We have audited the accompanying financial statements of ADVANI HOTELS
& RESORTS (INDIA) LIMITED, (the Company) which comprise of
Balance Sheet as at 31st March, 2015, 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
The Company''s Board of Directors is responsible for the matters
stated in Section 134(5) of the Companies Act, 2013 (the Act)
with respect to 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
principles generally accepted in India, including the Accounting
Standards specified under the Section 133 of the Act, read with Rule 7
of the Companies (Accounts) Rules, 2014. This responsibility also
includes maintenance of adequate accounting records in accordance with
the provisions of the Act for safeguarding the assets of the Company
and for preventing and detecting frauds and other irregularities;
selection and application of appropriate accounting policies; making
judgments and estimates that are reasonable and prudent; and design,
implementation and maintenance of adequate internal financial controls,
that were operating effectively for ensuring the accuracy and
completeness of the accounting records, 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.
Our responsibility is to express an opinion on these financial
statements based on our audit.
We have taken into account the provisions of the Act, the accounting
and auditing standards and matters which are required to be included in
the audit report under the provisions of the Act and the Rules made
We conducted our audit in accordance with the Standards on Auditing
specified under Section 143(10) of the Act. 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 risk assessments, the
auditor considers internal financial control relevant to the
Company''s preparation of the financial statements that give a true
and fair view in order to design audit procedures that are appropriate
in the circumstances, but not for the purpose of expressing an opinion
on whether the Company has in place an adequate internal financial
controls system over financial reporting and the operating
effectiveness of such controls. An audit also includes evaluating the
appropriateness of the accounting policies used and the reasonableness
of the accounting estimates made by the Company''s Directors, 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 on the financial
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, of the state of affairs of the Company as at 31st March, 2015,
and its profit and its 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, 2015
(the Order) issued by the Central Government of India in terms of
sub-section (11) of section 143 of the Companies Act, 2013, we give in
the Annexure a statement on the matters specified in paragraphs 3 and 4
of the Order, to the extent applicable.
2. As required by section 143(3) of the Act, we report that:
(a) We have sought and 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
(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 aforesaid standalone financial statements
comply with the Accounting Standards specified under Section 133 of the
Act, read with Rule 7 of the Companies (Accounts) Rules, 2014.
(e) On the basis of written representations received from the directors
as on 31st March, 2015 taken on record by the Board of Directors, none
of the directors is disqualified as on 31st March, 2015 from being
appointed as a director in terms of Section 164 (2) of the Act.
(f) With respect to the other matters to be included in the Auditor''s
Report in accordance with Rule 11 of the Companies (Audit and Auditors)
Rules, 2014, in our opinion and to the best of our information and
according to the explanations given to us:
(i) The Company has disclosed the impact of pending litigations on its
financial position in its financial statements - Refer Note 26 (l) to
the financial statements.
(ii) The Company did not have any long-term contracts including
derivative contracts for which there were any material foreseeable
(iii) There has been no delay in transferring amounts, required to be
transferred, to the Investor Education and Protection Fund by the
ANNEXURE TO THE INDEPENDENT AUDITORS'' REPORT
The Annexure referred to in our report of even date to the members of
ADVANI HOTELS & RESORTS (INDIA) LIMITED for the year ended 31st March,
2015. We report that:
1. (a) The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed
(b) Some of the fixed assets were physically verified during the year
by the management in accordance with a phased programme of
verification, which in our opinion provides for physical verification
of all the fixed assets at reasonable intervals. No material
discrepancies between the books records and physical inventory have
2. (a) In our opinion, physical verification of inventories has been
conducted by the management at reasonable intervals.
(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 inventories and no
material discrepancies were noticed on physical verification.
3. The Company has not granted any loans, secured or unsecured to
companies, firms or other parties covered in the Register maintained
under section 189 of the Companies Act, 2013, hence our comments on the
receipt of the principal amount and interest and reasonable steps of
recovery of the overdue amount are not given.
4. 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 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, we have
neither come across nor have we been informed of any continuing failure
to correct any major weaknesses in internal control system.
5. The Company has not accepted any deposits from the public within the
meaning of Section 73 to 76 of the Companies Act, 2013 and the rules
framed there under. We are informed that the Company Law Board or
National Company Law Tribunal or Reserve Bank of India or any court has
not passed any Order.
6. The maintenance of cost records has not been prescribed for any of
the products of the Company under sub-section (1) of section 148 of the
7. (a) According to the records of the Company, the Company is
generally regular in depositing with appropriate authorities undisputed
statutory dues, including provident fund, employees'' state insurance,
income- tax, sales-tax, wealth-tax, service tax, customs duty, excise
duty, value added tax, cess and other material statutory dues
applicable to it. According to the information and explanations given
to us, there are no arrears of undisputed amounts payable in respect of
above statutory dues which were outstanding as at the last day of the
financial year for a period of more than six months from the date they
(b) According to the information and explanations given to us, 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, value added tax or cess except the following:
Name of the statute Nature of dues Amount