We have audited the accompanying financial statements of Hotel Rugby
Limited, which comprise the Balance Sheet as at 31st March, 2015, and
the Statement of Profit and Loss and Cash Flow Statement for the year
then ended 31st March, 2015, 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 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 of 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 there under.
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 ethical requirements and plan and perform the audit
to obtain reasonable assurance about whether the financial statements
are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and the 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. 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 subject to
note 5 for investment including non-Verification and Note 21 accounts
are prepared on going concern concept, give a true and fair view in
conformity with the accounting principles generally accepted in India:
a) In the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2015;
b) In the case of the Profit and Loss Account, of the loss for the year
ended on that date; and
c) In the case of the Cash Flow Statement, of the cash flows for the
year ended on that date. Report on Other Legal and Regulatory
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 Act, 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 those
c) The Balance Sheet, Statement of Profit and Loss, and Cash Flow
Statement dealt with'' by this Report are in agreement with the books of
d) In our opinion, the aforesaid financial Statement 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 31 March, 2015 and taken on record by the Board of Directors,
none of the directors is disqualified as on 31st March, 2015, as per
the certificate received by us, from being appointed as a director in
terms of section 164(2) of the Act.
f) With respect to the other matters included in the Auditor''s Report
and to the best of our information and according to explanation given
1. The Company has disclosed the impact of pending litigation on its
financial position in its financial statement-Refer Note 10 of the
2. The Company does not have any long-term contracts including
derivatives contracts for which there were any material foreseeable
3. During the current year, there is no amount which needs to be
transferred to the Investor Education and Protection Fund by the
ANNEXURE TO AUDITOR''S REPORT (Referred to our report of even date)
Annexure referred to in Point 1 of the Auditor''s Report of even date to
the members of M/s. Hotel Rugby Limited for the year ended 31st March
On the basis of such checks as we considered appropriate and the
information and explanations given to us during the course of the
audit, we state as under:
i) (a) There are no fixed assets of the company and therefore the
question of maintaining proper records showing full particulars,
including quantitative details and situation of fixed assets does
(b) Since there are no fixed assets, the question of its physical
verification and discrepancies with book records does not arise.
(c), Fixed Assets have been disposed off fully during the earlier
years, thus the going concern concept of the company is effected.
ii) In our opinion and according to the information and explanation
given to us the company do not have any inventories during the current
year and thus clause ii(a) pertaining to physical verification, clause
ii(b) pertaining to procedure of physical verification and clause ii(c)
regarding maintenance of proper record of inventories are not
iii) In our opinion and according to the information and explanation
given to us the company has not i granted unsecured loans, to
companies, firms or other parties covered in the register maintained
under section 189 of the Companies Act, 2013.
iv) In pur opinion and according to the information and explanation
given to us by the management, the internal control systems are
adequate with the size of the company and the nature of its business
and there are no purchase of inventory and fjxed assets and sale of
goods and services during the year except other Income.
v) There are no public deposit and therefore the directives issued by
the Reserve Bank of India and the provisions of sections 73 to 76 or
any other relevant provisions of the Act and the rules framed there
under are not applicable.
vi) To the best of our knowledge and as explained to us, maintenance of
cost records has not been prescribed by the Central Government under
sub section (1) of section 148 of the Companies Act.
vii) (a) There are no arrears for outstanding statutory dues as at the
last day of the financial year concerned for a period of more than six
months from the date they became payable.
(b) According to the information and explanation given to us and the
records of the company examined by us, there are no arrears as on
31.03.2015 of the disputes taxes except that various assessments under
Service Tax are pending finalization. The amount of interest & penalty
levied by the department from the period Oct, 2004 to July, 2006 is Rs.
7,07,394/- and Rs. 16,41,776 respectively.
viii) There are accumulated losses at the end of the financial year and
is more than fifty percent of the net worth. The company has incurred
cash loss in the current financial year and in the immediately
preceding financial year after appropriation items.
ix) Based on our audit procedures and the information and explanations
given by the management, we are of the opinion that the company has not
defaulted in repayment of dues to financial institutions and banks.
There are no Debenture holders of the company.
x) On the basis of the information and explanation given to us and
records produced before us, the company has not given any guarantee for
loans taken by others from bank or financial institutions.
xi) The company has not taken any term loan in current year; therefore
the question of applicability for the purpose for which the loan is
taken dose not arises.
xii) During the course of our examination of the books and records of
the company carried out in accordance with the generally accepted
auditing practices in India and according to the information and
explanation given to us, we have neither come across any instances of
fraud on or by the company, noticed or reported during the current
year, nor we have been informed of such case by the management.
For RKABRA &CO.
Place : Mumbai M. No. 104808
Date :29th May, 2015 FRN: 104502W