REPORT ON THE FINANCIAL STATEMENTS
We have audited the accompanying financial statements of ADVANI HOTELS
& RESORTS (INDIA) LIMITED, (the Company) which comprise of Balance
Sheet as at 31st March, 2013, 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 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 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 the
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of
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 risks assessments, the auditor considers
internal control relevant to the Company''s preparation and fair
presentation of the financial statements in order to design audit
procedure that are appropriate in the circumstances. An audit also
includes evaluating the appropriateness of accounting principles used
and the reasonableness of the accounting estimates made by the
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.
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:
(i) in the case of the Balance Sheet, of the state of the affairs of
the Company as at 31st March, 2013;
(ii) in the case of the 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 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 (the
Order), as amended, issued by the Central Government of India in terms
of sub-section (4A) of Section 227 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 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
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 dealt with by this report, comply with the
applicable Accounting Standards referred to in sub-section (3-C) of
Section 211 of the Companies Act, 1956; and
(e) 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, 2013 from being appointed as a Director under Clause (g) of
sub-section (1) of Section 274 of the Act.
ANNEXURE TO THE INDEPENDENT AUDITORS'' REPORT
Referred to in our Report of even date to the members of ADVANI HOTELS
& RESORTS (INDIA) LIMITED on the financial statements for the year
ended 31st March, 2013. We report that:
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. In our opinion 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) the
transactions made in pursuance of contracts and arrangements referred
to in (a) above and exceeding the value of Rupees Five lacs with any
party during the year have been made at prices which are reasonable
having regard to the prevailing market prices at the relevant time.
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, 2013 which were
outstanding for a period of more than six months from the date they
became payable.
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, May 13, 2013 Membership No. 5005
