Mar 31, 2023
Sayaji Hotels Limited,
Report on the Audit of the Standalone Financial Statements
Opinion
We have audited the standalone financial statements of Sayaji Hotels Limited(âthe Companyâ), which comprise the Balance Sheet as at 31stMarch 2023, and the Statement of Profit and Loss(including Other Comprehensive Income), Statement of changes in equity and Statement of Cash Flows for the year then ended, and notes to the financial statements, including a summary of significant accounting policies and other explanatory information(hereinafter referred to as âthe standalone financial statementsâ).
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 Companies Act, 2013 (âthe Actâ) in the manner so required and give a true and fair view in conformity with the Indian Accounting Standards prescribed under section 133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015, as amended, (âInd ASâ) and other accounting principles generally accepted in India, of the state of affairs of the Company as at March 31, 2023, the profit and total comprehensive income, changes in equity and its cash flows for the year ended on that date.
Basis for Opinion
We conducted our audit in accordance with the Standards on Auditing (SAs) specified under section 143(10) of the Companies Act, 2013. Our responsibilities under those Standards are further described in the Auditorâs Responsibilities for the Audit of the Financial Statements section of our report. We are independent of the Company in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India together with the ethical requirements that are relevant to our audit of the financial statements under the provisions of the Companies Act, 2013 and the Rules thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the Code of Ethics. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion on the standalone financial statements.
Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the financial statements of the current period. These matters were addressed in the context of our audit of the financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. We have determined the matters described below to be the key audit matters to be communicated in our report.
Key Audit Matter |
Auditorâs Response |
Revenue Recognition |
Principal Audit Procedures We conducted an evaluation of the Company''s internal controls pertaining to its revenue transactions. This assessment involved testing of the key controls that were identified during the audit process. |
Refer Notes 33 to the Standalone Financial Statements. |
We have performed substantive detail testing by selecting a sample of revenue transactions, that we considered appropriate to test the evidence of effectiveness of the internal controls and adherence to accounting policies in recognising the revenue, and the rebates and discounts thereagainst. |
Fees and Other Reimbursements to Operating Properties To ensure accounting of the expenses comprising the Basic Management Fee, Incentive Fee and reimbursement of expenses based on the terms of the Agreements entered into with the Operating Company and on the operating results of the respective Hotel properties under Agreement. |
Principal Audit Procedures Our audit approach was as follows: Review of each of the Hotel operating agreements entered into. Validation of the Gross Income, the Gross Operating profit of each of the property from the books and records of the property. We verified the calculation of the fees and reimbursement of expenses in accordance with the terms outlined in the aforementioned agreements. Our examination aimed to ensure that the fees were accurately calculated and the expenses were appropriately reimbursed, adhering to the specific provisions laid out in the agreements. |
Information Other than the Financial Statements and Auditorâs Report Thereon
The Companyâs Management and Board of Directors are responsible for the other information. The other information comprises the information included in the Management Discussion and Analysis, Boardâs Report including Annexures to Boardâs Report, Business Responsibility Report, Corporate Governance and Shareholderâs Information, but does not include the standalone financial statement s and our auditorâs report thereon.
Our opinion on the standalone financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.
In connection with our audit of the standalone financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the standalone financial statements or our knowledge obtained during the course of our audit or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.
Responsibility of Management for Standalone Financial Statements
The Companyâs Management and Board of Directors are responsible for the matters stated in section 134(5) of the Companies Act, 2013 (âthe Actâ) with respect to the preparation 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 Ind AS 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 of 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 standalone financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, management is responsible for assessing the Companyâs ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.
The Board of Directors are also responsible for overseeing the companyâs financial reporting process. Auditorâs Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditorâs report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with SAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these standalone financial statements.
As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:
⢠Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
⢠Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances. Under section 143(3)(i) of the Companies Act, 2013, we are also responsible for expressing our opinion on whether the company has adequate internal financial controls system in place and the operating effectiveness of such controls.
⢠Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
⢠Conclude on the appropriateness of managementâs use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Companyâs ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditorâs report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditorâs report. However, future events or conditions may cause the Company to cease to continue as a going concern.
⢠Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the standalone financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditorâs report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.
Report on Other Legal and Regulatory Requirements
As required by the Companies (Auditorâs Report) Order, 2020 (âthe Orderâ), issued by the Central Government of India in terms of sub-section (11) of section 143 of the Companies Act, 2013, we give in the âAnnexure-Aâ a statement on the matters specified in paragraphs 3 and 4 of the Order, to the extent applicable.
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 stMarch, 2023 taken on record by the Board of Directors, none of the directors is disqualified as on 31stMarch, 2023 from being appointed as a director in terms of Section 164(2) of the Act.
(f) 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
(g) With respect to the other matters to be included in the Auditorâs Report in accordance with the requirements of section 197(16) of the Act, as amended:
In our opinion and to the best of our information and according to the explanations given to us, the remuneration paid by the Company to its directors during the year is in accordance with the provisions of section 197 of the Act.
(h) 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, 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 No.46 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 has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company.
iv. (a) The Management has represented that, to the best of its knowledge and belief, no funds (which are material either individually or in the aggregate) have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the Company to or in any other person or entity, including foreign entity (âIntermediariesâ), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall, whether, directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company (âUltimate Beneficiariesâ) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries;
(b) The Management has represented, that, to the best of its knowledge and belief, no funds (which are material either individually or in the aggregate) have been received by the Company from any person or entity, including foreign entity (âFunding Partiesâ), with the understanding, whether recorded in writing or otherwise, that the Company shall, whether, directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (âUltimate Beneficiariesâ) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries;
(c) Based on the audit procedures that have been considered reasonable and appropriate in the circumstances, nothing has come to our notice that has caused us to believe that the representations under sub-clause (i) and (ii) of Rule 11(e), as provided under (a) and (b) above, contain any material misstatement.
For K.L. Vyas & Company, Chartered Accountants, FRN: 003289C
Place of Signature: Indore Date: 29th May, 2023
(Himanshu Sharma) Partner M. No. 402560
UDIN: 23402560BGUBHX3625
Mar 31, 2018
Report on the Standalone Ind AS Financial Statements
We have audited the accompanying standalone Ind AS financial statements of Sayaji Hotels Limited (the Company), which comprise the Balance Sheet as at March 31, 2018, the Statement of Profit and Loss (including Other Comprehensive Income), the Cash Flow Statement and the statement of Changes in Equity for the year then ended and a summary of significant accounting policies and other explanatory information.
Managementâs Responsibility for the Standalone 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 standalone Ind AS 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 of 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 standalone 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 standalone Ind AS 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 standalone Ind AS financial statements are free from material misstatements.
An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the standalone Ind AS financial statements. The procedures selected depend on the auditorâs judgment, including the assessment of the risks of material misstatement of the standalone 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 standalone 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 standalone Ind AS 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 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 standalone 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, of the state of affairs of the Company as at 31st March, 2018, 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 (Auditorâs Report) Order, 2016 (âthe Orderâ) 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, 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, 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 aforesaid standalone Ind AS financial statements comply with the Indian Accounting Standards specified under Section 133 of the Act.
e) On the basis of the written representations received from the directors as on 31st March, 2018 taken on record by the Board of Directors, none of the directors is disqualified as on 31st March, 2018 from being appointed as a director in terms of Section 164 (2) of the Act.
f) 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, 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 standalone Ind AS financial statements -Refer Notes 48 to the standalone 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.
ANNEXURE -A TO THE AUDITORSâ REPORT
ANNEXURE REFERRED TO IN CLAUSE 1 OF REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS OF OUR REPORT OF EVEN DATE TO THE MEMBERS OF SAYAJI HOTELS LIMITED ON THE STANDALONE IND AS FINANCIAL STATEMENT FOR THE YEAR ENDED 31ST MARCH, 2018.
(i) (a) The company has maintained proper records showing full particulars including quantitative details of fixed assets, however for some fixed assets, situation of the assets is not given and identification numbers are also not been given, which need to be updated. We have been informed by Management that above Work is in progress.
(b) Physical verification of fixed assets has been carried out by the Management at most of the Units in accordance with a phased programme of verification which, in our opinion, provides for physical verification of all the fixed assets at reasonable intervals, which in our opinion, is reasonable having regard to the size of the company and nature of its assets. According to the information and explanations given to us, no material discrepancies were noticed on such verification.
(c) According to the information and explanations given to us and on the basis of our examination of the conveyance deed provided to us, we report that, the title deeds, comprising of all the immovable properties of land and buildings which are freehold, are in the name of the Company as at the balance sheet date.
In respect of immovable properties been taken on lease and disclosed as fixed assets in the standalone financial statements, the lease agreements are in the name of the Company, however, there is a notice for cancellation of lease by the Indore Development Authority for cancelling the lease of one leasehold land situated in Indore with carrying value of Rs. 2291.62 Lakhs, which company is contesting.
(ii) (a) The physical verification of the inventory is being conducted on a monthly basis by the management and no material discrepancies were noticed.
(iii) (a) Company has not granted any loan to any Company, firm, LLP or any other party required to be covered in register maintained under section 189 of the Companies Act, 2013.
In view of situation explained as above provisions of clause 3 (iii) (b) & (c) of the Order are not applicable to be Company.
(iv) In our opinion and according to the information and explanations given to us, the company has complied with the provisions of section 185 and 186 of the Act, with respect to the loans and investments made.
(v) In our opinion and according to the information and explanations given to us, the Company has complied with the provisions of Sections 73 to 76 or any other relevant provisions of the Companies Act, 2013 and the Rules framed there under, with regard to the deposits accepted from the public. According to information and explanations given to us, no order has been passed by the Company Law Board or the National Company Law Tribunal or the Reserve Bank of India or any Court or any other Tribunal.
(vi) Central Government has not prescribed for the maintenance of cost records under sub-section 1 of section 148 of the Companies Act, 2013, for any of the business activity carried by the Company during the year under review.
(vii) (a) The Company is generally regular in depositing with appropriate authorities undisputed statutory dues including provident fund, investor education protection fund, employeesâ state insurance, income tax, sales tax, wealth tax, custom duty, excise duty, service tax & cess and other material statutory dues as may be applicable to it.
According to the information and explanations given to us, no undisputed amounts payable in respect of income tax, wealth tax, sales tax, customs duty, wealth tax, excise duty and cess were in arrears, as at 31.03.2018 for a period of more than six months from the date they became payable.
(b) According to the information and explanations given to us, details of the dues of sale tax, income tax, customs duty, wealth tax, excise duty and cess which have not been deposited on account of any dispute are given below.
Name of Statue |
Nature of Dues |
Period to which the amount relates |
Forum where the dispute is pending |
Total Amount (Rs. In Lakhs) |
Finance Act, 1994 and |
Service Tax |
Mar.â05-Mar.â09 |
High Court of M.P, |
256.78 |
Service Tax laws |
Indore Bench, Indore |
|||
Service Tax |
2009-2011 |
High Court of M.P, Indore Bench, Indore |
800.74 |
|
Service Tax |
2009-2013 |
Honourable CESTAT, Mumbai. |
39.27 |
|
Service Tax |
Apr.â11-Jun.â12 |
High Court of M.P, Indore Bench, Indore |
538.54 |
|
Service Tax |
Aprâ12 - Mar.15 |
Honourable CESTAT, Ahmedabad |
2.02 |
|
Service Tax |
Aprâ10 - Mar.15 |
Honourable CESTAT, Indore |
46.05 |
|
Income Tax Act, 1961. |
Tax deducted at |
A.Y.09-10 |
Commissioner of Income |
2.15 |
Source |
A.Y.10-11 |
Tax (Appeals), Indore. |
||
A.Y.14-15 |
Commissioner of Income Tax (Appeals), Vadodara |
1.09 |
||
M.P. Value Added Tax |
Value Added Tax |
2010-11 |
Appelate Tribunal, Commercial |
0.56 |
Act, 2002 |
2011-12 |
Taxes, Indore. |
10.91 |
|
2011-12 |
Commissioner (Appeal), |
37.72 |
||
2012-13 |
Commercial Taxes, Indore |
2.87 |
||
2013-14 |
0.52 |
|||
2014-15 |
2.94 |
|||
2015-16 |
3.61 |
|||
M.P. Luxury, Entertainment |
Luxury Tax |
2012-2013 |
Commissioner (Appeal), |
40.60 |
& Advertisement Tax Act, |
2013-2014 |
Commercial Taxes, Indore |
30.85 |
|
2011 |
2014-2015 2015-2016 |
26.00 26.04 |
||
M.P. Entry Tax Act, 1976 |
Entry Tax |
2012-2013 |
Commissioner (Appeal), |
0.01 |
2014-2015 |
Commercial Taxes, Indore |
1.76 |
||
2015-2016 |
17.00 |
|||
M.P. Municipal |
Property Tax |
2015-16 |
The Mayor-In-Council, |
46.39 |
Corporation Act, 1956 |
Indore Municipal Corporation, Indore |
|||
TOTAL |
1934.43 |
(viii) Based on our audit procedures and according to the information and explanations given to us, we are of the opinion that the Company has not defaulted in repayment of loans or borrowing to financial institutions, banks, Government or dues to debenture holders.
(ix) The Company did not raise any money by way of initial public offer or further public offer (including debt instruments) during the year, however, the Company has raised term loans during the year and were applied for the purposes for which those were raised.
(x) According to the information and explanations given to us, no fraud on or by the company has been noticed or reported during the course of our audit.
(xi) According to the information and explanations give to us and based on our examination of the records of the Company, the Company has paid/provided for 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 explanations given to us, the Company is not a nidhi company. Accordingly, paragraph 3(xii) of the Order is not applicable.
(xiii) According to the information and explanations given to us and based on our examination of the records of the Company, transactions with the related parties are in compliance with sections 177 and 188 of the Act where applicable and details of such transactions have been disclosed in the 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.
(xv) According to the information and explanations given to us and based on our examination of the records of the Company, the Company has not entered into non-cash transactions with directors or persons connected with him. Accordingly, paragraph 3(xv) of the Order is not applicable.
(xvi) The Company is not required to be registered under section 45-IA of the Reserve Bank of India Act 1934.
ANNEXURE -B TO THE AUDITORSâ REPORT
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 Sayaji Hotels Limited (âthe Companyâ) as of 31 March 2018 in conjunction with our audit of the standalone financial statements of the Company for the year ended on that date.
Managementâs Responsibility for Internal Financial Controls
The Companyâs management 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 (âICAIâ). 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 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 authorisations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorised 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, the Company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at 31 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 K.L. Vyas & Company,
Chartered Accountants,
FRN: 003289C
(K.L. Vyas)
Place of Signature : Indore Partner
Date : 30th May, 2018 M. No. 072043
Mar 31, 2016
To,
The Members,
Sayaji Hotels Limited,
Report on the Standalone Financial Statements
We have audited the accompanying standalone financial statements of Sayaji Hotels Limited (the Company), which comprise the Balance Sheet as at March 31, 2016, 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.
Managementâs 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 (âthe Actâ) with respect to the preparation 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 of 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.
Auditorâs 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 misstatements.
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. 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 statements.
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 31st March,
2016, 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, 2016 (âthe Orderâ) 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, 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, 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 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 31st March, 2016 taken on record by the Board of Directors, none of the directors is disqualified as on 31st March, 2016 from being appointed as a director in terms of Section 164 (2) of the Act.
f) 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 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 29.1 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 has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company.
ANNEXURE REFERRED TO IN CLAUSE 1 OF REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS OF OUR REPORT OF EVEN DATE TO THE MEMBERS OF SAYAJI HOTELS LIMITED ON THE STANDALONE FINANCIAL STATEMENT FOR THE YEAR ENDED 31ST MARCH, 2016.
(i) (a) The company has maintained proper records showing full particulars including quantitative details of fixed assets, however for some fixed assets, situation of the assets is not given and identification numbers are also not been given, which need to be updated. We have been informed by Management that above Work is in progress.
(b) Physical verification of fixed assets has been carried out by the Management at most of the Units in accordance with a phased programme of verification which, in our opinion, provides for physical verification of all the fixed assets at reasonable intervals, which in our opinion, is reasonable having regard to the size of the company and nature of its assets. According to the information and explanations given to us, no material discrepancies were noticed on such verification.
(c) According to the information and explanations given to us and on the basis of our examination of the conveyance deed provided to us, we report that, the title deeds, comprising of all the immovable properties of land and buildings which are freehold, are in the name of the Company as at the balance sheet date.
In respect of immovable properties been taken on lease and disclosed as fixed assets in the standalone financial statements, the lease agreements are in the name of the Company, however, there is a notice for cancellation of lease by the Indore Development Authority for cancelling the lease of one leasehold land situated in Indore with carrying value of Rs. 2291.62 Lacs, which company is contesting.
(ii) (a) The physical verification of the inventory is being conducted on a monthly basis by the management and no material discrepancies were noticed.
(iii) (a) Company has granted loan to One Company
(Previous Year 3 Companies) required to be covered in register maintained under section 189 of the Companies Act, 2013, the yearend balance outstanding is Rs. Nil (Previous Year Rs. 17.62 Lacs) and maximum amount outstanding is Rs.
17.62 Lacs (Previous Year Rs. 17.62 Lacs).
The above loans granted was considered doubtful and provision for the same was made during the earlier years and during the year under review same has been written off.
In view of situation explained as above provisions of clause 3 (iii) (b) & (c) of the Order are not applicable to be Company.
(iv) In our opinion and according to the information and explanations given to us, the company has complied with the provisions of section 185 and 186 of the Act, with respect to the loans and investments made.
(v) In our opinion and according to the information and explanations given to us, the Company has complied with the provisions of Sections 73 to 76 or any other relevant provisions of the Companies Act, 2013 and the Rules framed there under, with regard to the deposits accepted from the public. According to information and explanations given to us, no order has been passed by the Company Law Board or the National Company Law Tribunal or the Reserve Bank of India or any Court or any other Tribunal.
(vi) Central Government has not prescribed for the maintenance of cost records under sub-section 1 of section 148 of the Companies Act, 2013, for any of the business activity carried by the Company during the year under review.
(vii) (a) The Company is generally regular in depositing with appropriate authorities undisputed statutory dues including provident fund, investor education protection fund, employees'' state insurance, income tax, sales tax, wealth tax, custom duty, excise duty, service tax & cess and other material statutory dues as may be applicable to it.
According to the information and explanations given to us, no undisputed amounts payable in respect of income tax, wealth tax, sales tax, customs duty, wealth tax, excise duty and cess were in arrears, as at 31.03.2016 for a period of more than six months from the date they became payable.
(b) According to the information and explanations given to us, details of the dues of sale tax, income tax, customs duty, wealth tax, excise duty and cess which have not been deposited on account of any dispute are given below.
Name of Statue |
Nature of Dues |
Period to which the amount relates |
Forum where the dispute is pending |
Total Amount (Rs. In Lacs) |
Finance Act, 1994 and |
Service Tax |
Mar.''05-Mar.''09 |
High Court of M.P, |
256.78 |
Service Tax laws |
Indore Bench, Indore |
|||
Service Tax |
2009-2011 |
Honourable CESTAT, Delhi. |
800.74 |
|
Service Tax |
2009-2013 |
Honourable Commissioner (Appeals), Pune. |
39.27 |
|
Service Tax |
Apr.''11-Jun.''12 |
Honourable CESTAT, Delhi. |
538.54 |
|
Income Tax Act, 1961. |
Tax deducted at Source |
A.Y.11-13 |
Commissioner of Income Tax, Pune |
1.02 |
A.Y. 08-09 |
Commissioner of Income Tax, Indore |
0.95 |
||
M.P. Value Added Tax |
Value Added Tax |
2010-11 |
Appelate Tribunal, |
0.56 |
Act, 2002 |
Commercial Taxes, Indore. |
|||
2011-12 |
Commissioner (Appeal), |
37.72 |
||
2012-13 |
Commercial Taxes, |
2.87 |
||
2013-14 |
Indore |
0.52 |
||
M.P. Luxury, Entertainment |
Luxury Tax |
2011-2012 |
Commissioner (Appeal), |
2.35 |
& Advertisement Tax |
2012-2013 |
Commercial Taxes, Indore |
40.60 |
|
Act, 2011 |
||||
M.P. Municipal Corporation |
Property Tax |
2015-16 |
The Mayor-In-Council, |
32.70 |
Act, 1956 |
Indore Municipal Corporation, Indore |
|||
TOTAL |
1754.62 |
(viii) Based on our audit procedures and according to the information and explanations given to us, we are of the opinion that the Company has not defaulted in repayment of loans or borrowing to financial institutions, banks, Government or dues to debenture holders.
(ix) The Company did not raise any money by way of initial public offer or further public offer (including debt instruments) during the year, however, the Company has raised term loans during the year and were applied for the purposes for which those were raised.
(x) According to the information and explanations given to us, no fraud on or by the company has been noticed or reported during the course of our audit.
(xi) According to the information and explanations give to us and based on our examination of the records of the Company, the Company has paid/provided for 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 explanations given to us, the Company is not a nidhi company. Accordingly, paragraph 3(xii) of the Order is not applicable.
(xiii) According to the information and explanations given to us and based on our examination of the records of the Company, transactions with the related parties are in compliance with sections 177 and 188 of the Act where applicable and details of such transactions have been disclosed in the 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 made private placement of preference shares and the requirement of section 42 of the Companies Act, 2013 have been complied with and the amount raised have been used for the purposes for which the funds were raised.
(xv) According to the information and explanations given to us and based on our examination of the records of the Company, the Company has not entered into non-cash transactions with directors or persons connected with him. Accordingly, paragraph 3(xv) of the Order is 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 Sayaji Hotels Limited (âthe Companyâ) as of 31 March 2016 in conjunction with our audit of the standalone financial statements of the Company for the year ended on that date.
Managementâs Responsibility for Internal Financial Controls
The Company''s management 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 (âICAI''). 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 company''s 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 Company''s 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 auditor''s judgment, including the assessment of the risks of material misstatement of the 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 Company''s internal financial controls system over financial reporting.
Meaning of Internal Financial Controls over Financial Reporting
A company''s 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 company''s 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 authorisations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorised acquisition, use, or disposition of the company''s 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, the Company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at 31 March 2016, 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 K.L. Vyas & Company,
Chartered Accountants
FRN: 003289C
(K.L. Vyas)
Place of Signature : Indore
Partner
Date : 30th May, 2016 M. No. 072043
Mar 31, 2015
We have audited the accompanying standalone financial statements of
Sayaji Hotels Limited (the Company), which comprise the Balance Sheet
as at March 31st, 2015, the Statement of Profit and Loss, the Cash Flow
Statement for the year 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 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 of 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
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 misstatements.
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. 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 statements.
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 31st March, 2015, and its loss 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, 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 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 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 29.1 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 has been no delay in transferring amounts, required to be
transferred, to the Investor Education and Protection Fund by the
Company.
ANNEXURE REFERRED TO IN CLAUSE 1 OF REPORT ON OTHER LEGAL AND
REGULATORY REQUIREMENTS OF OUR REPORT OF EVEN DATE TO THE MEMBERS OF
SAYAJI HOTELS LIMITED ON THE STANDALONE FINANCIAL STATEMENT FOR THE
YEAR ENDED 31ST MARCH, 2015.
(i) (a) The company has maintained proper records showing full
particulars including quantitative details of fixed assets, however for
some fixed assets, situation of the assets is not given and
identification numbers are also not been given, which need to be
updated. We have been informed by Management that above Work is in
progress.
(b) Physical verification of fixed assets has been carried out by the
Management at most of the Units in accordance with a phased programme
of verification which, in our opinion, provides for physical
verification of all the fixed assets at reasonable intervals, which in
our opinion, is reasonable having regard to the size of the company and
nature of its assets. According to the information and explanations
given to us, no material discrepancies were noticed on such
verification.
(ii) (a) We are informed that the inventories of the company have been
physically verified by the Management during the year.
(b) In our opinion, the procedures for physical verification of
inventories followed by Management are reasonable and adequate in
relation to the size of the Company and the nature of its business.
(c) On the basis of our examination of the records of the Company, we
are of the opinion that the company is maintaining proper records of
inventories. The discrepancies noticed on verification between the
physical and book records were not material.
(iii) (a) Company has granted loans to 3 Companies (Previous Year 3
Companies) required to be covered in register maintained under section
189 of the Companies Act, 2013. the year end balance outstanding is Rs.
17.62 Lacs (Previous Year Rs. 17.62 Lacs) and maximum amount
outstanding is Rs. 17.62 Lacs (Previous Year Rs. 917.90 Lacs).
(b) The above loans granted are unsecured and interest free and are
repayable on demand. However, loan amounting to Rs. 17.46 Lacs
(Previous Year 17.46 Lacs) has been considered doubtful and provision
for same has been made.
(c) There is no overdue amount of loans granted to above companies,
since same is repayable on demand and are not called upon to repay the
same.
(iv) In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the company and the nature of its
business with regard to purchases of inventory, fixed assets and with
regard to the sale of goods. During the course of our audit, we have
not observed any continuing failure to correct major weaknesses in
internal controls.
(v) In our opinion and according to the information and explanations
given to us, the Company has complied with the provisions of Sections
73 to 76 or any other relevant provisions of the Companies Act, 2013
and the Rules framed there under, with regard to the deposits accepted
from the public. According to information and explanations given to us,
no order has been passed by the Company Law Board or the National
Company Law Tribunal or the Reserve Bank of India or any Court or any
other Tribunal.
(vi) Central Government has not prescribed for the maintenance of cost
records under sub-section 1 of section 148 of the Companies Act, 2013,
for any of the business activity carried by the Company during the year
under review.
(vii) (a) The Company is generally regular in depositing with
appropriate authorities undisputed statutory dues including provident
fund, investor education protection fund, employees' state insurance,
income tax, sales tax, wealth tax, custom duty, excise duty, service
tax & cess and other material statutory dues as may be applicable to
it.
According to the information and explanations given to us, no
undisputed amounts payable in respect of income tax, wealth tax, sales
tax, customs duty, wealth tax, excise duty and cess were in arrears, as
at 31.03.2015 for a period of more than six months from the date they
became payable.
(b) According to the information and explanations given to us, details
of the dues of sale tax, income tax, customs duty, wealth tax, excise
duty and cess which have not been deposited on account of any dispute
are given below.
Period to which the
Name of Statue Nature of Dues amount relates
Finance Act, 1994 and Service Tax Mar.'05-Mar.'09
Service Tax laws
Service Tax 2009-2011
Service Tax 2009-2013
Service Tax Apr.'11-Jun.'12
Income Tax Act, 1961. Income Tax A.Y.04-05
A.Y.05-06
A.Y.06-07
A.Y.07-08
A.Y.08-09
A.Y.09-10
A.Y.10-11
A.Y.12-13
Tax deducted A.Y.11-13
at Source
M.P. Value Added Tax Value Added Tax 2010-11
Act, 2002
2011-12
2012-13
M.P. Luxury, Entertainment Luxury Tax 2011-2012
& Advertisement Tax
Act, 2011
2012-2013
Name of Statute Forum where the Total Amount
dispute is pending (Rs. In Lacs)
Finance Act, 1994
and Service Tax Laws High Court of M.P., 256.78
Indore Bench, Indore
Honourable CESTAT, Delhi. 800.74
Honourable Commissioner 39.27
(Appeals), Pune.
Honourable CESTAT, Delhi. 538.54
Income Tax Act, 1961 Honourable ITAT, Ahmedabad. 19.05
Honourable ITAT, Ahmedabad. 6.49
Honourable ITAT, Ahmedabad. 7.39
Honourable ITAT, Ahmedabad. 0.08
Honourable ITAT, Ahmedabad. 22.57
Honourable ITAT, Ahmedabad. 61.13
Honourable ITAT, Ahmedabad. 10.81
Honourable ITAT, Ahmedabad. 3.78
Commissioner of Income Tax, Pune 1.02
M P Value Added Tax
Act, 2002 Appelate Tribunal, 0.56
Commercial Taxes, Indore.
Commissioner (Appeal), 37.72
Commercial Taxes, Indore
Commissioner (Appeal), 2.87
Commercial Taxes, Indore
M P Luxury,
Entertainment &
Advertisement Tax
Act, 2011 Commissioner (Appeal), 2.35
Commercial Taxes, Indore
Commissioner (Appeal), 40.60
Commercial Taxes, Indore
TOTAL 1851.75
(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 have accumulated losses, however they are less
than fifty percent of its net worth. The company has not incurred cash
losses during the financial year covered by our audit and the
immediately preceding financial year.
(ix) Based on our audit procedures and according to the information and
explanations given to us, we are of the opinion that the Company has
not defaulted in repayment of dues to financial institutions, banks and
debenture holders.
(x) In our opinion and according to the information and explanations
given to us, the terms and conditions of the guarantees given by the
company for loans taken by others from banks or financial institutions
are prima facie, not prejudicial to the interests of the company.
(xi) In our opinion and according to the information and explanations
given to us, term loans taken by the company were applied for the
purpose for which the loans were obtained.
(xii) According to the information and explanations given to us, no
fraud on or by the company has been noticed or reported during the
course of our audit.
For K.L. Vyas & Company,
Chartered Accountants,
FRN: 003289C
(K.L. Vyas)
Place : Indore. Partner
Date : 30th May, 2015 M. No. 072043
Mar 31, 2014
We have audited the accompanying financial statements of Sayaji 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 the above date, and a summary of significant
accounting policies and other explanatory information.
Management''sResponsibilityforthe 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 (the Act). 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 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. 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
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 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
1. As required by the Companies (Auditor''s Report) Order, 2003 (the
Order) issued by the Central Government of India in terms of
sub-section (4A) of section 227 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 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 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 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 sub-section (1) of
section 274 of the Companies Act, 1956;
ANNEXURE REFERRED TO IN CLAUSE 1 OF REPORT ON OTHER LEGAL AND
REGULATORY REQUIREMENTS OF OUR REPORT OF EVEN DATE TO THE MEMBERS OF
SAYAJI HOTELS LIMITED ON THE ACCOUNTS AS AT AND FOR THE YEAR ENDED 31ST
MARCH, 2014.
(i) (a) The company has maintained proper records
showing full particulars including quantitative details, however for
some fixed assets, situation of the assets is not given and
identification numbers are also not been given, which need to be
updated. We have been informed by Management that above Work is in
progress.
(b) Physical verification of fixed assets has been carried out by the
Management at most of the Units in accordance with a phased programme
of verification which, in our opinion, provides for physical
verification of all the fixed assets at reasonable intervals, which in
our opinion, is reasonable having regard to the size of the company and
nature of its assets. According to the information and explanations
given to us, no material discrepancies were noticed on such
verification.
(c) During the year, the company has not disposed off a major part of
the fixed assets which has affected the going concern status of the
Company.
(ii) (a) We are informed that the inventories of the company have been
physically verified by the Management during the year.
(b) In our opinion, the procedures for physical verification of
inventories followed by Management are reasonable and adequate in
relation to the size of the Company and the nature of its business.
(c) On the basis of our examination of the records of the Company, we
are of the opinion that the company is maintaining proper records of
inventories. The discrepancies noticed on verification between the
physical and book records were not material.
(iii) (a) (1) Company has granted loans to 3 Companies (Previous Year 4
Companies and 3 Parties) required to be covered in register under
section 301 of the Companies Act, 1956, the year end balance
outstanding is Rs. 17.62 Lacs (Previous Year Rs. 517.86 Lacs) and
maximum amount outstanding is Rs.917.90 Lacs (Previous Year Rs. 803.66
Lacs).
(2) The above loans granted are unsecured and interest free and are
repayable on demand. However, loans amounting to Rs. 111.78 Lacs
(Previous Year Rs. Nil) have been written off, which were considered
doubtful in the previous year and during the year under review loan
amounting to Rs. 9.20 Lacs (Previous Year 111.78 Lacs) has been
considered doubtful and provision for same have been done.
(3) There is no overdue amount of loans granted to above companies,
since same is repayable on demand and are not called upon to repay the
same.
(b) (1) The Company has taken loan from 1 Company (Previous Year 6
Companies and 3 Parties) required to be covered in register under
section 301 of the Companies Act, 1956, the year end balance
outstanding is Rs. 7.98 Lacs (Previous Year Rs. 696.82 Lacs) and
maximum amount outstanding is Rs.696.82 Lacs (Previous Year Rs. 1445.87
Lacs).
(2) We have been informed that above Unsecured Loan taken are interest
free and are on short term basis, and prima facie not against the
interest of the Company.
(3) As position explained in para (iii)(b)(1) & (2) above, our comments
for payment of principal and interest on loans taken/granted and their
overdue amount of principal and interest are not required.
(iv) In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the company and the nature of its
business with regard to purchases of inventory, fixed assets and with
regard to the sale of goods.
During the course of our audit, we have not observed any continuing
failure to correct major weaknesses in 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.
(b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts or
arrangements entered in the register maintained under section 301 of
the Companies Act, 1956 and exceeding the value of rupees five lakhs in
respect of any party during the year have been made at prices which are
reasonable having regard to prevailing market prices at relevant time.
(vi) In our opinion and according to the information and explanations
given to us, the Company has complied with the provisions of Sections
58A and 58AA, or any other relevant provisions of the Companies Act,
1956 and the Companies (Acceptance of Deposits) Rules, 1975, with
regard to the deposits accepted from the public. According to
information and explanations given to us, no order has been passed by
the Company Law Board or the
National Company Law Tribunal or the Reserve Bank of India or any Court
or any other Tribunal.
(vii) In our opinion, the company has an internal audit system
commensurate with the size and nature of its business.
(viii) Central Government has not prescribed for the maintenance of
cost records under section 209 (1) (d) of the Companies Act, 1956 for
any of the business activity carried by the Company during the year
under review.
(ix) (a) The Company is generally regular in depositing with
appropriate authorities undisputed statutory dues including provident
fund, investor education protection fund, employees'' state insurance,
income tax, sales tax, wealth tax, custom duty, excise duty, service
tax & cess and other material statutory dues as may be applicable to
it.
(b) According to the information and explanations given to us, no
undisputed amounts payable in respect of income tax, wealth tax, sales
tax, customs duty, wealth tax, excise duty and cess were in arrears, as
at 31.03.2014 for a period of more than six months from the date they
became payable.
(c) According to the information and explanations given to us, details
of the dues of sale tax, income tax, customs duty, wealth tax, excise
duty and cess which have not been deposited on account of any dispute
are given below.
Name of Statue Nature of Period to which
Dues the amount
relates
Finance Act, Service Tax Mar.''05-Mar.''09
1994 and
Service Tax
laws Service Tax 2009-2011
Service Tax Apr.''11-Jun.''12
Income Tax Income Tax A.Y. 04-05
Act, 1961
A.Y. 05-06
A.Y. 06-07
A.Y 07-08
A.Y 08-09
A.Y 09-10
A.Y 10-11
A.Y 12-13
Tax deducted A.Y. 11-13
at Source
M.P. Value Value Added 2006-2007
Added Tax Act, Tax
2002
Name of Statue Forum where the Total Amount
dispute is pending (Rs. In Lacs)
Finance Act,
1994 and
Service Tax
laws High Court of M.P., 256.78
Indore Bench, Indore
Honourable CESTAT, 800.74
Delhi.
Honourable CESTAT, 538.54
Delhi.
Income Tax Act, 1961 Honourable ITAT, 19.05
Ahmedabad.
Honourable ITAT, 6.49
Ahmedabad.
Honourable ITAT, 7.39
Ahmedabad.
Honourable ITAT, 0.08
Ahmedabad.
Honourable ITAT, 22.57
Ahmedabad.
Honourable ITAT, 61.13
Ahmedabad.
Honourable ITAT, 10.81
Ahmedabad.
Honourable ITAT, 3.78
Ahmedabad.
Commissioner of 1.02
Income Tax,Pune
M.P. Value
Added Tax Act,
2002 Dy. Comm. VAT Tax, 20.73
Indore
TOTAL 1630.84
(x) The company does have accumulated losses. The company has not
incurred cash losses during the financial year covered by our audit and
the immediately preceding financial year.
(xi) Based on our audit procedures and according to the information and
explanations given to us, we are of the opinion that the Company has
not defaulted in repayment of dues to financial institutions, banks and
debenture holders.
(xii) In our opinion and according to the explanations given to us and
based on the information available, no loans and advances have been
granted by the Company on the basis of security by way of pledge of
shares, debentures and other securities.
(xiii) In our opinion, the company is not a chit fund or a nidhi mutual
benefit fund/ society. Therefore, the provisions of clause 4(xiii) of
the Companies (Auditor''s Report) Order,2003 are not applicable to the
company.
(xiv) In our opinion, the company is not dealing in 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.
(xv) According to information and explanations given to us, company has
not given any guarantee for loans taken by others from the banks or
financial institutions.
(xvi) The Company has not raised any term loan during the year under
review & accordingly furnishing of information about utilization is not
applicable.
(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) According to the information and explanations given to us, the
company has not made any Preferential Allotment of Shares, to the
parties covered in the Register maintained u/s. 301 of the Companies
Act, 1956.
(xix) No reporting under para 4(xix) and (xx) of the Companies
(Auditors'' Report) Order, 2003 is required in view of no debentures
were issued during the year under review. Likewise, no public issue
was made by the company during the year.
(xx) According to the information and explanations given to us, no
fraud on or by the company has been noticed or reported during the
course of our audit.
For Shah Gandhi & Shah For K. L. Vyas & Company
Chartered Accountants Chartered Accountants
FRN: 126862W FRN: 003289C
(Nimesh Gandhi) (K.L. Vyas)
Partner Partner
M. No. 049134 M.No.0 72043
Place of Signature: Indore
Date: 30th May, 2014
Mar 31, 2013
Report on the Financial Statements
We have audited the accompanying financial statements of Sayaji Hotels
Limited ("the Company"), which comprise of the Balance Sheet as at
March 31, 2013, and the Statement of Profit and Loss and Cash Flow
Statement for the year then ended, 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 ("the Act"). This responsibility
includes the design, implementation and maintenance of internal
controls 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
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. 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
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 the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2013;
(b) in the case of the Profit and Loss Account, of the profit/ loss 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
1. As required by the Companies (Auditor''s Report) Order, 2003
("the Order") issued by the Central Government of India in terms of
sub-section (4A) of section 227 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 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 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 March 31, 2013, and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31, 2013, from being
appointed as a director in terms of clause (g) of sub-section (1) of
section 274 of the Companies Act, 1956.
f. Since the Central Government has not issued any notification as to
the rate at which the cess is to be paid under section 441A of the
Companies Act, 1956 nor has it issued any Rules under the said section,
prescribing the manner in which such cess is to be paid, no cess is due
and payable by the Company.
Forming an Opinion and Reporting on Financial Statements
(Referred to in paragraph 1 of our report of even date on the accounts
for the year ended on 31st March, 2013 of Sayaji Hotels Limited.)
As required by the Companies'' (Auditors'' Report) Order, 2003, issued by
the Company Law Board in terms of Section 227 (4A) of the Companies
Act, 1956 and on the basis of such checks of books and records of the
Company as we considered appropriate and the information and
explanations given to us during the course of the audit, we report as
under:
1. (a) The records of the Company in respect of fixed
assets needs to be updated in respect of additions, quantitative
details, identification numbers, valuation, etc.
(b) We are informed that the Fixed Assets of the Company have been
physically verified by the Management during the year at reasonable
intervals and reconciliation of the assets, which is reportedly in
progress. No material discrepancies has been noticed.
(c) The assets disposed off during the year are not significant and
therefore do not affect the going concern assumption.
2. (a) Stocks of Food & Beverages, Stores, and Operating
Supplies etc. have been physically verified by the management during
the year. In our opinion, frequency of verification is reasonable.
(b) In our opinion and according to the information and explanations
given to us, the procedures of physical verification of stocks 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 the Company has maintained proper records of
inventory. The discrepancies noticed on such physical verification of
stocks as compared to book records were not significant and the same
has been properly dealt with in the books of accounts.
3. (a) Company has granted loans to 9 companies, firms
or other parties required to be covered in register under section 301
of the Act, where in the balance payable as at the year end is
Rs.517.86 lacs. The maximum amounts involved in the transactions during
the year are Rs.803.66 lacs.
(b) The loans granted are interest free and are repayable on demand.
However loan of Rs.111.78 to two of the above companies, which is
provided for as doubtful of recovery in the accounts during the year.
(c) There is no overdue amount of loans granted to companies, firms or
other parties since they have not been called up for repayment.
(d) The Company has taken loans from 9 Companies, firms required to be
covered in register under section 301 of the Act, where in the balance
payable as at the year end is Rs. 696.82 lacs. The maximum amounts
involved in the transactions during the year are Rs. 1445.87 lacs.
4. In our opinion and according to the information and explanations
given to us, there is adequate internal control system commensurate
with the size of the company and the nature of its business with regard
to the purchase of stores, operating supplies, components, plant and
machinery, equipments and other assets and for the sale of goods and
services.
5. (a) According to the information and explanations
given to us, we are of the opinion that the particulars of the
contracts or arrangements referred to in section 301 of the Companies
Act, 1956 are entered in the register maintained u/s 301 of the
Companies Act.
(b) In our opinion according to the information and explanations given
to us, the transactions made in pursuance of such contracts or
arrangements have been made at prices which are reasonable having
regard to prevailing market prices at the relevant time.
6. In our opinion and according to the information and explanations
given to us, the Company, with regards to the deposits accepted from
the public, has complied the provisions of the section 58A, 58AA or any
other relevant provision of the Companies Act, 1956 and the Companies
(Acceptance of Deposits) Rules, 1975.
7. The Company has system of internal audit which, in our opinion, is
commensurate with the size of the business.
8. Central Government has not prescribed maintenance of the cost
records under section 209 (1) (d) of the Companies Act 1956 for the
Company.
9. (a) According to the records, information and
explanations provided to us, the company is generally regular in
depositing, with appropriate authorities undisputed amount of Provident
Fund, investor education fund, Employees'' State Insurance, income tax,
sales tax, wealth tax, service tax, custom duty, excise duty, cess and
other statutory dues applicable to it and no undisputed amounts payable
were outstanding as at 31st March, 2013 for the period of more than six
months from the date they became payable.
(b) The following are the details of disputed Income Tax, Sales Tax,
Wealth Tax, Service Tax, Customs Duty, Excise Duty and Cess that have
not been paid to the concerned authorities.
NAME OF THE FORUM WHERE DISPUTE UNPAID AMOUNT
STATUTORY DUES IS PENDING (Rs.)
01 Service Tax Hon''ble High Court M.P and Rs. 1057.52 lacs
Appellate Tribunal, New Delhi
02 VAT Dy. Comm. VAT Tax, Rs. 20.73 lacs
Indore
03 Income
tax/TDS CIT (Appeals), Appellate Rs. 32.05 lacs
Tribunal, Ahmedabad
CIT (Appeals) Pune Rs. 1.02 lac
10. The Company has accumulated losses at the end of the financial
year due to the current year losses. The Company has not incurred cash
losses during the financial year covered by the audit and in the
immediately preceding financial year.
11. Based on our audit procedures and on the information and
explanation given by management, the company has not defaulted in
repayment of dues to the financial institution, bank or debenture
holders as at the balance sheet date.
12. Based on our audit procedures and the information and explanation
given to us, the company has not granted loans and advances on the
basis of securities by way of pledge of shares, debentures and other
securities.
13. The Company is not a chit/ nidhi /mutual benefit fund/ society and
clause XIII of the order is not applicable.
14. The Company is not dealing or trading in shares, securities,
debentures and other investments.
15. On the basis of the information and explanation given to us the
company has given guarantees for the loans taken by other company from
bank or financial institution and the same are not prejudicial to the
interest of the Company.
16. Based on our audit procedures and explanation given to us the term
loans have been applied for the purpose for which they were raised.
17. On the basis of our examination of the Balance Sheet of the
Company and the information and explanation given to us, we are of the
opinion that the funds raised on short- term basis have not been used
for long-term investment.
18. During the year, the company has not made any preferential
allotment of share to parties and companies covered in the Register
maintained under section 301 of the Act.
19. The Company has not issued any debentures during the year.
20. The Company has not raised any money by public issues during the
year.
21. Based on the audit procedures performed and information and
explanations given to us by the management, we report that no fraud on
or by the company has been noticed or reported during the course of our
audit.
For SHAH GANDHI & SHAH
Chartered Accountants
Firm Regn. No. 126862W
Nimesh Gandhi
Indore Partner
Date: 29th May 2013 M.No. 049134
Mar 31, 2012
We have audited the accompanying financial statements of SAYAJI HOTELS
LIMITED which comprises the Balance Sheet as at 31 st March, 2012, the
Statement of Profit & Loss and the Cash Flow Statement for the year
then ended and summary of significant accounting policies and other
explanatory information. 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
basisforouropinion.
As required by the Companies (Auditor's Report) Order, 2003 as
amended by Companies (Auditor's Report) (Amendment) Order 2004
(together "the Order"), issued by the Central Government of India
in terms of sub-section (4A) 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.
Further to our comments in the Annexure referred to in above paragraph,
we report that:
(i) We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary forthe purposes of our
audit;
(ii) 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;
(iii) 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;
(iv) 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;
(v) During the year Company had sold its investment of Welterman
International Ltd of Rs. 26.30 lacs at Rs. 0.26 lacs to the promoter of
that Company. The sale transaction was done off the market.
(vi) On the basis of written representations received from the
directors, as on 31 st March, 2012, and taken on record by the Board of
Directors, we report that none of the directors are disqualified as on
31st March, 2012 from being appointed as a director in terms of clause
(g) of sub- section (1) of section 274 of the Companies Act, 1956;
(vii) 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 Significant Accounting Policies and Notes thereon, 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:
a. in the case of the Balance Sheet, of the state of affairs of the
Company as at 31 st March, 2012; and
b. in the case of the Statement of Profit & 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 for the
year ended on that date.
ANNEXURE TO AUDITOR'S REPORT
(Referred to in paragraph 3 of our report of even date on the accounts
for the year ended on 31sl March, 2012 of Sayaji Hotels Limited.)
As required by the Companies' (Auditors' Report) Order, 2003,
issued by the Company Law Board in terms of Section 227 (4A) of the
Companies Act, 1956 and on the basis of such checks of books and
records of the Company as we considered appropriate and the information
and explanations given to us during the course of the audit, we report
as under:
1. (a) The records of the Company in respect of fixed assets needs to
be updated in respect of additions, quantitative details,
identification numbers, valuation, etc.
(b) We are informed that the Fixed Assets of the Company have been
physically verified by the Management during the year at reasonable
intervals and no material discrepancy has been noticed on such
verification
(c) The assets disposed off during the year are not significant and
therefore do not affect the going concern assumption.
2. (a) Stocks of Food & Beverages, Stores, and Operating Supplies etc.
have been physically verified by the management during the year. In
our opinion, frequency of verification is reasonable.
(b) In our opinion and according to the information and explanations
given to us, the procedures of physical verification of stocks 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 the Company has maintained proper records of
inventory. The discrepancies noticed on such physical verification of
stocks as compared to book records were not significant and the same
has been properly dealt with in the books of accounts.
3. (a) Company has granted loans to 9 companies, firms or other
parties required to be covered in register under section 301 of the
Act., where in the balance payable as at the year end is Rs. 546.15
lacs. The maximum amounts involved in the transactions during the
yearareRs. 1093.74 lacs.
(b) The loans granted are interest free and are repayable on demand.
(c) There is no overdue amount of loans granted to companies, firms or
other parties since they have not been called up for repayment.
(d) The Company has taken loans from 6 Companies, firms required to be
covered in register under section 301 of the Act, where in the balance
payable as at the year end is Rs. 202.87 lacs. The maximum amounts
involved in the transactions during the year are Rs. 1055 lacs.
4. In our opinion and according to the information and explanations
given to us, there is adequate internal control system commensurate
with the size of the company and the nature of its business with regard
to the purchase of stores, operating supplies, components, plant and
machinery, equipments and other assets and for the sale of goods and
services.
5. (a) According to the information and explanations given to us, we
are of the opinion thatthe particulars of the contracts or arrangements
referred to in section 301 of the Companies Act, 1956 are entered in
the register maintained u/s 301 of the Companies Act.
(b) In our opinion according to the information and explanations given
to us, the transactions made in pursuance of such contracts or
arrangements have been made at prices which are reasonable having
regard to prevailing market prices at the relevant time.
6. In our opinion and according to the information and explanations
given to us, the Company, with regards to the deposits accepted from
the public, has complied the provisions of the section 58A, 58AA or any
other relevant provision of the Companies Act, 1956 and the Companies
(Acceptance of Deposits) Rules, 1975.
7. The Company has system of internal audit which, in our opinion, is
commensurate with the size of the business.
8. Central Government has not prescribed maintenance of the cost
records under section 209(1 )(d) of the Companies Act 1956 forthe
Company.
9. (a) According to the records, information and explanations provided
to us of the company is generally regular in depositing, with
appropriate authorities undisputed amount of Provident Fund, investor
education fund, Employees' State Insurance, income tax, sales tax,
wealth tax, service tax, custom duty, excise duty, cess and other
statutory dues applicable to it and no undisputed amounts payable were
outstanding as at 31st March, 2012 for the period of more than six
months from the date they became payable.
(b) The following are the details of disputed Income Tax, Sales Tax,
Wealth Tax, Service Tax, Customs Duty, Excise Duty and Cess that have
not been paid to the concerned authorities.
NAME OF THE FORUM WHERE DISPUTE UNPAID AMOUNT
STATUTORY DUES IS PENDING (Rs.)
01 Service Tax Hon'ble High Court M.P. and Rs. 1057.52 lacs
Appellate Tribunal, New Delhi
02 VAT Dy. Comm. VAT Tax, Rs. 20.73 lacs
Indore
03 Entry Tax Dy. Comm. VAT Tax, Rs. 04.64 lacs
Indore
04 Income Tax Appellate Tribunal Rs. 107.64 lacs
Ahmedabad
10. The Company does not have accumulated losses at the end of the
financial year. The Company has not incurred cash losses during the
financial year covered by the audit and in the immediately preceding
financial year.
11. Based on our audit procedures and on the information and
explanation given by management, the company has not defaulted in
repayment of dues to the financial institution, bank or debenture
holders as at the balance sheet date.
12. Based on our audit procedures and the information and explanation
given to us, the company has not granted loans and advances on the
basis of securities by way of pledge of shares, debentures and other
securities.
13. The Company is not a chit/ nidhi /mutual benefit fund/ society and
clause XIII of the order is not applicable.
14. The Company is not dealing or trading in shares, securities,
debentures and other investments.
15. On the basis of the information and explanation given to us the
company has given guarantees for the loans taken by other company from
bank or financial institution and the same are not prejudicial to the
interest of the Company.
16. Based on our audit procedures and explanation given to us the term
loans have been applied for the purpose for which they were raised.
17. On the basis of our examination of the Balance Sheet of the
Company and the information and explanation given to us, we are of the
opinion that the funds raised on short- term basis have not been used
for long-term investment.
18. During the year, the company has not made any preferential
allotment of share to parties and companies covered in the Register
maintained under section 301 of the Act.
19. The Company has not issued any debentures during the year.
20. The Company has not raised any money by public issues during the
year.
21. Based on the audit procedures performed and information and
explanations given to us by the management, we report that no fraud on
or by the company has been noticed or reported during the course
ofouraudit.
For SHAH GANDHI & SHAH
Firm Regn. No. 126862W
Chartered Accountants
Vadodara Yogesh K. Shah
30th May, 2012 Partner
M.No.101687
Mar 31, 2011
We have audited the attached Balance Sheet of SAYAJI HOTELS LIMITED as
at 31st March, 2011 and also the Profit & Loss Account and Cash Flow
Statement for the year 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.
As required by the Companies (Auditor's Report) Order, 2003 as amended
by Companies (Auditor's Report) (Amendment) Order 2004 (together "the
Order"), issued by the Central Government of India in terms of
sub-section (4A) 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.
Further to our comments in the Annexure referred to in above paragraph,
we report that:
(i) 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;
(ii) 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;
(iii) The Balance Sheet and Profit and Loss Account and Cash Flow
Statement dealt with by this report are in agreement with the books of
account;
(iv) In our opinion, the Balance Sheet and Profit and Loss Account 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;
(v) On the basis of written representations received from the
directors, as on 31st March, 2011, and taken on record by the Board of
Directors, we report that none of the directors are disqualified as on
31st March, 2011 from being appointed as a director in terms of clause
(g) of sub- section (1) of section 274 of the Companies Act, 1956;
(vi) 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
Significant Accounting Policies as per Schedule 16 and other notes
thereon appearing in Schedule 16, 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:
a. in the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2011; and
b. in the case of the Profit & Loss Account, 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 for the
year ended on that date.
ANNEXURE TO AUDITOR'S REPORT
(Referred to in paragraph 3 of our report of even date on the accounts
for the year ended on 31st March, 2011 of Sayaji Hotels Limited.)
As required by the Companies' (Auditors' Report) Order, 2003, issued by
the Company Law Board in terms of Section 227 (4A) of the Companies
Act, 1956 and on the basis of such checks of books and records of the
Company as we considered appropriate and the information and
explanations given to us during the course of the audit, we report as
under:
1. (a) The records of the Company in respect of fixed assets needs to
be updated in respect of additions, quantitative details,
identification numbers, valuation, etc.
(b) We are informed that the Fixed Assets of the Company have been
physically verified by the Management during the year at reasonable
intervals and no material discrepancy has been noticed on such
verification
(c) The assets disposed off during the year are not significant and
therefore do not affect the going concern assumption.
2. (a) Stocks of Food & Beverages, Stores, and Operating Supplies etc.
have been physically verified by the management during the year. In our
opinion, frequency of verification is reasonable.
(b) In our opinion and according to the information and explanations
given to us, the procedures of physical verification of stocks 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 the Company has maintained proper records of
inventory. The discrepancies noticed on such physical verification of
stocks as compared to book records were not significant and the same
has been properly dealt with in the books of accounts.
3. (a) Company has granted loans to 7 companies, firms or other
parties required to be covered in register under section 301 of the
Act., where in the balance payable as at the year end is Rs. 408.09
lacs. The maximum amounts involved in the transactions during the year
are Rs. 417.18 lacs.
(b) The loans granted are interest free and are repayable on demand.
(c) There is no overdue amount of loans granted to companies, firms or
other parties since they have not been called up for repayment.
(d) The Company has taken loans from 6 Companies, firms required to be
covered in register under section 301 of the Act, where in the balance
payable as at the year end is Rs. 199.95 lacs. The maximum amounts
involved in the transactions during the year are Rs. 805.00 lacs.
4. In our opinion and according to the information and explanations
given to us, there is adequate internal control system commensurate
with the size of the company and the nature of its business with regard
to the purchase of stores, operating supplies, components, plant and
machinery, equipments and other assets and for the sale of goods and
services.
5. (a) According to the information and explanations given to us, we
are of the opinion that the particulars of the contracts or
arrangements referred to in section 301 of the Companies Act, 1956 have
been so entered.
(b) In our opinion according to the information and explanations given
to us, the transactions made in pursuance of such contracts or
arrangements have been made at prices which are reasonable having
regard to prevailing market prices at the relevant time.
6. In our opinion and according to the information and explanations
given to us, the Company, with regards to the deposits accepted from
the public, has complied the provisions of the section 58A, 58AA or any
other relevant provision of the Companies Act, 1956 and the Companies
(Acceptance of Deposits) Rules, 1975.
7. The Company has system of internal audit which, in our opinion, is
commensurate with the size of the business.
8. Central Government has not prescribed maintenance of the cost
records under section 209(1)(d) of the companies Act 1956 for the
Company.
9. (a) According to the records, information and explanations provided
to us,the company is generally regular in depositing, with appropriate
authorities undisputed amount of Provident Fund, investor education
fund, Employees' State Insurance, income tax, sales tax, wealth tax,
service tax, custom duty, excise duty, cess and other statutory dues
applicable to it and no undisputed amounts payable were outstanding as
at 31st March, 2011 for the period of more than six months from the
date they became payable.
(b) The following are the details of disputed Income Tax, Sales Tax,
Wealth Tax, Service Tax, Customs Duty, Excise Duty and Cess that have
not been paid to the concerned authorities.
NAME OF THE FORUM WHERE DISPUTE UNPAID AMOUNT
STATUTORY DUES IS PENDING (Rs.)
01 Service Tax Hon'ble High Court M.P. Rs. 175.01 lacs Tax
Rs. 105.87 lacs Interest
02 VAT Dy. Comm. VAT Tax, Rs. 20.73 lacs
Indore
03 Entry Tax Dy. Comm. VAT Tax, Rs. 4.64 lacs
Indore
04 Income Tax Commissioner of Income Rs. 88.29 lacs
Tax, Baroda
10. Based on our audit procedures and on the information and
explanation given by management, the company has not defaulted in
repayment of dues to the financial institution, bank or debenture
holders as at the balance sheet date:
11. Based on our audit procedures and the information and explanation
given to us, the company has not granted loans and advances on the
basis of securities by way of pledge of shares, debentures and other
securities.
12. The Company is not a chit/ nidhi /mutual benefit fund/ society and
clause XIII of the order is not applicable.
13. The Company is not dealing or trading in shares, securities,
debentures and other investments.
14. On the basis of the information and explanation given to us the
company has given guarantees for the loans taken by other company from
bank or financial institution and are not prejudicial to the interest
of the Company.
15. Based on our audit procedures and explanation given to us the term
loans have been applied for the purpose for which they were raised.
16. On the basis of our examination of the Balance Sheet of the
Company and the information and explanation given to us, we are of the
opinion that the funds raised on short- term basis have not been used
for long-term investment.
17. During the year, the company has made preferential allotment of
share to parties and companies covered in the Register maintained under
section 301 of the Act. The pricing of the issue is as per the SEBI
(DIP) Guidelines, 2000 and is not prejudicial to the interest of the
Company
18. The Company has not issued any debentures during the year.
19. The Company has not raised any money by public issues during the
year.
20. Based on the audit procedures performed and information and
explanations given to us by the management, we report that no fraud on
or by the company has been noticed or reported during the course of our
audit.
For SHAH GANDHI & SHAH
Firm Regn. No. 126862W
Chartered Accountants
Vadodara Nimesh Gandhi
3rd September, 2011 Partner
M.No. 49134
Mar 31, 2010
We have audited the attached Balance Sheet of SAYAJI HOTELS LIMITED as
at 31st March, 2010 and also the Profit & Loss Account and 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.
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.
As required by the Companies (Auditors Report) Order, 2003 as amended
by Companies (Auditors Report) (Amendment) Order 2004 (together "the
Order"), issued by the Central Government of India in terms of
sub-section (4A) 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.
Further to our comments in the Annexure referred to in above paragraph,
we report that:
(i) 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;
(ii) 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;
(iii) The Balance Sheet and Profit and Loss Account and Cash Flow
Statement dealt with by this report are in agreement with the books of
account;
(iv) In our opinion, the Balance Sheet and Profit and Loss Account 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;
(v) 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 are 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;
(vi) 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
Significant Accounting Policies as per Schedule 16 and other notes
thereon appearing in Schedule 16, 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:
a. in the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2010; and
b. in the case of the Profit & Loss Account, of the loss of the
Company 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.
ANNEXURE TO AUDITORS REPORT
(Referred to in paragraph 3 of our report of even date on the accounts
for the year ended on 31st March, 2010 of Sayaji Hotels Limited.)
As required by the Companies (Auditors Report) Order, 2003, issued by
the Company Law Board in terms of Section 227 (4A) of the Companies
Act, 1956 and on the basis of such checks of books and records of the
Company as we considered appropriate and the information and
explanations given to us during the course of the audit, we report as
under:
1. (a) The records of the Company in respect of fixed assets needs to
be updated in respect of additions, quantitative details,
identification numbers, valuation, etc.
(b) We are informed that the Fixed Assets of the Company have been
physically verified by the Management during the year at reasonable
intervals and no material discrepancy has been noticed on such
verification.
(c) The assets disposed off during the year are not significant and
therefore do not affect the going concern assumption.
2. (a) Stocks of Food & Beverages, Stores, and Operating Supplies etc.
have been physically verified by the management during the year. In our
opinion, frequency of verification is reasonable.
(b) In our opinion and according to the information and explanations
given to us, the procedures of physical verification of stocks 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 the Company has maintained proper records of
inventory. The discrepancies noticed on such physical verification of
stocks as compared to book records were not significant and the same
has been properly dealt with in the books of accounts.
3. (a) Company has granted loans to 3 companies, firms or other
parties covered in the register maintained under section 301 of the
Act., where in the balance payable as at the year end is Rs. 228.05
lacs. The maximum amounts involved in the transactions during the year
are Rs. 4.43 lacs.
(b) The loans granted are interest free and are repayable on demand.
(c) There is no overdue amount of loans granted to companies, firms or
other parties since they have not been called up for repayment.
(d) The Company has not taken any loans from firm covered in the
register maintained under section 301 of the Act, where in the balance
payable as at the year end is Rs. Nil lacs.
4. In our opinion and according to the information and explanations
given to us, there is adequate internal control system commensurate
with the size of the company and the nature of its business with regard
to the purchase of stores, operating supplies, components, plant and
machinery, equipments and other assets and for the sale of goods and
services.
5. (a) According to the information and explanations given to us, we
are of the opinion that the particulars of the contracts or
arrangements refereed to in section 301 of the Companies Act, 1956 have
been so entered.
(b) In our opinion according to the information and explanations given
to us, the transactions made in pursuance of such contracts or
arrangements have been made at prices which are reasonable having
regard to prevailing market prices at the relevant time.
6. In our opinion and according to the information and explanations
given to us, the Company, with regards to the deposits accepted from
the public, has complied the provisions of the section 58A, 58AA or any
other relevant provision of the Companies Act, 1956 and the Companies
(Acceptance of Deposits) Rules, 1975.
7. The Company has system of internal audit which, in our opinion, is
commensurate with the size of the business.
8. Central Government has not prescribed maintenance of the cost
records under section 209(1)(d) of the companies Act 1956 for the
Company.
9. (a) According to the records, information and explanations provided
to us of the company is generally regular in depositing, with
appropriate authorities undisputed amount of Provident Fund, investor
education fund, Employees State
Insurance, income tax, sales tax, wealth tax, service tax, custom duty,
excise duty, cess and other statutory dues applicable to it and no
undisputed amounts payable were outstanding as at 31st March, 2010 for
the period of more than six months from the date they became payable.
(b) The following are the details of disputed Income Tax, Sales Tax,
Wealth Tax, Service Tax, Customs Duty, Excise Duty and Cess that have
not been paid to the concerned authorities :
NAME OF THE FORUM WHERE DISPUTE UNPAID AMOUNT
STATUTORY DUES IS PENDING (Rs.)
01 Service Tax Tribunal Rs. 256.78 lacs Tax
02 Luxury Tax Dy. Commr. VAT tax,
Indore Rs. 256.78 lacs Penalty
03 VAT Dy. Commr. VAT tax,
Indore Rs. 148.35 lacs Interest
04 Entry Tax Dy. Commr. VAT tax,
Indore Rs. 41.13 lacs
Rs. 20.73 lacs
Rs. 04.64 lacs
10. Based on our audit procedures and on the information and
explanation given by management, the company has not defaulted in
repayment of dues to the financial institution, bank or debenture
holders as at the balance sheet date:
11. Based on our audit procedures and the information and explanation
given to us, the company has not granted loans and advances on the
basis of securities by way of pledge of shares, debentures and other
securities.
12. The Company is not a chit/ nidhi /mutual benefit fund/ society and
clause XIII of the order is not applicable.
13. The Company is not dealing or trading in shares, securities,
debentures and other investments.
14. On the basis of the information and explanation given to us the
company has given guarantees for the loans taken by other company from
bank or financial institution and are not prejudicial to the interest
of the Company.
15. Based on our audit procedures and explanation given to us the term
loans have been applied for the purpose for which they were raised.
16. On the basis of our examination of the Balance Sheet of the
Company and the information and explanation given to us, we are of the
opinion that the funds raised on short- term basis have not been used
for long-term investment.
17. During the year, The company has not made any preferential
allotment of share to parties and companies covered in the Register
maintained under section 301 of the Act.
18. The Company has not issued any debentures during the year.
19. The Company has not raised any money by public issues during the
year.
20. Based on the audit procedures performed and information and
explanations given to us by the management, we report that no fraud on
or by the company has been noticed or reported during the course of our
audit.
For SHAH GANDHI & SHAH
Firm Regn. No. 126862W
Chartered Accountants
Vadodara Nimesh Gandhi
August 31, 2010 Partner
M.No. 49134
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