1. We have audited the attached Balance Sheet of TOTAL HOSPITALITY
LIMITED as at 31.03.2012, the Profit & Loss Account for the year ended
on that date annexed thereto and the cash flow statement for the period
ended on that date.. 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 material 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, we enclose in the Annexure a statement on the
matters specified in paragraph 4 and 5 of the said Order.
4. Further to our comments in the Annexure referred to above, 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 purpose 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 such
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 and to the best of our information and according to
the explanations given to us, the said Balance Sheet, the Profit & Loss
account and cash flow statement read together with the notes thereon
give the information required by the Companies Act, 1956 in the manner
so required and give 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 31.03.2012, and
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 of the
company for the year ended on that date.
e. In our opinion and to the best of our knowledge, the Balance Sheet
and the Profit and Loss Account comply with the accounting standards
referred to in sub-section (3C) of section 211 of The Companies Act,
ANNEXURE TO THE AUDITOR’S REPORT
Referred to in paragraph 3 of our report of even date
(i) (a) The company has maintained proper records showing full
particulars including quantitative details and situation of fixed
(b) All the assets have been physically verified by the Management
during the year. No material discrepancies were noticed on such
(c) In our opinion, disposal of fixed assets do not constitute
substantial part of fixed assets of the company and such disposal has
in our opinion, not affected the going concern status of the company.
(ii) (a) The inventory has been physically verified during the year by
the management. In our opinion, the frequency of verification is
(b) The procedures of physical verification of inventories followed by
the management are 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) The company had not taken any loan from other companies covered
in the register required to be maintained under section 301 of the
Companies Act, 1956.
(iv) In our opinion and according to the information and explanations
given to us, there are adequate internal control system commensurate
with the size of the company and the nature of its business with regard
to purchases of inventory, fixed assets and with regard to the sale of
goods & services. During the course of our audit, we have not observed
any continuing failure to correct major weaknesses in internal
(v) Since the company has not either granted or taken any loans,
secured or unsecured to/from companies, firms or other parties covered
in the register maintained under section 301of the Act, therefore no
register as required by section 301 is maintained.
(vi) The company has not accepted any deposits from the public during
(vii) In our opinion, the company has an internal audit system
commensurate with the size and nature of its business.
(viii) The maintenance of the cost records have not been prescribed by
the Central Government under section 209(1) (d) of the Companies Act,
1956 for the activities carried on by the company.
(ix) (a) The company is regular in depositing with appropriate
authorities undisputed statutory dues including provident fund,
investor education protection fund, employee’s state insurance, income
tax, wealth tax, custom duty, excise duty cess and other material
statutory dues applicable to it. No undisputed amounts payable in
respect of income tax, wealth tax, service tax, customs duty, excise
duty and cess were in arrears as at 31st March 2012 for a period of
more that six months from the date they become payable.
(b ) According to the information and explanations given to us, there
are no dues of sales tax, income tax, customs duty, wealth tax, service
tax, excise duty and cess which have not been deposited on account of
(x) In our opinion, the company has no accumulated loses. Further, the
company has not incurred cash losses during the financial year covered
by our audit and 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 a
financial institution, bank or debenture holders.
(xii) According to the information and explanation given to us the
company has not granted loans and advances on the basis of security by
way of pledge of shares, debentures.
(xiii) In our opinion, the company is not a chit fund or a nidhi/mutual
benefit fund/ society. Therefore, the provisions of clause 4(xiii) of
the Companies (Auditor’s Report) Order, 2003 are not applicable to the
(xiv) In our opinion, the company is not dealing in or trading in
shares, securities, debentures and other investments. Accordingly, the
provisions of clause 4(xiv) of the Companies (Auditor’s Report) Order,
2003 are not applicable to the company.
(xv) According to the information and explanations given to us, the
company has not given any guarantee for loans taken by others from
banks or financial institutions.
(xvi) According to the information and explanations given to us and on
an overall examination of the balance sheet of the company, we report
that the no funds raised on short-term basis have been used for long-
(xvii) According to the information and explanations given to us, the
company has not made any preferential allotment of shares to parties
and companies covered in the register maintained under section 301 of
(xviii) According to the information and explanations given to us,
during the period covered by our audit report, the company has not
issued any debentures.
(xix) According to the information and explanations given to us, during
the period covered by our audit report, the company has not raised any
money by public issue.
(xx) 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 Rahul Kapoor & Associates
Chartered Accountants FRN 014372N
Place: New Delhi (Rahul Kapoor)
Date : 30.05.2012 FCA M.No – 83760