We have audited the accompanying standalone financial statements of
EIH LIMITED (the Company), which comprise the Balance Sheet as at
31st March 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.
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 fows of the Company in accordance with the accounting principles
generally accepted in India, including the Accounting Standards
specified under Section 133 of the Act, read with Rule 7 of the
Companies (Accounts) Rules, 2014. This responsibility also includes
maintenance of adequate accounting records in accordance with the
provisions of the Act for safeguarding the assets of the Company and
for preventing and detecting frauds and other irregularities; selection
and application of appropriate accounting policies; making judgments
and estimates that are reasonable and prudent; and design,
implementation and maintenance of adequate internal financial controls,
that were operating effectively for ensuring the accuracy and
completeness of the accounting records, relevant to the preparation and
presentation of the financial statements that give a true and fair view
and are free from material misstatement, whether due to fraud or error.
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
We conducted our audit in accordance with the Standards on Auditing
specified under Section 143(10) of the Act. Those Standards require that
we comply with ethical requirements and plan and perform the audit to
obtain reasonable assurance about whether the financial statements are
free from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and the disclosures in the financial statements. The
procedures selected depend on the auditor''s judgment, including the
assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal financial control relevant
to the Company''s preparation of the financial statements that give a
true and fair view in order to design audit procedures that are
appropriate in the circumstances. An audit also includes evaluating the
appropriateness of accounting policies used and the reasonableness of
the accounting estimates made by 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
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 fows for the year ended
on that date.
Emphasis of Matters
We draw attention to the following matters in the Notes to the
standalone financial statements:
a) Note No 36 to the standalone financial statements wherein the Company
has explained that adjustments for impairment is not considered
necessary in respect of continuing negative Net Worth of its Non
Current Investments in EIH Flight Services Ltd., Mauritius, amounting
to Rs, 547.89 Million and further Advance towards Equity of Rs, 636.99
Million during the current financial year.
b) Note 38 to the standalone financial statements regarding disclosure
of advance towards equity shares in Mashobra Resort Limited and
allotment of shares pending settlement of legal issues between
Government of Himachal Pradesh and EIH Limited. Though the Hon''ble High
Court has given decision restoring the Arbitration award the Company is
contemplating challenging the same before higher authorities. As such
the uncertainty of the allotment of shares still continues.
Our opinion is not modified in respect of these matters.
Report on other Legal and Regulatory Requirements
1. As required by the Companies ( Auditor''s Report) Order, 2016, (the
Order) issued by the Central Government of India in terms of
sub-section (11) of Section 143 of the Act , 2013 (''the Act''), we give
in the Annexure-A, a statement on the matters specified in paragraphs
3 and 4 of the said Order.
2. As required by Section 143(3) of the Act, we report that:
a) We have sought and obtained all the information and explanations
which to the best of our knowledge and belief were necessary for the
purposes of our audit.
b) In our opinion, proper books of account as required by law have been
kept by the Company so far as it appears from our examination of those
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
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
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 Annexure-B.
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 litigation on its
financial position in its standalone financial statements in respect of
claims and demands on the Company which are being contested as
mentioned in Note 30 (A) (i) and 38.
ii. The Company did not have any long-term contracts including
derivative contracts for which there were any material foreseeable
iii. There has been no delay in transferring amounts, required to be
transferred, to the Investor Education and Protection Fund by the
ANNEXURE –A TO INDEPENDENT AUDITOR''S REPORT
(Referred to in paragraph 1 under the heading ''Report on Other Legal
and Regulatory Requirements'' of our report at even date)
i (a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of its fixed
(b) The fixed assets have been physically verified by the Management
during the year in accordance with a regular programme of verification
which, in our opinion, is reasonable having regard to the size of the
Company and the nature of its assets. The discrepancies noticed on such
verification which were not material have been properly dealt with in
the books of account.
(c) According to the information and explanations given to us and on
the basis of our examination of the records of the company, the title
deeds of immovable properties are held in the name of the Company.
ii As explained to us, inventories have been physically verified by the
Management during the year at reasonable intervals. In respect of
stocks lying with third parties, certificates confirming stocks have been
received for stocks held. The discrepancies noticed on verification
between the physical stocks and the book records were not material and
have been properly dealt with in the books of account.
iii. The Company has not granted any loans, secured or unsecured, to
companies, frms, limited liability partnerships or other parties
covered in the register maintained under Section 189 of the Companies
Act, 2013. Therefore, clauses (iii) (a), (b) and (c) of the aforesaid
Order are not applicable.
iv. In our opinion and according to the information and explanations
given to us, the Company has complied with the provisions of section
186 of the Companies Act, 2013 in respect of loans, investments,
guarantees and security. Section 185 of the Companies Act, 2013 is not
applicable for the Company during the year.
v. The Company has not accepted any deposits from the public. As such
requirement of clause (v) of the aforesaid order is not applicable.
vi. The Central Government has not prescribed the maintenance of cost
records under section 148 (1) of the Act for the Company.
vii. (a) The Company is generally regular in depositing with
appropriate authorities undisputed statutory dues including provident
fund, employees'' state insurance, income tax, sales tax, service tax,
custom duty, excise duty, value added tax, cess and any other statutory
dues applicable to it. According to information and explanations given
to us, there are no undisputed amounts payable in respect of income
tax, sales tax, service tax, customs duty, excise duty, value added
tax, cess that were outstanding, as at 31st March, 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, the
following dues of income tax, sales tax/value added tax, customs duty,
excise duty, service tax and luxury tax have not been deposited by the
Company on account of disputes:
Sl. name of the nature of Forum where (Rupees
no statute the dues dispute is
1 Income Tax Income Tax CIT (Appeals),
Act, 1961 Years 2000-2001,
ITAT, Kolkata for
Assessment Years 48.44
2. Income T Tax DCIT (Appeals),
Act, 1961 deducted Year 2011-2012
3. Value Added Value Maharashtra Sales
Tax Tribunal/Joint 7.88
Tax of various Added Tax/ Commissioner of
Sales Tax Mumbai for 1999-2000,
Tax Tribunal, 3.07
of Sales Tax 28.58
for 2007-08 &
Sales Tax 0.62
& Vat, Kolkata
Kolkata for 0.86
for 2011-12 to
4. Customs Customs CESTAT Tribunal,
Duty Customs, Excise
and Service Tax 26.01
Act, 1944 Appellate
6. Service Tax Service Tax Commissioner of
for 2008-2009 to
Delhi for 0.98
Central Excise 0.27
Kolkata for 2.64
Service Tax, 6.40
Service Tax 24.15
New Delhi for
Service Tax, 48.90
of Service Tax, 3.86
Delhi 2003-04 to
Chennai for 4.35
served for 62.79
Tax on Luxury Tax Rajasthan Tax
Board, Ajmer for
Luxuries to 2013-2014
viii. In our opinion and according to the information and explanations
given to us, the Company has not defaulted in repayment of dues to
banks and financial institutions. There are no debenture holders and
loan from Government.
ix. The Company has not raised moneys by way of initial public offer or
further public offer (including debt instruments) during the year. In
our opinion and according to the information and explanations given to
us, the term loans taken by the Company have been applied for the
purpose for which they were raised.
x. According to the information and explanations given to us, no fraud
by the Company or on the Company by its Officers or employees has been
noticed or reported during the course of our audit.
xi. According to the information and explanations given 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. In our opinion and according to the information and explanations
given to us, all transactions with the related parties are in
compliance with section 177 and 188 of the Companies act, 2013 where
applicable and the details of such transactions have been disclosed in
the standalone Financial Statements as required by the applicable
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. In our opinion and according to the information and explanations
given to us, the Company has not entered into any 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.
For RAY & RAY
(Firm''s Registration No.301072E)
Place: Gurgaon Partner
Date: 26th May, 2016 Membership No. 8608