SENSEX NIFTY
Hotel Leela Venture | Auditor's Report > Hotels > Auditor's Report from Hotel Leela Venture - BSE: 500193, NSE: HOTELEELA
YOU ARE HERE > MONEYCONTROL > MARKETS > HOTELS > AUDITORS REPORT - Hotel Leela Venture
Hotel Leela Venture
BSE: 500193|NSE: HOTELEELA|ISIN: INE102A01024|SECTOR: Hotels
SET ALERT
|
ADD TO PORTFOLIO
|
WATCHLIST
LIVE
BSE
Oct 31, 17:00
23.10
1.45 (6.7%)
VOLUME 401,283
LIVE
NSE
Oct 31, 17:00
22.95
1.35 (6.25%)
VOLUME 879,121
« Mar 13
Auditor's Report (Hotel Leela Venture) Year End : Mar '14
We have audited the accompanying financial statements of Hotel
 Leelaventure Limited (the Company) which comprises the Balance Sheet
 as at 31st March, 2014 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 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 notified under the Companies Act, 1956 (the
 Act) read with the General Circular 15/2013 dated 13th September, 2013
 of the Ministry of Corporate Affairs in respect of section 133 of the
 Companies Act, 2013 and in accordance with the accounting principles
 generally accepted in India. 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.
 
 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 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, but not for the
 purpose of expressing an opinion on the effectiveness of the Company''s
 internal control. 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 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 aforesaid 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 Balance Sheet, of the state of affairs of the
 Company as at 31st March, 2014;
 
 (b) In the case of Profit and Loss Account, of the 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.
 
 Emphasis of Matter
 
 Without qualifying our Report, we draw attention to:
 
 (a) Note No 4 and 8 regarding the Company''s liabilities and Note No
 30.3 regarding Management''s plans for meeting the same. Impairment loss
 of assets which the Company is planning to sell for deleveraging the
 Balance Sheet is not recognised. Pending receipt of binding offers, we
 are unable to comment on the consequential effects on the financial
 statements.
 
 (b) Note 30.1 relating to non–recognition of impairment loss relating
 to a project in Mumbai held up for substantial period amounting to Rs.
 13,805 lakhs on the basis of Management''s assessment that an amicable
 settlement would be reached and project would be implemented.
 
 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 Section
 227(4A) 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 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 Balance Sheet, the Statement of Profit and Loss
 and the Cash Flow Statement comply with the Accounting Standards
 notified under the Act read with the General Circular 15/2013 dated
 13th September, 2013 of the Ministry of Corporate Affairs in respect of
 Section 133 of the Companies Act, 2013, to the extent applicable,
 referred to in Section 211(3C) of the Act.
 
 e) On the basis of written representations received from the directors
 as on 31st March, 2014, taken on record by the Board of Directors, none
 of the directors is disqualified as at 31st March, 2014 from being
 appointed as a director in terms of Section 274(i) (g) of theAct.
 
 ANNEXURE TO THE AUDITORS'' REPORT [referred to in paragraph (1) under
 the heading of Report on Other Legal and Regulatory Requirements of
 our report of even date]
 
 (i) In respect of its Fixed assets:
 
 (a) The Company has maintained proper records showing full particulars
 including quantitative details and situation of fixed assets, on the
 basis of available information.
 
 (b) As explained to us, all the fixed assets were physically verified
 by the Management in a phased periodical manner, 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) The fixed assets disposed of 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) In respect of its Inventories:
 
 (a) As explained to us, inventories were physically verified during the
 year by the Management at reasonable intervals.
 
 (b) In our opinion and according to the information and explanation
 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 nature of the business.
 
 (c) In our opinion and according to the information and explanation
 given to us, the Company has maintained proper records of inventories.
 As explained to us, there were no material discrepancies noticed on
 physical verification of inventories, compared to the book records.
 
 (iii) In respect of loans, secured or unsecured, granted or taken by
 the Company to/from Companies, firms or other parties covered in the
 register maintained under Section 301, of the Companies Act,1956:
 
 (i) (a) The Company has given interest free unsecured advances in the
 nature of loans to two subsidiaries. In respect of the said loans, the
 maximum amount outstanding at any time during the year and the year-
 end balance is Rs. 5560.95 Lakhs.
 
 (b) In our opinion and according to the information and explanations
 given to us, terms and conditions of these interest free unsecured
 advances are not prima facie prejudicial to the interest of the
 Company.
 
 (c) As informed to us, there is no stipulation for repayment of
 principal amount and there are no overdue amounts.
 
 (ii) (a) The Company has taken unsecured loans from two private limited
 Companies listed in the register maintained under Section 301 of the
 Act.  The maximum balance outstanding at any time during the year was Rs.
 3000 lakhs and outstanding as at the end of the year is Nil.
 
 (b) The rate of interest and other terms and conditions of these
 unsecured loans are in our opinion, prima facie not prejudicial to the
 interest of the Company.
 
 (c) In respect of the said loans and the interest thereon, there are no
 overdue amounts.
 
 (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 nature of its business
 with regard to purchase of inventories and fixed assets and sale of
 goods and services. During the course of our audit, we have not
 observed any continuing failure to correct major weaknesses in internal
 controls.
 
 (v) (a) To the best of our knowledge and belief and according to the
 information and explanations given to us, transactions to be entered in
 the register maintained under Section 301 of the Act, have been entered
 in the register.
 
 (b) According to the information and explanation given to us, the
 Company has not entered into any contracts /arrangements which need to
 be entered in the register maintained under Section 301 of the Act, and
 exceeding the value of Rs. 5 Lakhs in respect of each party during the
 year.
 
 (vi) In our opinion and according to the information and explanations
 given to us, the Company has not accepted deposits in terms of the
 provisions of Sections 58A and 58AA or any other relevant provisions of
 the Act. Therefore, the provisions of Clause (vi) of the paragraph 4 of
 the Order are not applicable to the Company.
 
 (vii) In our opinion, the Company has an adequate internal audit system
 commensurate with the size and nature of its business.
 
 (viii) The central Government has not prescribed maintenance of cost
 records under Section 209 (1) (d) of the Act in respect of any of the
 activities of the Company.
 
 (ix) (a) Based on information and explanation furnished to us there are
 delays in depositing undisputed statutory dues, including Provident
 Fund, Employees'' State Insurance, Income-Tax, Wealth Tax ,Sales-Tax,
 Service Tax, Cess and other statutory dues with the appropriate
 authorities during the year under review. There are no undisputed
 amounts payable in respect of the aforesaid dues which were outstanding
 as on 31st March, 2014 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 disputed Sales Tax, Income Tax, Custom Duty, Wealth Tax, Service
 Tax, Excise Duty and Cess which have not been deposited with
 appropriate authorities as on 31st March, 2014 on account of dispute
 are given below:
 
 Name of the Statute    Nature of Dues     Amount    Period to which the
                                        (Rs.in Lakhs)    amount relates
 
 Karnataka VAT Act 
 2003                   VAT with 
                        interest and       133.92   Financial Year
                                                    2005-06 to
                        penalty                     2009-10
 
 Customs Act            Customs Duty 
                        and Penalty         75.09   1989 -90 and 2000-01
 
 Customs Act            Customs Duty 
                        and Penalty          2.00   1990-1991
 
 
 Name of the Statue       Forum where dispute is pending
 
 Karnataka VAT Act 2003   Matter remanded to Assessing Officer by
                          High Court of Karnataka.
 
 Customs Act              Customs, Excise & Service Tax Appellate
                          Tribunal, Mumbai
 
 Customs Act              Commissioner of Customs, Mumbai
 
 
 
 Name of the Statute    Nature of Dues     Amount    Period to which the
                                        (Rs.in Lakhs)    amount relates
 
 Goa Tax on Luxuries 
 Act                    Luxury Tax         33.92           2007-08
 
 Maharashtra VAT, 2002  VAT with 
                        interest and       39.73           2008-09
                        penalty
 
 Maharashtra VAT, 2002  VAT with 
                        interest and       99.48           2009-10
                        penalty
 
 Central Excise Act,
 1944                   Penalty under 
                        Excise Act          3.12           2003-2005
 
 Kerala Tax on 
 Luxuries               Luxury Tax         34.31           2006-07
 Act, 1976
 
 Kerala Gneral 
 Sales Tax              Sales tax and 
                        interest           26.80           2005-06
 Act
 
 Kerala  Agricultural   Agricultural 
                        Income Tax         25.77           2004-09
 Income Tax Act         and Interest
 
 
 
 Name of the Statue       Forum where dispute is pending
 
 
 Goa Tax on Luxuries Act  Appellate Authority, The Assistant
                          Commissioner of Commercial Taxes,
                          Margao
 
 Maharashtra VAT, 2002    Maharashtra Sales Tax Tribunal
 
 Maharashtra VAT, 2002    Joint Commissioner of Sales Tax, Appeals,
                           Mumbai
 
 Central Excise Act,1944  CESTAT -WZB,Mumbai
 
 Kerala Tax on Luxuries
 Act, 1976                Deputy Commissioner (Appeals)
                          Thiruvananthapuram
 
 Kerala Gneral Sales Tax
 Act                      Do
 
 Kerala  Agricultural
 Income Tax Act           Tribunal, Kerala Agricultural and
                          Commercial Tax
 
 (x) The accumulated losses of the Company exceeds 50% of its net worth.
 The Company has incurred cash losses during the financial year covered
 by our audit and in the immediately preceding financial year.
 
 (xi) According to the information and explanations given to us, the
 Company has defaulted in repayment of dues to banks/financial
 institutions/debenture holders during the year under review. Rs. 6,369.68
 Lakhs of Interest due from January 2014 onwards and Rs. 1,94,843.66 Lakhs
 of principal due as on 31st March, 2014 is not paid.
 
 (xii) In our opinion and according to the information and explanations
 given to us, no loans and advances have been granted by the Company on
 the basis of securities by way of pledge of shares, debentures and
 other securities.
 
 (xiii) The Company is not a chit fund / nidhi / mutual benefit fund /
 society. Accordingly, clause 4 (xiii) of the Order is not applicable to
 the Company during the year under audit.
 
 (xiv) The Company during the year under review has not dealt or traded
 in shares, securities, debentures and other investments except
 investment in mutual funds, for which proper records of the
 transactions and contracts are maintained. All investments have been
 held by the Company in its own name.
 
 (xv) The Company has not given any guarantee for loans taken by others
 from financial institutions or banks.
 
 (xvi) To the best of our knowledge and belief and according to the
 information and explanations given to us, in our opinion, term loans
 availed by the Company were, prima facie, applied by the Company during
 the year for the purposes for which the loans were obtained.
 
 (xvii) According to the information and explanations given to us, and
 on an overall examination of the Balance Sheet of the Company, funds
 raised on short term basis have not been used during the year for long
 term investment.
 
 (xviii) The company has made preferential allotment of shares to
 companies covered in the Register maintained under section 301 of the
 Act and the price at which shares have been issued is prima facie not
 prejudicial to the interest of the Company.
 
 (xix) The Company has created securities / charges in respect of
 secured debentures issued.
 
 (xx) The Company has not raised any monies by way of public issue
 during the year.
 
 (xxi) To the best of our knowledge and belief and according to the
 information and explanations given to us, no material fraud on or by
 the Company has been noticed or reported during the year.
 
 For PICARDO & CO.
 Chartered Accountants
 Registration No: 107917W
 
 K. V. Gopalakrishnayya
 
 Partner
 
 Membership No.21748
 
Source : Dion Global Solutions Limited
Quick Links for hotelleelaventure
Explore Moneycontrol
Stocks     A | B | C | D | E | F | G | H | I | J | K | L | M | N | O | P | Q | R | S | T | U | V | W | X | Y | Z | Others
Mutual Funds     A | B | C | D | E | F | G | H | I | J | K | L | M | N | O | P | Q | R | S | T | U | V | W | X | Y | Z
Copyright © e-Eighteen.com Ltd. All rights reserved. Reproduction of news articles, photos, videos or any other content in whole or in part in any form or medium without express written permission of moneycontrol.com is prohibited.