We have audited the attached Balance Sheet of ADVANI HOTELS & RESORTS
(INDIA) LIMITED, as at 31st March, 2012 and also the Statement of
Profit and Loss and the Cash Flow Statement of the Company for the year
ended on that date, both annexed thereto. 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.
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
our opinion.
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, and on the basis of such checks as we
considered appropriate, we enclose in the Annexure a statement on the
matters specified in paragraphs 4 and 5 of the said Order.
Further to our comments in the Annexure referred to above, we report
that:
1. 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.
2. 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.
3. 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.
4. In our opinion, the Balance Sheet, Statement of Profit and Loss and
Cash Flow Statement comply with the applicable Accounting Standards
referred to in sub-section (3-C) of Section 211 of the Companies Act,
1956.
5. On the basis of written representations received from the Directors
of the Company and taken on record by the Board of Directors, we report
that none of the Directors of the Company is disqualified as on 31st
March, 2012 from being appointed as a Director under clause (g) of
sub-section (1) of Section 274 of the Companies Act, 1956.
6. In our opinion and to the best of our information and according to
the explanations given to us, the said accounts, read together with the
significant accounting policies and the other notes appearing on the
financial statements stated in the Notes on Financial Statements, 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 the Balance Sheet, of the state of the affairs of
the Company as at 31st March, 2012;
(ii) in the case of Statement of Profit and Loss, of the profit of the
Company for the year ended on that date; and
(iii) in the case of Cash Flow Statement, of the cash flows of the
Company for the year ended on that date.
1. (a) The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
(b) The Company has physically verified its fixed assets during the
year in accordance with the regular programme of verification, which,
in our opinion, provides for physical verification of all the fixed
assets at reasonable intervals. According to the information and
explanations given to us, no material discrepancies were noticed by the
Management on such physical verification as compared to book records.
(c) In our opinion, the Company has not disposed off a substantial part
of its fixed assets during the year and the going concern status of the
Company is not affected.
2. (a) As explained to us, the inventories have been physically
verified during the year by the management. 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 are reasonable and adequate in relation to
the size of the Company and the nature of its business.
(c) On the basis of our examination of the inventory records of the
Company, we are of the opinion that the Company is maintaining proper
records of inventory. Discrepancies, which were noticed on physical
verification of inventory as compared to book records, were not
material and have been properly dealt with in the books of account.
3. (a) According to the information and explanations given to us, the
Company has not granted any loan or advance to companies, firms or
other parties covered in the Register maintained under Section 301 of
the Companies Act, 1956. Therefore, the provisions of sub-clauses (a)
to (d) of clause 4 (iii) of the Order are not applicable to the
Company.
(b) According to the information and explanations given to us, the
Company has not taken any loan, secured or unsecured, during the year
from companies, firms and other parties covered in the Register
maintained under Section 301 of the Companies Act, 1956. Therefore, the
provisions of sub-clauses (e) to (f) of clause 4 (iii) of the Order are
not applicable to the Company.
4. In our opinion, and according to the information and explanations
given to us, there is an adequate internal control system commensurate
with the size of the Company and the nature of its business for the
purchase of inventory and fixed assets and for the sale of goods and
services. During the course of our audit, no major weaknesses have been
noticed in the internal control system.
5. To the best of our knowledge and belief and according to the
information and explanations given to us, (a) the particulars of
contracts or arrangements referred to in Section 301 of the Companies
Act, 1956 have been entered in the register required to be maintained
under that section; and (b) there were no such transactions exceeding
the value of Rupees five lacs in respect of any party during the year
and accordingly our comments on the reasonableness of the prices have
not been given.
6. The Company has not accepted any deposits from the public within
the meaning of Section 58A, 58AA and other provisions of the Companies
Act, 1956 and the Companies (Acceptance of Deposits) Rules, 1975.
Hence the clause 4 (vi) of the Order is not applicable to the Company.
7. In our opinion, the internal audit functions carried out during the
year by a firm of Chartered Accountants appointed by the Management
have been commensurate with the size of the Company and nature of its
business.
8. The maintenance of cost records has not been prescribed by the
Central Government under Section 209(1)(d) of the Companies Act, 1956
for any of the products of the Company.
9. (a) According to the records of the Company and the information and
explanations given to us, the Company has been generally regular in
depositing undisputed statutory dues, including provident fund,
investor education & protection fund, employees'' state insurance,
income-tax, sales-tax, wealth-tax, service-tax, customs duty, excise
duty, cess and other applicable statutory dues with the appropriate
authorities during the year. The Company''s operations do not give rise
to any excise duty liability.
(b) According to the information and explanations given to us, there
are no undisputed amounts payable in respect of undisputed statutory
dues as at 31st March, 2012 which were outstanding for a period of more
than six months from the date they became payable.
(c) According to the information and explanations given to us and on
the basis of our examination of the documents and records, there are no
cases of non-deposit with appropriate authorities of disputed dues of
income-tax, sales-tax, wealth-tax, service-tax, customs duty, excise
duty, cess except the following:
Name of the Nature of
dues Amount Period to
which Forum
where the
statute (Rs. in
lakhs) the amount dispute is
relates pending
Central Sales
Tax Act, Central
Sales tax 12.16 Asst. Years Asst.
Commissioner
1956 2005-06 & of
Commercial
Tax
2006-07 (Value
Added Tax)
Income-tax
Act, 1961 Income-tax on 10.66 Asst. Year Income-Tax
completion of 2005-06 Appellate
Tribunal
regular
assessment
Income-tax
Act, 1961 Income-tax on 15.13 Asst Years
2005-06 Commiss
ioner of
assessment
of TDS to 2008-09 Income-tax
(Appeals)
Finance Act,
1994 Service tax 1.76 October
2004 to Commissioner
April 2006 (Appeals),
Customs,
C.Excise and
Service Tax
10. The Company neither had accumulated losses at the end of the
financial year nor incurred any cash losses either during the financial
year or preceding financial year.
11. According to the records of the Company examined by us and the
information and explanations given to us, the Company has not defaulted
in repayment of dues to banks as per loan agreements or extended due
dates. There were no borrowings from any financial institutions or by
way of debentures.
12. According to the information and explanations given to us, the
Company has not granted loans and advances on the basis of security by
way of pledge of shares, debentures and other securities.
13. The provisions of any special statute applicable to chit
fund/nidhi/mutual benefit fund/societies are not applicable to the
Company.
14. According to the information and explanations given to us, the
Company is not a dealer or trader in shares, securities, debentures,
and other investments.
15. According to the information and explanations given to us, the
Company has not given any guarantee for loan taken by others from banks
or financial institutions.
16. In our opinion on an overall basis, and according to the
information and explanations given to us, the term loans taken during
the year were applied for the purpose for which the loans were
obtained.
17. According to the information and explanations given to us and on
an overall examination of the Balance Sheet of the Company, we report
that funds raised on short term basis have prima facie, not been used
during the year for long term investment.
18. 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
the Companies Act, 1956.
19. According to the information and explanations given to us, the
Company has not issued any 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.
20. The Company has not raised money by public issue during the year.
Accordingly, the provisions of clause (XX) of paragraph 4 of the
aforesaid Order are not applicable to the Company.
21. To the best of our knowledge and belief, and according to the
information and explanations given to us, no fraud on or by the Company
was noticed or reported during the year.
For J.G. VERMA & CO.
Chartered Accountants
Registration No. 111381W
J.G. VERMA
Partner
Mumbai, July 10, 2012 Membership No. 5005
