of account.
(d) In our opinion, the Balance Sheet, and Profit & Loss Account dealt
with by this report comply with the accounting standards referred to in
sub-section (3C) of Section 211 of the Companies Act, 1956.
(e) On the basis of written representations received from the directors
as on 31st March, 2010 and taken on record by the Board of Directors,
we report that none of the directors is disqualified as on 31st March
2010 from being appointed as a director in terms of clause (g) of sub
section (1) of section 274 of the Companies Act, 1956.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 the case of the Balance sheet of the state of affairs of the
company as at 31.03.2010 and;
(ii) In case of Profit and Loss Account of the Profit for the period
ended on that date;
ANNEXURE
(Referred to in paragraph 1 of our report of even date)
i) (a)The Company has maintained proper records showing full
particulars including quantities details and situation of Fixed Assets.
(b)AII the Assets have not been physically verified by the management
during the year but there is regular program of Verification which, in
our opinion, is reasonable having regard to the size of the company and
the nature of its assets. No material discrepancies were noticed on
such verification.
ii) (a)The Company has no inventory, hence not applicable.
iii) (a) As informed to us, the company has not granted any loans,
secured or unsecured to companies, firms or other parties covered in
the register maintained under section 301 of the Act. However, year end
Balance of Loan taken from relatives of director is Rs. NIL
(b) The company had no taken loan from any other companies covered in
the register maintained under section 301 of the Companies Act,1956.
And the year end balance of loans taken from such parties was Rs. NIL
There are to firms covered in the register maintained under section 301
of the Companies Act, 1956 to which the company has granted loans..
(c) In our opinion the rate of interest and other terms and conditions
on which loans have been taken from/ granted to companies, firms or
other parties listed in the register maintained under section 301 of
the companies Act, 1956 are not, prima facie, prejudicial to the
interest of the company.
(d) In respect of the aforesaid loans, the amount is payable on demand,
the company is repaying the principal amount as & when demanded & has
not been paying any interest.
(e) The aforesaid loan is repayable on demand & therefore the question
of overdue amount does not arise.
iv) In our opinion and according to information & explanations given to
us, there are adequate internal control procedures 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. During the
course of audit, no major weakness has been noticed in these internal
controls.
v) (a)According to the information and explanations given to us, we are
of the opinion that the transactions that need to be entered into the
register maintained under section 301 of the companies Act, 1956 have
been so entered.
vi) In our opinion, according to the information and explanations given
to us, the company has not taken any deposit from the public.
vii) In our opinion the company has an internal audit system
commensurate with its size and nature of its business.
viii) As informed to us, the Central Government has not prescribed
maintenance of cost records under section 209(1) (d) of the products of
the company.
ix) (a) The company is generally regular in depositing with the
appropriate authorities, undisputed statutory dues including Provident
Fund, Income tax, Sales-tax, Excise Duty, investors education and
protection fund, wealth Tax, Custom Duty, Cess and other material
Statutory dues applicable to it except Income Tax Liability of
Rs.NIL/-. There were no arrears for a period of more than six month
from the date they became payable as at 31st March 2010
(b)According to the information and explanation given to us, there are
no cases of non-deposits with the appropriate authorities of disputed
dues of sales tax /excise duty /custom duty / wealth tax / cess.
x) The accumulated losses of the company are not more than 50% of its
Net Worth. The company has not incurred any cash losses in current year
xi) According to the information and explanations given to us, the
company has defaulted in repayment of dues of loan of Rs.NIL. The
details are mentioned at Schedule G. Notes forming part of Accounts
given at Audited Annual Accounts of the Financial Year 2009-10.
xii) According to the information and explanations given to us, the
company has not granted any loans and advances on the basis of security
by way of pledge of Shares, debentures and other securities.
xiii) The company is not a chit fund or a nidhi mutual benefit fund /
society. Therefore, the provision of clause 4 (xiii) of the Companies
(Auditor's Report) Order 2003 is not applicable to the company.
xiv) According to the information and explanations given to us, 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 is not applicable to the
company.
xv) In our opinion, the terms and condition on which the company has
given guarantees for loans taken by others from Bank or Financial
Institutions are, prima facie, not prejudicial to the interest of the
company.
xvi) According to the information and explanations given to us in this
year there is no term loan during the loan.
xvii) According to the information and explanations given to us and on
an overall examination of the Balance Sheet of the company, we report
that no funds raised on short-term basis have been used for long-term
investment.
xviii) The company has not made preferential allotment of shares to
parties and companies covered in the Register maintained under section
301 of the Act.
xix) According to the information and explanations given to us, no
debentures and/or preference shares have been issued during the year.
xx) The company has not raised any money through a public issue.
xxi) Based upon the audit procedures performed and information and
explanations given to us, we report that no fraud on or by the Company
has been noticed or reported during the course of our audit
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