1. We have audited the attached Balance Sheet of INDIAN RAILWAY
CATERING & TOURISM CORPORATION LIMITED, as at 31st March, 2011 and the
Profit and Loss Account and the Cash Flow Statement for the year ended
on that date, 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.
2. 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 the management as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
3. 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 we annex hereto a statement on
the matters specified in Paragraph 4 and 5 of the said Order.
4. Further to our comments in the Annexure referred to in paragraph 3
here above, we report that:-
(i) We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purpose of our
(ii) In our opinion, proper books of accounts as required by law have
been kept by the Company so far as appears from our examination of
(iii) The Balance Sheet, the Profit and Loss Account & Cash Flow
Statement dealt with by this report are in agreement with the books of
(iv) In our opinion, the Balance sheet, the Profit and Loss Account &
the Cash Flow Statement dealt with by this report comply with the
accounting standards referred to in sub-section (3C) of Section 211
of the Companies Act, 1956 to the extent applicable to the Company;
(v) The Company is a Government Company and the Directors have been
appointed by the Central Government. Hence clause (g) of sub-section
(1) of Section 274 of the Companies Act, 1956 is not applicable and
hence no comments.
In our opinion and to the best of our information & according to the
explanations given to us, the said Financial Statements read with the
notes thereon in Schedule 25 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
i. in the case of Balance Sheet, of the state of affairs of the
Company as at 31st March, 2011;
ii. in the case of the Profit and Loss Account, of the Profit 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.
ANNEXURE REFERRED TO IN PARAGRAPH 3 OF THE AUDITORS'' REPORT TO THE
MEMBERS OF INDIAN RAILWAY CATERING ANDTOURISM CORPORATION LIMITED
FORTHE YEAR ENDED 31st MARCH 2011.
i) a) The Company is maintaining proper records showing full
particulars including quantitative details and situation of its
b) There is an adequate system of physical verification, once a year by
the Management having regard to the size of the Company and the nature
of fixed assets. No material discrepancies have been noticed in respect
of the assets physically verified during the year by the management.
c) During the year, the company has not disposed off any substantial
part of its fixed assets; therefore, it does not affect the going
ii) a) According to information and explanation given to us the
inventories have been physically verified during the year.
No material discrepancies have been noticed.
b) In our opinion, the procedures of physical verification of inventory
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, in our
opinion, the Company is maintaining proper records of inventory.
iii) The Company has neither granted nor taken any loans, secured or
unsecured, to/from companies, firms or other parties covered in the
register maintained under Section 301 of the Act. Hence no further
comments are required under clauses (a) to (g) of para 4 (iii) of CARO,
iv) In our opinion and according to the information and explanations
given to us, there is adequate internal control procedure commensurate
with the size of the Company and nature of its business, for purchase
of inventory and fixed assets and for providing of services. Further,
on the basis of our examination and according to the information and
explanations given to us, we have not observed any continuing failure
or major weaknesses which need to be corrected in internal control
v) Based on our examination and according to the information and
explanations given to us, we are of the opinion that there were no
transactions during the year that need to be entered in the Register
maintained under Section 301 of the Companies Act 15356.
vi) Based on our scrutiny of the company''s record & according to the
explanations given to us by the management, the Company has not
accepted any deposits from public during the year.
vii) The internal audit of the Company is being carried out by a firm
of Chartered Accountants. The scope given is commensurate with the size
and nature of company''s business.
viii) As informed to us the Central Government has not prescribed
maintenance of cost records under section 209 (1) (d) of the Companies
ix) a) As informed to us, and based on our examination of records and
explanations given to us, the Company has been regular in depositing
undisputed statutory dues including Income Tax, Sales Tax, Service Tax,
Wealth Tax, Custom Duty and Excise Duty whichever is applicable with
the appropriate authorities and there were no arrears outstanding of
statutory dues as at the last day of financial year for a period of
more than six months from the date they became payable.
b) According to the information made available to us, following are the
amounts which have not been deposited because of disputes:
Statute Amount (in lacs) Forum at which dispute is pending
Service Tax 239.03 Commissioner of service tax
Service Tax 169.06 Commissioner of service tax
Service Tax 19.18 Commissioner (Appeals)
Income Tax 30.69 Commissioner (Appeals)
Income Tax 7.33 ITAT
VAT 15.82 CTO, Hyderabad
x) The Company does not have any accumulated losses. The Company has
not incurred cash losses during the financial year ended 31st March,
2011 and in the immediately preceding financial year.
xi) In our opinion and according to information and explanations given
to us, the Company has not defaulted in repayment of dues to financial
institution. The Company has not issued any debentures.
xii) The Company has not granted loan and advances on the basis of
security by way of pledge of shares, debentures and other securities.
xiii) The Company is not a chit fund company, nidhi/mutual benefit
fund/societies, therefore, no comment is required to be given under
para 4 (xiii) of CARO, 2003.
xiv) The Company is not dealing or trading in any shares, securities,
debentures and other Investments. Accordingly the provisions of clause
4 (xiv) of CARO is not applicable to the company.
xv) The Company has not given any guarantee for loans taken by others
from banks or financial institutions.
xvi) In our opinion and according to information and explanations given
to us, the company has not raised any loans.
xvii) On the basis of information and explanations given to us, and on
an overall examination of the financial statements of the company, no
funds have been raised on short-term basis. Hence, no comments
xviii) According to the information and explanation given to us, during
the period covered by our audit report, the company has not made
preferential allotment of shares to parties and companies covered in
the register maintained under Section 301 of the Companies Act, 1956.
xix) The Company has not issued any debentures, therefore, no comment
is required to be given under para 4 (xix) of CARO, 2003.
xx) The Company has not raised any money by public issue, therefore, no
comment is required to be given under para 4 (xx) of CARO, 2003.
xxi) According to the information and explanations given to us by the
management, no fraud on the company or by the Company has been noticed
during the year.
For Bhushan Bensal Jain Associates
Chartered Accountants FRN:003884N
(CA. Ravi Bhardwaj)
Partner Membership No. 80656
Place: New Delhi
Date : 2nd September 2011