We have audited the accompanying financial statements of Howard Hotels
Limited (the Company), which comprise the Balance Sheet as at March
31, 2015, and the Statement of Profit and Loss and 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 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)
rule,2014.This responsibility also includes the maintenance of adequate
accounting records in accordance with the provisions of the Act for
safeguarding of the assets of the Company and for preventing the 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 internal
financial control 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 thereunder. 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 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 gives true and fair view in order to design
audit procedures that are appropriate in the circumstances. An audit
also includes evaluating the appropriateness of accounting policies
used and the reasonableness of the accounting estimates made by
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 a true and fair
view in conformity with the accounting principles generally accepted in
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 statement of the Profit and Loss, of the profit 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 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 Act, we give in the Annexure a
statement on the matters specified in paragraphs 3 and 4 of the Order.
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 statements comply with the
Accounting Standards specified under Section 133 of the Companies Act,
2013 read with Rule 7 of the Companies (Accounts) rules,2014
e) on the basis of written representations received from the directors
as on March 31, 2015, and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31,2015, 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 our best to our information and according to the explanations
given to us:
i) The Company does not have any pending litigations which would impact
its financial position.
ii) The Company did not have any long-term contracts, for which there
were any material foreseeable losses.
iii) There has been no delay in transferring amounts, required to be
transferred, to the investor Education and Protection Fund by the
ANNEXURE REFERRED TO IN OUR REPORT OF EVEN DATE TO THE MEMBERS OF HOWARD
HOTELS LIMITED FOR THE YEAR ENDED ON 31ST MARCH, 2015.WE REPORT THAT:
i) a) The company has maintained proper records showing full
particulars including quantitative details and situation of fixed
b) The Company has a regular programme of physical verification of its
fixed assets by which all fixed assets shall be verified in a phased
manner. Accordingly, the Company has carried out a physical
verification of fixed assets at the end of the current year. No
discrepancies were noted on such verification. In our opinion, this
periodicity of physical verification is reasonable having regard to the
size of the Company and the nature of its assets.
ii) a) As explained to us, the Inventory has been physically verified
by the management at regular intervals during the year.
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. No
discrepancies noticed on verification between the physical stocks and
the book records.
iii) The company has not granted any loan, secured or unsecured to
companies, firms or other parties covered in the register maintained
under section 189 of the Companies Act, 2013. Accordingly, the clauses
iii (a) & (b) of the order are not applicable.
iv) 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 with regard to purchase of inventory, fixed assets and with
regard to the sale of goods and services. During the course of our
audit, we have not observed any major weakness in internal controls.
v) In our opinion and according to the information and explanations
given to us, the company has not accepted any deposits from public
vi) To the best of our knowledge and as explained to us, the Central
Government has not prescribed maintenance of cost records under clause
of sub-section (!) of section 148 of the Companies Act, 2013 for the
services rendered by the Company.
vii) a) According to the information and explanations given to us and
according to the books and records produced before us, the company is
regular in depositing with appropriate authorities undisputed statutory
dues including provident fund, employees'' state insurance, income tax,
sales tax, wealth tax, service tax, value added taxes and other
statutory dues with the appropriate authority, as applicable to it.
b) According to the information and explanations given to us, there are
no dues of sales tax or income tax or wealth tax or service tax or
value added tax or cess which have not been deposited on account of any
dispute except as under;
Name of the Nature of Amount Period to which Forum where
Statute Dues (Rs. in Amount relates dispute is
Sales Tax Sales Tax 1.57 2009-10 to Sales Tax
Act Demand 2012-13 Appellate
Provident Provident 9.19 01/04/1996 to Asstt. /Regional
Fund Fund Penalty 31/01/2014 Commissioner,
c) According to the information and explanations provided to us, the
company is not required to transfer to investor education and
protection fund in accordance with the relevant provisions of the
Companies Act,1956 (1 of 1956) and rules made there under.
viii) In our opinion, the company does not have any accumulated losses.
The Company has not incurred cash losses during the financial year
covered by our audit and in the immediately preceding financial year.
ix) According to the books of accounts and records of the Company,
during the year under audit, the company has not defaulted in repayment
of dues to a financial institution, bank or debenture holders.
x) According to the information and explanations given to us, the
company has not given any guarantee or loans taken by others from banks
and financial institutions.
xi) According to the information and explanations given to us, the
company has not availed any term loans during the year under audit.
xii) 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 P. C. Bindal & Co.
Firm Registration Number:003824N
CA. Manushree Bindal
Place of Signature: Agra (U.P.) Partner
Date: 29.05.2015 M. No. 517316