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Mar 12
Auditor's Report (EIH) Year End : Mar '13
Report on the Financial Statements
 
 We have audited the accompanying financial statements of EIH Limited
 (the Company), which comprise the Balance Sheet as at 31st March,
 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 control relevant
 to the preparation and fair presentation of the financial statements
 that give a true and fair view and are free from material misstatement,
 whether due to fraud or error.
 
 Auditors'' 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 judgement, 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.
 
 Emphasis of Matter
 
 Without expressing a qualified opinion, we draw attention as a Matter
 of Emphasis to Note No. 39 of Notes to the Accounts relating to the
 pending issue of shares by Mashobra Resort Limited against the advances
 made by the Company.
 
 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 31st March, 2013;
 
 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, issued
 by the Central Government of India in terms of sub-section (4A) of
 Section 227 of the Companies Act 1956 (the Act), we give in the
 Annexure of statement on the matters specified in paragraphs 4 and 5 of
 the said 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 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 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 dealt with by this report comply with the
 Accounting Standards referred to in sub-section (3C) of section 211 of
 the Act;
 
 e.  on the basis of written representations received from the Directors
 as on 31st March, 2013 and taken on record by the Board of Directors,
 none of the Directors is disqualified as on 31st March, 2013 from being
 appointed as a Director in terms of clause (g) of sub-section (1) of
 Section 274 of the Act;
 
 ANNEXURE TO THE AUDITOR''S REPORT
 
 (Referred to in praagraph 1 under the heading Report on Other Legal
 Requirements)
 
 i (a) The Company have maintained proper records showing full
 particulars including quantitative details and situation of its fixed
 assets.
 
 (b) All the assets have not been physically verified by the Management
 during the year but there is 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 accounts.
 
 (c) the fixed assets disposed off during the year, in our opinion, do
 not constitute a substantial part of the fixed assets of the Company
 and such disposal has, in our opinion, not affected the going concern
 status of the Company.
 
 ii (a) As explained to us, inventories have been physically verified by
 the Management during the year at reasonable intervals. In our opinion,
 the 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 inventories
 followed by the Management were reasonable and adequate in relation to
 the size of the Company and the nature of its business.
 
 (c) the Company is maintaining proper records of inventory. the
 discrepancies noticed on verification between the physical stocks and
 the book records were not material.
 
 iii (a) the Company has not granted any loans, secured or unsecured, to
 companies, firms or other parties covered in the register maintained
 under section 301 of the Act.
 
 (b) In view of our comments in paragraph iii (a) above, the provisions
 of Clauses iii (b), iii (c) and iii (d) of paragraph 4 of the aforesaid
 order are not applicable to the Company.
 
 (c) the Company has not taken any loan, secured or unsecured, from
 companies, firms or other parties covered in the Register maintained
 under section 301 of the Act.
 
 (d) In view of our comment in paragraph iii (c) above, clauses iii (f)
 and iii (g) of paragraph 4 of the aforesaid order are not applicable to
 the Company.
 
 iv In our opinion and according to the information and explanations
 given to us, there exists an adequate internal control system
 commensurate with the size of the Company and the nature of its
 business with regard to purchase of inventory, fixed assets and with
 regard to the sale of goods and services. During the course of our
 audit, we have not observed any continuing failure to correct major
 weaknesses in the internal control system of the Company.
 
 v According to the information and explanations given to us, we are of
 the opinion that the particulars of contracts or arrangements that need
 to be entered into the Register maintained under Section 301 of the
 Act. According, clause v(b) of paragraph 4 of the aforesaid Order is
 not applicable to the Company.
 
 vi The Company has not accepted any deposit from the public during the
 year under Sections 58A and 58AA of the Act and the Companies
 (Acceptance of Deposits) Rules, 1975. 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 of the Company and nature of its business.
 
 viii The Central Government has not prescribed maintenance of cost
 records under section 209 (1)(d) of the Act for the Company.
 
 ix (a) The Company is generally regular in depositing with appropriate
 authorities undisputed statutory dues including provident fund,
 investor education and protection fund, employees'' state insurance,
 income tax, value added tax/sales tax, wealth tax, service tax, customs
 duty, excise duty, cess and other material statutory dues applicable to
 it.
 
 (b) According to the information and explanations given to us, there
 are no undisputed amount payable in respect of income tax, wealth tax,
 service tax, value added tax/sales tax, customs duty, excise duty and
 cess which were outstanding as at 31st March, 2013 for a period of more
 than six months from the date they became payable.
 
 (c) According to the information and explanations given to us, there
 are no dues of wealth tax, and cess which have not been deposited on
 account of any dispute other than disputed income tax, value added
 tax/sales tax, customs duty, excise duty and service tax as indicated
 below:
 
 Sl.
 No. Name of the    
     Statute        Nature of     Forum where                  Amount
                    the dues      dispute is                  (Rupees in
                                  pending                      Million)
 
 1   Income Tax 
     Act, 1961      Income        CIT (Appeals), Kolkata for    224.40
                    Tax           Assessment Years 2000-2001,
                                  2007-2008, 2009-2010 and
                                  2010-2011
 
                                  ITAT, Kolkata for             379.50
                                  Assessment Years 2002-2003,
                                  2003-2004, 2004-2005,
                                  2005-2006, 2006-2007 &
                                  2008-2009
 
                                  TOTAL                         603.90
 
 2.  Income Tax
     Act, 1961      Tax 
                    Deducted      CIT (Appeals), Delhi for       14.16
                    at Source     Assessment Years 2004-2005
                                  to 2007-2008, 2010-2011 and
                                  2011-2012
 
                                  TOTAL                          14.16
 
 x the Company has no accumulated losses and has not incurred any cash
 loss during the year covered by our Report and in the immediately
 preceding financial year.
 
 xi In our opinion and according to the information and explanations
 given to us, the Company has not defaulted in repayment of dues to
 financial institutions and banks. there are no debenture holders.
 
 xii the Company has not granted any loans and advances on the basis of
 security by way of pledge of shares, debentures and other similar
 securities.
 
 xiii In our opinion, the Company is not a chit fund or a nidhi/mutual
 benefit fund/ society. therefore, the provisions of Clause (xiii) of
 paragraph 4 of the aforesaid order are not applicable to the Company.
 
 xiv In our opinion and according to the information and explanations
 given to us, the Company is not dealing in or trading in shares,
 securities, debentures and other investments. Accordingly, the
 provisions of Clause (xiv) of paragraph 4 of the aforesaid order are
 not applicable to the Company.
 
 xv the Company has given guarantees for loans taken by its subsidiary
 companies from banks and financial institutions. According to the
 information and explanations given to us, we are of the opinion that
 the terms and conditions on which the Company has given guarantees for
 loans taken from banks and financial institutions are not, prima-facie,
 prejudicial to the interest of the Company.
 
 xvi According to the information and explanations given to us, the term
 loans raised by the Company have been applied for the purpose for which
 they were raised.
 
 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
 investments.
 
 xviii According to the information and explanations given to us, the
 Company has not made any preferential allotment of shares to parties
 and companies/firms covered in the Register maintained under section
 301 of the Companies Act, 1956.  Accordingly, the provisions of clause
 (xviii) of paragraph 4 of the aforesaid order are not applicable to the
 Company.
 
 xix The Company has not issued unsecured debentures during the year
 under audit.  Accordingly, the provisions of clause (xix) of paragraph
 4 of the aforesaid Order are not applicable to the Company.
 
 xx The Company has not raised any money by way of public issue during
 the year.  Accordingly, the provisions of clause (xx) of paragraph 4 of
 the aforesaid Order are not applicable to the Company.
 
 xxi 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 RAY & RAY
 
                                           Chartered Accountants 
 
                              Firm''s Registration Number 301072E
 
                                                        R.N. ROY
 
 Kolkata                                                 Partner
 
 30th May, 2013                           Membership Number 8608
Source : Dion Global Solutions Limited
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