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;
(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