We have audited the attached Balance Sheet of Supreme Holdings &
Hospitality (India) Limited (the Company), as at 31st March 2012,
the Profit and Loss Account and the Cash Flow Statement of the Company
for the year ended on that date annexed thereto.
1. 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.
2. 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 materials 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
3. As required by the Companies (Auditor''s Report) Order, 2003 (as
amended) issued by the Company Law Board in terms of Section 227(4A) of
the Companies Act, 1956 (Act), we enclose in the Annexure a statement
on the matters specified in the paragraphs 4 and 5 of the said Order.
4. Further to our comments in the Annexure referred to above, we
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
b) In our opinion, proper books of account as required by law have been
kept by the Company as it appears from our examination of such books.
c) The Balance Sheet, Profit & Loss Account and Cash Flow Statement
referred to in this report are in agreement with the books of account.
d) In our opinion the Balance Sheet, Profit & Loss Account and Cash
Flow Statement dealt with by this report comply with the requirement of
the Accounting Standards referred to in sub section (3C) of Section 211
of the Act.
e) On the basis of written representations received from all the
Directors of the Company as on 31st March 2012 and taken on record by
the Board of Directors, we report that none of the Directors of the
Company are disqualified as on 31st March 2012, from being appointed as
a director in terms of Clause (g) of sub section (1) to Section 274 of
f) In our opinion and to the best of our information and according to
the explanations given to us, the said accounts read with notes therein
give the information as required by the Companies Act 1956, in the
manner so required and gives a true and fair view in conformity with
the accounting principles generally accepted in India:
i) In the case of Balance Sheet, of the state of affairs of the Company
as at 31st March, 2012
ii) In the case of Profit and Loss Account, of the Profit of the
Company for the year ended on that date.
iii) In the case of Cash Flow Statement, of the cash flows for the year
ended on that date.
Annexure to Auditors Report
Annexure referred to in paragraph 3 of the Auditors Report of even date
As required by the Companies (Auditors Report) Order, 2003 (as amended)
and according to the information and explanations given to us during
the course of the audit and on the basis of such checks of the books
and records as were considered appropriate we report that:
(i) a) The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed
b) As explained to us, all the assets have been physical verified by
the management, which in our opinion is reasonable. The frequency of
verification is reasonable and no material discrepancies have been
noticed on such physical verification.
c) The Company has not disposed off any substantial part of its fixed
assets during the year.
(ii) a) The Company is not having any inventory hence clause 4 (ii)
(a), (b) and (c) of the order is not applicable.
(iii) a) The Company has granted unsecured loan to two parties covered
in the register maintained under Section 301 of the Companies Act, 1956
on call basis. The Maximum amount outstanding during the year was Rs.
117.71 Lacs and the year-end balance was Rs. 85.46 Lacs.
b) The said loan is interest free and other terms and conditions on
which the loans have been granted are prima facie, not prejudicial to
the interest of the Company.
c) In view of our comments in Para (iii) (a) and (b) above, clauses
(iii) (c) and (d) of the said Order are not applicable to the Company.
d) The Company has taken unsecured loan from one Company covered in the
register maintained under Section 301 of the Act. The Maximum amount
outstanding during the year was Rs. 67.20 Lacs and the year-end balance
was Rs. NIL.
e) In view of our comments in Para (iii) (d) above, clause (iii) (f) &
(g) of the said Order are not applicable to the Company.
(iv) There are adequate internal control systems commensurate with the
size of the Company and the nature of its business with regard to
purchase of inventory and fixed assets and for the sale of services.
During the course of our audit, no major weakness has been noticed in
the internal control system in respect of these areas.
(v) a) Based on the audit procedures performed by us, we are of the
opinion that particulars of contracts or arrangements referred to in
Section 301 of the Act have been entered in the register required to be
maintained in that section.
b) The transactions made in pursuance of such contracts or arrangements
have been made at prices which are reasonable having regard to the
prevailing market prices at the relevant time except an interest free
loan granted to subsidiary Company.
(vi) The Company has not accepted any deposits from the public.
(vii) The Company does not have a formal internal audit system but its
financial and other internal checks, ensures proper recording of the
(viii) The Central Government has not prescribed for maintenance of
cost records under Section 209(1) (d) of the Companies Act, 1956 for
(ix) a) The Company is generally regular in depositing undisputed
statutory dues including provident fund, investor education protection
fund, employees'' state insurance, income tax, wealth tax, custom
duty, excise duty, cess and other statutory dues with appropriate
authorities. There are no arrears of outstanding statutory dues as at
the last day of the financial year for a period of more than six months
from the date they became payable.
b) As per the records of the Company, there are no disputed dues of
Income Tax, Sales Tax, Wealth Tax, Service Tax, Custom Duty, Excise
Duty and Cess which have not been deposited on account of disputes with
the related authorities.
(x) The Company has no accumulated losses at the end of the Financial
Year and it has not incurred cash losses during current financial year
and in the immediately preceding financial Year.
(xi) The Company has not obtained any loan from banks and financial
(xii) The Company has not granted any loans or advances on the basis of
security by way of pledge of shares, debentures or other securities.
(xiii) The provisions of any Special Statute applicable to Chit Fund,
Nidhi or Mutual Benefit Fund/ Societies are not applicable to the
(xiv) In respect of dealing in shares, securities and other
investments, in our opinion and according to the information and
explanations given to us, proper records have been maintained of the
transactions and contracts and timely entries have been made therein.
The shares, securities and other 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 banks and financial institutions. However, it has mortgaged its
Land to a Bank towards the credit facilities sanctioned to an associate
concern and the terms and conditions thereof are not prejudicial to the
interest of the Company.
(xvi) The Company has not obtained any term loans during the year.
(xvii) 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) The Company has not made preferential allotment of shares to
parties and companies covered in the register maintained under Section
301 of the Act.
(xix) The Company has not issued any debentures during the year.
(xx) The Company has not raised any money by way of public issue during
(xxi) There were no frauds on or by the Company noticed or reported
during the course of our audit during the year
For K C P L & Associates,
Firm Reg. No. 119223W.
Paras Mal Jain
Place : Mumbai Partner
Date : 30th May, 2012 M. No. 134160