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« Mar 15
Auditor's Report (EIH) Year End : Mar '16
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.
 
 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
 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 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
 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 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
 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 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 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
 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 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 
 assets.
 
 (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:
 
                                                          Amount 
 Sl.  name of the     nature of       Forum where        (Rupees 
 no   statute         the dues        dispute is 
                                      pending
                                                          Millions)
 
 1    Income Tax      Income Tax      CIT (Appeals), 
                                      Kolkata for 
                                      Assessment           284.87
      Act, 1961                       Years 2000-2001, 
                                      2005-2006 to
                                      2008-2009, 
                                      2010-2011 to 
                                      2011-12
 
                                      ITAT, Kolkata for 
                                      Assessment Years      48.44
                                      2002-2003 to 
                                      2006-2007 and 
                                      2008-2009 to
                                      2009-2010
 
                                      TOTAL                333.31
 
 2.   Income T          Tax           DCIT (Appeals), 
                                      Delhi for 
                                      Assessment             0.43
      Act, 1961         deducted      Year 2011-2012
      at source
 
                                      TOTAL                333.31
 
 3.   Value Added        Value        Maharashtra Sales 
                                      Tax Tribunal/Joint     7.88
      Tax of various     Added Tax/   Commissioner of 
                                      Sales 
                                      Tax Appeals, 
      States
                        Sales Tax     Mumbai for 1999-2000, 
                                      2008-2009 and 
                                      2009-2010
 
                                      Maharashtra Sales 
                                      Tax Tribunal,          3.07
 
                                      Mumbai for 
                                      2005-2006
 
                                      Joint Commissioner
                                      of Sales Tax          28.58
                                      (Appeals) Mumbai 
                                      for 2007-08 & 
                                      2008-09
 
                                      Additional 
                                      Commissioner of 
                                      Sales Tax             0.62
 
                                      & Vat, Kolkata 
                                      for 2011-2012
 
                                      Senior Joint 
                                      Commissioner,
                                      Kolkata for           0.86
 
                                      2012-13
 
                                      Appellate and 
                                      Revision 
                                      Board                10.39
 
                                      Commercial Taxes, 
                                      West Bengal.  
                                      Kolkata for 
                                      2005-2006 to 
                                      2009-10
 
                                      Additional 
                                      Commissioner 
                                      (Appeals)             3.62
 
                                      Commercial Tax 
                                      Dept, Udaipur 
                                      for 2011-12 to 
                                      2013-14
 
                                      TOTAL                55.02
 
 4.  Customs           Customs        CESTAT Tribunal, 
                                      Delhi for 
                                      2008-2009           429.66 
 Act,1962              Duty
 
                                      TOTAL               429.66
 
 5.  Central 
     Excise            Excise 
                       Duty          Customs, Excise 
                                     and Service Tax       26.01
 Act, 1944                           Appellate 
                                     Tribunal, Delhi 
                                     for 2004-2005
                                     and 2005-2006.
 
                                     TOTAL                 26.01
 
                                                      
 
 6.   Service Tax     Service Tax    Commissioner of 
                                     Service Tax, 
                                     Kolkata                0.36
                                     for 2008-2009 to 
                                     2011-2012
 
                                     CEST Appellate 
                                     Tribunal, 
                                     Delhi for              0.98
 
                                     2008-2010
 
                                     Commissioner of 
                                     Central Excise         0.27
 
                                     (Appeal-I), 
                                     Kolkata 
                                     2001-2006
 
                                     CEST Appellate 
                                     Tribunal, 
                                     Kolkata for            2.64
 
                                     2008-09 to 
                                     2011-12
 
                                     The Commis
                                     sioner of
                                     Service Tax,           6.40
 
                                     Division-1
                                     Delhi for 
                                     2007-2008 to
 
                                     2009-2010
 
                                     Custom 
                                     Excise and 
                                     Service Tax           24.15
 
                                     Appellate 
                                     Tribunal, 
                                     New Delhi for 
                                     2010-2011 to 
                                     2013-2014
 
                                     Commissioner of 
                                     Service Tax,          48.90
 
                                     Delhi for
                                     2003-2004 
                                     to 2006-2007
 
                                     Deputy 
                                     Commissioner 
                                     of Service Tax,        3.86
 
                                     Delhi 2003-04 to 
                                     2005-06
 
                                     CEST Appellate 
                                     Tribunal, 
                                     Chennai for            4.35
                                     2009-10
 
                                     Various 
                                     Show Cause 
                                     Notices 
                                     served for            62.79
 
                                     2004-2006 and 
                                     2009-2013 and 
                                     replied
 
                                     CEST Appellate 
                                     Tribunal, 
                                     Bangalore              1.11
 
                                     for 2004-2006
 
                                     TOTAL                155.81
 
 7.   Rajasthan 
      Tax on           Luxury Tax    Rajasthan Tax 
                                     Board, Ajmer for
                                     2010-2011 32.96 
      Luxuries                       to 2013-2014
 
      (In Hotels 
      and Lodging 
      House) Act, 
      1990
 
                                     TOTAL                 32.96
 
 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
 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. 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
 
                                                   Chartered Accountants
 
                                        (Firm''s Registration No.301072E)
 
 
 
 
 
                                                               R.N. ROY 
 
 Place: Gurgaon                                                 Partner
 
 Date: 26th May, 2016                               Membership No. 8608
Source : Dion Global Solutions Limited
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